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SOCIAL SECURITY ACT 1991 - SECT 198N

Exemption from care receiver assets test

Application by parent or carer of sole care child

       (1AA)  Subsections (2), (3), (4), (5) and (6) have effect if:

                     (a)  subparagraph 197B(4)(d)(i) or 197E(5)(d)(i) would disqualify from carer payment a person caring for a care receiver who is a sole care child; and

                     (b)  the parent or the carer of the care receiver lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

                     (c)  the request includes a written estimate of the taxable income of the care receiver for the current financial year under subsection 198B(3); and

                     (d)  the Secretary accepts the estimate under subsection 198B(4).

Application by parent or carer of combined care children

       (1AB)  Subsections (2), (3), (4), (5) and (6) have effect if:

                     (a)  subparagraph 197C(4)(d)(i) would disqualify from carer payment a person caring for 2 or more care receivers each of whom is a combined care child; and

                     (b)  the parent or the carer of any of the care receivers lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

                     (c)  the request includes written estimates of the taxable incomes of the care receivers for the current financial year under subsection 198B(3); and

                     (d)  the Secretary accepts the estimate under subsection 198B(4).

Application by lower ADAT score adult (multiple care child or children)

       (1AC)  Subsections (2), (3), (4), (5) and (6) have effect if:

                     (a)  subparagraph 197D(4)(d)(i) would disqualify from carer payment a person caring for care receivers who are a lower ADAT score adult and one or more multiple care children; and

                     (b)  the lower ADAT score adult lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

                     (c)  the request includes written estimates of the taxable incomes of the lower ADAT score adult and each child under subsection 198B(3A); and

                     (d)  the Secretary accepts the estimate under subsection 198B(4).

Application by higher ADAT score adult

             (1)  If:

                     (a)  subparagraph 198(5)(d)(i) would disqualify for carer payment a person caring for a care receiver who is a higher ADAT score adult; and

                     (b)  the higher ADAT score adult lodges with the Department, in a form approved by the Secretary, a request that the adult not be disqualified by that subparagraph; and

                     (c)  the request includes a written estimate of the higher ADAT score adult's taxable income for the current financial year under subsection 198B(3); and

                     (d)  the Secretary accepts the estimate under subsection 198B(4);

subsections (2), (3), (4), (5) and (6) have effect.

Application by lower ADAT score adult

          (1B)  If:

                     (a)  subparagraph 198(5)(d)(i) would disqualify from carer payment a person caring for care receivers who are a lower ADAT score adult and a dependent child; and

                     (b)  the lower ADAT score adult lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

                     (c)  the request includes written estimates of the taxable incomes of the lower ADAT score adult and the dependent child under subsection 198B(3); and

                     (d)  the Secretary accepts the estimate under subsection 198B(4);

subsections (2), (3), (4), (5) and (6) have effect.

Failing assets test but passing special income test

             (2)  The Secretary may decide that subparagraph 197B(4)(d)(i), 197C(4)(d)(i), 197D(4)(d)(i), 197E(5)(d)(i) or 198(5)(d)(i) does not disqualify the person from carer payment if:

                     (a)  the value of the assets of the care receiver or the sum of the values of the assets of the care receivers is more than $410,000 but not more than $608,500; and

                     (b)  the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is less than the liquid assets limit; and

                     (c)  the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is less than the threshold amount worked out under subsection (6).

Note 1:       The amounts specified in paragraph (2)(a) are indexed each year on 1 January (see sections 1190 and 1191).

Note 2:       For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3:       For liquid assets see subsection 19B(1).

Note 4:       For liquid assets limit see paragraph (5)(b).

Note 5:       For accepted estimated taxable income see subsection 198B(5).

Failing assets and special income tests

             (3)  The Secretary may decide that subparagraph 197B(4)(d)(i), 197C(4)(d)(i), 197D(4)(d)(i), 197E(5)(d)(i) or 198(5)(d)(i) does not disqualify the person from carer payment if the value of the assets of the care receiver, or the sum of the values of the assets of the care receivers, is more than $410,000 and not more than $608,500 and:

                     (a)  the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is equal to or greater than the liquid assets limit; or

                     (b)  the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is equal to or more than the threshold amount worked out under subsection (6).

Note 1:       The amounts specified in subsection (3) are indexed each year on 1 January (see sections 1190 and 1191).

Note 2:       For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3:       For liquid assets see subsection 19B(1).

Note 4:       For liquid assets limit see paragraph (5)(b).

Note 5:       For accepted estimated taxable income see subsection 198B(5).

