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Social Services Amendment Bill 1980
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PARLIAMENT OF AUSTRALIA DEPARTMENT OF THE PARLIAMENTARY LIBRARY
SOCIAL SERVICES AME NDMENT BILL 1980
Date Introduced: House: Presented by:
Background/Purpose
27 August 1980 House of Representatives Hon. Ralph Hunt, M.P., Minister for Transport and Minister representing
the Minister for Soc i al Security.
Short Digest of Bill
In hi s Budget Speech the Treasurer Mr. Howard, foreshadowed several changes to social security programs. The Social Services Amendment Bill 1980 incorporates those Budget decisions:
( i) an increase in Commonwealth pensions and a 11 owances paid to sole parents, mothers/guardians, handicapped children and double orphans; and an increase in unemployment benefi ts for those aged 18 and over without dependents;
(ii) prov ision of pensions and benefits to mental
ho sp ital patients;
(iii) increased rates of additional pensions and benefits for children;
( i v) re 1 ax at ion of the income test for unemp 1 oyment and sickness benefits ; and
(v) exemption of payments received by Defence Force Reservists f rom consideration in income tests for unemployment and sickness benefits and pensions.
The Explanatory Memorandum accompanyi ng the Bi l gives a detailed account of all amendments.
Main Provisions
Cl ause 3 rep ea ls the States Grants (Deserted Wives) Act 1968, through which the Commonwealth reimburses the States for up to half of the cost of income suppo rt pro vided by the States to people ineligible for Class A \~idow's
pensions or the supporting parents benefits. The
Commonwealth will assume responsibility for income maintenance for these people.
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Clauses 5 and 17 of the Bill amend s.18 and s.l06
of the Social Services Act 1947 respectively , to exclude from the meaning of income, the pay and allowances paid to members of the Defence Reserve Forces (as defined in clause 4) in respect of the determination of invalid and age
pensions and unemployment and sickness benefits.
Clause 6 of the Bill amends s.28 of the Principal Act to increase the additional amounts paid to age and
invalid pensioners who have the custody, care and control of children.
Clause 7 repeals s. 33 of the Pri nci pal Act; that
section precludes payment of a wife's pension to a woman who is, or whose husband is, an inmate of a mental hospital.
Consequently, the effect of clause 7 is to allow the payme nt of a wife's pension in the above circumstances. In addition clause 8 repeals section 48 of the Act which provides for
the suspension of an age or invalid pension to a person
during a period in which he is a mental hospital patient.
Consequently, age and invalid pensions will now be payable to persons who are patients of a mental hospital. Clause 8 a 1 so retains the payment of a pension to a person who,
immediately before the commencement of the clause, ceases to be a mental hospital patient; the pension may be paid for
each day it was suspended for up to 84 days.
As clause 7 enables the payment of a wife's pension to the wife of an inmate of a mental hospital in lieu of a
widow's pension clause g · of the Bill amends s.59 to omit frorn the definition of 'widow', any woman, whose husband is a mental hospital patient. However, because in many cases such a change would involve a fall in income, widow's
pensions will continue to be paid until the husband ceases to be a patient or the wife's pension exceeds the widow's pension.
Clause 10 amends s.63 by inserting ne w maximum rates for the various classes of widow's pension. Clause 11 amends s.68 of the Act inter alia to omit the provision
relating to the date on which a woman becomes entitled to a widow's pension - where her husband becomes the inmate of a mental hospital; these women will now be eligible for a
wife's pension.
Clause 13 of the Bill repeals s.77 of the Principal Act which prevents persons on widow's pensions from receiving payments while they are patients in mental hospitals. As a consequence of this amendment benefits will
also be payable to supporting parent beneficiaries who are mental hospital patients.
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Section 83AAA of the Principal Act is amended by clause 14 of the Bill. Paragraph (a) inserts definitions of .. supporting father .. and .. supporting mother .. by omitting t he
six months qualifying period and references to States Grant (Deserted Wives) Act 1968; this is in line with clause 3 of the Bill. Paragraphs (b),(c) and (d) amend the definitions concerning qualifying time periods from 6 months to 14 days .
Clauses 15 and 16 amend the Principal Act to
provide for new rates for double orphanâ¢s pensions and the handicapped childâ¢s allowance, respectively. Clause 18 amends s.ll2 to provide for new rates of unemployment and sickness benefits; the respective benefit wi 11 rise from $51.45 to $53.45 for persons over 18 years and without defendants.
Section 114 of the Principal Act which contains the income test, is amended by clause 19 of the Bill. The first change is to extend the 11 free area 11 of $6 to recipients
between 18 and 20 years of age. Secondly, the Bill provides for an increase in the amount of income which an
unemployment or sickness benefits recipient is able to earn . Sub-clause 19(a) provides that if a beneficiary aged between 16 and 18 years, earns an amount not exceeding $40, t hat person ⢠s unemp 1 oyment or sickness benefits wi 11 be reduced on a $1 for $2 basis for the amount between $3 and $40. Any
income in excess of the first $40 will cause the benefits t o be further reduced on a $1 for $1 basis. For recipients
over 18 years the comparable range is $6 to $50.
Clause 20 of the Bill substitutes a new s.133
principally to omit the provisions precluding the payment of pensions and sickness benefits to menta 1 hospi ta 1 patients, to which they will now be entitled. Clause 22 specifies the different dates from which the amendments proposed by the
preceding clauses are to apply. It is drafted to take into account the different bases on which the various pensions etc. are paid. ·
Clause 1,2,4,5,17 and 22 will come into operation on the Date of Assent. Clause 3 will be operative from the date of Proclamation and the rema1n1ng provisions shall come into operation on 1 November 1980.
3 September 1980
Education and Welfare Group LEGISLATIVE RESEARCH SERVICE
