Social Security Act 1991

In this Act, unless the contrary intention appears:

is held by or on behalf of the person; and

is not deposit money of the person; and

is not the subject of a loan made by the person.

See also subsection (7).

A home equity access scheme advance payment (within the meaning of Division 4 of Part 3.12) is an example of a payment under a home equity conversion agreement.

an income amount earned, derived or received by the person for the person’s own use or benefit; or

a periodical payment by way of gift or allowance; or

a periodical benefit by way of gift or allowance;

See also sections 1074 and 1075 (business income), Division 1B of Part 3.10 (income from financial assets (including income streams (short term) and certain income streams (long term)), Division 1C of Part 3.10 (income from income streams not covered by Division 1B of Part 3.10), section 1099F (exempt bond amount does not count as income) and section 1099K (refunded amount does not count as income).

Where a person or a person’s partner has disposed of income, the person’s income may be taken to include the amount which has been disposed of—see sections 1106‑1112.

Income is equivalent to ordinary income plus maintenance income.

valuable consideration; or

personal earnings; or

moneys; or

profits;

For maintenance income see section 10.

Amounts received as a series of periodic compensation payments may result in reduction of the person’s rate of social security pension or benefit under Part 3.14: if this happens the amounts are not counted as ordinary income (see section 1176).

For provisions affecting the amount of a person’s ordinary income see Division 1 of Part 3.10 (ordinary income concept and treatment of certain income amounts), sections 1074 and 1075 (business income), Division 1B of Part 3.10 (income from financial assets (including income streams (short term) and certain income streams (long term)) and Division 1C of Part 3.10 (income from income streams not covered by Division 1B of Part 3.10).

in Module J of the Youth Allowance Rate Calculator; or

in Module E of the Austudy Payment Rate Calculator.

A reference in this Act to employment income, in relation to a person, is a reference to ordinary income of the person:

that is for remunerative work of the person as an employee in an employer/employee relationship; and

that includes, but is not limited to:

salary, wages, commissions and employment‑related fringe benefits; and

if the person is engaged on a continuing basis in that employer/employee relationship—a leave payment to the person;

a superannuation payment to the person; or

a payment of compensation, or a payment to the person under an insurance scheme, in relation to the person’s inability to earn, derive or receive income from that remunerative work; or

if the person is not engaged on a continuing basis in that employer/employee relationship—a leave payment to the person; or

a payment to the person by a former employer of the person in relation to the termination of the person’s employment; or

a comparable foreign payment; or

an instalment of parental leave pay.

For the avoidance of doubt, if:

a person is treated, for the purposes of working out the person’s ordinary income, as having ordinary income of the person’s partner; and

that ordinary income would be characterised as employment income in the hands of the partner if the partner were not a member of a couple;

For the purposes of subsection (1A), a leave payment:

includes a payment in respect of personal/carer’s leave, annual leave, maternity leave or long service leave; and

may be made as a lump sum payment, a payment that is one of a series of regular payments or otherwise; and

is taken to be made to the person if it is made to another person:

at the direction of the first‑mentioned person or of a court; or

on behalf of the first‑mentioned person; or

for the benefit of the first‑mentioned person; or

if the first‑mentioned person waives or assigns his or her right to the payment.

A reference in this Act to an income amount earned, derived or received is a reference to:

an income amount earned, derived or received by any means; and

an income amount earned, derived or received from any source (whether within or outside Australia).

A payment received by a person is a domestic payment for the purposes of this Act if:

the person receives the payment on the disposal of an asset of the person; and

the asset was used, immediately before the disposal, by the person or the person’s partner for private or domestic purposes; and

the asset was used by the person or the person’s partner for those purposes for:

a period of 12 months before the disposal; or

if the Secretary considers it appropriate—a period of less than 12 months before the disposal.

If a person is not a member of a couple, an amount paid to or on behalf of the person under a home equity conversion agreement is an excluded amount for the person to the extent that the total amount owed by the person from time to time under home equity conversion agreements does not exceed $40,000.

If a person is a member of a couple, an amount paid to or on behalf of the person or the person’s partner under a home equity conversion agreement is an excluded amount for the person to the extent that the total amount owed by the person and the person’s partner under home equity conversion agreements from time to time does not exceed $40,000.

