Age and invalid pension

Old-age pension: Initial provisions
Invalid pension: Initial provisions
Rate of pension and means test for old-age and invalid pensions
Changes in provisions

In 1900 New South Wales and Victoria enacted legislation for old-age pension schemes. Queensland followed in 1908. At the time of Federation, the Commonwealth was allotted responsibility for age and invalid pensions and pensions payable by the Commonwealth Government were introduced with the passage of the Invalid and Old-age Pensions Act in 1908. Old-age pensions, as they were then called, were first paid from 1 July 1909 and invalid pensions from 15 December 1910 (Table 1). These provisions superseded the states' legislation.

The main provisions concerning old-age pension and invalid pension were as outlined below.

Old-age pension: Initial provisions

Persons who attained the age of 65 years or who, being permanently incapacitated for work, attained the age of 60 years were qualified to receive old-age pension while in Australia. Women were to become eligible for pension at 60 years of age on proclamation by the Governor-General.

Persons who were disqualified from receiving old-age pension included:

(a) 'aliens'

(b) naturalised residents who had not been naturalised for the period of three years next preceding the date of their pension claims

(c) 'Asiatics' (except those born in Australia), and 'Aboriginal natives' of Australia, Africa, the Islands of the Pacific, or New Zealand.

A woman was not disqualified from receiving a pension in consequence of having married a person described in (a), (b) or (c).

No person could receive an old-age pension unless:

(a) he was residing in Australia on the date when he made his claim for pension

(b) he had on that date so resided continuously for at least 25 years. Continuous residence in Australia was deemed not to be interrupted by occasional absences not exceeding in the aggregate one-tenth of the total period of residence. A person, whether claimant or pensioner, was deemed not to be absent from Australia during any period of absence from Australia if he proved that during that period his home was in Australia and, in the case of a married male, that his wife and family, or his wife (if he had no family), or his family (if his wife was dead), resided in Australia and were maintained by him

(d) if a husband, he had not for 12 months or upwards during five years immediately preceding that date, without just cause, deserted his wife, or without just cause failed to provide her with adequate means of maintenance, or neglected to maintain any of his children being under the age of 14 years; or, if a wife, she had not for 12 months during five years immediately preceding such date, without just cause, deserted her husband, or deserted any of her children being under the age of 14 years

(e) his income did not exceed certain limits (see below)

(f) the net capital value of his accumulated property, whether in or out of Australia, did not exceed £310 (Table 2). (Accumulated property comprised all real and personal property owned by the person less any charges or encumbrances existing on the property.)

(g) he had not directly or indirectly deprived himself of property or income in order to qualify for or obtain a pension

(h) he had not at any time within six months been refused a pension certificate, except for the reason that he was disqualified on account of his age or for reasons which were not in existence at the time of the further application.

Where a pensioner was considered unfit to be entrusted with a pension, it could be suspended or paid to a designated person or organisation for the pensioner's benefit.

If a successful claimant for a pension was an inmate of a benevolent asylum or other charitable institution, the pension became payable as from a date not more than 28 days prior to the pensioner being discharged from or leaving the asylum or institution, but no payment on account of pension was to be made to him so long as he was an inmate of the asylum or institution. Although no provision was made in the Act for payment of the pension or maintenance to the asylum or institution while the pensioner was an inmate, payment of maintenance to the asylum or institution was in fact made on an 'act of grace' basis.

If the pensioner became an inmate of an asylum for the insane or a hospital, his pension was suspended, but when the pensioner was discharged from any such asylum or hospital, payment of his pension was resumed, and he was entitled to payment, in respect of the period during which his pension was so suspended, of a sum representing not more than four weeks instalments of the pension, where the suspension had been of at least that duration.

Invalid pension: Initial provisions

Persons aged 16 years or more, permanently incapacitated for work, by reason of an accident or by reason of being an invalid, and not in receipt of old-age pension, were, while in Australia, qualified to receive invalid pension. An examination of the claimant by a duly qualified medical practitioner was required.

Persons who were disqualified from receiving invalid pension included:

(a) 'aliens'

(b) 'Asiatics' (except those born in Australia), and 'Aboriginal natives' of Australia, Africa, the Islands of the Pacific, or New Zealand.

A woman was not disqualified from receiving a pension in consequence of having married a person described in (a) or (b).

No person could receive an invalid pension unless:

(a) he was residing in Australia on the date when he made his claim for pension

(b) he had on that date resided in Australia continuously for at least five years. Continuous residence in Australia was deemed not interrupted by occasional absences not exceeding in the aggregate one-tenth of the total period of residence. A person, whether claimant or pensioner, was deemed not to be absent from Australia during any period of absence from Australia if he proved that during that period his home was in Australia and, in the case of a married male, that his wife and family, or his wife (if he had no family), or his family (if his wife was dead), resided in Australia and were maintained by him

(d) the accident or invalidity was not self-induced, nor in any way brought about with a view to obtaining a pension

(e) he had no claim against any employer, company, or other person, or body, compellable under private contract or public enactment to adequately maintain or compensate him on account of accident or invalid state of health

(f) his income or property did not exceed the limits prescribed in the case of applicants for old-age pension (see below)

(g) he had not directly or indirectly deprived himself of income or property in order to qualify for a pension

(h) his relatives—namely, father, mother, husband, wife, or children—did not, either severally or collectively, adequately maintain him.

The same provisions applied to invalid pensioners as applied to old-age pensioners in respect of fitness to be entrusted with a pension, or admission to an asylum or benevolent asylum.

Rate of pension and means test for old-age and invalid pensions

The rate of pension payable was an amount which the Commissioner of Pensions determined as reasonable and sufficient, and was subject to review. The maximum rate of pension was £26 per annum (10 shillings per week) (Table 1) and was reduced by the amount of non-pension income above £26 per annum (10 shillings per week) (Table 2). The pensioner's total income, including pension, could not exceed £52 per annum (£1 per week). (The amount of income a pensioner was allowed before the pension was reduced is referred to in this compendium as permissible income.)

Income for pension purposes included any moneys, valuable consideration or profits earned, derived or received by any person for his own use or benefit by any means from any source whatever, whether in or out of the Commonwealth (including personal earnings) but did not include benefits from friendly societies registered by the Commonwealth or state, payments during illness, infirmity or old age from any trade union, provident society, or other society or association.

In the computation of income, where a pensioner received board and/or lodging, the actual or estimated value or cost of such board and/or lodging not exceeding 5 shillings per week was included as income (Table 10).

The income of each of a pensioner couple was deemed to be half of the total income of both.

Where a single pensioner had property, including a home in which the pensioner was permanently resident and which produced no income, the pension payable was reduced by £1 for every complete £10 by which the net capital value of the property (including the home) exceeded £100. Where the property did not include a home in which the pensioner resided or the home produced income, the pension was reduced by £1 for every complete £10 by which the net capital value exceeded £50 (Table 2). The pension for each of a married pensioner couple who were not living apart was reduced at the same rate as for single pensioners but by the excess above half the amount allowed for single pensioners, that is, £50 and £25.

The net capital value of a pensioner's property comprised the capital value of all real and personal property owned by the pensioner less any lawful charges existing on the property.

The net capital value of the property of each of a married pensioner couple was deemed to be half the combined net capital value of the property of both.

The value of property a pensioner was allowed before pension was reduced is referred to in this compendium as exempt property, and the value of property beyond which pension ceased to be payable is referred to as the upper limit of property (Table 2).

Invalid and Old-age Pensions Act 1908 (No 17 of 1908)

Assent: 10 June 1908

Commenced: 15 April 1909

Proclaimed commencement: 15 April 1909 (payment of old-age pension, except for women aged 60 to 64 years)

18 November 1910 (old-age pension for women aged 60 to 64 years) (see 1910)

19 November 1910 (invalid pension) (see 1910)

Changes in provisions

1909

Claimants who had not been naturalised for three years but who were eligible for old-age pension on all other grounds, and who had been naturalised by 30 June 1910, were to be regarded as eligible.

The residence requirements were changed to require only 20 years' continuous residence for old-age pension, and with regard to both old-age and invalid pensions absences in a territory of the Commonwealth of Australia (or British territory that became such a territory) were deemed not to have interrupted continuous residence.

Invalid and Old-age Pensions Act 1909 (No 3 of 1909)

Assent: 13 August 1909

Deemed commencement: 15 April 1909

The definition of income for old-age and invalid pensions was amended to exclude an allowance under the Miners Accident Relief Act 1900 of the State of New South Wales.

Invalid and Old-age Pensions Act No 2 1909 (No 21 of 1909)

Assent: 13 December 1909

Deemed commencement: 15 April 1909

1910

The sections of the Act concerned with payment of invalid pension and payment of old-age pension to women who had reached 60 but not 65 years came into operation.

Invalid and Old-age Pensions Act 1908 (No 17 of 1908)

Assent: 10 June 1908

Commenced: 15 April 1909

Proclaimed commencement: 18 November 1910 (age pension for women)

19 November 1910 (invalid pension)

1912

The capital value of a pensioner's home was excluded in assessing the value of a pensioner's property. (The higher level of exempt property for home owners was therefore removed.) (Table 2)

Naturalised residents were no longer required to wait three years after naturalisation for eligibility for old-age pension.

Gifts or allowances from children or grandchildren were no longer regarded as income.

Permanently blind persons aged 16 years and under age pension age became eligible for invalid pension regardless of capacity to work, but were deemed to be receiving wages equal to the amount which could have been earned by reasonable effort. (This enabled some blind persons to receive invalid pension even if they were earning and was designed to encourage those who could work to do so.)

Persons afflicted with a congenital defect and rendered permanently incapacitated or blind thereby were regarded as having become incapacitated or blind while in Australia if brought to Australia before attaining the age of three years.

Invalid and Old-age Pensions Act 1912 (No 27 of 1912)

Assent: 24 December 1912

Commenced: 24 December 1912

1916

Persons who became inmates of benevolent asylums and were pensioners on admission or who were eligible for a pension at the time of admission became eligible for a small institutional pension of 2 shillings per week (this being the difference between the 'act of grace' payment to the benevolent asylum for the pensioner's maintenance and the maximum weekly rate of pension).

The maximum rate of pension was increased (Table 1).

The actual or estimated value of free board and/or lodging deemed to be income for means test purposes was increased (Table 10).

