Title Carbon Pollution Reduction Scheme Amendment (Household Assistance) Bill 2009 [No. 2]
Database Bills & Legislation
Long Title a Bill for an Act to amend the law relating to social security, family assistance, veterans’ affairs, military rehabilitation and compensation and taxation, and for related purposes
Date 17-11-2009 12:57 PM
Source House of Reps
Parl No. 42
Bill Number 198/09
Bill Type Government
Portfolio Families, Housing, Community Services and Indigenous Affairs
Reps Bill Code M
Status Before Senate
System Id legislation/bills/r4223_first/0002


Carbon Pollution Reduction Scheme Amendment (Household Assistance) Bill 2009 [No. 2]

Schedule 1—Assistance under the Social Security Act

Part 1—Main amendments

Social Security Act 1991

1  At the end of subsection 1192(2)

Add:

Note 3:       On the indexation days following 1 July 2012, the indexation of certain amounts may be affected by Subdivisions C and D of Division 8.

2  At the end of Part 3.16

Add:

Division 8—Increases related to Carbon Pollution Reduction Scheme

Subdivision A—Introduction

1206GF  Objects of this Division

             (1)  The main object of this Division is to increase certain amounts that affect the rate at which social security payments are made to certain recipients of payments of the following kinds, on account of the Carbon Pollution Reduction Scheme’s estimated cost of living increase:

                     (a)  age pension;

                     (b)  austudy payment;

                     (c)  bereavement allowance;

                     (d)  carer payment;

                     (e)  disability support pension;

                      (f)  newstart allowance;

                     (g)  parenting payment;

                     (h)  partner allowance;

                      (i)  sickness allowance;

                      (j)  widow allowance;

                     (k)  widow B pension;

                      (l)  wife pension;

                    (m)  youth allowance;

                     (n)  payments of kinds specified under section 1206GM.

             (2)  Another object of this Division is to adjust indexation of those amounts after they are increased, to reflect the inclusion in the increases of elements brought forward from the Carbon Pollution Reduction Scheme’s estimated cost of living increase.

Subdivision B—Increases

1206GG  What this Subdivision applies to

                   This Subdivision applies to the following amounts (each of which is a base amount):

                     (a)  amounts provided for in a provision that is listed in column 1 of the following table and sets a rate;

                     (b)  amounts specified under section 1206GN as amounts to which this Subdivision applies.

 

Amounts that are increased

 

Column 1

Provision for base amount

Column 2

Description of amount

Column 3

Rounding base for base amount

1

[Austudy Payment Rate Calculator—point 1067L‑B2—Table BA—column 3—all amounts]

[Austudy Payment Rate Calculator—point 1067L‑B3]

AP MBR

$0.10

2

[Benefit Rate Calculator B—point 1068‑B1—Table B—column 3—all amounts]

Maximum basic rates for newstart allowance, sickness allowance, partner allowance and widow allowance

$0.10

3

[Benefit PP (Partnered) Rate Calculator—point 1068B‑C2—Table C—column 3—all amounts]

Maximum basic rate for parenting payment—benefit PP (partnered)

$0.10

4

[Youth Allowance Rate Calculator—point 1067G‑B2—Table BA—column 3—all amounts]

[Youth Allowance Rate Calculator—point 1067G‑B3—Table BB—column 3—all amounts]

[Youth Allowance Rate Calculator—point 1067G‑B4—Table BC—column 3—all amounts]

YA MBR

$0.10

Note:          Amounts provided for in provisions listed in the table are amounts as altered from time to time under Division 2 of this Part (CPI indexation).

1206GH  Increase of 1% on 1 July 2011

                   This Act has effect as if, on 1 July 2011, each base amount were replaced by an amount (the replacement amount) worked out by:

                     (a)  calculating the amount (the provisional replacement amount) that is 1% greater than the base amount; and

                     (b)  if the provisional replacement amount is not a multiple of the rounding base for the base amount, rounding up or down to the nearest multiple of the rounding base (rounding up if the provisional replacement amount is not a multiple of the rounding base but is a multiple of half the rounding base).

