Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 598

             (1)  Subject to subsections (4A), (5), (6), (7) and (8), if:

                     (a)  the value of a person's liquid assets exceeds the person's maximum reserve on:

                              (i)  the day following the day on which the person ceased work or ceased to be enrolled in a full time course of education or of vocational training; or

                             (ii)  the day on which the person claims a newstart allowance; and

                     (b)  the person is not a transferee to a newstart allowance;

the person is not qualified for a newstart allowance for a period unless the person has served the liquid assets test waiting period in relation to the claim before the beginning of that period.

Note 1:       for liquid assets see section 14A.

Note 2:       for maximum reserve see section 14A.

Note 3:       for transferee to a newstart allowance see subsections 23(6) and (7).

Note 4:       for serving the liquid assets test waiting period see subsection 23(10).

             (2)  The liquid assets test waiting period in relation to the claim is to be worked out under subsections (2A), (2B) and (2C).

          (2A)  Work out the number of formula weeks (disregarding any fractions of a week) in relation to the claim using the formula:

where:

"liquid assets" means the person's liquid assets.

"maximum reserve amount" means the maximum reserve in relation to the person under subsection 14A(1).

"divisor" means, in relation to a person:

                     (a)  if the person is not a member of a couple and does not have a dependent child--$500; or

                     (b)  otherwise--$1,000.

          (2B)  If the number of formula weeks is equal to or greater than 13 weeks, the liquid assets test waiting period in relation to the claim is 13 weeks.

          (2C)  If subsection (2B) does not apply, the liquid assets test waiting period in relation to the claim is the number of weeks equal to the number of formula weeks.

             (3)  Subject to subsections (3AA) and (4), if the person is not a member of a couple, the liquid assets test waiting period in relation to the claim starts on the day following the day on which the person ceased work or ceased to be enrolled in a full time course of education or of vocational training.

       (3AA)  Subject to subsection (4), if the person:

                     (a)  is not a member of a couple; and

                     (b)  is, under Subdivision BA, not required to satisfy the activity test;

the liquid assets test waiting period in relation to the claim starts on the day on which the person became incapacitated.

          (3A)  Subject to subsections (3B) and (4), if the person is a member of a couple, the liquid assets test waiting period in relation to the claim starts on the last occurring of the following days:

                     (a)  the day following the day on which the person ceased work or ceased to be enrolled in a full time course of education or of vocational training;

                     (b)  if, when the claim is made, the person's partner has ceased work--the day following the day on which the person's partner ceased work;

                   (ba)  if, when the claim is made, the person's partner has ceased to be enrolled in a full time course of education or of vocational training--the day following the day on which the person's partner so ceased;

                     (c)  if, when the claim is made, the person's partner is incapacitated for work--the day on which the person's partner became incapacitated for work.

          (3B)  Subject to subsection (4), if the person:

                     (a)  is a member of a couple; and

                     (b)  is, under Subdivision BA, not required to satisfy the activity test;

the liquid assets test waiting period in relation to the claim starts on the last occurring of the following days:

                     (c)  the day on which the person became incapacitated for work;

                     (d)  if, when the claim is made, the person's partner has ceased work--the day following the day on which the person's partner ceased work;

                   (da)  if, when the claim is made, the person's partner has ceased to be enrolled in a full time course of education or of vocational training--the day following the day on which the person's partner so ceased;

                     (e)  if, when the claim is made, the person's partner is incapacitated for work--the day on which the person's partner became incapacitated for work.

             (4)  If:

                     (a)  a person becomes incapacitated for work; and

                     (b)  because of section 674 (sickness allowance liquid assets test waiting period), the person is not qualified for sickness allowance during the liquid assets test waiting period that starts on the day on which the person becomes incapacitated for work; and

                     (c)  within that liquid assets test waiting period:

                              (i)  the person ceases to be incapacitated for work; and

                             (ii)  the person claims a newstart allowance;

the liquid assets test waiting period starts on the day on which the person becomes incapacitated for work.

          (4A)  Subsection (1) does not apply to a person if, at any time during the 12 months preceding:

                     (a)  the day following the day on which the person ceased work or ceased to be enrolled in a full time course of education or of vocational training; or

                     (b)  the day on which the person claims a newstart allowance;

the person or their partner was serving a liquid assets test waiting period that started during that 12 months.

             (5)  If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while serving a liquid assets test waiting period, the Secretary may determine that the person does not have to serve the whole, or any part, of the waiting period.

Note 1:       For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and 19C(3) (person who is a member of a couple).

Note 2:       For unavoidable or reasonable expenditure see subsection 19C(4).

             (6)  Subsection (1) does not apply to a person who becomes qualified for newstart allowance at the end of a continuous period in respect of which the person received income support payments (whether or not the kind of payment received has changed over the period and whether the period or any part of it occurred before or after the commencement of this subsection).

Note 1:       For income support payment see subsection 23(1).

Note 2:       For the determination of the continuous period in respect of which a person received income support payments see section 38B.

             (8)  Subsection (1) does not apply to a person who:

                     (a)  is undertaking an activity specified in an instrument made under subsection (8A); and

                     (b)  has been exempted from the application of subsection (1) by the Secretary.

          (8A)  The Secretary may, by legislative instrument, specify activities for the purpose of paragraph (8)(a).

             (9)  A reference in this section to the day on which a person ceased work (whether the person ceases work permanently, temporarily or by reason of being on unpaid leave) is a reference:

                     (a)  except where the person is on paid leave immediately after last performing work--to the day on which the person last performed work before so ceasing; and

                     (b)  if the person is on paid leave--to the last day on which the person is on that paid leave.