Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to a special resident if:
(a) the resident is a member of an ordinary couple with different principal homes; and
(b) the principal home of the resident's partner is not a special residence; and
(c) the partner does not have a right or interest in the partner's principal home that is to be disregarded because of paragraph 1118(1)(b).
Entry contribution above extra allowable amount
(2) If:
(a) this section applies to a special resident; and
(b) the resident's entry contribution was more than the amount that would be the extra allowable amount if the resident were not a member of a couple;
then, for the purposes of this Act, the resident and the partner are each to be taken to have a right or interest in a principal home to which paragraph 1118(1)(b) applies.
Entry contribution equal to or below extra allowable amount
(3) If:
(a) this section applies to a special resident; and
(b) the resident's entry contribution was equal to or less than the amount that would be the extra allowable amount if the resident were not a member of a couple;
then, the following provisions apply for the purposes of the application of this Act to the resident and to the resident's partner:
(c) both the resident, and the partner, are to be taken not to have a right or interest in relation to the resident's principal home; and
(d) the resident's assets are to be taken to include an asset whose value is equal to the amount of the resident's entry contribution.
(4) Subsection (3) applies:
(a) whether or not the resident actually has any right or interest in the resident's principal home; and
(b) whatever the value of any right or interest that the resident does have in the resident's principal home; and
(c) whether or not the partner actually has any right or interest in the resident's principal home; and
(d) whatever the value of any right or interest that the partner does have in the resident's principal home.
No. 46, 1991
Compilation No. 222
Compilation date: 14 October 2024
Includes amendments: Act No. 38, 2024
This compilation is in 6 volumes
Volume 2: sections 540- 1061ZUC
Volume 3: sections 1061ZVAA- 1157
Volume 4: sections 1157A- 1263
Schedule 1A
Volume 5: Endnotes 1-4
Volume 6: Endnote 5
Each volume has its own contents
This compilation
This is a compilation of the Social Security Act 1991 that shows the text of the law as amended and in force on 14 October 2024 (the compilation date ).
The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self - repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Chapter 3--General provisions relating to payability and rates
Part 3.12A--Provisions for carer allowance and seniors health card income test
Division 1--Purpose of this Part
1157A Purpose of Part
Division 2--Benefits that may be assessable fringe benefits
1157B Benefits received in or outside Australia
1157C Car benefits
1157D Exempt car benefits
1157E School fees benefits
1157F Health insurance benefits
1157G Loan benefits
1157H Exempt loan benefit
1157I Housing benefits
1157J Exempt housing benefits--live - in residential care workers
1157JA Expense benefits
1157JB Exempt expense benefit
1157JC Financial investment benefit
Division 3--Value of car fringe benefits
1157K Method of valuing car fringe benefits
1157L Value of car fringe benefits
1157M Minister may determine alternative method of valuing car fringe benefits
Division 4--Value of school fees fringe benefits
1157N Value of school fees fringe benefits
Division 5--Value of health insurance fringe benefits
1157O Value of health insurance fringe benefits
Division 6--Value of loan fringe benefits
1157P Method of valuing loan fringe benefits
1157Q Value of loan fringe benefits
1157R Minister may determine alternative method of valuing loan fringe benefits
Division 7--Value of housing fringe benefits
Subdivision A--Grants of housing rights
1157S Methods of valuing housing fringe benefits--grants of housing rights
1157T Value of grants of housing rights--general
1157TA Value of grants of housing rights--employees of the Defence Force
Subdivision B--Payments associated with loans
1157TB Method of valuing housing fringe benefits--payments associated with loans
1157TC Value of payments associated with loans
Subdivision C--Payments associated with enjoying housing rights
1157TD Methods of valuing housing fringe benefits--payments associated with enjoying housing rights
1157TE Value of payments associated with enjoying housing rights--general
1157TF Value of payments associated with enjoying housing rights--employees of the Defence Force
Subdivision D--Alternative methods of valuing housing fringe benefits
1157U Minister may determine alternative method of valuing housing fringe benefits
Division 8--Value of expense fringe benefit
1157UA Value of expense fringe benefits
Division 9--Value of financial investment fringe benefit
1157UB Value of financial investment fringe benefit
Division 10--Foreign currency rates
1157V Foreign currency rates
Part 3.13--Imprisonment
1158 Some social security payments not payable during period in gaol or in psychiatric confinement following criminal charge
