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Social Security Legislation Amendment Bill 2011

Schedule 1 Income management

Part 1 State/Territory referrals

Social Security Act 1991

1  Paragraph 1061WG(1)(c)

Omit “or 123UE”, substitute “, 123UE or 123UFAA”.

Social Security (Administration) Act 1999

2  Section 123TA

After:

               (g)     the Queensland Commission requires the person to be subject to the income management regime; or

insert:

             (ga)     an officer or employee of a recognised State/Territory authority requires the person to be subject to the income management regime; or

3  Section 123TC

Insert:

recognised State or Territory has the meaning given by section 123TGAB.

4  Section 123TC

Insert:

recognised State/Territory authority has the meaning given by section 123TGAA.

5  Section 123TC (definition of subject to the income management regime )

After “123UF”, insert “, 123UFAA”.

6  After section 123TG

Insert:

123TGAA   Recognised State/Territory authority

                   The Minister may, by legislative instrument, determine that:

                     (a)  a specified department, or a specified part of a department, of a State or Territory; or

                     (b)  a specified body of a State or Territory; or

                     (c)  a specified agency of a State or Territory;

is a recognised State/Territory authority for the purposes of this Part.

123TGAB   Recognised State or Territory

                   The Minister may, by legislative instrument, determine that a specified State or Territory is a recognised State or Territory for the purposes of this Part.

7  Paragraph 123UCA(e)

Omit “or 123UF”, substitute “, 123UF or 123UFAA”.

8  Paragraph 123UCB(1)(f)

Omit “or 123UF”, substitute “, 123UF or 123UFAA”.

9  Paragraph 123UCC(1)(f)

Omit “or 123UF”, substitute “, 123UF or 123UFAA”.

10  After section 123UF

Insert:

123UFAA   Persons subject to the income management regime—other State/Territory referrals

             (1)  For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time ) if:

                     (a)  at the test time, the person, or the person’s partner, is an eligible recipient of a category H welfare payment; and

                     (b)  before the test time, an officer or employee of a recognised State/Territory authority gave the Secretary a written notice requiring that the person be subject to the income management regime under this section; and

                     (c)  the notice was given:

                              (i)  under a law (whether written or unwritten) in force in a State or Territory (other than a law of the Commonwealth); or

                             (ii)  in the exercise of the executive power of a State or Territory; and

                     (d)  at the test time, the notice had not been withdrawn or revoked; and

                     (e)  at the test time, the State or Territory is a recognised State or Territory; and

                      (f)  if, at the test time, the person has a Part 3B payment nominee—the Part 3B payment nominee is not an excluded Part 3B payment nominee; and

             (g)  at the test time, the person is not subject to the income management regime under section 123UC, 123UD, 123UE or 123UF.

             (2)  For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time ) if:

                     (a)  at the test time, the person is not subject to the income management regime under any other provision of this Subdivision; and

                     (b)  at the test time, the person has a Part 3B payment nominee; and

                     (c)  at the test time, the Part 3B payment nominee is subject to the income management regime under subsection (1).

11  Paragraph 123UM(5)(a)

Omit “or 123UF”, substitute “, 123UF or 123UFAA”.

12  Subparagraph 123UN(1)(a)(v)

Omit “or 123UF”, substitute “, 123UF or 123UFAA”.

13  Subparagraph 123UO(3)(b)(v)

Omit “or 123UF”, substitute “, 123UF or 123UFAA”.

14  Paragraphs 123WJ(1)(c) and (d)

Omit “or 123UF”, substitute “, 123UF or 123UFAA”.

15  After Subdivision D of Division 5 of Part 3B

Insert:

Subdivision DAA Other State/Territory referrals

123XPAA   Deductions from category I welfare payments—instalments

Scope

             (1)  This section applies if:

                     (a)  a person is subject to the income management regime under section 123UFAA; and

                     (b)  an instalment of a category I welfare payment is payable to the person.