Invalid and Old-age Pensions Act 1916 (No 32 of 1916)

Assent: 30 September 1916

Proclaimed commencement: 2 October 1916

1917

War pension payable to dependants of deceased or incapacitated soldiers were exempted from income under the means test for old-age and invalid pensions.

Contributions made by children towards the maintenance of an invalid parent were excluded in assessing eligibility for invalid pension.

Invalid and Old-age Pensions Act 1917 (No 22 of 1917)

Assent: 13 September 1917

Proclaimed commencement: 27 September 1917

1920

The maximum rate of pension was increased (Table 1).

The amount of board and/or lodging to be included in income was increased (Table 10).

Invalid and Old-age Pensions Act 1919 (No 22 of 1919)

Assent: 28 October 1919

Commenced: 1 January 1920

1921

A married blind pensioner was permitted to receive pension of an amount (not exceeding the maximum rate of pension) which would allow the joint income of the couple, together with the pension, to equal an amount not exceeding a stipulated sum of £4.5.0 per week or the basic wage for the portion of the Commonwealth where the pensioner lived.

Invalid and Old-age Pensions Act 1920 (No 53 of 1920)

Assent: 2 December 1920

Proclaimed commencement: 13 January 1921

1923

Institutional pension of 3 shillings per week became payable to all persons in benevolent asylums if they were otherwise eligible for a pension including those who became eligible after admission (Table 7). Institutional pension was also payable after 28 days to pensioners who remained in an asylum or public hospital for more than 28 days (maintenance payments to the hospitals also started after 28 days). (On discharge from a public hospital, a pensioner received an amount equal to the pension that would otherwise have been paid during the first 28 days of a hospital stay.)

Invalid pension became payable to persons not born in Australia who were incapacitated by a congenital defect or by blindness, if they had resided in Australia continuously for a period of 20 years.

The upper limit of property was increased (Table 2). Permissible income was increased (Table 2).

The maximum rate of pension was increased (Table 1).

The value of free board and/or lodging deemed to be income for means test purposes was increased (Table 10).

Invalid and Old-age Pensions Act 1923 (No 15 of 1923)

Assent: 1 September 1923

Proclaimed commencement: 13 September 1923

1925

The maximum rates of pension and institutional pension were increased (Table 1 and Table 7).

Invalid and Old-age Pensions Act 1925 (No 27 of 1925)

Assent: 26 September 1925

Commenced: 8 October 1925

1926

Invalid and old-age pensions became payable to Indians born in British India.

Invalid and Old-age Pensions Act 1926 (No 44 of 1926)

Assent: 16 August 1926

Proclaimed commencement: 7 October 1926

1928

War pension for incapacitated soldiers became exempt income for old-age pension purposes.

Institutional pension was increased (Table 7).

Invalid and Old-age Pensions Act 1928 (No 31 of 1928)

Assent: 14 September 1928

Proclaimed commencement: 4 October 1928

1931

War pensions payable to dependants of deceased or incapacitated soldiers, or incapacitated soldiers, were no longer excluded from income for old-age and invalid pension purposes.

The maximum rates of pension and institutional pension were reduced (Table 1 and Table 7).

Financial Emergency Act 1931 (No 10 of 1931)

Assent: 17 July 1931

Commenced: 17 July 1931

Proclaimed commencement: 20 July 1931 (invalid and old-age pensions)

Pensioners with deposits in the Government Savings Bank of New South Wales became entitled to have the amount of these deposits excluded from the net capital value of their property by assigning the deposits to the Minister of State who administered the Invalid and Old-age Pensions Act. When the assignment ended, the amount repayable to the pensioner was the amount assigned less additional pension paid as a result of the assignment.

Invalid and Old-age Pensions Act 1931 (No 46 of 1931)

Assent: 2 November 1931

Proclaimed commencement: 12 November 1931

1932

A person became ineligible for either old-age or invalid pension if his relatives—namely, husband, wife, father, mother, or children aged 21 years of age or over—could adequately maintain him. Relatives could be called upon to give evidence as to their ability to support the claimant for pension. Relatives who were required to make compulsory payments did so to the Commonwealth.

A person who transferred property of more than £100 for no consideration within the five years preceding the date of his pension claim became ineligible for pension, unless it could be proved that it was a reasonable gift in the circumstances at the time.

A pensioner or claimant was obliged to supply the Commissioner with full particulars relating to the real property owned or in which he had any estate or interest, and relating to his relatives (husband, wife, father, mother or children). A pensioner was also required to notify in writing of any acquisition of property or receipt of income which affected the amount of pension.

From 12 October 1932 if a pensioner received property not including a home, of value greater than £400 (the upper limit of property) then the amount of pension received since that date became reimbursable to the Commonwealth to the extent that the value of the property exceeded £400. The amount reimbursable was reduced by any amount contributed by relatives to maintain the pensioner.

A pensioner was required, subject to severe penalties and refusal or cancellation of pension for non-compliance, to undertake not to transfer or mortgage any real property or any estate or interest therein, without prior consent of the Commissioner. Any such transfer or mortgage would be void and have no effect.

From 12 October 1932 the amount of pension received by a pensioner after that date became reimbursable from the estate of the pensioner subject to certain exceptions, such as on the death of one of a married pensioner couple or when a home was transferred to an aged near relative in necessitous circumstances. The amount reimbursable was reduced by any amount contributed by relatives to maintain the pensioner.

Where a home was destroyed by fire, insurance moneys received would not affect pension if used within a certain period to build another home for the pensioner.

The maximum rate of pension payable before application of the means test was reduced to 15 shillings per week unless the pensioner's other income including gifts and allowances from near relatives was less than 2 shillings and sixpence per week, in which case the maximum pension became the sum of 15 shillings and the amount by which the pensioner's other income fell short of 2 shillings and sixpence per week (Table 1). In applying the means test, payments by way of gifts and allowances from the husband, wife, father, mother or children were excluded.

Institutional pension was reduced (Table 7).

Financial Emergency Act 1932 (No 35 of 1932)

Assent: 3 October 1932

Proclaimed commencement: 12 October 1932

The Commonwealth was empowered to accept a transfer from a pensioner or claimant of any property not subject to encumbrance, or of any interest of the pensioner or claimant under a will. The value of the property or interest was not taken into account in determining the amount of pension.

Financial Relief Act 1932 (No 64 of 1932)

Assent: 5 December 1932

Deemed commencement: 12 October 1932 (pension provisions)

The changes of provisions noted for 1931 and 1932 were part of the financial emergency measures taken during the depression of the 1930s. None of these measures were completely implemented. Most were later amended to remove anomalies or liberalise the nature of the provisions. In April 1935 the property provisions of these emergency measures were repealed with three exceptions. These exceptions were: (i) the notification by the pensioner if received income or acquired property was sufficient to affect the rate of pension; (ii) where a home was destroyed by fire then insurance moneys received should not affect pension if within a certain period they were used to build another home; (iii) the Commonwealth remained able to accept transfer of unencumbered property from a pensioner. The provisions making persons ineligible for old-age or invalid pension if adequately maintained by near relatives also remained.

Financial Relief Act 1933 (No 17 of 1933)

Assent: 26 October 1933

Proclaimed commencement: 27 October 1933

Invalid and Old-age Pensions Act 1933 (No 56 of 1933)

Assent: 12 December 1933

Commenced: 12 December 1933

Invalid and Old-age Pensions Act 1935 (No 1 of 1935)

Assent: 4 April 1935

Commenced: 4 April 1935

1933

Sustenance or food relief provided by a state or by a Commonwealth territory was excluded from income for pension purposes.

The maximum rate of pension became subject to annual review based on the movement in the retail price index number for food and groceries but was limited to the range of 17 shillings and sixpence to £1 per week.

The maximum rate of pension was increased and again became the same for all pensioners (Table 1).

Institutional pension was increased (Table 7).

Financial Relief Act 1933 (No 17 of 1933)

Assent: 26 October 1933

Proclaimed commencement: 27 October 1933

Deemed commencement: 16 March 1933 (provision relating to sustenance or food relief)

1934

The provision under which relatives could be required to make compulsory payments to the Commonwealth towards a pensioner's maintenance was repealed.

1935

Relatives (husband, wife, father, mother, or children aged 21 years or over) were no longer required to contribute to the support of the pensioner.

Invalid and Old-age Pensions Act 1935 (No 1 of 1935)

Assent: 4 April 1935

Commenced: 4 April 1935

Deemed commencement: 21 June 1934 (compulsory payments)

1936

Service pensions were introduced for male veterans aged 60 years or more who had served in a 'theatre of war' or were permanently unemployable, and female veterans aged 55 years or more who had served or had embarked for service abroad or were permanently unemployable, or those suffering from pulmonary tuberculosis even when the service was not in a theatre of war. No person except a veteran suffering from pulmonary tuberculosis could receive both a service pension and an invalid or old-age pension. The pension was subject to a means and income test.

Australian Soldiers' Repatriation Act 1935 (No 58 of 1935)

Assent: 6 December 1935

Commenced: 1 January 1936

1937

Adjustments based on the retail price index were discontinued.

The maximum rate of pension was increased (Table 1) and the allowable income of a blind pensioner and spouse was increased.

Institutional pension was increased (Table 7).

Invalid and Old-age Pensions Act 1937 (No 11 of 1937)

Assent: 2 September 1937

Commenced: 2 September 1937

1940

The rate of pension became subject to automatic quarterly review based on movements in the retail price index ('C' Series). The legislation provided for automatic adjustment if the retail price index number moved upwards by a prescribed minimum.

The maximum rate of pension was increased (Table 1). The allowable income of a blind pensioner and spouse was increased.

Institutional pension was increased and became adjustable by half of the amount by which the maximum rate of pension per annum was increased or reduced (Table 7).

Invalid and Old-age Pensions Act 1940 (No 97 of 1940)

Assent: 17 December 1940

Commenced: 17 December 1940

1941

In April 1941 the Department of Social Services began to function as a separate organisation, having been established on 26 April 1939 in accordance with section 64 of the Commonwealth of Australia Constitution. The administration of the Invalid and Old-age Pensions Act was taken over by the Department of Social Services from the Department of the Treasury.

The provisions of 1920 (commenced 1921) which set a maximum level for combined pension and income in respect of blind pensioners were repealed and replaced by a provision which set a limit on permissible income instead. The limit was set at the existing effective amount of permissible income, £3.7.6 per week.

A provision was added to the legislation specifying that a person would be deemed permanently incapacitated for work and thus eligible for invalid pension if his degree of capacity for work did not exceed 15 per cent.