Note:          The 1% increase includes the Carbon Pollution Reduction Scheme’s estimated cost of living increase of 0.4% for the 2011‑2012 financial year, which has been brought forward. The change to the indexation factor on or after 20 March 2012 under section 1206GJ takes account of this brought forward increase.

1206GI  Increase of 1.8% on 1 July 2012

                   This Act has effect as if, on 1 July 2012, the base amount were replaced by an amount (the replacement amount) worked out by:

                     (a)  calculating the amount (the provisional replacement amount) that is 1.8% greater than the base amount; and

                     (b)  if the provisional replacement amount is not a multiple of the rounding base for the base amount, rounding up or down to the nearest multiple of the rounding base (rounding up if the provisional replacement amount is not a multiple of the rounding base but is a multiple of half the rounding base).

Note:          The 1.8% increase includes the Carbon Pollution Reduction Scheme’s estimated cost of living increase of 0.8% for the 2012‑2013 financial year, which has also been brought forward. The change to the indexation factor on or after 20 March 2013 under section 1206GK takes account of this second brought forward increase.

Subdivision C—Adjustment of indexation

1206GJ  Special rules for indexation of some amounts on or after 20 March 2012

             (1)  An indexation factor worked out under section 1193 for each indexation day that is:

                     (a)  for AP MBR and YA MBR—on or after 1 January 2013; or

                     (b)  for any other base amount to which Subdivision B applies—on or after 20 March 2012;

is to be reduced by the brought forward indexation amount, but not below 1.

             (2)  In this section:

brought forward indexation amount, in relation to a day, means 0.004 less any reduction made under this section for a previous day.

Note:          Once the brought forward indexation amount becomes zero, there will be no further reduction of the factor.

Example:    Assume that the indexation factor worked out under section 1193 on 20 March 2012 is 1.003. The brought forward indexation amount in relation to 20 March 2012 is 0.004 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2012.

                   Further assume that on 20 September 2012 the indexation factor is 1.010. The brought forward indexation amount in relation to 20 September 2012 is 0.001. That indexation factor is reduced to 1.009 on 20 September 2012.

                   The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

             (3)  This section affects the rate of a social security payment for a person if, and only if, section 1206GH affected that rate for the person.

1206GK  Special rules for indexation of some amounts on or after 20 March 2013

             (1)  An indexation factor worked out under section 1193 for each indexation day that is:

                     (a)  for AP MBR and YA MBR—on or after 1 January 2014; or

                     (b)  for any other base amount to which Subdivision B applies—on or after 20 March 2013;

is to be reduced by the brought forward indexation amount, but not below 1.

             (2)  In this section:

brought forward indexation amount, in relation to a day, means 0.008 less any reduction made under this section for a previous day.

Note:          Once the brought forward indexation amount becomes zero, there will be no further reduction of the factor.

Example:    Assume that the indexation factor worked out under section 1193 on 20 March 2013 is 1.005. The brought forward indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.

                   Further assume that on 20 September 2013 the indexation factor is 1.010. The brought forward indexation amount in relation to 20 September 2013 is 0.003. That indexation factor is reduced to 1.007 on 20 September 2013.

                   The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

             (3)  This section affects the rate of a social security payment for a person if, and only if, section 1206GI affected that rate for the person.

Subdivision D—Other provision for increases and adjustments of indexation

1206GL  Minister may provide for increases and adjustments

             (1)  The Minister may, by legislative instrument, provide for:

                     (a)  increasing on 1 July 2011 and 1 July 2012 amounts that affect the rates at which any of the following social security payments are paid to recipients:

                              (i)  age pension;

                             (ii)  bereavement allowance;

                            (iii)  carer payment;

                            (iv)  disability support pension;

                             (v)  parenting payment;

                            (vi)  widow B pension;

                           (vii)  wife pension;

                          (viii)  payments of kinds specified under section 1206GM;

                            on account of the Carbon Pollution Reduction Scheme’s estimated cost of living increase; and

                     (b)  changing the indexation under this Act after either or both of those days of amounts that affect the rates at which any of the payments described in paragraph (a) are paid to recipients of payments increased as a result of that paragraph, to reflect any inclusion in the increases of elements brought forward from the Carbon Pollution Reduction Scheme’s estimated cost of living increase.