1159 Payment may be redirected to dependent partner or child
1159A Person not qualified for some concession cards when in gaol or in psychiatric confinement following criminal charge
Part 3.14--Compensation recovery
Division 1--General
1160 General effect of Part
1161 Application of Part
1161A Application of Part to supplementary compensation affected payments
1162 Part to bind Crown
1163 Interpretation
1164 Certain lump sums to be treated as though they were received as periodic compensation payments
1165 Effect of certain State and Territory laws
Division 2--Enforcement of compensation rights
1166 Secretary may require person to take action to obtain compensation
1167 Failure to comply with a requirement to take action to obtain compensation
Division 3--Receipt of compensation
1168 Application
1169 Compensation affected payment not payable during lump sum preclusion period
1170 Lump sum preclusion period
1171 Deemed lump sum payment arising from separate payments
1172 Lump sum compensation not counted as ordinary income
1173 Effect of periodic compensation payments on rate of person's compensation affected payment
1174 Effect of periodic compensation payments on rate of partner's compensation affected payment
1175 Rate reduction under both income/assets test and this Part
1176 Periodic compensation not counted as ordinary income
Division 4--Recoverable amounts
Subdivision A--Preliminary
1177 Interpretation
Subdivision B--Recovery from recipient of compensation affected payment
1178 Repayment of amount where both lump sum and payments of compensation affected payment have been received
1179 The section 1178 recoverable amount
1180 Repayment where both periodic compensation payments and payments of compensation affected payment have been received
1181 The section 1180 recoverable amount
Subdivision C--Recovery from compensation payers and insurers
1182 Secretary may send preliminary notice to potential compensation payer or insurer
1183 Potential compensation payer or insurer must notify Secretary of liability
1184 Secretary may send recovery notice to compensation payer or insurer
1184A The section 1184 recoverable amount
1184B Preliminary notice or recovery notice suspends liability to pay compensation
1184C Compensation payer's or insurer's payment to Commonwealth discharges liability to compensation claimant
1184D Offence to make compensation payment after receiving preliminary notice or recovery notice
1184E Liability of compensation payer or insurer to pay the Commonwealth if there is a contravention of section 1184D
Division 5--Recoverable debts
1184F Debts resulting from notices under section 1178 or 1180
1184G Debts resulting from notices under section 1184
1184H Debts resulting from contravention of section 1184D
1184I Compensation arrears debts
Division 6--Miscellaneous
1184J Secretary may give recovery notice either to compensation payer or to insurer but not to both
1184K Secretary may disregard some payments
1184L Application to review compensation decision--disability support pension
Part 3.15--Self - employment programs
1186 General effect of Part
1187 Reduction in rate of payments under this Act if recipient or partner also receiving payments under a self - employment program
1188 Rate reduction under this Part
Part 3.16--Indexation and adjustment of amounts
Division 1--Preliminary
1189 Analysis of Part
1190 Indexed and adjusted amounts
Division 2--CPI indexation
1191 CPI Indexation Table
1192 Indexation of amounts
1193 Indexation factor
1194 Rounding off indexed amounts
1195 Certain indexed amounts to be increased in line with increases in Male Total Average Weekly Earnings
Division 3--Social security pension indexation using Pensioner and Beneficiary Living Cost Index
1196 Social security pension indexation using Pensioner and Beneficiary Living Cost Index
1197 Living cost indexation factor
1198 Rounding off amounts
Division 4--Adjustment of other rates
1198A Adjustment of single pension rate MBR amounts
1198B Adjustment of disability support pension (under 21) MBRs
1198C Adjustment of youth disability supplement
1203 Adjustment of pension "single non - homeowner" AVL
1204 Adjustment of benefit AVLs
1205 Adjustment of special illness separated special resident AVL
1206A Adjustment of certain pharmaceutical allowance rates
1206B Adjustment of certain telephone allowance rates
Part 3.16A--Advance payment deductions
1206H Advance payment deduction
1206J Amount of advance payment deduction--basic calculation
1206K Person may request larger advance payment deduction
1206L Reduction of advance payment deduction in cases of severe financial hardship
1206M The final advance payment deduction
1206N Provisional payment rate insufficient to cover advance payment deduction
1206P Rounding of amounts
Part 3.16B--Special employment advance deductions
1206Q Special employment advance deduction
1206R Amount of special employment advance deduction--basic calculation
1206S Person may request larger special employment advance deduction
1206T Reduction of special employment advance deduction in cases of severe financial hardship
1206U The final special employment advance deduction