All 'Asiatics' who were British subjects became eligible for old-age or invalid pension (previously only those who were born in Australia and Indians born in British India were eligible).

Granting of invalid pension became subject to assessment for vocational or rehabilitation training, and invalid pension was paid to persons while undertaking such training, as they were deemed for pension purposes to be incapacitated for work.

The property exemption for a married pensioner was raised to that of a single pensioner, £50, instead of being half that amount (Table 2).

The Commissioner of Pensions was empowered to disregard for pension purposes the value of an interest in certain property which could not have been realised except at a considerable loss.

The Commissioner, for special reasons in particular cases, did not need to halve the joint property of a married pensioner couple to assess the net capital value of the accumulated property of each.

The maximum rate of pension was increased (Table 1). Institutional pension was increased (Table 7).

Invalid and Old-age Pensions Act 1941 (No 48 of 1941)

Assent: 25 November 1941

Commenced: 11 December 1941

1942

Pensioners' deposits in the Government Savings Bank of New South Wales ceased to be assignable to the Minister of State administering the Invalid and Old-age Pensions Act, so that the amount of these deposits was no longer excluded from the net capital value of their property.

Voluntary support by relatives of itself no longer rendered persons ineligible for age pension and did so for invalids only if the support was from parents.

The permissible income for a blind pensioner was set at an amount equivalent to the then existing Federal basic wage, £4.10.0 per week, and became adjustable in accordance with that wage.

Pension was no longer suspended when a pensioner entered hospital and the provisions requiring maintenance payments to be made to the hospital where a pensioner was in hospital for more than 28 days were repealed. Payment for hospital services became a private matter between the hospital and the pensioner patient. There was no change in policy in relation to inmates of hospitals for the insane or benevolent homes.

'Aboriginal natives' of Australia became eligible for age or invalid pension if they were exempt from the provisions of a state or territory law 'relating to the control of 'Aboriginal natives' or who lived in a state or territory which did not provide for such exemption but who were eligible on the grounds of character, standard of intelligence and development. Pacific Islanders known as 'Kanakas' also became eligible.

The maximum rate of pension was increased retrospective to 2 April 1942 (Table 1).

Institutional pension was increased, retrospective to 2 April 1942 (Table 7).

Invalid and Old-age Pensions Act 1942 (No 3 of 1942)

Assent: 18 May 1942

Commenced: 9 July 1942

18 May 1942 (pension payments)

From 1 July 1941 invalid and old-age pensions were exempted from income tax.

Income Tax Assessment Act (No 2) 1942 (No 50 of 1942)

Assent: 6 October 1942

Commenced: 6 October 1942

1943

Funeral benefit of up to £10 became payable for the funeral expenses of a deceased old-age or invalid pensioner except where funeral expenses were paid by a contributory funeral benefit fund (other than a friendly society).

A wife's allowance became payable, subject to the means test, to the wife of an invalid pensioner or of an old-age pensioner who was permanently incapacitated for work, where the wife was the legal wife of the pensioner, was living with him and did not receive an old-age, invalid or service pension. The provision under which permanently incapacitated males who had reached 60 but not 65 years of age received age rather than invalid pension was deleted. The wife was not required to satisfy any tests regarding age, character, nationality or length of residence. Wife's allowance was not payable where the husband was in a benevolent asylum or in a hospital for the insane. The maximum rate of wife's allowance was set at 15 shillings per week (Table 3).

A child's allowance became payable free of means test to the wife of an invalid pensioner or of an old-age pensioner who was permanently incapacitated for work, for the first or unendowed child under 16 years. (Child endowment was payable only for second and subsequent children of all families.) The wife was required to be the legal wife of the pensioner, living with her husband, have the custody, care and control of one or more children and be in receipt of wife's allowance or eligible for wife's allowance except for the operation of the means test, or herself an invalid pensioner. An invalid pensioner (or permanently incapacitated old-age pensioner) who was a widower, or living apart from his wife, also became eligible to receive the allowance if he had custody of the children. Child's allowance was not payable to a person receiving a service pension or where the wife or pensioner husband was an inmate of a benevolent asylum or hospital for the insane. The rate of child's allowance was set at 5 shillings per week (Table 6).

Invalid and Old-age Pensions Act 1943 (No 14 of 1943)

Assent: 29 March 1943

Commenced: 1 April 1943

8 July 1943 (wife's allowance and child's allowance)

On 1 September 1943 an agreement with New Zealand for limited reciprocity of old-age and invalid pensions came into force. The more restrictive conditions of the pension laws of each country applied, whether as to residence or otherwise, and the rate of pension was not to exceed the maximum rate of pension payable in the country with the lower maximum rate.

Invalid and Old-age Pensions (Reciprocity with New Zealand) Act 1943 (No 36 of 1943)

Assent: 3 July 1943

Proclaimed commencement: 1 September 1943

1944

Pensioners who were imprisoned became subject to suspension of pension rather than cancellation. Any instalment falling due during imprisonment might be forfeited. Where there was a dependent wife or child any such suspended or forfeited pension or portion thereof could be paid to the wife or child or some other approved person for their benefit.

The permissible income for a blind pensioner was set at a fixed amount of £5 per week, the link with the basic wage being removed.

The cost of living adjustment for old-age and invalid pension was discontinued.

The standard maximum rate of pension was fixed at £1.7.0 per week, the amount which had actually been payable following cost of living adjustment in August 1943 (Table 1).

Institutional pension was increased (Table 7).

Invalid and Old-age Pensions Act 1944 (No 16 of 1944)

Assent: 6 April 1944

Commenced: 6 April 1944

17 February 1944 (permissible income for blind pensioners)

1945

The maximum rates of pension and institutional pension were increased (Table 1 and Table 7).

Invalid and Old-age Pensions Act 1945 (No 7 of 1945)

Assent: 27 June 1945

Commenced: 27 June 1945

1946

The following items were exempted in assessing the value of accumulated property, in addition to the existing provision for the exemption of the value of a pensioner's home:

the value of any furniture and personal effects
the surrender value of any life insurance policy up to a limit of £200
the capital value of any life interest or annuity
the value of contingent interest
the present value of any reversionary interests up to a total value of £500
the value of any property to which the pensioner or spouse was entitled from the estate of a deceased person but which had not yet been received.

Claimants for invalid pension who were adequately maintained by their parents were no longer disqualified for pension unless they were under 21 years of age.

Permissible income for pensioners other than the blind, and for recipients of wife's allowance, was increased to £1 per week; and to £5.7.6 per week for blind pensioners. The upper limit of property for pension and wife's allowance was raised to £650; the existing scale of deduction from pension was retained in respect of property valued at up to £400 (£1 for every £10 of property in excess of £50); thereafter the rate of reduction became £2 per annum for every complete £10 between £400 and £650 (Table 2).

Invalid and Old-age Pensions Act 1946 (No 26 of 1946)

Assent: 13 August 1946

Commenced: 13 August 1946

1947

The old-age pension was re-named 'age pension'.

Specific racial disqualifications (other than those relating to Aboriginal Australians) were removed.

The residence requirements were broadened to include as periods of residence absences attributable to a war or absences during which the person remained a resident for taxation purposes.

Eligibility for invalid pension was widened by the provision that a claimant was regarded as being invalided in Australia if incapacity or blindness occurred during temporary absence or, where incapacity or blindness (in addition to congenital incapacity or blindness) occurred before his arrival in Australia, if he was brought into Australia before he was three years old or had resided in Australia continuously for 20 years.

Wife's allowance became payable to 'dependent females'. A dependent female was a woman who had lived with a man as his wife on a permanent and bona fide domestic basis, although not legally married to him, for not less than three years.

Wife's or child's allowance became payable where a husband was in a benevolent asylum provided the wife was at least 50 years of age or had the custody, care and control of a child under 16 years.

Child's allowance became payable to a single invalid pensioner of either sex who had the custody, care and control of a child under 16 years.

Certain government health benefits were excluded from the definition of income for means test purposes, but the previous exemptions of payments from provident societies or other societies or associations were discontinued. Payments from friendly societies and trade unions remained exempt.

In determining a pensioner's assessable income, a deduction of up to 10 shillings per week became allowable for each dependent child under 16 years; the amount of the deduction was reducible by any amount received in respect of the child, including child endowment and child's allowance (Table 2). (In this compendium the deduction is referred to as the income disregard in respect of children.)

Funeral benefit (up to £10) became payable where any amount paid by a contributory funeral benefit fund (other than a friendly society) did not fully cover the cost of the funeral. Funeral benefit also became payable in respect of a claimant for pension who would have qualified except for his death.

The maximum rates of pension and of wife's allowance were increased (Table 1 and Table 3).

Permissible income for blind pensioners was increased to £5.7.6 per week.

The maximum amount of pension payable to a pensioner inmate of an approved benevolent institution was increased (Table 7), any balance of the pension being payable to the institution authorities for the pensioner's maintenance.

Social Services Consolidation Act 1947 (No 26 of 1947)

Assent: 11 June 1947

Commenced: 1 July 1947

1948

A specific limitation was placed on the total amount which a pensioner could receive by way of war or service pension plus civil pension (that is age, invalid or widow's pension). Where that limit was exceeded, the civil pension was reduced by the amount of the excess; the war pension was not affected. The ceiling rates were: £3.2.6 per week for an unmarried person or widower; £6.2.0 per week for a married couple, both of whom were pensioners (or the husband a pensioner and his wife receiving a wife's allowance); £5 per week for other married couples; £3.12.6 per week for a class A widow or £3.17.6 where no income was received for the first child; £3.2.6 per week for class B, C and D widows.

The maximum rate of pension was increased (Table 1).

Permissible income for pensioners was increased (Table 2). Permissible income for blind pensioners was increased to £5.17.6 per week.

The levels of exempt property and the upper limit of property were increased (Table 2).

Institutional pension was increased (Table 7).

Social Services Consolidation Act 1948 (No 38 of 1948)

Assent: 19 October 1948

Commenced: 19 October 1948

Eligibility for invalid pension was extended to a person who became permanently incapacitated for work or permanently blind while resident outside Australia, if he had completed an aggregate of 20 years' residence in Australia at any time, whether before or after the permanent incapacity or blindness.