             (2)  The instrument has effect according to its terms, despite any other provision of this Act.

             (3)  To avoid doubt, the instrument may provide for increasing an amount affecting the rate of a payment described in paragraph (1)(a) by an amount or percentage worked out by reference to either or both of the following:

                     (a)  the amount to be increased;

                     (b)  another amount affecting the rate at which the same or a different kind of payment is made.

             (4)  To avoid doubt, the instrument may provide for changing the indexation of an amount that affects the rate of a payment (the affected payment) described in paragraph (1)(a), whether or not that amount, or an amount affecting that payment, was increased as a result of that paragraph, as long as the recipient of the affected payment received a payment that was increased as a result of that paragraph.

             (5)  Subsections (3) and (4) do not limit subsection (1).

Subdivision E—Extending scope of this Division

1206GM  Other kinds of payments affected by this Division

             (1)  The Minister may, by legislative instrument, specify kinds of social security payments in relation to which this Division applies.

Note:          For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003.

             (2)  Kinds of payments may be specified by reference to either or both of the following:

                     (a)  the persons to whom the payments are to be made;

                     (b)  the circumstances in which the payments are to be made.

             (3)  Subsection (2) does not limit subsection (1).

1206GN  Other amounts to which Subdivision B applies

             (1)  The Minister may, by legislative instrument, specify that Subdivision B applies to a specified amount that affects the rate at which a specified kind of social security payment is made.

Note 1:       For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003.

Note 2:       A specified kind of payment could be a kind of payment specified under section 1206GM.

             (2)  If the Minister does so, the instrument must also specify a rounding base for the amount for the purposes of sections 1206GH and 1206GI.

             (3)  An amount may be specified by reference to the fact that it affects the rate at which a specified kind of social security payment is made to specified persons or in specified circumstances.

             (4)  An instrument made under subsection (1) may specify that Subdivision B applies to an amount so far as it affects the rate at which a specified kind of social security payment is made to specified persons or in specified circumstances.

             (5)  Subsections (3) and (4) do not limit subsection (1).

             (6)  An instrument made under subsection (1) has effect according to its terms.


 

Part 2—Transitional payment

Division 1—Amendment of the social security law

Social Security Act 1991

3  Subsection 23(1)

Insert:

carbon pollution reduction transitional payment means a carbon pollution reduction transitional payment under Part 2.28.

4  At the end of Chapter 2

Add:

Part 2.28—Carbon pollution reduction transitional payment

  

1061ZAAX  Availability of payments

             (1)  A carbon pollution reduction transitional payment is available to qualified persons for each of the 2011‑12 and 2012‑13 income years.

             (2)  A person cannot receive more than one carbon pollution reduction transitional payment for an income year.

1061ZAAY  When qualified for a payment

                   A person is qualified for a carbon pollution reduction transitional payment for an income year if:

                     (a)  the person satisfies each of the following for the year:

                              (i)  the income requirement in section 1061ZAAZ;

                             (ii)  the excluded payment requirement in section 1061ZAAZA;

                            (iii)  the remaining requirements in section 1061ZAAZB; and

                     (b)  the person lodges a claim for the payment; and

                     (c)  when the person lodges a claim for the payment, the person:

                              (i)  is an Australian resident or a special category visa holder residing in Australia; and

                             (ii)  is in Australia; and

                            (iii)  is not in gaol or a psychiatric institution.

1061ZAAZ  Income requirement

             (1)  The person (the claimant) satisfies the income requirement for an income year if the claimant’s adjusted taxable income for the year is less than:

                     (a)  $30,000 if the claimant was not a member of a couple, and did not have a dependent child, at the end of the year; or

                     (b)  $45,000 if:

                              (i)  the claimant was a member of a couple at the end of the year; and

                             (ii)  neither the claimant, nor the claimant’s partner at that time, had a dependent child at that time; or

                     (c)  $60,000 if the claimant had a dependent child at the end of the year; or

                     (d)  $60,000 if the claimant was a member of a couple at the end of the year, and the claimant’s partner at that time had a dependent child at that time.

