73AReduction of invalidity pensions because of earnings

#### 73A Reduction of invalidity pensions because of earnings (1) In this section: > earnings rate, in relation to an invalidity pensioner, means the amount per annum last estimated by CSC under subsection (3) as the annual rate of the personal earnings of the pensioner. > invalidity pensioner means a person to whom invalidity pension is payable and who has not attained the age of 65 years. > personal earnings, in relation to an invalidity pensioner, means salary, wages, fees or other amounts received by the pensioner for services rendered, or work performed, by the pensioner, and includes: (a) remuneration paid to the pensioner as the director of a company; and (b) commission received by the pensioner for canvassing, collecting or similar activities. > prescribed maximum rate means: (a) immediately before 1 January 2002—the rate that was the prescribed maximum rate under this section immediately before the commencement of item 1 of Schedule 2 to the Superannuation Legislation Amendment (Indexation) Act 2001; or (b) on or after 1 January 2002—the rate that is the prescribed maximum rate because of subsection (2). > prescribed percentage, in relation to a prescribed half‑year, means the prescribed percentage in relation to that half‑year for the purposes of section 148. > prescribed half‑year means a prescribed half‑year within the meaning of Part X. > relevant maximum rate, in relation to an invalidity pensioner, means: (a) the prescribed maximum rate; or (b) 75% of the amount per annum worked out by increasing the final annual rate of salary of the pensioner by the same percentage as any overall percentage increase in AWOTE that occurred during the period since the pensioner ceased to be an eligible employee (being an overall increase worked out from estimates of changes in AWOTE in respect of the period published by the Australian Statistician, other than estimates published in substitution for earlier estimates); whichever is the greater. > relevant pension rate, in relation to an invalidity pensioner, means: (a) where the pensioner did not make an election under section 68 or 71—the annual rate of the invalidity pension of the pensioner; or (b) where the pensioner made such an election—the rate that would have been the annual rate of that pension if the pensioner had not made the election. (2) Where rates at which invalidity pensions were payable immediately before the commencement of a prescribed half‑year are increased in accordance with section 148, the rate that, immediately before that commencement, was (because of paragraph (a) of the definition of prescribed maximum rate or the previous operation of this subsection) the prescribed maximum rate is increased, with effect from that commencement, by the prescribed percentage, in relation to that prescribed half‑year, of that rate. (3) Where an invalidity pensioner or a person acting on behalf of the pensioner gives CSC particulars of the pensioner’s personal earnings and an estimate of those earnings for the next 12 months (whether in compliance with a notice under subsection 74(1) or otherwise), CSC shall estimate the amount per annum that is the annual rate of the personal earnings of the pensioner. (4) Subject to subsections (5) and (6) but notwithstanding any other provision of this Act, during any period during which the sum of the relevant pension rate of an invalidity pensioner and the earnings rate of the pensioner exceeds the relevant maximum rate for the pensioner, then: (a) where the lesser of the excess or of that earnings rate is less than the annual rate of the invalidity pension of the pensioner—the amount of the fortnightly instalments of that pension shall be ascertained as if the annual rate of the pension were reduced by the lesser of the excess or of that earnings rate; or (b) where the lesser of the excess or of that earnings rate is equal to or exceeds the annual rate of that pension—the pension is suspended. (5) If, after making a calculation for the purposes of subsection (4), CSC ascertains that an invalidity pensioner has been, or is being, paid instalments of invalidity pension, that, by virtue of that subsection, should not have been, or be, paid or the amount of which should have been, or be, lower, then, notwithstanding that subsection, those instalments shall be taken to have been, or be, lawfully paid. (6) If, after making a calculation for the purposes of subsection (4), CSC ascertains that an invalidity pensioner has, because of a previous calculation for those purposes, not been paid instalments of invalidity pension that should have been paid or been paid instalments of invalidity pension the amount of which should have been higher, that invalidity pensioner is not entitled to be paid, but may be paid, the amount of those instalments or of the balance of those instalments, as the case may be. (7) Where an invalidity pensioner: (a) is, on the commencement of this section, in receipt of personal earnings; or (b) begins, after the commencement of this section, to receive personal earnings; the pensioner, or a person acting on behalf of the pensioner, shall give CSC particulars in writing of these personal earnings and an estimate of the amount of the personal earnings that the pensioner expects to receive in the next 12 months. (8) Where: (a) an estimate of the personal earnings of an invalidity pensioner has been given to CSC under this Act; and (b) the pensioner or a person acting on behalf of the pensioner revises that estimate; the pensioner or the person acting on behalf of the pensioner shall give to CSC particulars in writing of the personal earnings of the pensioner and an estimate of those earnings for the next 12 months. (9) In ascertaining, for the purposes of this Act or of the superseded Act, the annual rate of an invalidity pension or the rate at which an invalidity pension is payable, any reduction or suspension under this section shall be disregarded but nothing in this subsection or in any other provision of this Act or in any provision of the superseded Act shall be taken to imply that a person is entitled to be paid an amount not paid because of such a reduction or suspension.