The Director-General of Social Services was empowered to provide full-scale facilities for the treatment and vocational training of invalid pensioners and claimants for invalid pensions, and of recipients of and claimants for unemployment and sickness benefit who might otherwise become unemployable, thus extending the 1941 requirement that granting of invalid pension be subject to assessment for vocational or rehabilitation training. Pension or benefit continued during treatment but was replaced by a rehabilitation allowance at an equivalent rate during training. Training allowance and living-away-from-home allowance were also payable.

Maintenance payments for pensioners in benevolent institutions were not payable to institutions covered under the Hospital Benefits Act 1945-1947.

Social Services Consolidation Act (No 2) 1948 (No 69 of 1948)

Assent: 10 December 1948

Commenced: 10 December 1948

13 July 1950 (tuberculosis provisions) (see 1950)

1949

On 15 April 1949 a revised reciprocal agreement was made with New Zealand superseding the 1943 agreement. The new agreement made reciprocal provisions for a wider range of benefits but only for pensioners who became permanent residents of the country concerned. Temporary pensioner residents were to be paid on an agency basis by the host country. Residence or permanent incapacity in New Zealand was deemed to be residence or permanent incapacity in Australia for the purposes of the reciprocal agreement. A reciprocal grant of pension could not be made unless the person would have been eligible for pension in the country of origin.

Social Services (Reciprocity with New Zealand) Regulations Statutory Rules 1949, No 42 Gazetted: 30 June 1949 Commenced: 1 July 1949

From 1 July 1949 the Invalid and Old-age Pensions (Reciprocity with New Zealand) Act 1943 was repealed. Savings provisions were contained in the Social Services Act.

The maximum rates of wife's allowance and child's allowance were increased (Table 3 and Table 6).

Social Services Consolidation Act 1949 (No 16 of 1949)

Assent: 29 June 1949

Commenced: 1 July 1949 (reciprocity section)

1950

From 13 July 1950 the rate of tuberculosis allowance (which was first introduced in 1945 and administered by the Department of Health) was raised considerably and became a substitute for any age, invalid or widow's pension or unemployment, sickness or special benefit, rather than a supplement as before. The allowance was subject to an income test but the capital value of property owned was disregarded. The rate of allowance for a single person was £3.12.6 per week (£2.12.6 per week while undergoing treatment free of charge in an approved institution) and £6.10.0 per week for a married couple, plus 9 shillings per week for each dependent child under 16. Permissible income was £2 per week for a single person or double that for a married couple.

Tuberculosis Act 1948 (No 46 of 1948)

Assent: 25 November 1948

Proclaimed commencement (Section 9): 13 July 1950

Social Services Consolidation Act (No 2) 1948 (No 69 of 1948)

Assent: 10 December 1948

Commenced: 10 December 1948

13 July 1950 (tuberculosis provisions)

A Pensioner Medical Service scheme of free general practitioner medical services and medicines prescribed in the course of those services came into operation for pensioners—age, invalid, widow or service pensioners, and persons receiving tuberculosis allowance—and their dependants. Dependants included the wife of the pensioner; a woman living with the pensioner on a permanent and bona fide domestic basis, although not legally married to him, for not less than three years; and a child under the age of 16 years in the custody, care and control of the pensioner or the pensioner's spouse.

National Health (Medical Services to Pensioners) Regulations Statutory Rules 1950, No 50

Gazetted: 25 August 1950

Commenced: 25 August 1950

Permissible income for blind pensioners was increased to £8 per week.

The limit of the surrender value of a life insurance policy exempted in the computation of the value of accumulated property was raised from £200 to £500.

The ceiling limits on the total amount a pensioner could receive by way of war or service pension plus civil pension were raised to £3.10.0 per week for a single person; £6.10.0 per week in the case of a married couple both receiving a civil pension (including wife's allowance); and £5.7.6 per week for a married couple only one of whom was a pensioner.

The maximum rates of pension and institutional pension were increased (Table 1 and Table 7).

Social Services Consolidation Act (No 2) 1950 (No 26 of 1950)

Assent: 27 November 1950

Commenced: 27 November 1950

1951

The Pensioner Medical Service scheme was extended to include the supply of all medicines prescribed by medical practitioners to pensioners and their dependants.

National Health (Medicines for Pensioners) Regulations Statutory Rules 1951, No 63

Gazetted: 29 June 1951

Commenced: 2 July 1951

The income disregard in respect of children was no longer reduced by child endowment and child's allowance; the maximum amount of the disregard was reduced from 10 shillings to 5 shillings per week (Table 2).

The Director-General of Social Services had the discretionary power to disregard the value of the whole, or part, of a pensioner's property where it was considered that special circumstances justified the action (an example: where a pensioner had let his home and was unable to regain possession of it). Such a provision had existed in the case of widow's pension since 1942.

The level of the exemption under the property test of the current value of a reversionary interest in an estate was raised from £500 to £750.

In the computation of the value of accumulated property the surrender value of life insurance policies which could be disregarded was raised to £750.

The upper limit of property was raised (Table 2).

The maximum rates of pension and institutional pension were increased (Table 1 and Table 7).

Wife's allowance was increased (Table 3). Child's allowance was increased (Table 6).

Permissible income for blind pensioners was increased to £10 per week.

The ceiling limits on the total amount a pensioner could receive by way of war or service pension plus civil pension were raised to £4 per week for a single person; £7.5.0 per week for a married couple both receiving a civil pension (including wife's allowance); and £5.17.6 per week for a married couple only one of whom was a pensioner.

Funeral benefit of £10 could be paid in respect of the death of a person who was receiving or was a claimant for a tuberculosis allowance at the time of his death but who would have been eligible for an age or invalid pension if he had not been receiving or claiming the tuberculosis allowance.

People aged 16 and under 21 years who would have been eligible for invalid pension except that their parents were able to maintain them adequately, were granted the benefits of the rehabilitation scheme introduced in 1948.

Social Services Consolidation Act 1951 (No 22 of 1951)

Assent: 31 October 1951

Commenced: 31 October 1951

1952

Blind persons became eligible for part of the pension (£3 per week) free of means test while the balance of pension continued to be subject to the means test applicable to blind persons.

Persons aged 16 and under 21 years became eligible for invalid pension irrespective of whether adequate maintenance could be provided by parents.

In the definition of income, the exclusion of benefits received under the Hospital Benefits Act was extended to cover benefit payments received from registered hospital benefit organisations up to the amount of the hospital fees payable over and above Commonwealth hospital benefits.

Pensions continued to be payable to pensioners who left Australia to reside in an external territory of the Commonwealth of Australia (previously pensions were cancelled).

The concession in respect of occasional absences which were regarded as residence for the purposes of the age pension provisions was liberalised. Where a claimant had been a resident of Australia (although not continuously) for a total period exceeding 18 years he would be deemed to have been resident in Australia during occasional absences amounting in the aggregate to two years plus a period of six months for every year of residence in excess of 18 years.

The requirement for the granting of invalid pension that the claimant was residing in Australia when lodging the claim and had been continuously so resident for not less than five years, was liberalised: a claimant was deemed to have been resident in Australia during occasional absences not exceeding, in the aggregate, a period equal to one-tenth of the total of periods of residence and occasional absences.

The maximum rates of pension and institutional pension were increased (Table 1 and Table 7).

The ceiling limits on the total amount a pensioner could receive by way of war or service pension plus age or invalid pension were raised to £4.7.6 per week for an unmarried person; £8 per week for a married couple both receiving a civil pension; £7.17.6 per week for a married couple where the husband was receiving a civil pension and the wife a wife's allowance; and £6.5.0 per week for a married couple only one of whom was receiving a pension.

The rate of wife's allowance was increased (Table 3).

The income disregard in respect of children was increased (Table 2).

Social Services Consolidation Act 1952 (No 41 of 1952)

Assent: 25 September 1952

Commenced: 25 September 1952

1953

Reversionary interests in estates were completely excluded from the definition of property for pension means test purposes.

Benefits from registered organisations under the medical benefits scheme for pharmaceutical, sickness or hospital benefits or for medical or dental services (including Commonwealth benefits) up to a limit of the total fees payable were excluded from the definition of income.

Blind persons with a child under 16 years and receiving only the means-test-free component of pension became eligible for child's allowance (Table 6).

The 1952 formula for treating occasional absences as residence was extended to allow the period credited under the formula to be taken into account with any other period or periods of residence, so as to give the claimant the longest possible period of continuous residence. Previously credits under the formula could be used to cover complete absences but not part of an absence.

A child who was born out of Australia during the temporary absence of his mother and was permanently incapacitated or permanently blind on arrival in Australia, was defined as having become permanently incapacitated or permanently blind in Australia.

The term 'benevolent home' was substituted for 'benevolent asylum' in the Social Services Act.

The maximum rates of pension and institutional pension were increased (Table 1 and Table 7).

The amount of property which a pensioner could possess without his pension being affected, and the limit of property value above which no pension was granted, were raised (Table 2). The scale of reduction of pension was altered to £1 per annum for every complete £10 between £150 and £450 and then £2 per annum for every complete £11 up to £1250. The reductions applied also to wife's allowance.

Permissible income for a single pensioner was increased to £2 per week (Table 2); for a married pensioner whose spouse was not an age, invalid or service pensioner to £2.10.0 per week; and for wife's allowance to £2.10.0 per week.

Where only one of a married couple was a pensioner, special provision was made to allow the sharing of the income of the couple for pension purposes. The couple could now have an income of £5 per week between them without reduction of pension, but if joint income exceeded that amount the rate of pension (and wife's allowance, if any) was reduced by half the excess income. However they could not receive by way of income more than the maximum amount of income and pension of a married pensioner couple—that is £11 per week.

The limits on the total amount a pensioner could receive by way of war or service pension plus age or invalid pension were raised to £4.17.6 per week for an unmarried person; £8.17.6 per week for a married couple both receiving an age, invalid or service pension, or the husband receiving an age or invalid pension and the wife a wife's allowance; and £7.10.0 per week for a married pensioner whose spouse was not receiving a pension or wife's allowance.

In determining the cost of a funeral for the purposes of a claim for funeral benefit, any amount received from a contributory funeral benefit fund of a trade union was disregarded, in the same way as a similar payment from a friendly society.

Social Services Consolidation Act 1953 (No 51 of 1.953)

Assent: 26 October 1953

Commenced: 26 October 1953

1954

A reciprocal agreement with the United Kingdom came into force.