For the purposes of this Act, the amount owed by a person under a home equity conversion agreement is the principal amount secured by the mortgage concerned and does not include:

any amount representing mortgage fees; or

any amount representing interest; or

any similar liability whose repayment is also secured by the mortgage.

For the purposes of the definition of home equity conversion agreement in subsection (1), an asset cannot be a person’s principal home unless the person or the person’s partner has a beneficial interest (but not necessarily the sole beneficial interest) in the asset.

The following amounts are not income for the purposes of this Act:

a payment under this Act;

any return on a person’s investment in:

a superannuation fund; or

an approved deposit fund; or

an ATO small superannuation account;

reaches pension age; or

starts to receive a pension or annuity out of the fund;

the value of emergency relief or like assistance;

a payment under Part III of the former Disability Services Act 1986 or the value of any rehabilitation program (including any follow‑up program) provided under that Part;

the value of supports or services that are specified in an instrument under subsection (8AAAB) and are provided under an arrangement or grant under the Disability Services and Inclusion Act 2023;

a payment of domiciliary nursing care benefit under Part VB of the National Health Act 1953 as in force immediately before 1 July 1999;

a payment under a law of the Commonwealth, being a law having an object of assisting persons to purchase or build their own homes;

a payment made by a State or Territory for the purpose of assisting the person to purchase or build his or her own home;

a payment made to the person for or in respect of a dependent child of the person;

a payment of family assistance, or of one‑off payment to families, economic security strategy payment to families, back to school bonus, single income family bonus, clean energy advance, ETR payment, first 2020 economic support payment, second 2020 economic support payment, additional economic support payment 2020 or additional economic support payment 2021, under the Family Assistance Act;

a payment under the scheme determined under Schedule 3 to the Family Assistance Legislation Amendment (More Help for Families—One‑off Payments) Act 2004;

a payment under the scheme determined under Part 2 of Schedule 1 to the Family Assistance and Other Legislation Amendment (Schoolkids Bonus Budget Measures) Act 2012;

a payment under the scheme determined under Schedule 2 to the Social Security Legislation Amendment (One‑off Payments for Carers) Act 2005;

a payment under the scheme determined under Schedule 4 to the Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006;

a payment under the scheme determined under Schedule 4 to the Social Security and Veterans’ Affairs Legislation Amendment (One‑off Payments and Other 2007 Budget Measures) Act 2007;

a payment under the scheme determined under Schedule 4 to the Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments and Other Budget Measures) Act 2008;

an NDIS amount;

any return on a person’s NDIS amounts that the person earns, derives or receives;

a payment of a bursary under the program established by the Commonwealth and known as the Young Carer Bursary Programme;

disability expenses maintenance;

a payment under the Business Services Wage Assessment Tool Payment Scheme Act 2015;

a payment under the National Redress Scheme for Institutional Child Sexual Abuse Act 2018;

a payment under the scheme known as the Territories Stolen Generations Redress Scheme;

insurance or compensation payments made by reason of the loss of, or damage to, buildings, plant or personal effects;

where:

the person owes money under a mortgage or other arrangement; and

the person has insurance which requires the insurer to make payments to the creditor when the person is unemployed or ill or in other specified circumstances; and

payments are made to the creditor under the insurance;

money from an investment that is:

an investment of payments of the kind referred to in paragraph (k); and

an investment for:

a period of not more than 12 months after the person receives the payments; or

if the Secretary thinks it appropriate—of 12 months or more after the person receives those payments;

money from an exempt funeral investment;

For exempt funeral investment see section 19E.