1206V Provisional payment rate insufficient to cover special employment advance deduction
1206W Rounding of amounts
Part 3.18--Means test treatment of private companies and private trusts
Division 1--Introduction
1207 Simplified outline
1207A Definitions
1207B Relatives
1207C Associates
1207D When a company is sufficiently influenced by an entity
1207E Majority voting interest in a company
1207F Entitled to acquire
1207G Transfer of property or services
1207H Constructive transfers of property or services to an entity
1207J Active involvement with a primary production enterprise
1207K Power to veto decisions of a trustee
1207L Extra - territorial operation
1207M Application to things happening before commencement
Division 2--Designated private companies
1207N Designated private companies
Division 3--Designated private trusts
1207P Designated private trusts
Division 4--Controlled private companies
1207Q Controlled private companies
1207R Direct voting interest in a company
1207S Voting power
1207T Direct control interest in a company
1207U Interest in a share
Division 5--Controlled private trusts
1207V Controlled private trusts
1207W Interest in a trust
Division 6--Attributable stakeholders and attribution percentages
1207X Attributable stakeholder, asset attribution percentage and income attribution percentage
Division 7--Attribution of income of controlled private companies and controlled private trusts
1207Y Attribution of income
1207Z No double counting of attributed income
1208 Ordinary income of a company or trust
1208A Ordinary income from a business--treatment of trading stock
1208B Permissible reductions of business and investment income
1208C Derivation periods
1208D Attribution periods
Division 8--Attribution of assets of controlled private companies and controlled private trusts
1208E Attribution of assets
1208F When attributed asset is unrealisable
1208G Effect of charge or encumbrance on value of assets
1208H Effect of unsecured loan on value of assets
1208J Value of company's or trust's assets etc.
Division 9--Modification of asset deprivation rules
1208K Individual disposes of asset to company or trust
1208L Disposal of asset by company or trust
1208M Individual ceases to be an attributable stakeholder of a company or trust
1208N Individual disposes of asset to company or trust before 1 January 2002--individual is attributable stakeholder
1208P Individual disposes of asset to company or trust before 1 January 2002--individual's spouse is attributable stakeholder
Division 10--Modification of income deprivation rules
1208Q Individual disposes of ordinary income to company or trust
1208R Disposal of income by company or trust
1208S Individual disposes of income to company or trust before 1 January 2002--individual is attributable stakeholder
1208T Individual disposes of income to company or trust before 1 January 2002--individual's spouse is attributable stakeholder
Division 11--Concessional primary production trusts
1208U Concessional primary production trusts
1208V Individual ceases to be an attributable stakeholder of trust--receipt of remuneration or other benefits from trust during asset deprivation period
1208W Net value of asset
1208X Value of entity's assets
1208Y When asset is controlled by an individual
1208Z Adjusted net value of asset
1209 Adjusted net primary production income
1209A Net income of a primary production enterprise
1209B Net income from a primary production enterprise--treatment of trading stock
1209C Permissible reductions of income from carrying on a primary production enterprise
Division 12--Anti - avoidance
1209D Anti - avoidance
Division 13--Decision - making principles
1209E Decision - making principles
Division 14--Information management
1209F Transitional period
1209G Information - gathering powers
1209H Secretary may obtain tax information
1209J Disclosure of tax information
1209K Disclosure of tax file number information
Part 3.18A--Private financial provision for certain people with disabilities
Division 1--Special disability trusts
1209L What is a special disability trust ?
1209M Beneficiary requirements
1209N Trust purpose requirements
1209P Trust deed requirements
1209Q Trustee requirements
1209R Trust property requirements
1209RA Trust expenditure requirements
1209S Reporting requirements
1209T Audit requirements
1209U Waiver of contravention of this Division
Division 2--Income of special disability trusts
1209V Attribution of income
1209X Income amounts from special disability trusts
Division 3--Assets of special disability trusts
1209Y Attribution of assets
Division 4--Transfers to special disability trusts
1209Z Effect of certain transfers to special disability trusts
1209ZA The effect of exceeding the $500,000 limit
1209ZB Transfers by the immediate family members prior to reaching pension age etc.
1209ZC Transfers by principal beneficiaries or partners
1209ZD Cessation of special disability trusts
1209ZE Effect of this Division
Part 3.19--Miscellaneous
1210 Application of income and assets test reductions and of compensation reductions for income tax purposes
1210A Effect of nil rate of pension etc.