             (2)  In this section:

adjusted taxable income, for a person for an income year, is the sum of:

                     (a)  the person’s adjusted taxable income (within the meaning of the Family Assistance Act) for the year; and

                     (b)  the superannuation benefits (within the meaning of the Income Tax Assessment Act 1997) (if any) received by the person in relation to the income year to the extent to which those benefits are non‑assessable non‑exempt income (within the meaning of that Act).

1061ZAAZA  Excluded payment requirement

             (1)  The claimant satisfies the excluded payment requirement for an income year if:

                     (a)  there were at least 13 weeks during the year for which the claimant:

                              (i)  was not entitled to family tax benefit; and

                             (ii)  did not receive any of the payments set out in subsection (2); and

                     (b)  for the claimant’s partner (if any) at the end of the year—there were at least 13 weeks during the year for which the partner:

                              (i)  was not entitled to family tax benefit; and

                             (ii)  did not receive any of the payments set out in subsection (2).

For the purposes of paragraph (b), it does not matter whether the partner was the claimant’s partner for a particular week.

             (2)  The payments are the following:

                     (a)  an income support payment (other than income support supplement);

                     (b)  a social security payment;

                     (c)  a payment under the ABSTUDY Scheme that included an amount identified as living allowance;

                     (d)  a payment under Part 5 or 6 of the Farm Household Support Act 1992;

                     (e)  a pension under Part II or IV of the Veterans’ Entitlements Act 1986;

                      (f)  a weekly amount of compensation under Part 2 of Chapter 4, or section 233, of the Military Rehabilitation and Compensation Act;

                     (g)  a Special Rate Disability Pension (within the meaning of section 198 of the Military Rehabilitation and Compensation Act);

                     (h)  a payment under the Military Rehabilitation and Compensation Act Education and Training Scheme worked out by reference to the maximum basic rate of youth allowance;

                      (i)  a payment under the Veterans’ Children Education Scheme worked out by reference to the maximum basic rate of youth allowance.

1061ZAAZB  Remaining requirements

             (1)  The claimant satisfies the remaining requirements for an income year if:

                     (a)  the claimant was, at all times during the year, an Australian resident or a special category visa holder residing in Australia; and

                     (b)  the claimant was in Australia for at least 39 weeks of the year; and

                     (c)  the claimant was not subject to a newly arrived resident’s waiting period at any time during the year; and

                     (d)  the claimant was not a dependent child of another person for more than 25 weeks of the year; and

                     (e)  the claimant was not in gaol and/or psychiatric institutions for more than 25 weeks of the year; and

                      (f)  no person was eligible for family tax benefit in respect of the claimant in relation to more than 25 weeks of the year; and

                     (g)  if the claimant did not have a partner at the end of the year, and the claimant received a rebate of tax for the year under one or more of the following provisions of the Tax Act:

                              (i)  section 159J in respect of a dependant included in class 1, 2, 5 or 6 of the table in subsection (2) of that section;

                             (ii)  section 159L (housekeeper rebate);

                            (iii)  section 159N (low income rebate);

                            the sum of the CPRS components for those rebates is less than:

                            (iv)  for the 2011‑12 income year—$150; or

                             (v)  for the 2012‑13 income year—$280; and

                     (h)  if:

                              (i)  the claimant had a partner at the end of the year; and

                             (ii)  the claimant, and/or the claimant’s partner, received a rebate of tax for the year under one or more of the provisions mentioned in paragraph (g);

                            the sum of the CPRS components for those rebates is less than:

                            (iii)  for the 2011‑12 income year—$210; or

                            (iv)  for the 2012‑13 income year—$385.