Persons residing in Australia who were in receipt of retirement or old-age pensions from the United Kingdom Ministry of National Insurance were generally entitled, subject to the means test and other conditions apart from residence (the residential requirements for Australian pensions were waived), to the United Kingdom pension supplemented by an Australian pension to bring the total payable up to the current rate for other Australian residents. The amount of the Australian supplement was less for wives who were not insured in the United Kingdom scheme in their own right, but who depended upon rights accruing from their husbands' insurance or for persons who were not in full insurance status.

The same principles applied to persons who left the United Kingdom to reside in Australia before reaching pension age. If they were contributors to the United Kingdom National Insurance Scheme or the contributory old-age pensions scheme at the time of their departure, on reaching pension age they received a partial United Kingdom pension which, together with the Australian supplement, brought the total amount up to the full Australian pension rate if in full insurance status. In other circumstances an appropriate amount calculated on a pro rata basis was paid.

A person who was receiving a sickness benefit (United Kingdom) for an incapacity of a permanent nature was eligible on becoming permanently resident in Australia to receive an invalid pension, subject to the means test and other conditions apart from residence, at a rate not exceeding the Australian equivalent of the United Kingdom sickness benefit to which he would have been entitled had he remained in the United Kingdom.

A person who on leaving the United Kingdom was in full insurance status for sickness benefit of the indefinite class (a benefit comparable to Australian invalid pension) and who became permanently incapacitated or blind after taking up permanent residence in Australia, became immediately eligible for an invalid pension at the normal rate, subject to the means test and other conditions apart from residence.

Australian residents who were or became permanently resident in the United Kingdom were in general given insurance credits based on residence in Australia between the age of 16 years and pensionable age. Benefits were free of means test except for persons who were above or within five years of pension age (men 65, women 60) where the pension could not exceed the rate of age pension for which the person would have been qualified in Australia.

An Australian age pensioner leaving Australia to reside permanently in the United Kingdom was paid a United Kingdom retirement pension at the United Kingdom rate or the Australian rate under the means test, whichever was the lower.

Social Services (Reciprocity with United Kingdom) Regulations Statutory Rules 1954, No 8

Gazetted: 28 January 1954

Deemed commencement: 7 January 1954

The means test on age and invalid pension for permanently blind persons was removed.

A pensioner's income from property became exempt from the means test. This included rents, dividends and interest from investments.

Fortnightly pension instalments were adjusted to the nearest shilling.

Permissible income was increased (Table 2).

The amount of exempt property and the upper limit of property were raised (Table 2).

The scale for progressive reduction of age or invalid pension under the property means test was liberalised. The new scale became a taper of £1 per year for every complete £10 of property above £200 up to a limit of £1750.

The ceiling limits on the total amount a pensioner could receive by way of war or service pension plus age or invalid pension were raised to £5.12.6 per week for an unmarried pensioner; £9.12.6 per week for a married couple both receiving an age, invalid or service pension (including wife's allowance); and £8.5.0 per week for a married pensioner whose spouse was not receiving a pension or wife's allowance.

Social Services Act 1954 (No 30 of 1954)

Assent: 6 October 1954

Commenced: 6 October 1954

1955

The scheme introduced in 1948 for the treatment and vocational training of pensioners and beneficiaries was given the title of The Commonwealth Rehabilitation Service. Rehabilitation training was extended to persons aged 14 and 15 liable to become invalid pensioners, and to persons receiving tuberculosis allowances. Treatment and training could also be provided for 'private cases' on payment of costs. The rates of training and living-away-from-home allowances were increased. The allowance for books, equipment, appliances and tools of trade was raised to £40. Loans could be granted to persons who completed treatment or training to engage in suitable vocations at home.

Social Services Act 1955 (No 15 of 1955)

Assent: 4 June 1955

Commenced: 4 June 1955

The ceiling limit on the amount which persons could receive by way of age or invalid pension plus war pension was removed and war pension ranked only as income under the means test, thus allowing war pensioners to receive a civil pension at a higher rate than previously; but in the case of blind war pensioners ceiling limits were retained for single and married veterans. Any other income received by blind war pensioners did not affect age or invalid pension.

The maximum rates of pension and institutional pension were increased (Table 1 and Table 7).

Social Services Act (No 2) 1955 (No 38 of 1955)

Assent: 19 October 1955

Commenced: 19 October 1955

From 1 November 1955 a special means test applied limiting participation in the Pensioner Medical Service to those who would have been eligible for the maximum rate of pension under the income test in force at 31 December 1953. Thus pensioners with income of more than £2 per week, or £5 per week in the case of a married couple where only one was a pensioner, could not receive the benefits of the Pensioner Medical Service. Persons receiving tuberculosis allowance were not income-tested and pensioners already enrolled in the Service retained their entitlements.

National Health Act 1955 (No 68 of 1955)

Assent: 4 November 1955

Commenced: 4 November 1955

1956

The rate of pension for invalid pensioners and age pensioners who were permanently blind or permanently incapacitated for work was increased by 10 shillings per week, subject to the existing means test, for each child under the age of 16 years after the first who was in the pensioner's custody, care and control. For a married pensioner couple only the husband was eligible for the additional pension (Table 6).

The following repatriation allowances were excluded from the definition of income for pension purposes: decoration allowance, recreation transport allowance, and an allowance paid towards the cost, maintenance or running expenses of a motor vehicle provided by the Repatriation Department for a seriously incapacitated ex-member of the Defence Force.

Social Services Act 1956 (No 67 of 1956)

Assent: 5 October 1956

Commenced: 5 October 1956

1957

The limit placed on the amount a blind war pensioner could receive by way of war pension plus invalid pension was lifted to permit the pensioner to receive the additional pension for children after the first.

The maximum rates of pension and institutional pension were increased (Table 1 and Table 7).

Social Services Act 1957 (No 46 of 1957)

Assent: 17 October 1957

Commenced: 17 October 1957

1958

A new reciprocal agreement with the United Kingdom came into operation. The revised provisions included:

Residence in the United Kingdom replaced national insurance status as the basis of eligibility for grant of pension in Australia - that is 20 years' continuous residence for age pension, five years for invalid pension.

'Pro rata' assessments for married women and other persons who were not fully insured were eliminated. All residentially qualified persons could have their United Kingdom pensions supplemented, subject to the means test, by an Australian pension to bring the total to the Australian rate.

Invalid pensioners and their wives and children became entitled to continue receiving pension while temporarily in the United Kingdom, like age and widow pensioners.

Permanent incapacity or blindness occurring in the United Kingdom was deemed to have occurred in Australia.

Australians permanently living in the United Kingdom were eligible for full United Kingdom retirement pension irrespective of the rate of age pension they were receiving in Australia.

Social Services (Reciprocity with United Kingdom) Regulations Statutory Rules 1958, No 30

Gazetted: 24 April 1958

Deemed commencement: 1 April 1958

Supplementary assistance was introduced to assist those pensioners who were almost entirely dependent on their pension. It was payable at the rate of 10 shillings per week to single pensioners, and to married pensioners where only one of the spouses was receiving a pension or allowance. It was available only to those who paid rent or board and lodging, whose income was not more than 10 shillings per week, and whose property under the means test was not sufficient to affect the rate of pension (Table 1).

The exemption of periodical payments or benefits by way of gifts or allowances from the definition of income for pension purposes was extended to include gifts or allowances from a brother or sister of a pensioner as well as from a father, mother or daughter.

Amounts received for medical, hospital or dental treatment from organisations registered under the National Health Act were completely exempted from the definition of income under the means test instead of being exempted only up to the total amount of fees payable.

The upper limit of property value beyond which no pension was granted was raised. The previous scale of deductions was retained but extended to the new upper limit (Table 2).

Social Services Act 1958 (No 44 of 1958)

Assent: 29 September 1958

Proclaimed commencement: 15 October 1958

1959

Clothing allowance payable by the Repatriation Department was exempted from the definition of income for age and invalid pension purposes.

The maximum rates of pension and institutional pension were increased (Table 1 and Table 7).

The definition of income for pension purposes was amended to specify that benefit payments from friendly societies and trade unions which were exempt for the purposes of the income test did not include payment of annuities.

1960

Pensioners and beneficiaries and persons supplying confidential information to the department in its investigation of claims for pension or benefit were given added protection through an amendment to the Act enabling a plea of privilege to be made in respect of all the documents in the departmental file.

Restrictions on Aboriginals eligibility for pension were removed and Aboriginals, other than those who were 'nomadic or primitive', became eligible on the same basis as other members of the community.

Social Services Act 1959 (No 57 of 1959)

Assent: 30 September 1959

Commenced: 30 September 1959

Proclaimed commencement: 2 February 1960 (amendments relating to Aboriginals, and production of documents in Court)

The maximum rates of pension and institutional pension were increased (Table 1 and Table 7).

1961

The merged means test was instituted for age and invalid pensions and wife's allowance. It replaced the separate tests on income and property which applied previously. Under the merged means test a property component equivalent to £1 for each complete £10 of the value of a pensioner's property above £200 was added to the annual rate of income to determine a sum known as 'means as assessed' (Table 2). Means as assessed could consist entirely of income or entirely of the property component or of various combinations of both. The rate of pension payable was calculated by deducting from the appropriate maximum annual rate of pension the amount by which means as assessed exceeded £182 (Table 2).

If a pensioner had no income he could receive a full pension if the value of his property did not exceed £2020, and beyond that pension at a reducing rate until the property value reached an upper limit of £4620. If a pensioner had no assessable property, he could receive a full pension if his income did not exceed £182, and beyond that pension at a reducing rate until his income reached an upper limit of £442 per annum.

Social Services Act 1960 (No 45 of 1960)

Assent: 27 September 1960

Commenced: 27 September 1960

Proclaimed commencement: 1 March 1961 (means test provisions)

The maximum rates of pension and institutional pension were increased (Table 1 and Table 7).

The maximum rates of wife's allowance and child's allowance were increased (Table 3 and Table 6).

Social Services Act 1961 (No 45 of 1961)

Assent: 27 September 1961

Commenced: 27 September 1961

1962

A person could qualify for age pension on residence grounds if he had completed 10 years' continuous residence in Australia at any time. If continuous residence was less than 10 years but more than five years, the period of continuous residence otherwise required was reduced by the aggregate of the periods of residence in Australia in excess of 10 years.

A person's permanent incapacity for work or blindness which occurred outside Australia was considered as having occurred in Australia if continuous residence in Australia exceeded 10 years at any time. This period of continuous residence was reduced by the amount of total residence in Australia in excess of 10 years, provided there was a period of continuous residence of at least five years.