Chapter 4--International agreements and portability
Part 4.2--Overseas portability
Division 1--Preliminary
1211 Social Security (International Agreements) Act overrides Part
1212 Meaning of terms used in this Part
1212A Meaning of acute family crisis
1212B Meaning of humanitarian purpose
1212C Meaning of temporary absence
1212D Part does not affect need for qualification
Division 2--Portability of social security payments
Subdivision A--Basic portability provisions
1213 Persons to whom Division applies
1214 Some payments generally portable with no time limit
1215 Some payments generally portable with time limit
1216 Amounts added to rate
1217 Meaning of maximum portability period , allowable absence and portability period
Subdivision B--Exceptions to Subdivision A rules
1218AAA Unlimited portability period for disability support pension--severely impaired disability support pensioner
1218AA Unlimited portability period for disability support pension--terminally ill overseas disability support pensioner
1218AB Extended portability period for disability support pension
1218 Exception--full - time students outside Australia for purposes of Australian course
1218A Exception--Reserve service
1218B Exception--waiting period in Australia before parenting payment is portable
1218BA Exception--new apprentices
1218C Extension of person's portability period--general
1218D Extension of person's portability period--life - saving medical treatment overseas
1220 No portability where claim based on short residence
Division 3--Rate of portable pensions
1220A Proportionality--age pension rate
1220B Proportionality--disability support pension rate for a severely disabled person
1221 Pension Portability Rate Calculator
Pension Portability Rate Calculator
Module A--Overall rate calculation process
Module B--Australian working life residence
Module C--Residence factor
Chapter 5--Overpayments and debt recovery
Part 5.1--Effect of Chapter
1222 General effect of Chapter
Part 5.2--Amounts recoverable under this Act
1222A Debts due to the Commonwealth
1223 Debts arising from lack of qualification, overpayment etc.
1223A Debt resulting from commutation of asset - test exempt income stream contrary to subsection 9A(2), 9B(2) or 9BA(2)
1223AA Debts arising from prepayments and certain other payments
1223AB Debts arising from ART stay orders
1223ABAA Debts arising in respect of one - off payments to older Australians
1223ABA Debts arising in respect of one - off payments to carers
1223ABAAA Debts arising in respect of economic security strategy payments
1223ABAAB Debts arising in respect of training and learning bonuses etc.
1223ABB Debts in respect of child disability assistance
1223ABC Debts in respect of carer supplement for 2009
1223ABD Debts in respect of carer supplement for 2010 and later years
1223ABE Debts in respect of relocation scholarship payments
1223ABF Debts in respect of student start - up loans
1223ABG Debts in respect of one - off energy assistance payments
1223ABH Debts in respect of 2019 one - off energy assistance payments
1223ABI Debts in respect of first 2020 economic support payments
1223ABJ Debts in respect of second 2020 economic support payments
1223ABK Debts in respect of additional economic support payment 2020
1223ABL Debts in respect of additional economic support payment 2021
1223ABM Debts in respect of 2022 cost of living payment
1224 Debts relating to clean energy advances
1224A Debts relating to essential medical equipment payments
1224AA Person other than payee obtaining payment of a cheque
1224AB Joint and several liability for persons involved in contravention of Act
1224B Education entry payment debt
1224C Data - matching Program (Assistance and Tax) Acts debts
1224D Mobility allowance advance debts
1224E Debts arising from advance payments of social security entitlements
1224EA Debts arising from special employment advances of special employment advance qualifying entitlements
1227 Assurance of support debt
1227B Debts arising under Part 8 of the Student Assistance Act 1973 as in force before 1 July 1998
1228 Overpayments arising under other Acts and schemes
1228A Comparable foreign payment debt recovery
1228B Additional 10% penalty for understatement etc. of income
1229 Notices in respect of debt
1229A Interest charge--no repayment arrangement in effect
1229B Interest charge--failure to comply with or termination of repayment arrangement
1229C Other rules for interest charge
1229D What is the interest charge rate ?