an amount paid, under a law of, or applying in, a country or part of a country, by way of compensation for a victim of National Socialist persecution;

in the case of a person who pays or who is liable to pay rent, a payment by way of rent subsidy made by the Commonwealth, by a State or Territory or by an authority of the Commonwealth or of a State or Territory to or on behalf of the person who pays or who is liable to pay rent;

a payment received by a trainee in full‑time training under a program included in the programs known as Labour Market Programs, to the extent that the payment includes one or more of the following amounts:

an amount calculated by reference to a rate of jobseeker payment;

an amount known as the training component;

an amount by way of a living away from home allowance;

in the case of a person who is receiving a social security pension, a social security benefit, a service pension, income support supplement or a veteran payment and is in part‑time training, or engaged in part‑time work experience, under a program included in the programs known as Labour Market Programs—a payment received by the person under that program in respect of the person’s expenses associated with his or her participation in the training or work experience;

a payment received by the person under a self‑employment program;

a payment made by the Commonwealth known as the Apprenticeship Wage Top‑Up to the person;

a payment to the person made by the Commonwealth under the program known as Skills for Sustainability for Australian Apprentices;

a payment to the person made by the Commonwealth under the program known as Tools for Your Trade (within the program known as the Australian Apprenticeships Incentives Program);

a payment made by the Commonwealth, under the program established by the Commonwealth and known as “Youth Jobs PaTH”, to an individual placed in an internship under that program;

a benefit under a law of the Commonwealth that relates to the provision of:

pharmaceutical, sickness or hospital benefits; or

medical or dental services;

a payment (other than a periodical payment or a payment representing an accumulation of instalments) made for or in respect of expenses incurred by a person for hospital, medical, dental or similar treatment;

a payment made by the Mark Fitzpatrick Trust to a person by way of assistance with expenses incurred in relation to a person who has medically acquired HIV infection;

a payment made by the New South Wales Medically‑Acquired HIV Trust to a person by way of financial assistance with expenses incurred in relation to a person who has medically acquired HIV infection;

a payment by the Thalidomide Australia Fixed Trust:

made to, or applied for the benefit of, a beneficiary of the Trust; or

made to a person in respect of a beneficiary of the Trust;

a payment under the program established by the Commonwealth and known as the Support for Australia’s Thalidomide Survivors program;

in the case of a member of:

the Naval Reserve; or

the Army Reserve; or

the Air Force Reserve;

a payment by way of:

pension under Part II or IV of the Veterans’ Entitlements Act (other than a pension that is payable under section 30 of that Act to a dependant of a deceased veteran); or

service pension, income support supplement or veteran payment; or

pension payable because of subsection 4(6) or (8B) of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 (other than a pension payable in respect of a child); or

attendant allowance under section 98 of the Veterans’ Entitlements Act; or

recreation allowance under section 104 of that Act; or

an allowance for the running and maintenance of a motor vehicle under the Vehicle Assistance Scheme referred to in section 105 of that Act; or

clothing allowance under section 97 of that Act; or

a payment known as a student start‑up scholarship payment, or a relocation scholarship payment, under the scheme referred to in section 258 of the Military Rehabilitation and Compensation Act; or

veterans supplement under Part VIIA of the Veterans’ Entitlements Act; or

energy supplement under Part VIIAD of that Act; or

a bereavement payment under Part IIIB, or section 98A of that Act;

a payment made by the Commonwealth and known as the one‑off payment to the aged; or

a payment under a scheme determined under Schedule 2 to the Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006;

a payment under a scheme determined under Schedule 2 to the Social Security and Veterans’ Affairs Legislation Amendment (One‑off Payments and Other 2007 Budget Measures) Act 2007;

a payment under a scheme determined under Schedule 2 to the Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments and Other Budget Measures) Act 2008;

a clean energy payment under the Veterans’ Entitlements Act;

a payment under the scheme determined under Schedule 4 to the Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008;

a payment under the scheme determined under Schedule 4 to the Household Stimulus Package Act (No. 2) 2009;

a one‑off energy assistance payment under Part IIIF of the Veterans’ Entitlements Act;

a one‑off energy assistance payment under Part IIIG of the Veterans’ Entitlements Act;

a first 2020 economic support payment under Division 1 of Part IIIH of the Veterans’ Entitlements Act;

a second 2020 economic support payment under Division 2 of Part IIIH of the Veterans’ Entitlements Act;

an additional economic support payment 2020 under Division 1 of Part IIIJ of the Veterans’ Entitlements Act;

an additional economic support payment 2021 under Division 2 of Part IIIJ of the Veterans’ Entitlements Act;

