Age pension—suspension instead of cancellation under section 93 or 94
95D Age pension—suspension instead of cancellation under section 93 or 94
Application
This section applies if:
age pension ceases to be payable to a person because the rate of the person’s pension is nil; and
the rate of the person’s pension is nil because of the occurrence of an event or change of circumstances (the income‑related event) that results in the person’s income reduced rate (see subsection (2)) being nil; and
the person is required to inform the Department of the income‑related event within a specified period (the notification period) because of a notice given to the person under subsection 68(2); and
but for the person’s income reduced rate being nil, age pension would have continued to be payable to the person; and
the person’s pension is to be, or has been, cancelled under section 93 or 94 because the pension ceased to be payable for the reason mentioned in paragraph (b); and
at the time of the cessation, the person’s ordinary income (as used to work out the person’s income reduced rate) includes income for remunerative work performed by the person in Australia as an employee in an employer/employee relationship.
For the purposes of subsection (1), a person’s income reduced rate is the rate worked out at step 8 of the method statement in point 1064‑A1 in Module A of Pension Rate Calculator A.
Suspension determination—event notified within notification period
If:
the person informs the Department of the income‑related event within the notification period; and
the person’s pension has not yet been cancelled under section 93;
the Secretary may determine that:
section 93 does not apply to cancel the person’s pension; and
the person’s pension is suspended for a period of 2 years with effect from the day the pension would otherwise have ceased to be payable under section 93.
If:
the person informs the Department of the income‑related event within the notification period; and
the person’s pension has been cancelled under section 93; and
within the period of 2 years after the cancellation, the ordinary income of the person is of an amount that would not preclude the person from receiving age pension;
the Secretary may determine that:
the person is to be treated as if section 93 had not applied to cancel the person’s pension; and
the person’s pension is suspended for a period of 2 years with effect from the day the pension had ceased to be payable under section 93.
Suspension determination—event not notified within notification period
If:
the person does not inform the Department of the income‑related event within the notification period; and
the person’s pension has been cancelled under section 94; and
the Department subsequently becomes aware of the income‑related event; and
within the period of 2 years and 14 days after the cancellation, the ordinary income of the person is of an amount that would not preclude the person from receiving age pension;
the Secretary may determine that:
the person is to be treated as if section 94 had not applied to cancel the person’s pension; and
the person’s pension is suspended for a period of 2 years and 14 days with effect from the day the pension had ceased to be payable under section 94.
Residency requirement
The Secretary must not make a determination under subsection (3), (4) or (5) unless the Secretary is satisfied that the person is residing in Australia.
Resumption of age pension after suspension
If:
the Secretary suspends a person’s age pension under subsection (3), (4) or (5); and
within the period the suspension is in effect, the Secretary reconsiders the decision to suspend; and
as a result of the reconsideration, the Secretary is satisfied that:
the person did not receive age pension that was payable to the person; or
the person is not receiving age pension that is payable to the person;
the Secretary is to determine that age pension was or is payable to the person, as the case requires.
The reconsideration referred to in paragraph (7)(b) may be a reconsideration on an application under section 129 or a reconsideration on the Secretary’s own initiative.
A determination that age pension was or is payable to the person under subsection (7) takes effect:
if the person applied for reconsideration under section 129—on the day the application was made; or
in any other case—on the day the Secretary starts to reconsider the decision to suspend.
Cancellation of age pension after period of suspension
If:
the Secretary suspends a person’s age pension for a period under subsection (3), (4) or (5); and
the suspension continues in effect throughout the period;
then, at the end of the period, the determination granting the person age pension is, by force of this subsection, revoked.
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