Step 2. Work out the annualised maintenance income free area for the parent for the income year under section 123AC.
Step 3. Work out the annual amount of estimated maintenance income for the parent under section 123AD.
Step 4. Go to subsection (2) if the actual maintenance income is equal to or more than the annual amount of estimated maintenance income and either:
(a) the actual maintenance income is less than 125% of the annualised maintenance income free area; or
(b) the actual maintenance income is equal to or more than 125% of the annualised maintenance income free area and the actual maintenance income is less than 125% of the annual amount of estimated maintenance income.
Step 5. Go to subsection (3) in any other case.
(2) If the method statement says go to this subsection, the Secretary must affirm the decision or decisions under review.
(3) If the method statement says go to this subsection, the Secretary must recalculate the person’s rate of youth allowance having regard to the parent’s actual maintenance income for the income year and vary or substitute the decision or decisions under review accordingly.
123AC Annualised maintenance income free area
For the purposes of the method statement in section 123AB, work out the annualised maintenance income free area for a parent of the person for the income year using this method statement.
Method statement
Step 1. Using Submodule 4 of Module GA of the Youth Allowance Rate Calculator in section 1067G of the 1991 Act, work out whether the maintenance income free area (the MIFA) for the parent was the same on all days in the income year. If it was, then that MIFA is the annualised maintenance income free area for the parent for the income year.
Step 2. If the MIFA for the parent was not the same on all days in the income year, work out for how many days in the income year each MIFA applied.
Step 3. Work out the MIFA share for each such period by using this formula:
Start formula MIFA times start fraction Number of days in the period over Number of days in the income year end fraction end formula
Step 4. Add up the MIFA share for each such period in the income year. The result is the annualised maintenance income free area for the parent for the income year.
123AD Annual amount of estimated maintenance income
For the purposes of the method statement in section 123AB, work out the annual amount of estimated maintenance income for a parent of a person using this method statement.
Method statement
Step 1. For each estimate of maintenance income of a parent of a person that applied in relation to a period in the income year, work out the annualised estimate by multiplying the amount of the estimate by:
Start formula start fraction Number of days in income year over Number of days in income year for which estimate applied end fraction end formula
Step 2. For each annualised estimate worked out in step 1 for the income year, work out the period estimate by multiplying the annualised estimate by:
Start formula start fraction Number of days in income year for which estimate applied over Number of days in income year end fraction end formula
Step 3. Add up all the period estimates for periods that occurred in the income year. This is the annual amount of estimated maintenance income for the parent for the income year.
Part 3A—Nominees
Division 1—Preliminary
123A Definitions
In this Part:
correspondence nominee means a person who, by virtue of an appointment in force under section 123C, is the correspondence nominee of another person.
nominee means a correspondence nominee or a payment nominee.
payment nominee means:
(a) a person who, by virtue of an appointment in force under section 123B, is the payment nominee of another person; or
(b) a person to whom instalments of youth allowance of another person are to be paid in accordance with subsection 45(1).
principal, in relation to a nominee, means:
(a) in the case of a nominee appointed under section 123B or 123C, the person in relation to whom the nominee was appointed; or
(b) in the case of a person to whom instalments of youth allowance are to be paid in accordance with subsection 45(1), the person on whose behalf those instalments are to be so paid.
relevant payment means:
(a) instalments of a social security periodic payment; or
(b) instalments of a special employment advance; or
(c) a social security payment that is a lump sum benefit for the purposes of section 47; or
(ca) a clean energy payment; or
(d) instalments of utilities allowance; or
(e) instalments of energy supplement under Part 2.25B of the 1991 Act; or
(f) a payment of quarterly pension supplement; or
(g) a payment of a student start‑up loan.
Division 2—Appointment of nominees
123B Appointment of payment nominee
Subject to section 123D, the Secretary may, in writing:
(a) appoint a person (including a body corporate) to be the payment nominee of another person for the purposes of the social security law; and
(b) direct that the whole or a specified part of a specified relevant payment that is payable to the nominee’s principal, or would, but for subsection 45(1), be so payable, is to be paid to the nominee.
123C Appointment of correspondence nominee
Subject to section 123D, the Secretary may, in writing, appoint a person (including a body corporate) to be the correspondence nominee of another person for the purposes of the social security law.
123D Provisions relating to appointments
(1) A person may be appointed as the payment nominee and the correspondence nominee of the same person.
(2) The Secretary must not appoint a nominee for a person (the proposed principal) under section 123B or 123C except:
(a) with the written consent of the person to be appointed; and
(b) after taking into consideration the wishes (if any) of the proposed principal regarding the making of such an appointment.