a 2022 cost of living payment under Division 1 of Part IIIK of the Veterans’ Entitlements Act;

a periodical payment by way of gift or allowance, or a periodical benefit by way of gift or allowance, from a parent, child, brother or sister of the person;

the value of board or lodging received by the person;

an amount received under the scheme known as the Western Australian Cost of Living Rebate Scheme;

the value of a benefit obtained by using a card known as the Western Australian Country Age Pension Fuel Card;

a payment, known as the Cost of Living Concession, made by the Government of South Australia;

a domestic payment;

so much of a payment received by the person as is, in accordance with an agreement between the Commonwealth and a foreign country, applied in reduction of the amount of social security payment that would otherwise be payable to the person under this Act;

a payment made to the person by the Government of New Zealand, being a payment known as:

accommodation benefit; or

disability allowance; or

home help payment; or

special benefit; or

training incentive allowance;

a payment made to the person by the Government of the United Kingdom, being a payment known as:

clothing allowance; or

constant attendance allowance; or

decoration allowance; or

mobility supplement;

a payment under the ABSTUDY Scheme;

a payment of financial supplement made to the person under a Student Financial Supplement Scheme;

a payment received by the person for serving, or being summoned to serve, on a jury;

a payment received by the person for expenses as a witness, other than an expert witness, before a court, tribunal or commission;

a payment towards the cost of personal care support services for the person, being a payment made under a scheme approved under section 35A;

the amount or value of a scholarship known as a Commonwealth Trade Learning Scholarship;

a payment of an approved scholarship awarded on or after 1 September 1990;

For approved scholarship see subsection 8(1).

the amount or value of:

a scholarship provided for under Part 2‑2A of the Higher Education Support Act 2003 (Indigenous student assistance grants) and specified by the Secretary under subsection (8AAA) of this section.

a scholarship known as a Commonwealth Education Costs Scholarship; or

a scholarship known as a Commonwealth Accommodation Scholarship;

an amount covered by subsection (8B) (about reductions of amounts payable for enrolment or tuition in certain courses);

a payment covered by subsection (8C) (about payments that are made to an educational institution or the Commonwealth to reduce a person’s liability to the educational institution or Commonwealth and that are made by someone other than the person);

a payment of a scholarship to a person during a calendar year (other than an excluded payment):

for the person to study, or to undertake research, at an educational institution; or

for the person’s achievement in studying, or in undertaking research, at an educational institution;

For excluded payment see subsection (8AA). For educational institution see subsection 23(1). For threshold amount see subsection (8AB).

an amount paid by a buyer under a sale leaseback agreement;

if a person is a member of an approved exchange trading system—an amount credited to the person’s account for the purposes of the scheme in respect of any goods or services provided by the person to another member.

For approved exchange trading system see subsections (9) and (10).

if a person:

is a member of a couple; and

is receiving a social security benefit;

a payment under section 186 of the Aged Care Act 2024;

while a person is accruing a liability to pay an accommodation charge—any rent from the person’s principal home that the person, or the person’s partner, earns, derives or receives from another person;

For rent, see subsection 13(2).

Under subsections 11A(8) and (9), the principal home of a person in a care situation may be a place other than the place where the person receives care.

The operation of this paragraph is limited by subsection (10A).

while a person is liable to pay all or some of an accommodation bond by periodic payments—any rent from the person’s principal home that the person, or the person’s partner, earns, derives or receives from another person;

For rent, see subsection 13(2).

Under subsections 11A(8) and (9), the principal home of a person in a care situation may be a place other than the place where the person receives care.

The operation of this paragraph is limited by subsection (10A).

while a person is liable to pay all or some of a daily accommodation payment or a daily accommodation contribution—any rent from the person’s principal home that the person, or the person’s partner, earns, derives or receives from another person;

For rent, see subsection 13(2).

Under subsections 11A(8) and (9), the principal home of a person in a care situation may be a place other than the place where the person receives care.

