Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Social Services Legislation Amendment (Budget Repair) Bill 2015

Bill home page  


Download WordDownload Word


Download PDFDownload PDF

2013-2014-2015-2016

 

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

SENATE

 

 

 

 

 

 

 

 

SOCIAL SERVICES LEGISLATION AMENDMENT

(BUDGET REPAIR) BILL 2015

 

 

 

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

 

 

 

 

 

Amendments to be moved on behalf of the Government

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by the authority of the

Minister for Social Services, the Hon Christian Porter MP)





SOCIAL SERVICES LEGISLATION AMENDMENT

(BUDGET REPAIR) BILL 2015

 

Amendments to be moved on behalf of the Government

 

OUTLINE

 

These Government amendments change the commencement dates for three of the four Schedules to the Bill.

 

The Bill currently provides for Schedule 2 (Pensioner education supplement) and Schedule 3 (Education entry payment) to commence on 1 January 2016.  This is now deferred in both cases to the first 1 January or 1 July to occur on or after Royal Assent.  The earliest commencement would therefore be 1 July 2016.  Schedule 2 will cease the pensioner education supplement, which in broad terms is a payment that assists students with the ongoing costs of full-time or part-time study.  Schedule 3 will cease the education entry payment, which broadly assists with education expenses and is paid once a year to eligible recipients.

 

Some changes are also made to the application and saving provisions for the cessation of the education entry payment as a result of the changed commencement.

 

In relation to Schedule 4 (Indexation):

 

ยท          The Bill currently provides for the implementation from 1 January 2016 of the amendments that maintain at level for three years the income free areas and other means test thresholds for student payments, including the student income bank limits.  This is now deferred to 1 January 2017.

  • The Bill currently provides for the implementation from 1 July 2016 of the amendments that maintain at level for three years the income free areas for all working age allowances (other than student payments) and for parenting payment single.  Recognising the potential for delays to the Bill, the implementation of this amendment is now amended to the first 1 July to occur on or after Royal Assent.

 

The commencement of Schedule 1 (Proportional payment of pensions outside Australia) will remain at 1 January 2017.

 

Financial impact statement

 

MEASURE

ESTIMATED REVISED FINANCIAL IMPACT OVER THE FORWARD ESTIMATES (SAVINGS)

Pensioner education supplement

Saving of $214.8 million *

Education entry payment

Saving of $53.1 million *

Indexation

Saving of $85.1 million *

* Note:  Refers to administered funding for affected social security payments only and is not net of implementation funding.  Assumes a 1 July 2016 start date for all of the above measures other than pauses to student payment thresholds.



SOCIAL SERVICES LEGISLATION AMENDMENT

(BUDGET REPAIR) BILL 2015

 

 

Amendments to be moved on behalf of the Government

 

NOTES ON AMENDMENTS

 

Amendment 1 amends the commencement table in clause 2 of the Bill.  Under the amended table, Schedules 2 and 3 commence on the first 1 January or 1 July after the day the Act receives the Royal Assent (instead of 1 January 2016). 

 

Amendment 2 amends an application provision, relating to the cessation of education entry payment, as a result of the changed commencement.  Subitem 31(2) of Schedule 3 to the Bill is modified so that Part 2.13A of the Social Security Act 1991 (which provides for the education entry payment and is repealed on commencement), continues to apply after commencement in relation to claims made before commencement where the person was qualified for the payment before commencement.  Amendment 3 makes a similar amendment to subitem 31(5), which relates to the cessation of education entry payment from the Veterans’ Entitlements Act 1986 .

 

Amendment 4 recasts new subsection 1192(4AB) (as inserted by item 1 of Schedule 4 to the Bill) so the relevant payment free areas are not indexed on 1 July of the first financial year on or after Royal Assent and on 1 July of the next two financial years.  

 

Amendment 5 recasts new subsection 1192(5AAA) (as inserted by item 2 of Schedule 4) so the pension free area for parenting payment single is not indexed on 1 July of the first financial year on or after Royal Assent and on 1 July of the next two financial years.

 

Amendment 6 is a technical amendment that omits from subsection 1192(5AAB) the reference to item 24 of the CPI indexation table.  Item 24 (which referred to the youth allowance assets value limit for a person who was not independent) no longer exists, having been repealed on 1 January 2016 by Schedule 1 to the Social Services Legislation Amendment (More Generous Means Testing for Youth Payments) Act 2015 .

 

Amendment 7 amends new subsection 1192(5AAB) (as inserted by item 2 of Schedule 4) by omitting existing references to 1 January of 2016, 2017 and 2018.  These dates are replaced by 1 January 2017, 1 January 2018 and 1 January 2019.  The relevant free areas and income limits would not be indexed on those dates.