(3) The Secretary must cause a copy of an appointment under section 123B or 123C to be given to:
(a) the nominee; and
(b) the principal.
(4) The Secretary must not appoint a payment nominee for a person who is the holder of a concession card but is not receiving a social security payment.
123E Suspension and revocation of nominee appointments
(1) If a person who is a nominee by virtue of an appointment under section 123B or 123C informs the Secretary in writing that the person no longer wishes to be a nominee under that appointment, the Secretary must, as soon as practicable, revoke the appointment.
(2) If:
(a) the Secretary gives a person who is a nominee a notice under section 123K; and
(b) the person informs the Department that:
(i) an event or change of circumstances has occurred or is likely to occur; and
(ii) the event or change of circumstances is likely to have an effect referred to in paragraph 123K(1)(b);
the Secretary may suspend or revoke the appointment by virtue of which the person is a nominee.
(3) If:
(a) the Secretary gives a person who is a nominee a notice under section 123K or 123L; and
(b) the person does not comply with the requirement of the notice;
the Secretary may suspend or revoke the appointment, or each appointment, by virtue of which the person is a nominee.
(4) While an appointment is suspended, the appointment has no effect for the purposes of this Part.
(5) The Secretary may, at any time, cancel the suspension of an appointment under subsection (2) or (3).
(6) The suspension or revocation of an appointment, and the cancellation of such a suspension, must be in writing.
(7) The revocation of an appointment has effect on and from such day, being later than the day of the revocation, as is specified in the revocation.
(8) Subsections (2) and (3) do not apply to a person who is a payment nominee by virtue of paragraph (b) of the definition of payment nominee in section 123A.
(9) The Secretary must cause a copy of:
(a) a suspension of an appointment; or
(b) a revocation of an appointment; or
(c) a cancellation of a suspension of an appointment;
to be given to:
(d) the nominee; and
(e) the principal.
Division 3—Payments to payment nominee
123F Payment of instalments etc. to payment nominee
(1) If:
(a) a person has a payment nominee; and
(b) the whole or a part of a relevant payment is payable to the person, or would, but for subsection 45(1), be so payable; and
(c) the Secretary has given a direction in relation to the relevant payment under section 123B;
the relevant payment is to be paid in accordance with the direction.
(2) An amount paid to the payment nominee of a person:
(a) is paid to the payment nominee on behalf of the person; and
(b) is taken, for the purposes of the social security law (other than this Part), to have been paid to the person and to have been so paid when it was paid to the nominee.
(3) An amount that is to be paid to the payment nominee of a person must be paid to the credit of a bank account nominated and maintained by the nominee.
(4) The Secretary may direct that the whole or a part of an amount that is to be paid to a payment nominee be paid to the payment nominee in a different way from that provided for by subsection (3). If the Secretary gives such a direction, an amount to which the direction relates is to be paid in accordance with the direction.
(5) Subsections (3) and (4) do not apply in the case of a person who is a payment nominee by virtue of paragraph (b) of the definition of payment nominee in section 123A.
Division 4—Functions and responsibilities of nominees
123G Definition
In this Division:
benefit recipient means a person who:
(a) has made a claim for, or is receiving, a social security payment; or
(b) has made a claim for, or is the holder of, a concession card.
123H Actions of correspondence nominee on behalf of benefit recipient
(1) Subject to section 123S and subsection (4), any act that may be done by a benefit recipient under, or for the purposes of, the social security law (other than an act for the purposes of Division 2 or 3) may be done by the benefit recipient’s correspondence nominee.
(2) Without limiting subsection (1), an application or claim that may be made under the social security law by a benefit recipient may be made by the benefit recipient’s correspondence nominee on behalf of the benefit recipient, and an application or claim so made is taken to be made by the benefit recipient.
(3) An act done by a benefit recipient’s correspondence nominee under this section has effect, for the purposes of the social security law (other than this Part), as if it had been done by the benefit recipient.
(4) If, under a provision of the social security law, the Secretary:
(a) gives to a benefit recipient who has a correspondence nominee a notice making a requirement of the benefit recipient; or
(b) notifies a benefit recipient who has a correspondence nominee that the benefit recipient is required to do an act;
subsection (1) does not authorise the correspondence nominee to do an act that is required by the notice or the notification, as the case may be, to be done by the benefit recipient.
123I Giving of notices to correspondence nominee
(1) Any notice that the Secretary is authorised or required by the social security law to give to a benefit recipient may be given by the Secretary to the benefit recipient’s correspondence nominee.
(2) The notice:
(a) must, in every respect, be in the same form, and in the same terms, as if it were being given to the benefit recipient; and
(b) may be given to the correspondence nominee personally or by post or in any other manner approved by the Secretary.