             (2)  In this section:

CPRS component, for a rebate under a provision of the Tax Act, means the part of the maximum amount of rebate allowable under that provision that corresponds to the increases in that rebate arising under Schedule 5 to the Carbon Pollution Reduction Scheme Amendment (Household Assistance) Act 2009.

Tax Act means the Income Tax Assessment Act 1936.

1061ZAAZC  Amount of payment

                   The amount of a carbon pollution reduction transitional payment is:

                     (a)  for the 2011‑12 income year—$200; and

                     (b)  for the 2012‑13 income year—$550.

5  After section 1223ABAAB

Insert:

1223ABAAC  Debts arising in respect of carbon pollution reduction transitional payments

             (1)  If:

                     (a)  an individual has been paid a carbon pollution reduction transitional payment because of a determination made under Part 3 of the Administration Act; and

                     (b)  after the payment was made to the individual, the determination is or was (however described) changed, revoked, set aside, or superseded by another determination; and

                     (c)  the decision to change, revoke, set aside or supersede the determination is or was made for the reason, or for reasons including the reason, that the individual knowingly made a false or misleading statement, or knowingly provided false information; and

                     (d)  apart from that statement or information, the payment would not have been paid to the individual;

the amount of the payment is a debt due to the Commonwealth by the individual.

             (2)  Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to payments to which this section applies.

6  Paragraph 1231(1AA)(b)

After “economic security strategy payment,”, insert “carbon pollution reduction transitional payment,”.

Social Security (Administration) Act 1999

7  After section 18

Insert:

19  A couple’s claims for carbon pollution reduction transitional payment may be made together

                   If both a person and the person’s partner claim for a carbon pollution reduction transitional payment for an income year, the 2 claims may be made together in accordance with a form approved by the Secretary for the purposes of this section.

8  After Subdivision FA of Division 1 of Part 3

Insert:

Subdivision FB—Time limit for claims for carbon pollution reduction transitional payment

27B  Time limit for claim

             (1)  A claim for a carbon pollution reduction transitional payment for the 2011‑12 income year must be lodged during the 2 year period starting on 1 July 2012.

             (2)  A claim for a carbon pollution reduction transitional payment for the 2012‑13 income year must be lodged during the 2 year period starting on 1 July 2013.

9  Subsection 47(1) (at the end of the definition of lump sum benefit)

Add:

               ; or (k)  carbon pollution reduction transitional payment.

10  After section 47C

Insert:

47D  Payment of carbon pollution reduction transitional payment

                   If an individual is qualified for a carbon pollution reduction transitional payment, the Secretary must pay the payment to the individual in a single lump sum in such manner as the Secretary considers appropriate.

11  Subdivision DB of Division 5 of Part 3B (heading)

Repeal the heading, substitute:

Subdivision DB—Other payments

12  At the end of Subdivision DB of Division 5 of Part 3B

Add:

123XPE  Deductions from carbon pollution reduction transitional payment

Scope

             (1)  This section applies if:

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

                     (b)  a carbon pollution reduction transitional payment is payable to the person.

Deductions from carbon pollution reduction transitional payment

             (2)  The following provisions have effect:

                     (a)  the Secretary must deduct from the carbon pollution reduction transitional payment the deductible portion of the payment;

                     (b)  an amount equal to the deductible portion of the payment is credited to the Special Account;

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

             (3)  For the purposes of subsection (2), the deductible portion of a carbon pollution reduction transitional payment is 100% of the amount of the payment.

Division 2—Other amendments

Income Tax Assessment Act 1997

13  Section 11‑15 (table item headed “social security or like payments”)

After:

ABSTUDY scheme, payment under...................................

Subdivision 52‑E

insert:

carbon pollution reduction transitional payment under the Social Security Act 1991.........................................


52‑10

14  At the end of subsection 52‑10(1) (before the note)

Add:

             ; or (zb)  carbon pollution reduction transitional payment under the Social Security Act 1991.

15  After subsection 52‑10(1J)

Insert:

          (1K)  Carbon pollution reduction transitional payment under the Social Security Act 1991 is exempt from income tax.