Social Services Act 1962 (No 1 of 1962)

Assent: 1 March 1962

Commenced: 1 March 1962

A woman permanently resident in Australia was considered for age pension purposes as being resident in Australia for any periods of her marriage during which she was absent from Britain and in which her husband paid, or was credited with, contributions to the British scheme.

Where absence from Australia was for the primary purpose of temporary residence in Britain, payment of Australian pension and wife's and child's allowances could be continued during such temporary residence and for the periods of the journeys between the two countries.

Invalids who migrated from Britain and had no insurance status (eg permanently incapacitated or blind from birth) became eligible for an invalid pension (together with wife's and child's allowances) at a rate not exceeding that of the British sickness benefit applicable to the family.

Social Services (Reciprocity with United Kingdom) Regulations Statutory Rules 1962, No 85

Gazetted: 27 September 1962

Commenced: 1 October 1962

1963

Eligibility for child's allowance and additional pension for children was extended to include children who were receiving full-time education at a school, college or university and who were wholly or substantially dependent on the pensioner and not in receipt of an invalid pension, up to the end of the calendar year in which they turned 18. The income disregard in respect of children was also extended to cover these students.

Wife's allowance was increased to £3 per week (Table 3) to bring it into line with the rate of additional benefit payable in respect of the dependent wife of an unemployment or sickness beneficiary.

Additional pension payable for each child after the first was increased to 15 shillings per week (Table 6). This brought all rates of additional payments for children of pensioners and beneficiaries, including child's allowance, to a uniform level. It also increased the limit of income which a pensioner might have before pension ceased by 5 shillings per week for each child after the first.

Age and invalid pension became payable at a standard rate for an unmarried person and a married rate for a married person. The standard rate was payable to a single, widowed or divorced person or a married person whose spouse was not in receipt of an age, invalid or service pension, a wife's allowance, an unemployment, sickness or special benefit or a tuberculosis allowance. The standard rate was £5.15.0 per week and the married rate was £5.5.0 per week (Table 1). The portion of standard rate of pension payable to a pensioner in a benevolent home became £2 per week; the portion of the married rate was £1.17.0 per week (Table 7).

Social Services Act 1963 (No 46 of 1963)

Assent: 25 September 1963

Commenced: 25 September 1963

Proclaimed commencement: 7 November 1963 (standard rate of pension and higher additional pension for children)

1964

The standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

Social Services Act (No 2) 1964 (No 63 of 1964)

Assent: 23 September 1964

Commenced: 23 September 1964

Telephone rental concessions for pensioners were introduced. A reduction of one-third of the annual rental for a telephone became available to an age, invalid or widow pensioner (and certain others including permanently blind persons) who lived alone, or with another eligible person or persons, or with another person whose income did not exceed a specified amount.

Statutory Rules 1965, No 14, amending Regulation 29 of the Telephone Regulations of the Post and Telegraph Act 1901–1961

Gazetted: 4 February 1965

Deemed commencement: 1 October 1964

1965

Eligibility for the standard rate of pension was extended to a married pensioner whose wife received a wife's allowance.

Eligibility for a wife's allowance was extended to the wife of any age pensioner as well as an invalid pensioner or permanently incapacitated or permanently blind age pensioner, where she had one or more children under the age of 16 years.

Eligibility for child's allowance and additional pension for children was extended to all age pensioners in addition to invalid pensioners.

Guardian's allowance was introduced to provide for an unmarried age or invalid pensioner with one or more children under 16 years an allowance similar to the mother's allowance payable to a Class A widow pensioner. An unmarried person included a widowed or divorced person. Guardian's allowance, like mother's allowance, was subject to the means test and was payable at £2 per week (Table 6).

The upper age limit for payments for a student child of a pensioner was raised to the day on which the student turned 21 years. This brought the age of students for pension purposes into line with that which applied for child endowment purposes. The income disregard in respect of children was also extended to cover these students.

The rate of supplementary assistance was increased from 10 shillings to £1 per week (Table 1). A means test was introduced under which the maximum rate of supplementary assistance was reduced by the amount of means as assessed in excess of £26. Means as assessed for supplementary assistance purposes had the same meaning as for pension purposes. Eligibility for supplementary assistance was extended to an age or invalid pensioner whose wife received a wife's allowance; and to unmarried inmates of benevolent homes (Table 7).

Funeral benefit of up to £20 became payable to an age, invalid, or widow pensioner or a woman receiving a wife's allowance who was responsible for the funeral costs of an age, invalid or widow pensioner, a non-pensioner spouse or a dependent child. Payments to non-pensioners remained at a maximum of £10.

The amount of sustenance allowance payable by the Repatriation Commission became exempt from income for means test purposes.

Social Services Act 1965 (No 57 of 1965)

Assent: 1 October 1965

Commenced: 1 October 1965

1966

Pensioners were no longer subject to the special means test for the Pensioner Medical Service; all pensioners and their dependants who satisfied the pensions means test for payment of a full or part pension became eligible for the Pensioner Medical Service.

National Health Act 1965 (No 100 of 1965)

Assent: 13 December 1965

Commenced: 13 December 1965

1 January 1966 (PMS provisions)

The provision disqualifying 'aliens' from receiving an age or invalid pension was repealed.

The provision disqualifying Aboriginals who were considered to be living a 'nomadic or primitive' life from receiving a pension was repealed.

The income disregard in respect of children was increased (Table 2).

A pensioner on discharge from a mental hospital became entitled to payment of pension for up to 12 weeks of the period of hospitalisation. A pensioner who was absent from a mental hospital for a continuous period of more than six days could have his pension restored for the period of his absence; if absent for four weeks or more payment of arrears of pension for up to 12 weeks of the period of hospitalisation could be made.

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

Social Services Act 1966 (No 41 of 1966)

Assent: 30 September 1966

Commenced: 30 September 1966

1967

Sheltered employment allowance was introduced. It was payable to a disabled person engaged in sheltered employment at an approved workshop if he were qualified to receive an invalid pension or would be likely to become qualified if not engaged in sheltered employment. The allowance plus related payments, eg wife's or child's allowance, and the person's earnings were paid by the workshop as one composite payment. The maximum rate of the allowance was the same as for invalid pension but the means test allowed for more liberal treatment of workshop earnings by disregarding $1 of every $2 of these earnings beyond $10 per week for an unmarried person, and beyond $17 and up to $25 for a married person. The allowance ceased after earnings reached $36 and $47 a week respectively.

Under the Commonwealth Rehabilitation Service artificial replacements, aids and appliances were made more readily available to rehabilitees at home or at work. Provision was made for recovery of costs of treatment or training according to the person's ability to pay, other than in cases of eligibility for free rehabilitation.

The limit of $80 allowed for books, equipment, appliances or tools of trade was increased to allow for $80 to be expended in any period of 12 months.

The amount of means as assessed which permitted the payment of a full pension was increased (Table 2).

Social Services Act 1967 (No 10 of 1967)

Assent: 21 April 1967

Commenced: 21 April 1967

Proclaimed commencement: 30 June 1967 (sheltered employment allowance)

1968

A married age or invalid pensioner became eligible for standard rate of pension instead of married rate when the pensioner's spouse was in receipt of an unemployment or sickness benefit. These pensioners also became eligible for supplementary assistance.

On the death of one member of a married pensioner couple, the surviving pensioner spouse became eligible to receive, for up to six fortnightly instalments, the equivalent of the two pensions that would have been paid if the spouse had not died. For the purpose of payment, the term 'pensioner' in relation to the deceased meant a person who was, immediately prior to death, in receipt of an age, invalid or service pension, a wife's allowance, a rehabilitation allowance or a sheltered employment allowance. It also included a person who was, immediately prior to her husband's death, in receipt of a wife's allowance or who would have been in receipt of a wife's allowance but for the receipt by her husband of a sheltered employment or rehabilitation allowance.

The means-test-free child's allowance for the first child was abolished and replaced by additional pension at the same rate, thus placing pension for the first child on the same basis as for other children in the family (Table 6).

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

Wife's allowance was increased (Table 3).

Social Services Act 1968 (No 65 of 1968)

Assent: 27 September 1968

Commenced: 27 September 1968

1969

The means test which applied for age and invalid pension purposes was varied so that only half the amount of means as assessed in excess of the permissible amount was deducted from the annual rate of pension. The amended means test became known as the tapered means test.

Sheltered employment allowance became subject to the same means test as that for invalid pension.

The income disregard in respect of children was increased (Table 2).

Following the introduction of the tapered means test funeral benefit at the higher rate for pensioners ($40) was available to or in respect of only those pensioners who would have been eligible for pensions under the means test in operation immediately before the introduction of the tapered means test. A person who became eligible for a pension only as a result of the tapered means test was eligible for funeral benefit of $20 if he paid for the funeral of another pensioner who would not have been entitled to pension but for the introduction of the tapered means test. The Pensioner Medical Service and fringe benefits also became subject to that means test. Persons who qualified for pension only as a result of the tapered means test were ineligible for the Pensioner Medical Service and fringe benefits.

Additional pension for second and later children was increased (Table 6).

Guardian's allowance payable to an unmarried pensioner with the custody, care and control of a child under the age of six years or an invalid child requiring full-time care and attention was increased from $4 to $6 per week. The rate remained at $4 per week in other cases (Table 6).

An age or invalid pensioner could receive pension for an increased period of up to 30 weeks' absence from Australia.

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

Social Services Act 1969 (No 94 of 1969)

Assent: 27 September 1969

Commenced: 27 September 1969

1970

Each spouse of a married pensioner couple became eligible for the standard rate of pension where the couple had lost the economies of living together because either, or both, had to leave their matrimonial home due to illness or infirmity and the situation was likely to be permanent. Persons so qualifying for the standard rate each became eligible, subject to means, for supplementary assistance if they paid rent or lodging charges.

Social Services Act 1970 (No 2 of 1970)

Assent: 24 March 1970

Commenced: 24 March 1970

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

Social Services Act (No 2) 1970 (No 59 of 1970)

Assent: 28 September 1970

Commenced: 28 September 1970

1971

Rates of pension were increased. Persons receiving the maximum rate received the full increase of 50 cents per week; persons who had been receiving a pension within 50 cents of the maximum rate were granted partial increases. Other pensioners received no increase (Table 1). The increases also applied to those receiving sheltered employment allowances.

Social Services Act 1971 (No 16 of 1971)

Assent: 7 April 1971

Deemed commencement: 1 April 1971

Additional pension for children was increased to a uniform rate for each child (Table 6).

Rates of pension were increased. Persons receiving the maximum rate received the full increase ($1.25 per week standard rate, $1.00 per week married rate); persons who had been receiving a pension within $1.25/$1.00 of the maximum rate received partial increases. Other pensioners received no increase (Table 1). The rate of institutional pension was increased (Table 7).

Wife's allowance was increased (Table 3).

Social Services Act (No 2) 1971 (No 67 of 1971)

Assent: 29 September 1971

Commenced: 29 September 1971

1972

Rates of pension and institutional pension were increased (Tables 1 and 7) and the 1971 provisions restricting pension increases to persons receiving pensions at or near the maximum rate were removed. As a result of these changes those pensioners affected by the 1971 provisions thus became eligible for pension increases of between $1.00 and $2.75 per week (standard) and 75 cents and $2.25 per week (married).

Social Services Act (No 2) 1972 (No 14 of 1972)

Assent: 24 April 1972

Commenced: 24 April 1972

Provision was made for age and invalid pensions and wife's allowance to be paid to persons who went to other countries for temporary or permanent residence where corresponding pensions of those countries were payable to their former residents in Australia. To qualify, a total of 20 years' residence in Australia after the age of 16 years was required. This did not apply in the case of an invalid pensioner whose permanent incapacity or blindness occurred during his residence in Australia; or in the case of a woman receiving wife's allowance; or in the case of a widow pensioner where she and her husband were residing permanently in Australia when he died. Countries with which Australia entered into agreements under this provision were Italy, Greece, Malta and Turkey.

Social Services Act (No 3) 1972 (No 53 of 1972)

Assent: 7 June 1972

Commenced: 7 June 1972

The amount of means as assessed which permitted payment of a full pension was increased (Table 2).

Age and invalid pensioners who received superannuation pensions or annuities became entitled to concessional treatment for these payments under the means test. The annual rate of payment was converted, if it was to the financial advantage of the pensioner, to a property value according to a specific conversion factor which varied with age.

Supplementary assistance was increased to a maximum of $4 per week (Table 1) and became payable to married pensioner couples ($2 per week to each partner) under the same conditions as for single pensioners.

Wife's allowance was replaced by wife's pension, which became payable to the wife of an age or invalid pensioner if she was otherwise ineligible for pension in her own right. Wife's pension was subject to the means test and the maximum rate was set at the married rate of pension (Table 3).

The income disregard in respect of children was increased (Table 2).

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

Social Services Act (No 4) 1972 (No 79 of 1972)

Assent: 27 September 1972

Commenced: 27 September 1972

1973

Guardian's allowance and additional pension for full-time dependent students of a pensioner became payable irrespective of the age of the student (the age limit of 21 years was removed). Funeral benefit was also payable in respect of the death of such students.

Where one partner in a married couple was a pensioner and the other a beneficiary, age and invalid pensions and unemployment and sickness benefits were disregarded for the purpose of assessing the other pension or benefit.

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

Wife's pension was increased (Table 3).

Social Services Act 1973 (No 1 of 1973)

Assent: 16 March 1973

Commenced: 16 March 1973

Deemed commencement: 14 December 1972 (age, invalid and wife's pensions)

Legislation for reciprocal portable pensions which operated from 7 June 1972 was superseded by legislation enabling pensions granted in Australia to continue in any country in which the pensioner chose to live. Former residents of Australia who had been granted pensions on their return to Australia could not receive pensions overseas if they again left Australia within 12 months of their return. Funeral benefits were available to pensioners receiving pensions overseas, but not supplementary assistance or fringe benefits.

Social Services Act (No 2) 1973 (No 26 of 1973)

Assent: 8 May 1973

Commenced: 8 May 1973

The limit of $80 per 12-month period on the cost of books, equipment, appliances or tools of trade which could be provided in rehabilitation treatment and training was removed.

Social Services Act (No 3) 1973 (No 48 of 1973)

Assent: 14 June 1973

Commenced: 14 June 1973

As a result of some pensions becoming taxable provision was made under the Social Services Act for income tax to be deducted from pension if so requested by the pensioner.

Transitional benefit for the aged blind became payable to permanently blind age pensioners and invalid pensioners of age pension age. This benefit supplemented the basic pension and was designed to alleviate the financial detriment which blind pensioners might experience as a result of their pensions becoming taxable. It was payable free of means test, initially at the rate of $3 per week, and was taxable.

The means test on age pension payable to those persons aged 75 years and over was removed. (Wife's pension, guardian's allowance, additional pension for children and supplementary assistance continued to be subject to the appropriate means test, and additional pension for the first child of a blind age or invalid pensioner remained free of means test.)

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

Wife's pension and additional pension for children were increased (Tables 3 and 6).

A training allowance was introduced for part-time trainees under the rehabilitation scheme and the allowance to married trainees was extended to unmarried trainees having the care of one or more children. Training and living-away-from-home allowances were increased.

Social Services Act (No 4) 1973 (No 103 of 1973)

Assent: 26 September 1973

Commenced: 26 September 1973

Pensions payable to those persons of age pension age (65 years and over for men, 60 years for women) became subject to income tax from 1 July 1973. Wife's pension payable to women under 60 years of age whose husbands were of age pension age also became taxable. Supplementary assistance and additional payments for dependants remained exempt.

Income Tax Assessment Act (No 5) 1973 (No 165 of 1973)

Assent: 11 December 1973

Commenced: 11 December 1973

From 26 September 1973 the levels of means as assessed at which entitlement to the Pensioner Medical Service and fringe benefits ceased were frozen at $1716 for a single pensioner and $2990 for a pensioner couple (these amounts being higher where there were children). These amounts represented the level of means as assessed at which the pension payable from September 1973 would have ceased under the pensions means test in operation prior to September 1969. This special means test did not apply to blind age or invalid pensioners.

National Health Act (No 2) 1973 (No 202 of 1973)

Assent: 18 December 1973

Commenced: 18 December 1973

Health Insurance Act 1973 (No 42 of 1974)

Assent: 8 August 1974

Commenced: 8 August 1974

1974

Australian age and invalid pensions became payable to certain persons who lived overseas. Eligible persons were those who had lived an aggregate of 30 years in Australia, were of age pension age, or within five years of that age at the time of departure from Australia, or had become permanently incapacitated for work or blind in Australia, had left Australia before 8 May 1973 and were in special need of financial assistance. The claimant was required to satisfy the ordinary conditions for grant of pension in Australia.

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

Social Services Act 1974 (No 2 of 1974)

Assent: 22 March 1974

Commenced: 22 March 1974

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

The transitional benefit for aged blind pensioners was halved to $1.50 per week. The first payment at the lower rate was made on 8 August 1974.

Social Services Act (No 2) 1974 (No 23 of 1974)

Assent: 31 July 1974

Commenced: 31 July 1974

The provisions that a pension was not payable if the claimant was not of good character or was not deserving of a pension were removed.

Persons who became permanently incapacitated for work or blind in Australia were no longer required to have had a period of residence in Australia before qualifying for invalid pension.

Persons receiving sheltered employment allowance became eligible for an incentive allowance in lieu of supplementary assistance. Incentive allowance was payable free of means test and at the rate of $5 per week. This allowance was designed to encourage more people to enter sheltered employment and to eliminate the disincentive effect that the supplementary assistance means test had on earnings of sheltered workshop employees.

Changes were made to the Act to enable the rates of training and living-away-from-home allowances payable under the rehabilitation provisions to persons undergoing vocational training, to be brought into line with those payable under the National Employment and Training System (NEAT) and thus were no longer tied to the rates of Social Services Act pensions. (NEAT rates were based on the average adult male award and subject to quarterly adjustment according to movements in that wage.)

The rate of additional pension for children was increased (Table 6).

The rate of supplementary assistance was increased (Table 1). Provision was made to restrict the amount of supplementary assistance payable to the amount paid for rent or lodging.

Social Services Act (No 3) 1974 (No 91 of 1974)

Assent: 1 November 1974

Commenced: 1 November 1974

1975

The means test on age pension was removed for persons aged 70 to 74 inclusive. (Wife's pension, guardian's allowance, additional pension for children and supplementary assistance remained subject to the appropriate means test, and additional pension for the first child of a blind age or invalid pensioner remained free of means test.)

Transitional benefit for the aged blind introduced in 1973 ceased to be payable, as from 1 May 1975.

The maximum standard and married rates of pension and institutional pension were increased with retrospective effect from 1 May (Tables 1 and 7).

Additional pension for children was increased (Table 6).

Social Services Act 1975 (No 34 of 1975)

Assent: 19 May 1975

Commenced: 19 May 1975

The Pensioner Medical Service was superseded with the introduction of Medibank from 1 July 1975, and pensioners became entitled to the full range of medical services including those of specialists. Free Pharmaceuticals continued under the same conditions that had applied under the Pensioner Medical Service arrangements and eligible pensioners were issued with Pensioner Health Benefit cards.

Department of Social Security Annual Report 1975-76

From 9 September 1975 residence in an external territory other than Norfolk Island was counted as residence in Australia. Permanent incapacity for work, blindness or widowhood of a former resident of an external territory other than Norfolk Island occurring in that territory was deemed as occurring in Australia.

Social Services Act (No 2) 1975 (No 101 of 1975)

Assent: 9 September 1975

Commenced: 9 September 1975

The de facto wife of an age or invalid pensioner no longer had to be living with her partner on a permanent basis for at least three years before she qualified for a wife's pension.

The minimum rate of age, invalid or wife's pension payable was set at $1 per fortnight.

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7) according to increases in the Consumer Price Index between the December quarter 1974 and the June quarter 1975.

Additional pension for children was increased (Table 6).

Social Services Act (No 3) 1975 (No 110 of 1975)

Assent: 27 October 1975

Commenced: 27 October 1975

1976

The training component and living-away-from-home allowance payable to full-time trainees under the National Employment and Training System (NEAT) were excluded from income for pension purposes.

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

Social Services Amendment Act 1976 (No 26 of 1976)

Assent: 30 April 1976

Commenced: 30 April 1976

Pensioners entitled to a Pensioner Health Benefits card, including those gaining entitlement following the change to the income test, were exempt from payment of the health insurance levy introduced on 1 October 1976 with modifications to Medibank, and remained entitled to standard Medibank medical and hospital cover. Where only one member of a married couple was eligible for the Pensioner Health Benefits card the levy was payable at half rates.