(3) If:
(a) under subsection (1), the Secretary gives a notice (the nominee notice) to a benefit recipient’s correspondence nominee; and
(b) the Secretary afterwards gives the benefit recipient a notice that:
(i) is expressed to be given under the same provision of the social security law as the nominee notice; and
(ii) makes the same requirement of the benefit recipient as the nominee notice;
section 123J ceases to have effect in relation to the nominee notice.
(4) If:
(a) under subsection (1), the Secretary gives a notice (the nominee notice) to a benefit recipient’s correspondence nominee; and
(b) the Secretary has already given to the benefit recipient a notice that:
(i) is expressed to be given under the same provision of the social security law as the nominee notice; and
(ii) makes the same requirement of the benefit recipient as the nominee notice;
section 123J does not have effect in relation to the nominee notice.
123J Compliance by correspondence nominee
(1) If, under section 123I, a notice is given to a benefit recipient’s correspondence nominee, the following paragraphs have effect:
(a) for the purposes of the social security law, other than this Part, the notice is taken:
(i) to have been given to the benefit recipient; and
(ii) to have been so given on the day on which the notice was given to the correspondence nominee;
(b) any requirement that the notice makes of the benefit recipient may be satisfied by the correspondence nominee;
(c) any act done by the correspondence nominee for the purpose of satisfying a requirement of the notice has effect, for the purposes of the social security law (other than Part 6 of this Act), as if it had been done by the benefit recipient;
(d) if the correspondence nominee fails to satisfy a requirement of the notice, the benefit recipient is taken, for the purposes of the social security law, to have failed to comply with the requirement;
(e) for the purposes of determining whether anything done by the correspondence nominee constitutes compliance with the notice, the social security law has effect as if a reference in the notice to the benefit recipient becoming aware that a specified event or change of circumstances is likely to occur were a reference to the correspondence nominee becoming so aware.
(2) In order to avoid doubt, and without limiting subsection (1), it is declared as follows:
(a) if the notice requires the benefit recipient to inform the Department of a matter within a specified period and the correspondence nominee informs the Department of the matter within that period in accordance with the notice, the benefit recipient is taken, for the purposes of the social security law, to have complied with the requirement set out in the notice;
(b) if the notice requires the benefit recipient to give a statement about a matter, or produce a document, to the Department within a specified period and the correspondence nominee gives a statement about that matter, or produces the document, as the case may be, to the Department within that period in accordance with the notice, the benefit recipient is taken, for the purposes of the social security law, to have complied with the requirement set out in the notice;
(c) if the notice requires the benefit recipient to inform the Department of a matter within a specified period and the correspondence nominee does not inform the Department of the matter within that period in accordance with the notice, the benefit recipient is taken, for the purposes of the social security law, to have failed to comply with the requirement set out in the notice;
(d) if the notice requires the benefit recipient to give a statement about a matter, or produce a document, to the Department within a specified period and the correspondence nominee does not give a statement about that matter, or produce the document, as the case may be, to the Department within that period in accordance with the notice, the benefit recipient is taken, for the purposes of the social security law, to have failed to comply with the requirement set out in the notice.
123K Notification by nominee of matters affecting ability to act as nominee
(1) The Secretary may give a nominee of a benefit recipient a notice that requires the nominee to inform the Department if:
(a) either:
(i) an event or change of circumstances occurs; or
(ii) the nominee becomes aware that an event or change of circumstances is likely to occur; and
(b) the event or change of circumstances is likely to affect:
(i) the ability of the nominee to act as the payment nominee or correspondence nominee of the benefit recipient, as the case may be; or
(ii) the ability of the Secretary to give notices to the nominee under this Act; or
(iii) the ability of the nominee to comply with notices given to the nominee by the Secretary under this Act.
(2) Subject to subsection (3), a notice under subsection (1):
(a) must be in writing; and
(b) may be given personally or by post or by any other means approved by the Secretary; and
(c) must specify how the nominee is to give the information to the Department; and
(d) must specify the period within which the nominee is to give the information to the Department.
(3) A notice under subsection (1) is not ineffective merely because it fails to comply with paragraph (2)(c).
(4) Subject to subsection (5), the period specified under paragraph (2)(d) must not end earlier than 14 days after:
(a) the day on which the event or change of circumstances occurs; or
(b) the day on which the nominee becomes aware that the event or change of circumstances is likely to occur.
(5) If a notice requires the nominee to inform the Department of any proposal by the nominee to leave Australia, subsection (4) does not apply to that requirement.
(6) This section extends to:
(a) acts, omissions, matters and things outside Australia, whether or not in a foreign country; and
(b) all persons, irrespective of their nationality or citizenship.
123L Statement by payment nominee regarding disposal of money