Failing assets test by large margin but passing special income test

             (4)  The Secretary may decide that subparagraph 197B(4)(d)(i), 197C(4)(d)(i), 197D(4)(d)(i), 197E(5)(d)(i) or 198(5)(d)(i) does not disqualify the person from carer payment if:

                     (a)  the value of the assets of the care receiver, or the sum of the values of the assets of the care receivers, is more than $608,500; and

                     (b)  the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is less than the liquid assets limit; and

                     (c)  the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is less than the threshold amount worked out under subsection (6).

Note 1:       The amount specified in paragraph (4)(a) is indexed each year on 1 January (see sections 1190 and 1191).

Note 2:       For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3:       For liquid assets see subsection 19B(1).

Note 4:       For liquid assets limit see paragraph (5)(b).

Note 5:       For accepted estimated taxable income see subsection 198B(5).

Definitions--assets and income

             (5)  For the purposes of this section:

                     (a)  the value of the assets or liquid assets of a care receiver who is a higher ADAT score adult is the sum of the values of the assets or liquid assets (as the case requires) of the following people:

                              (i)  the care receiver;

                             (ii)  if the care receiver has a partner--the partner;

                            (iii)  if the care receiver or the care receiver's partner has one or more FTB children--those FTB children; and

                    (aa)  the value of the liquid assets of a care receiver who is a sole care child, combined care child or multiple care child is the sum of the values of the liquid assets of the following people:

                              (i)  the care receiver;

                             (ii)  if the care receiver lives with his or her parent--the parent;

                            (iii)  if the parent with whom the care receiver lives is a member of a couple--the parent's partner;

                            (iv)  if the parent with whom the care receiver lives or the parent's partner has one or more FTB children--those FTB children.

                            However, if the care receiver is one of 2 or more care receivers each of whom is a combined care child or a multiple care child, liquid assets of the same person are not to be taken into account in respect of any of the other care receivers; and

                   (ab)  the value of the liquid assets of a care receiver who is a lower ADAT score adult is the sum of the values of the liquid assets of the following people:

                              (i)  the care receiver;

                             (ii)  if the care receiver is a member of a couple--the care receiver's partner and any FTB child (except the child who is the other care receiver or the children who are the other care receivers) of the care receiver or the care receiver's partner;

                            (iii)  if the care receiver is not a member of a couple--any FTB child (except the child who is the other care receiver or the children who are the other care receivers).

                            However, liquid assets of the same person are not to be taken into account in respect of any of the other care receivers; and

Note:       The value of the liquid assets of the child who is the other care receiver or the children who are the other care receivers is not adjusted by adding any other person's liquid assets.

                     (b)  the liquid assets limit is $10,000 if the care receiver or any of the care receivers is a member of a couple, or $6,000 if not; and

                     (c)  the taxable income of a care receiver or of any of 2 or more care receivers for a particular financial year is the taxable income of the care receiver for that year as worked out under section 198B.

Note 1:       For liquid assets see subsection 19B(1).

Note 2:       Subsections 198D(1B), (1D) and (1DB) provide that if a sole care child, a combined care child or a multiple care child lives with a parent, the assets listed in subsection 198D(1A) and paragraphs 198D(1C)(b) and (1DA)(c) are taken to be assets of the child.

Note 3:       For subparagraph (5)(aa)(ii), see also subsection 197F(5).

Working out the threshold amount

             (6)  For the purposes of paragraphs (2)(c), (3)(b) and (4)(c), the threshold amount is the amount worked out using the following formula:

where:

"MBR" is the maximum basic rate of age pension payable, as at the last 1 January, to a person who has a partner.

"FPC" is:

                     (a)  in the case of a care receiver who is a higher ADAT score adult--the number of FTB children of the care receiver or the care receiver's partner (if the care receiver has a partner); or

                     (b)  in the case of a care receiver who is a sole care child who lives with his or her parent--the number of FTB children of the parent or the parent's partner (if the parent has a partner); or

                     (c)  in the case of a care receiver who is a sole care child who does not live with his or her parent--0; or

                     (d)  in the case of care receivers who are 2 or more combined care children:

                              (i)  if any of the children lives with his or her parent--the sum of the number of FTB children of each such parent or of the partner (if the parent has a partner) of each such parent; or

                             (ii)  in any other case--0; or

                     (e)  in the case of care receivers who are a lower ADAT score adult and one or more multiple care children, or a lower ADAT score adult and a dependent child--the number of FTB children of the care receiver or the care receiver's partner (if the care receiver has a partner).

Note 1:       For the maximum basic rate of age pension see point 1064-B1 of Pension Rate Calculator A in section 1064.

Note 2:       For paragraphs (b), (d) and (e) of the definition of FPC , see also subsection 197F(5).



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