118Date of effect of adverse determinations—general rules

118  Date of effect of adverse determinations—general rules  (1) The day on which an adverse determination takes effect in relation to a social security payment is worked out:  (b) in the case of carer payment—in accordance with this section and section 120; and  (c) in the case of any other social security payment—in accordance with this section.  (2) Subject to subsections (2A), (2B), (2D) and (2E), if:  (a) an adverse determination is made following a person having informed the Department of the occurrence of an event or change of circumstances; and  (b) the person is not paid an instalment of the social security payment after the occurrence of the event or change and before the determination is made; the determination takes effect on the day on which the event or change of circumstances occurred.  (2A) If an adverse determination is made in relation to a person who has not reached pension age:  (a) following the person’s having informed the Department of the occurrence of an event or change of circumstances; and  (b) because the person is taken, in accordance with Division 1AA of Part 3.10 of the 1991 Act, to have received employment income in an instalment period of the person;  (c) if the determination is attributable to the reduction, during the instalment period, of the person’s working credit balance or student income bank balance to nil—the day on which the balance was so reduced; and  (d) if the determination is attributable to the person’s having a working credit balance or a student income bank balance that has already been reduced to nil during the instalment period—the first day in the instalment period on which the person’s opening balance was nil; and  (e) in any other case—the first day of the instalment period; so long as the person is not paid an instalment of the social security payment after the day worked out under paragraph (c), (d) or (e) and before the determination is made.  (2B) If:  (a) an adverse determination is made in relation to a person following the person’s having informed the Department of the occurrence of an event or change of circumstances; and  (b) the determination is made because, in an instalment period of the person, either:  (i) the person earns, derives or receives, or is taken to earn, derive or receive, ordinary income other than employment income; or  (ii) the person has reached pension age and is taken, in accordance with Division 1AA of Part 3.10 of the 1991 Act, to have received employment income; and  (c) the person’s student income bank balance is reduced to nil during the instalment period;  (d) if the determination is attributable to the reduction of the student income bank balance to nil—the day on which the balance was so reduced; and  (e) if the determination is attributable to the person’s having a student income bank balance that has already been reduced to nil during the instalment period—the first day in the instalment period on which the person’s opening balance was nil; so long as the person is not paid an instalment of the social security payment after the day worked out under paragraph (d) or (e) and before the determination is made.  (2D) If the Secretary makes a determination under section 79 (rate reduction determination) as a result of a revised estimate of the amount of maintenance income for a parent of a person as referred to in section 123AA, the determination takes effect on the day the revised estimate was made by, or given to, the Secretary.  (2E) If the Secretary makes a determination under section 79 (rate reduction determination) as a result of a review required by section 126A (review of determination of youth allowance rate in relation to maintenance income), the determination takes effect on the date that would give full effect to the decision on review.  (a) an adverse determination is made in relation to a person because of point 1064‑E3, 1066A‑F2A, 1067G‑H25, 1067L‑D24, 1068‑G8A, 1068A‑E13 or 1068B‑D21, or Division 3 of Part 3.14, of the 1991 Act; and  (b) a social security payment has been paid to the person or the person’s partner when, because of the payment of arrears of periodic compensation payments, the payment should have been cancelled or suspended; the determination takes effect on the first day of the periodic payments period to which the arrears of periodic compensation payments relate.  (a) an adverse determination is made in relation to a person because of point 1064‑E3, 1066A‑F2A, 1067G‑H25, 1067L‑D24, 1068‑G8A, 1068A‑E13 or 1068B‑D21, or Division 3 of Part 3.14, of the 1991 Act; and  (b) the rate at which a social security payment was paid to the person or the person’s partner was, because of the payment of arrears of periodic compensation payments, higher than the rate at which the payment should have been paid; the determination takes effect on the first day of the periodic payments period to which the arrears of periodic compensation payments relate.  (5) Subject to subsections (5A) and (5B), if the adverse determination is made following a person having given the Department a statement about a matter in accordance with a notice under section 67 or 68, the determination takes effect on the day on which the matter arose.  (5A) If an adverse determination is made in relation to a person who has not reached pension age:  (a) following the person’s having given the Department a statement about a matter in accordance with a notice under section 68 that relates to the payment of the social security payment in respect of an instalment period specified in the notice; and  (b) because the person is taken, in accordance with Division 1AA of Part 3.10 of the 1991 Act, to have received employment income in the instalment period;  (c) if the determination is attributable to the reduction, during the instalment period, of the person’s working credit balance or student income bank balance to nil—the day on which the balance was so reduced; and  (d) if the determination is attributable to the person’s having a working credit balance or a student income bank balance that has already been reduced to nil during the instalment period—the first day in the instalment period on which the person’s opening balance was nil; and  (e) in any other case—the first day of the instalment period.  (5B) If:  (a) an adverse determination is made in relation to a person following the person’s having given the Department a statement about a matter in accordance with a notice under section 68 that relates to the payment of the social security payment in respect of an instalment period specified in the notice; and  (b) the determination is made because, in the instalment period, either:  (i) the person earns, derives or receives, or is taken to earn, derive or receive, ordinary income other than employment income; or  (ii) the person has reached pension age and is taken, in accordance with Division 1AA of Part 3.10 of the 1991 Act, to have received employment income; and  (c) the person’s student income bank balance is reduced to nil during the instalment period;  (d) if the determination is attributable to the reduction of the student income bank balance to nil—the day on which the balance was so reduced; and  (e) if the determination is attributable to the person’s having a student income bank balance that has already been reduced to nil during the instalment period—the first day in the instalment period on which the person’s opening balance was nil.  (6) Subject to subsections (6A) and (6B), if:  (b) the partner is given a notice under section 68 requiring the partner to give the Department a statement; and  (c) the notice relates to the payment of the partner’s social security payment in respect of a period specified in the notice; and  (d) the partner gives the Department a statement, in accordance with the notice, about a matter that arose during the specified period; and  (e) following the giving of the statement, an adverse determination is made in relation to the person’s social security payment; the determination takes effect on the day on which the matter arose.  (6A) If:  (b) the partner has not reached pension age; and  (c) the partner is given a notice under section 68 requiring the partner to give the Department a statement; and  (d) the notice relates to the payment of the partner’s social security payment in respect of an instalment period specified in the notice; and  (e) the partner gives the Department a statement, in accordance with the notice, about a matter that arose during the instalment period; and  (f) following the giving of the statement, an adverse determination is made in relation to the person’s social security payment; and  (g) the determination is made because the partner is taken, in accordance with Division 1AA of Part 3.10 of the 1991 Act, to have received employment income in the instalment period;  (h) if the adverse determination is attributable to the reduction, during the instalment period, of the partner’s working credit balance or student income bank balance to nil—the day on which the balance was so reduced; and  (i) if the determination is attributable to the partner’s having a working credit balance or a student income bank balance that has already been reduced to nil during the instalment period—the first day of the instalment period on which the opening balance was nil; and  (j) in any other case—the first day of the instalment period.  (6B) If:  (b) the partner is given a notice under section 68 requiring the partner to give the Department a statement; and  (c) the notice relates to the payment of the partner’s social security payment in respect of an instalment period specified in the notice; and  (d) the partner gives the Department a statement, in accordance with the notice, about a matter that arose during the instalment period; and  (e) the partner’s student income bank balance is reduced to nil during the instalment period; and  (f) following the giving of the statement, an adverse determination is made in relation to the person’s social security payment; and  (g) the determination is made because, in the instalment period, either:  (i) the partner earns, derives or receives, or is taken to earn, derive or receive, ordinary income other than employment income; or  (ii) the partner has reached pension age and is taken, in accordance with Division 1AA of Part 3.10 of the 1991 Act, to have received employment income;  (h) if the determination is attributable to the reduction of the partner’s student income bank balance to nil—the day on which the balance was so reduced; and  (i) if the determination is attributable to the partner’s having a student income bank balance that has already been reduced to nil during the instalment period—the first day in the instalment period on which the partner’s opening balance was nil.  (a) the person whose social security payment is affected by the adverse determination has contravened a provision of this Act or a provision of the 1991 Act (other than an excluded provision); and  (b) the contravention causes a delay in the making of the determination; the adverse determination takes effect on such day (which may be earlier than the day on which the determination is made) as is specified in the determination.  (7A) Subsection (7) does not apply to a determination under subsection 81(3).  (8) If:  (a) a person has made a false statement or misrepresentation; and  (b) because of the false statement or misrepresentation, a social security payment has been paid to a person when it should have been cancelled or suspended; the adverse determination takes effect on such day (which may be earlier than the day on which the determination is made) as is specified in the determination.  (a) a person has made a false statement or misrepresentation; and  (b) because of the false statement or misrepresentation, the rate at which a social security payment was paid to a person was higher than it should have been; the adverse determination takes effect on such day (which may be earlier than the day on which the determination is made) as is specified in the determination.  (a) a person’s social security payment is suspended under section 80, 81 or 82; and  (b) the payment is subsequently cancelled under section 80, 81 or 82; the determination by which the payment is cancelled takes effect on the day on which the payment was suspended.  (11A) Despite subsection (11), a determination under section 80 or subsection 81(3) cancelling a person’s social security payment that has already been suspended under subsection 81(3) takes effect on such day (which may be earlier than the day on which the determination is made) as is specified in the determination.  (12) An adverse determination in relation to telephone allowance takes effect:  (12A) If:  (a) a decision (the social security decision) was made that rent assistance (the social security rent assistance) was to be included when calculating a person’s rate of social security payment for each day in a period; and  (b) the condition in subsection (12B) is met for each day in that period (which is about rent assistance also being included in family tax benefit); and  (c) because the inclusion of the social security rent assistance was contrary to Part 3.7 of the 1991 Act, an adverse determination is made to reduce the rate of, or cancel, the person’s social security payment for each day in that period; the adverse determination takes effect on the first day of that period.  (12B) The condition in this subsection is met for each day in a period if:  (a) both of the following apply:  (i) the person was a member of a couple (other than an illness separated couple, a respite care couple or a temporarily separated couple) on each day in the period;  (ii) when the social security decision was made, a determination under the family assistance law was in force that included rent assistance when calculating the person’s, or the person’s partner’s, Part A rate of family tax benefit for each day in the period; or  (b) both of the following apply:  (i) the person was not a member of a couple, or was a member of an illness separated couple, a respite care couple, or a temporarily separated couple, on each day in the period;  (ii) when the social security decision was made, a determination under the family assistance law was in force that included rent assistance when calculating the person’s Part A rate of family tax benefit for each day in the period; or  (c) all of the following apply:  (i) when the social security decision was made, no determination of a kind mentioned in subparagraph (a)(ii) or (b)(ii) (as the case requires) was in force;  (ii) after the social security decision was made, such a determination was made;  (iii) each day in the period either is, or comes after, the day on which the determination was made.  (12C) If:  (a) an adverse determination is made under section 80 suspending the payment of a parenting payment, youth allowance, austudy payment, jobseeker payment or special benefit to a person; and  (b) the determination was made because of the application of:  (i) subsection 42P(1) or 42S(1) (if the payment is a participation payment and the person is a declared program participant); or  (ii) section 550B or 551 of the 1991 Act (if the payment is a youth allowance); or  (iii) section 576A or 577 of the 1991 Act (if the payment is an austudy payment); the determination is taken to have taken effect on the day of the start of the period for which the payment, allowance or benefit is not payable because of that section.  (12D) However, subsection (12C) does not apply to an adverse determination if the determination would take effect on an earlier day under another provision of this Act.  (13) In any other case, an adverse determination takes effect:  (14) For the purposes of subsection (7), the excluded provisions are:  (a) subsections 67(2), 68(2) and 69(2) of this Act to the extent that they relate to the giving of a notice requiring a person to give a statement to the Department; and  (b) sections 192, 193, 194 and 195 of this Act.