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

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2010-2011

 

 

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

 

 

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

(FURTHER ELECTION COMMITMENTS AND OTHER MEASURES) BILL 2011

 

 

 

 

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

(FURTHER ELECTION COMMITMENTS AND OTHER MEASURES) BILL 2011

 

Government amendments

 

OUTLINE

 

Notice of payments of recompense for personal injuries

 

The amendments relate to the measure in the Bill that requires payers of compensation, such as insurance companies, to notify Centrelink of proposed payments of compensation.  The Bill currently provides for Centrelink to be notified at least 14 days before the payment is made.  The amendments allow the Secretary and the compensation payer to agree on an alternative period within which notice must be given.  This will make the new arrangements easier for the industry to manage.

 

Financial impact statement

 

It is estimated that there is a reduction in savings of approximately $1.1 million for the forward estimates period.  The main reason for this is potential delay in negotiating and entering into agreements with compensation payers to provide data.

 

 



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

(FURTHER ELECTION COMMITMENTS AND OTHER MEASURES) BILL 2011

 

Government amendments

 

NOTES ON AMENDMENTS

 

Notice of payments of recompense for personal injuries

 

Amendments 1, 2 and 3 insert into new subsections 1167A(1), (2) and (3) (relating to notice by a compensation payer and inserted by item 6 of Schedule 4) words to permit the operation of alternative notification arrangements that may be made by agreement with the Secretary under the new subsections inserted by amendment 4 .

 

Amendment 4 adds to new section 1167A further subsections (3A), (3B), (3C) and (3D).  These provide for notification agreements as an alternative notice arrangement to that provided by subsection (3).

 

New subsection 1167A(3A) provides that a person is covered by the subsection if the person has entered into a notification agreement which covers relevant payments and is in force.

 

New subsection 1167A(3B) provides that a notification agreement must include the kinds of payments covered by the agreement and the requirements for notifying the Secretary of the making of payments.

 

New subsection 1167A(3C) provides that notification agreements will remain in force until the earlier of two dates - namely, the date specified in the agreement or, if the Secretary determines that the person has failed to comply with the agreement, the day on which notice of the Secretary’s determination is given to the person.

 

New subsection 1167A(3D) excludes a decision of the Secretary under new subsection 1167A(3B) or (3C) from the operation of Part 4 of the Social Security (Administration) Act 1999 , which provides for merits review of decisions under the social security law and certain other laws.  It is not appropriate for decisions relating to agreements between large corporations and the Secretary to be subject to the merits review process, which has been created to provide efficient and economical review of decisions relating to social security and other entitlements for natural persons.

 

In mirror arrangements for new section 1167B (relating to notice by an insurer and also inserted by item 6 of Schedule 4), amendments 5, 6 and 7 insert words to permit the operation of the alternative notification arrangements, and amendment 8 inserts the mirror scheme.