The operation of this paragraph is limited by subsection (10A).

a clean energy payment under the Military Rehabilitation and Compensation Act;

a payment under section 47, 56, 81, 205, 214, 217, 226, 239, 266, 268AA, 268AB or 268AC of the Military Rehabilitation and Compensation Act to reimburse costs incurred in respect of the provision of goods or services (other than a payment to the person who provided the goods or service);

a payment (either as a weekly amount or a lump sum) under section 68, 71, 75 or 80 of the Military Rehabilitation and Compensation Act (permanent impairment);

a payment of a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act;

if subsection 204(5) of the Military Rehabilitation and Compensation Act applies to a person—an amount per fortnight, worked out under subsection (12) of this section, that would, apart from this paragraph, be income of the person;

Subsection 204(5) of the Military Rehabilitation and Compensation Act reduces a Special Rate Disability Pension by reference to amounts of Commonwealth superannuation that the person has received or is receiving.

a payment under the Motor Vehicle Compensation Scheme under section 212 of the Military Rehabilitation and Compensation Act;

a payment of an Additional Disablement Amount under Division 3A of Part 7 of Chapter 4 of the Military Rehabilitation and Compensation Act;

if subsection 220C(5) of the Military Rehabilitation and Compensation Act applies to a person—an amount per fortnight, worked out under subsection (13) of this section, that would, apart from this paragraph, be income of the person;

Subsection 220C(5) of the Military Rehabilitation and Compensation Act reduces an Additional Disablement Amount by reference to amounts of Commonwealth superannuation that the person has received or is receiving.

a payment under section 242 of the Military Rehabilitation and Compensation Act (continuing permanent impairment and incapacity etc. payments);

the value of the benefit provided under the initiative known as the Tools for Your Trade initiative;

a payment under an instrument made under any of the following:

section 268B of the Military Rehabilitation and Compensation Act 2004;

section 41B of the Safety, Rehabilitation and Compensation (Defence‑related Claims) Act 1988;

section 115S of the Veterans’ Entitlements Act 1986;

a payment under section 230A of the Military Rehabilitation and Compensation Act (Victoria Cross allowance);

a payment under an instrument made under section 230C of the Military Rehabilitation and Compensation Act (decoration allowance);

a payment, by a foreign country, of an allowance or annuity that is of a similar kind to a payment covered by paragraph (zsb) or (zsc);

a payment under Part 3 of Chapter 5AA of the Military Rehabilitation and Compensation Act (prisoner of war recognition supplement);

a payment under section 268AJ of the Military Rehabilitation and Compensation Act (compensation in respect of former members and civilians interned by certain military forces);

a cash flow boost (within the meaning of the Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020);

a payment:

paid in accordance with rules made under the Coronavirus Economic Response Package (Payments and Benefits) Act 2020; and

stated, in those rules, not to be income in relation to the person for the purposes of this Act;

a payment made by the Commonwealth to an individual under a program that is established by the Commonwealth and is determined in an instrument under subsection (8AC) to be an employment program;

a payment made by a State or Territory to an individual under a program that is established by the State or Territory and is determined in an instrument under subsection (8AC) to be an employment program.

Paragraph (8)(a) does not apply to a payment under an arrangement or grant referred to in section 1062A. This subsection does not prevent another paragraph of subsection (8) from applying to such a payment.

The Secretary may, by legislative instrument, specify supports or services for the purposes of paragraph (8)(fa). The supports or services must be employment supports or services within the meaning of the Disability Services and Inclusion Act 2023.

The Secretary may, by legislative instrument, specify a scholarship for the purposes of subparagraph (8)(zja)(ia).

For the purposes of paragraph (8)(zjd), each of the following is an excluded payment:

a payment of a scholarship referred to in paragraph (8)(zia), (zj) or (zja);

a scholarship payment under Part 2.11B;

a scholarship payment under the ABSTUDY Scheme;

a payment known as a student start‑up scholarship payment, or a relocation scholarship payment, under the scheme referred to in section 258 of the Military Rehabilitation and Compensation Act.

For the purposes of paragraph (8)(zjd), a person’s threshold amount, for a calendar year, means $6,762 less the amount of any payment made to that person during that year that is not income for the purposes of this Act because of that paragraph.

The dollar amount mentioned in this subsection is indexed annually in line with CPI increases (see sections 1190 to 1194).