1229E Exemption from interest charge--general
1229F Exemption from interest charge--Secretary's determination
1229G Guidelines on interest charge provisions
1230 Debt from failure to comply with garnishee notice
1230A Debt from failure before 1 July 1991 to comply with garnishee notice under the 1947 Act
1230B Overseas application of provisions
1230C Methods of recovery of debt
Part 5.3--Methods of recovery
1231AA Application of sections dealing with deductions
1231 Deductions from debtor's pension, benefit or allowance
1232 Legal proceedings
1233 Garnishee notice
1234 Arrangement for payment of debt
1234AA Recovery of amounts from financial institutions
1234A Deductions by consent from social security payment of person who is not a debtor
1234B No time limit on debt recovery action
Part 5.4--Non - recovery of debts
1235 Meaning of debt
1236 Secretary may write off debt
1236A Application
1237 Power to waive Commonwealth's right to recover debt
1237A Waiver of debt arising from error
1237AA Waiver of debt relating to an offence
1237AAA Waiver of small debt
1237AAB Waiver in relation to settlements
1237AAC Waiver where debtor or debtor's partner would have been entitled to an allowance
1237AAD Waiver in special circumstances
1237AAE Extra rules for waiver of assurance of support debts
1237AB Secretary may waive debts of a particular class
Part 5.5--Departure prohibition orders
Division 1--Secretary may make departure prohibition orders
1240 Secretary may make departure prohibition orders
Division 2--Departure from Australia of debtors prohibited
1241 Departure from Australia of debtors prohibited
Division 3--Other rules for departure prohibition orders
1242 Notification requirements for departure prohibition orders
1243 Operation of departure prohibition order
1244 Revocation and variation of departure prohibition orders
1245 Notification requirements for revocations and variations
Division 4--Departure authorisation certificates
1246 Application for departure authorisation certificate
1247 When Secretary must issue departure authorisation certificate
1248 Security for person's return to Australia
1249 What departure authorisation certificate must authorise
1250 Notification requirements for departure authorisation certificates
1251 Notification requirements for substituted days
Division 5--Appeals and review in relation to departure prohibition orders and departure authorisation certificates
1252 Appeals to courts against making of departure prohibition orders
1253 Jurisdiction of courts
1254 Orders of court on appeal
1255 Review of decisions
Division 6--Enforcement
1256 Powers of officers of Customs and members of the Australian Federal Police
1257 Privilege against self - incrimination
1258 Production of authority to depart
Division 7--Interpretation
1259 Interpretation--departure from Australia for foreign country
1260 Meaning of Australia
Chapter 6--Modification of social security law
1261 Simplified outline of this Chapter
1262 Minister may determine modifications of social security law
1263 Period that determination is in force and variation and revocation
Schedule 1A--Savings and transitional provisions
Part 1--General
1 Correspondence of pensions, benefits and allowances
2 Correspondence of provisions
2A References in other Acts and instruments to provisions of the 1947 Act
Part 2--Savings and Transitional Provisions Applicable on the Transition from the 1947 Act to this Act
Division 4--Continuation of earlier savings provisions
28 Rent assistance--retirement village residents (changes introduced on 13 June 1989)
Part 3--Saving and Transitional Provisions Applicable after the Commencement of this Act
36 Incentive allowance (changes introduced on 12 November 1991)
63 Rent assistance (changes introduced on 20 March 1993)
74 Partner allowance for persons born on or before 1 July 1955 (changes made on 1 July 1995)
86 Transitional and saving provisions applicable to the amendments relating to the pension loans scheme
88 Saving: Determinations under repealed sections 1099E and 1099L
96A Application of revised Schedule 1B
103 Application provision: income maintenance periods
105 Application and saving provisions: debts due to the Commonwealth and their recovery
105A Parenting payment (changes introduced 20 March 1998)
115 Persons under 21 receiving newstart allowance or sickness allowance on 17 June 1997
126 Application and transitional provisions relating to fares allowance
128 Saving provision--portability rules relating to rates of pension
128A Saving of certain pensions payable under 1986 Agreement between Australia and Italy
130 Saving provision--other portability rules
131 Certain payments not recoverable
132 Saving--ABSTUDY recipients
133 Meaning of Australian resident
134 Transitional and saving provisions--substitution of Part 3.14
135 Unlimited maximum portability period for disability support pension
136 Transitional definition of deductible amount (commencing 1 July 2007)
137 Application--general
138 Application--subsections 198AA(1) and (3)
139 Application--subsection 955(2)
139A Application--general
139B Application--sections 198AAA and 198AB
139C Application--subsections 731J(2) and (6)
139D Saving--principal beneficiary of a special disability trust
140 Person whose carer payment was cancelled on or after 1 July 2008 and before 1 July 2010
141 Saving--profoundly disabled child and disabled child
142 Person whose special benefit was cancelled on or after 1 July 2008 and before 1 July 2010
143 Saving--profoundly disabled child and disabled child
144 Saving and transitional provisions for section 93H
145 Saving provision for income test taper rate for disability support pensioners under 21 without dependent children
146 Transitional provision for rates of certain social security pensions on and after 20 September 2009
147 Amounts for subparagraph 146(4)(a)(i)
148 Rate of social security payments to partners of persons affected by clause 146
149 Payment and income tax consequences of receiving social security pension at rate affected by clause 146
150 Persons exempt from requirement to be Australian residents to qualify for disability support pension