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Thursday, 24 May 2001
Page: 26971


Mr ANTHONY (Minister for Community Services) (9:58 AM) —I move:

That the bill be now read a second time.

Since its election in 1996, this government has set about simplifying the social security system. We have routinely reviewed social security legislation so it is simpler, easier to read, to ensure that it does what this government wants it to do.

This bill, the Family and Community Services Legislation (Simplification and Other Measures) Bill 2001, is the third bill that seeks to improve the social security laws that underpin Australia's social welfare safety net.

This bill simplifies that part of the Social Security Act 1991 that deals with compensation recovery. It also implements 2000-01 budget measures relating to the treatment of a person's partner's periodic compensation payments and the recovery of certain debts directly from compensation payers and insurers.

This bill is a spending bill. It removes a source of irritation to partners of people who receive periodic compensation payments, such as regular fortnightly compensation from an insurance company. It implements a more generous approach.

Currently, if a person gets a compensation affected payment, which is defined in the act, then they lose one dollar for every dollar of periodic compensation received. If this amount is reduced to zero, then any excess compensation counts against their partner's compensation affected payment dollar for dollar.

In future, if a person's partner's periodic compensation has to be taken into account in working out the person's income for social security purposes, it will be treated as ordinary income of the person.

It is expected that this measure will result in an increase in the amount of social security pensions and benefits paid to couples with low levels of income derived largely, or solely, from compensation payments.

The bill also includes a number of minor simplification measures relating to chapter 3 of the Social Security Act 1991 that were outlined in the 2000-01 budget and some amendments of a technical nature.

This bill demonstrates the government's commitment to a simpler and fairer social security system. I commend the bill to the House and I present the explanatory memorandum to this bill.

Debate (on motion by Mr McClelland) adjourned.