Deductions from category I welfare payments—instalments

             (2)  The following provisions have effect:

                     (a)  the Secretary must deduct from the instalment of the category I welfare payment the deductible portion of the instalment;

                     (b)  an amount equal to the deductible portion of the instalment is credited to the Income Management Record;

                     (c)  an amount equal to the deductible portion of the instalment is credited to the person’s income management account.

Deductible portion

             (3)  For the purposes of subsection (2), the deductible portion of an instalment of a category I welfare payment is:

                     (a)  70%; or

                     (b)  if another percentage (not exceeding 100%) is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the other percentage;

of the net amount of the instalment (rounded down to the nearest cent).

             (4)  An instrument under paragraph (3)(b) may specify different percentages depending on one or more of the following:

                     (a)  the category I welfare payments payable to persons subject to the income management regime under section 123UFAA;

                     (b)  the usual place of residence of those persons;

                     (c)  the recognised State/Territory authorities whose officers or employees may give a notice of the kind referred to in paragraph 123UFAA(1)(b).

123XPAB   Deductions from category I welfare payments—lump sums

Scope

             (1)  This section applies if:

                     (a)  a person is subject to the income management regime under section 123UFAA; and

                     (b)  a category I welfare payment is payable to the person otherwise than by instalments.

Deductions from category I welfare payments—lump sums

             (2)  The following provisions have effect:

                     (a)  the Secretary must deduct from the category I welfare payment the deductible portion of the payment;

                     (b)  an amount equal to the deductible portion of the payment is credited to the Income Management Record;

                     (c)  an amount equal to the deductible portion of the payment is credited to the person’s income management account.

Deductible portion

             (3)  For the purposes of subsection (2), the deductible portion of a category I welfare payment is:

                     (a)  100%; or

                     (b)  if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the lower percentage;

of the net amount of the payment (rounded down to the nearest cent).

             (4)  An instrument under paragraph (3)(b) may specify different percentages depending on one or more of the following:

                     (a)  the category I welfare payments payable to persons subject to the income management regime under section 123UFAA;

                     (b)  the usual place of residence of those persons;

                     (c)  the recognised State/Territory authorities whose officers or employees may give a notice of the kind referred to in paragraph 123UFAA(1)(b).

16  After section 123ZD

Insert:

123ZDA   Other State/Territory referrals—notice of cancellation of category H welfare payments

Scope

             (1)  This section applies if:

                     (a)  a person ceases to be subject to the income management regime under section 123UFAA because of the cancellation of a category H welfare payment of the person or the person’s partner; and

                     (b)  immediately before the cancellation, the relevant notice referred to in paragraph 123UFAA(1)(b) had not been withdrawn or revoked.

Notice

             (2)  As soon as practicable after the cancellation, the Secretary must give an officer or employee of the recognised State/Territory authority written notice of the cancellation.

17  After section 123ZEA

Insert:

123ZEAA   Disclosure of information to the Secretary—other State/Territory referrals

             (1)  Despite any law (whether written or unwritten) in force in a State or Territory, an officer or employee of a recognised State/Territory authority may give the Secretary information about a person if:

                     (a)  either:

                              (i)  the person is subject to the income management regime under section 123UFAA; or

                             (ii)  the officer or employee is considering whether to give a notice of the kind referred to in paragraph 123UFAA(1)(b) in relation to the person; and

                     (b)  the disclosed information is relevant to the operation of this Part.

             (2)  If information about a person is disclosed as mentioned in subsection (1), the Secretary may disclose information about the person to an officer or employee of the recognised State/Territory authority for the purposes of the performance of the functions and duties, or the exercise of the powers, of the officer or employee.

18  Application

Paragraph 123UFAA(1)(b) of the Social Security (Administration) Act 1999 , as inserted by this Schedule, applies in relation to notices given on or after the commencement of this item.



 

Part 2 Other amendments

Social Security (Administration) Act 1999

19  Section 123TC (definition of declared income management area )

Repeal the definition.

20  Section 123TFA

Repeal the section.

21  Section 123UCA

Before “For”, insert “(1)”.

22  Paragraph 123UCA(b)

Repeal the paragraph, substitute:

                     (b)  at the test time, the person’s usual place of residence is within a State, a Territory or an area specified in an instrument under subsection (3); and

23  At the end of section 123UCA

Add:

             (2)  If:

                     (a)  a person is subject to the income management regime under subsection (1); and

                     (b)  paragraph (1)(b) ceases to apply in relation to the person; and

                     (c)  at the time of that cessation, paragraphs (1)(a), (c), (d) and (e) apply in relation to the person;

then the person remains subject to the income management regime under subsection (1) until paragraph (1)(a), (c), (d) or (e) ceases to apply in relation to the person.

             (3)  The Minister may, by legislative instrument, specify a State, a Territory or an area for the purposes of this section.

24  Paragraph 123UCB(1)(c)

Repeal the paragraph, substitute:

                     (c)  at the test time, the person’s usual place of residence is within a State, a Territory or an area specified in an instrument under subsection (4); and

25  At the end of section 123UCB

Add:

             (3)  If:

                     (a)  a person is subject to the income management regime under subsection (1); and

                     (b)  paragraph (1)(c) ceases to apply in relation to the person; and

                     (c)  at the time of that cessation, paragraphs (1)(a), (b), (d), (e), and (f) apply in relation to the person;

then the person remains subject to the income management regime under subsection (1) until the earlier of the following:

                     (d)  the time paragraph (1)(a), (b), (d), (e), or (f) ceases to apply in relation to the person;

                     (e)  the end of the period of 13 weeks beginning on the day that paragraph (1)(c) ceased to apply in relation to the person.

             (4)  The Minister may, by legislative instrument, specify a State, a Territory or an area for the purposes of this section.

26  Paragraph 123UCC(1)(c)

Repeal the paragraph, substitute:

                     (c)  at the test time, the person’s usual place of residence is within a State, a Territory or an area specified in an instrument under subsection (4); and

27  At the end of section 123UCC

Add:

             (3)  If:

                     (a)  a person is subject to the income management regime under subsection (1); and

                     (b)  paragraph (1)(c) ceases to apply in relation to the person; and

                     (c)  at the time of that cessation, paragraphs (1)(a), (b), (d), (e), and (f) apply in relation to the person;

then the person remains subject to the income management regime under subsection (1) until the earlier of the following:

                     (d)  the time paragraph (1)(a), (b), (d), (e), or (f) ceases to apply in relation to the person;

                     (e)  the end of the period of 13 weeks beginning on the day that paragraph (1)(c) ceased to apply in relation to the person.

             (4)  The Minister may, by legislative instrument, specify a State, a Territory or an area for the purposes of this section.

28  Subparagraph 123UGD(1)(b)(i)

Repeal the subparagraph, substitute:

                              (i)  at the test time, the child is enrolled at a school, and, in each of the 2 school terms ending immediately before that time, the child has had no more than 5 absences for reasons that are not satisfactory to a person responsible for the operation of the school; or

                            (ia)  at the test time, the child is enrolled at a school, and, in each of the 2 school terms ending immediately before that time, the child has had more than 5 absences for reasons that are not satisfactory to a person responsible for the operation of the school but the person is taking reasonable steps to ensure that the child attends school as required by the law of the State or Territory concerned; or

29  Subsection 123UGD(7) (heading)

Repeal the heading, substitute:

Definitions

30  Subsection 123UGD(7)

Insert:

person responsible , for the operation of a school, has the same meaning as in Part 3C.

31  Subparagraph 123UO(3)(b)(ii)

Repeal the subparagraph.

32  Application

The amendment made by item 31 applies in relation to voluntary income management agreements that are in force on or after the commencement of that item (whether the agreements were entered into before, on or after that commencement).