Health Insurance Levy Assessment Act (No 2) 1976 (No 98 of 1976)

Assent: 29 September 1976

Commenced: 29 September 1976

Regulation 8A, Income Tax Regulations, inserted 30 June 1977

The maximum standard and married rates of pension and institutional pension were increased (Tables 1 and 7).

Pensions became subject to automatic increases twice yearly. In May of each year pensions were to be increased by the percentage increase in the Consumer Price Index between the preceding June and December quarters and in November by the percentage increase between the preceding December and June quarters. The first increases under the new legislation took place in May 1977 (Table 1).

The means test on eligibility for pension was replaced by an income test, which took into account income alone. The test excluded the value of property from the calculation of pension eligibility but included income derived from that property. Transitional arrangements allowed pensioners to continue at their previous rate of pension if they would otherwise suffer a loss of pension because of the change to the income test. Concessional treatment of superannuation pension was discontinued. The means test for funeral benefit was also replaced by an equivalent income test.

The provision was repealed whereby an age or invalid pensioner was disqualified from receipt of pension if he deprived himself of property or income in order to obtain a pension. Under new provisions, if the Director-General considered that a claimant or pensioner or spouse had directly or indirectly deprived himself of income in order to qualify for a pension or for a higher rate of pension the income so disposed of could be deemed to be income of the claimant or pensioner.

Social Services Amendment Act (No 3) 1976 (No 111 of 1976)

Assent: 29 October 1976

Commenced: 29 October 1976

25 November 1976 (income test)

1977

The scope of rehabilitation training was extended to include assistance to all handicapped people, within the broad working age group, who would be able to benefit substantially from rehabilitation even though unable to rejoin the workforce, such as those undertaking or resuming household duties or leading an independent or semi-independent life in their own home.

Social Services Amendment Act 1977 (No 159 of 1977)

Assent: 10 November 1977

Commenced: 10 November 1977

1978

The maximum rate of pension became subject to indexation adjustment only once a year each November (instead of the previous twice yearly adjustment) in accordance with the percentage increase in the Consumer Price Index between the two previous June quarters. The first (and only) increase on this annual basis took place in November 1979 (Table 1).

The rate of pension payable to those aged 70 years or more free of income test was fixed at $51.45 for a single pensioner and $42.90 for a married person. These pensioners could receive a higher rate of pension if qualified after application of the income test. This special income test did not apply to blind age and invalid pensioners.

Additional pension for dependent students ceased to be payable for students 25 years of age or more.

Additional pension for children ceased to be payable unless the child was living in Australia (or temporarily abroad), was living overseas with the pensioner, or was not living in Australia but the pensioner was living in Australia and intended to bring the child to Australia as soon as it was reasonably practicable to do so. This had to be within four years.

Social Services Amendment Act 1978 (No 128 of 1978)

Assent: 26 October 1978

Commenced: 26 October 1978

1 November 1978 (pension rate adjustment)

1979

Payment of wife's pension was extended to women in approved benevolent homes, or to women who had no child in their care or who were under 50 years of age where their age or invalid pensioner husbands were in benevolent homes. Wife's pension was not to be paid if the wife or her husband were inmates of mental hospitals.

The same legislation provided for wife pensioners to be paid the standard rate instead of the married rate of pension where illness or infirmity forced the couple to live apart indefinitely, thereby causing the couple greater living expenses. In this case, supplementary assistance could be paid at the maximum rate to each partner.

The income levels at which eligibility for funeral benefits and fringe benefits, including Pensioner Health Benefit cards, ceased were raised from $33 to $40 per week for single pensioners and from $57.50 to $68 per week for married pensioner couples. These amounts were higher in the case of sheltered employment allowances and where there were children.

The maximum standard and married rates of pension were increased (Tables 1 and 7).

The maximum rate of pension again became subject to twice yearly automatic increases. In May of each subsequent year the rate was to increase by the percentage increase in the Consumer Price Index for the six months between the preceding June and December quarters, and in November by the percentage increase for the six months between the preceding December and June quarters. The first increase under this legislation took place in May 1980 (Table 1).

Social Services Amendment Act 1979 (No 121 of 1979)

Assent: 29 October 1979

Commenced: 29 October 1979

1 November 1979 (funeral benefits and fringe benefits)

2 November 1979 (automatic increase of pension)

Proclaimed commencement: 1 January 1981 (maintenance contribution to benevolent homes) (see 1981)

1980

Pensions became payable to patients in mental hospitals (other than those who had been convicted of an offence and who were, in effect, in prison). Wife's pension became payable to wives of mental hospital patients, in lieu of widow's pension.

Pay and allowances received by Defence Force Reservists, other than those called up for full-time service, were excluded from the definition of income.

Guardian's allowance was increased by $2 to $6 per week, or $8 where there was a child under six years or an invalid child requiring full-time care (Table 6).

Additional pension for dependent children was increased (Table 6).

Social Services Amendment Act 1980 (No 130 of 1980)

Assent: 19 September 1980

Commenced: 19 September 1980

1 November 1980 (pensions and benefits)

1981

The amount of pensioner contribution (including supplementary assistance) payable for maintenance of a pensioner in a benevolent home became payable at the same rate as prescribed in the National Health Act for patients in non-government nursing homes (Table 7). Where after the application of the income test the rate of pension was less than the amount payable directly to the home, no amount was paid to the pensioner. A savings provision protected existing pensioner inmates.

Social Services Amendment Act 1979 (No 121 of 1979)

Assent: 29 October 1979

Commenced: 29 October 1979

Proclaimed commencement: 1 January 1981 (maintenance contribution to benevolent home)

The same general conditions for the grant of pension that applied for age and invalid pensions were extended to wife's pension: a claimant for wife's pension was required to be resident and physically present in Australia on the date of claim for pension, and a formal claim was now required.

Social Services Amendment Act 1981 (No 159 of 1981)

Assent: 30 October 1981

Commenced: 30 October 1981

1 November 1981 (wife's pension provisions)

1 February 1982 (supplementary assistance and incentive allowance) (see 1982)

1982

The rate of supplementary assistance became either $8 per week or one half of the amount by which rent paid or payable exceeded $10 per week, whichever was the lower (Table 1). This was reduced by a withdrawal rate of 50 per cent of the pensioner's assessable income. Tenants of government housing authorities were no longer eligible for supplementary assistance, but a savings provision protected existing tenants. A married rate pensioner living with his spouse in the matrimonial home was entitled to one half of the combined amount of supplementary assistance payable to the couple.

Incentive allowance was increased to $8 per week.

Social Services Amendment Act 1981 (No 159 of 1981)

Assent: 30 October 1981

Commenced: 30 October 1981

1 February 1982 (supplementary assistance and incentive allowance)

The wording of the Act was clarified to ensure that persons could transfer from one pension to another outside Australia, where there was concurrent qualification, without having to return to Australia (in this context, the word pension included supporting parent's benefit).

Permissible income was increased (Table 2).

The rate of supplementary assistance was increased (Table 1).

The rate of incentive allowance was increased to $10 per week.

Rent subsidies paid by a government or a government housing authority to private tenants were exempted from the definition of income for income test purposes.

The income levels at which eligibility for funeral benefits and fringe benefits (including pensioner health benefits) ceased were raised to $54 per week for single pensioners without children and $90 per week for married pensioner couples without children. The levels for sheltered employment allowees and incentive allowees became $68 (single) and $90 (combined married). The addition to these limits where there were children was increased to a new uniform $20 per week per child.

Social Security Legislation Amendment Act 1982 (No 98 of 1982)

Assent: 27 October 1982

Commenced: 27 October 1982

17 August 1982 (rent subsidies)

1 November 1982 (permissible income; incentive allowance increase; supplementary assistance; fringe benefit income limits)

1 February 1983 (incentive allowance for certain invalid pensioners) (see 1983)

1 March 1983 (rehabilitation allowance, training allowance) (see 1983)

1 April 1983 (mobility allowance) (see 1983)

Provision was made for additional pension for children to continue to be paid, in the case of pensioners and sheltered employment and rehabilitation allowees with children leaving school and seeking work, until the children received unemployment benefit following the six-week deferment period, or during that period obtained employment or otherwise ceased to qualify for payment of additional pension.

Social Security Amendment Act 1982 (No 148 of 1982)

Assent: 31 December 1982

Commenced: 31 December 1982

4 November 1982 (additional pension provision)

1983

A rehabilitation allowance was introduced for persons undertaking a Commonwealth rehabilitation program and who would otherwise have been eligible for another social security pension or benefit. A person could not be paid both rehabilitation allowance and any other pension, benefit or allowance except training allowance. The rehabilitation allowance, including additional payments, was payable to persons under age pension age at the same rates and generally under the same conditions as invalid pension—ie income-tested except in the case of the blind (to whom the equivalent of the basic rate of pension and, in the case of a blind person with children, the equivalent of additional pension for one child, would be paid free of income test). The allowance was not taxable. Funeral benefits and fringe benefits were also available to recipients of the allowance under the same conditions as for invalid pensions. The allowance would be paid during the rehabilitation program and for up to six months afterwards if the recipient was unable to find employment.

A person who was receiving a rehabilitation allowance but, immediately prior to that, was eligible for invalid pension (or supporting parent's benefit) became specifically excluded from being counted as a dependant of another person for the purpose of payment of a pension, benefit or allowance. A savings provision protected existing recipients.

Rehabilitation allowance payments were excluded from the scope of costs subject to recovery from compensation payments but treatment and training costs continued to be recoverable.

For supplementary assistance purposes a married person receiving rehabilitation allowance was treated on the same basis as a married pensioner.

The training allowance was restructured as a payment in addition to the rehabilitation allowance. It was to be payable at rates determined by the Director-General according to full-time/part-time status and age, and was to be linked to the weighted average minimum weekly wage rates provided by the Australian Statistician. Training allowance was not to be taken into account when assessing income.

Living-away-from-home allowance was also tied to minimum wage rates and was not income-tested.

Provision was made for paying rehabilitation allowance and training allowance to another person on the claimant's behalf, where considered desirable by the Director-General.

From 1 February 1983 eligibility for incentive allowance was extended (on the same terms as for sheltered employment allowees) to invalid pensioners undertaking training at activity therapy centres or adult training centres financed under the Handicapped Persons Welfare Program. Invalid pensioners receiving incentive allowance were excluded from receiving supplementary assistance.