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Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Budget and Other Measures) Bill 2011

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2010-2011

 

 

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

SENATE

 

 

 

 

 

 

 

 

FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS AND OTHER LEGISLATION AMENDMENT

(BUDGET AND OTHER MEASURES) BILL 2010

 

 

 

 

REVISED SUPPLEMENTARY EXPLANATORY MEMORANDUM

 

 

 

 

 

Amendments to be moved on behalf of the Government

 

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by the authority of the

Minister for Families, Housing, Community Services and Indigenous Affairs, the Hon Jenny Macklin MP)

 



FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS AND OTHER LEGISLATION AMENDMENT

(BUDGET AND OTHER MEASURES) BILL 2010

 

OUTLINE

 

These amendments will delay, from 1 January 2011 to 1 July 2011, the commencement of the existing measure in the Bill on residence required to qualify for disability support pension.  This delay will ensure there will be no retrospective commencement, with adverse effect, for people affected by the measure.

 

The amendments also insert into the Bill some amendments providing, from 1 July 2011, an extended portability period for a severely disabled disability support pensioner, if the pensioner accompanies a supporting family member who has been posted or seconded by their employer to work overseas for a period. 

 

Financial impact statement

 

Residence required to qualify for disability support pension (as delayed to 1 July 2011)

 

Total change in resourcing (FaHCSIA and Centrelink)

2010-11

2011-12

2012-13

2013-14

2014-15

$1.6 m

- $2.4 m

- $2.8 m

- $3.1 m

- $3.4 m

 

Extended portability period for a severely disabled disability support pensioner

 

Total change in resourcing (FaHCSIA and Centrelink)

2010-11

2011-12

2012-13

2013-14

2014-15

$0.2 m

$0.1 m

$0.2 m

$0.4 m

$0.6 m

 

 



FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS AND OTHER LEGISLATION AMENDMENT

(BUDGET AND OTHER MEASURES) BILL 2010

 

Government amendments

 

 

NOTES ON AMENDMENTS

 

Amendment 1 amends the commencement clause in the Bill.  The amended clause provides for the delayed disability support pension residence measure, and the new portability measure, to commence on 1 July 2011.  The beneficial special disability trusts measure in Schedule 1 will continue to commence with effect from 1 January 2011.

 

Amendment 2 changes the title of Schedule 2 to reflect the inclusion in the Schedule of the new disability support pension portability measure, along with the original disability support pension residence measure.

 

Amendment 3 inserts ‘, 1218AB’ into a table item substituted by item 7 of Schedule 2.  This is to make sure item 7 still operates correctly in view of the insertion of the new section 1218AB, relating to the disability support pension portability measure. 

 

Amendment 4 inserts section 1218AB into the Social Security Act 1991 .  Subsection 1218AB(1) provides that the Secretary may extend portability for a disability support pensioner who accompanies a family member overseas, provided that the qualifying circumstances set out in the section are met.  The disability support pensioner must be severely disabled, must be wholly or substantially dependent on the family member, and must be living with the family member during the proposed absence from Australia.  The family member must be working in Australia for an employer before working overseas for that employer.  If the Secretary extends portability in these circumstances for a period, the disability support pensioner will continue to be paid the pension during that period.

 

Subsection 1218AB(2) provides for the duration of the extended portability period.  Should any of the qualifying circumstances set out in subsection (1) cease to exist (for example, should the family member cease employment with the employer he or she was working for immediately before the period of absence), the qualifying circumstance set out in paragraph 1218AB(1)(f) would cease to exist, enabling the Secretary to revoke the determination.

 

Subsection 1218AB(3) provides that the Secretary may revoke a determination to extend portability.

 

Subsection 1218AB(4) is for the benefit of readers.  This subsection makes clear that a determination under subsection (1) is not a legislative instrument within the meaning of the Legislative Instruments Act 2003 .