On 15 April 2010 a person is paid a scholarship of $3,000 to study at an educational institution. The threshold amount is $6,762 (as no other payment has been excluded under paragraph (8)(zjd) for 2010). The $3,000 is not income under that paragraph and the threshold amount is reduced to $3,762.

The Employment Secretary may, by notifiable instrument, determine programs to be employment programs for the purposes of:

paragraph (8)(zv) of this section and paragraph 5H(8)(zzf) of the Veterans’ Entitlements Act 1986; or

paragraph (8)(zw) of this section and paragraph 5H(8)(zzg) of the Veterans’ Entitlements Act 1986.

For the purposes of the operation of section 5 in determining whether a person is:

a student child; or

a dependent child of another person;

This subsection covers the amount of a reduction (by discount, remission or waiver) of an amount that would otherwise be payable by a person:

to an educational institution for enrolment or tuition of the person by the institution in a course that:

is determined, under section 5D of the Student Assistance Act 1973, to be a secondary course or a tertiary course for the purposes of that Act; or

is a Masters or Doctoral degree course accredited as a higher education course by the authority responsible for accrediting higher education courses in the State or Territory in which the course is conducted or by the institution, if it is permitted by a law of the Commonwealth, a State or a Territory to accredit higher education courses that it conducts; or

is a course of vocational training; or

to the Commonwealth as a result of the person’s enrolment in, or undertaking of, such a course at an educational institution.

This subsection covers a payment:

that is made to discharge, or to prevent from arising, to any extent:

a person’s actual or anticipated liability to an educational institution for enrolment or tuition of the person by the institution in a course described in paragraph (8B)(a); or

a person’s actual or anticipated liability to the Commonwealth resulting from the person’s enrolment in, or undertaking of, such a course at an educational institution; and

that is made by someone other than the person; and

that is made to the institution or the Commonwealth; and

that is not made at the direction of the person.

An exchange trading system is an arrangement between a number of persons (members) under which each member may obtain goods or services from another member for consideration that is wholly or partly in kind rather than in cash. Each member has, for the purposes of the arrangement, an account:

to which is credited:

the amount representing the value of any goods or services provided by the member to another member; or

if the goods or services were partly paid for in cash—the amount referred to in subparagraph (i) less the amount so paid in cash; and

to which is debited:

the amount representing the value of any goods or services supplied to the member by another member; or

if the goods or services were partly paid for in cash—the amount referred to in subparagraph (i) less the amount so paid in cash.

An exchange trading system is an approved exchange trading system if the Secretary is satisfied that:

it is a local community‑based system; and

its primary purpose is to help persons maintain their labour skills and keep them in touch with the labour market; and

it is not a system run by a person or organisation for profit.

Paragraphs (8)(zn), (zna) and (znaa) do not apply in relation to a person if:

those paragraphs did not apply in relation to the person immediately before the commencement of the Aged Care Act 2024; or

a period of 28 consecutive days ends after that commencement in which the person:

was not provided with residential care or flexible care through a residential care service or a flexible care service; and

did not access ongoing funded aged care services in an approved residential care home;

An expression used in subsection (10A) and in the Aged Care Act 2024 or the Aged Care Act 1997 (as in force immediately before the commencement of the Aged Care Act 2024) has the same meaning in that subsection as in those Acts.

An amount received by a person is an exempt lump sum if:

the amount is not a periodic amount (within the meaning of subsection (11A)); and

the amount is not a leave payment within the meaning of points 1067G‑H20, 1067L‑D16 and 1068‑G7AR; and

the amount is not income from remunerative work undertaken by the person; and

the amount is an amount, or class of amounts, determined by the Secretary to be an exempt lump sum.

Some examples of the kinds of lump sums that the Secretary may determine to be exempt lump sums include a lottery win or other windfall, a legacy or bequest, or a gift—if it is a one‑off gift.

An amount is a periodic amount if it is:

the amount of one payment in a series of related payments, even if the payments are irregular in time and amount; or

the amount of a payment making up for arrears in such a series.

For the purposes of paragraph 8(8)(zp), the amount per fortnight that is not income for the purposes of this Act is:

For the purposes of paragraph 8(8)(zqb), the amount per fortnight that is not income for the purposes of this Act is: