Title Social Services Legislation Amendment (Housing Affordability) Bill 2018
Database Amendments
Date 01-07-2019 01:54 PM
Source House of Reps
System Id legislation/amend/r5974_amend_5a3a551c-19bb-4cfb-a3e1-0d0027b7c298


Social Services Legislation Amendment (Housing Affordability) Bill 2018

2016‑2017‑2018

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

Social Services Legislation Amendment (Housing Affordability) Bill 2017

 

 

(1)     Clause 2, page 2 (table items 2 to 7), omit the table items, substitute:

2.  Schedules 1 and 2

The later of:

(a) the day after this Act receives the Royal Assent; and

(b) 1 January 2019.

 

3.  Schedule 3, item 1

A single day to be fixed by Proclamation.

However, if the provisions do not commence within the period of 12 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.

 

4.  Schedule 3, items 1A to 1E

The day after this Act receives the Royal Assent.

 

5.  Schedule 3, item 1F

A single day to be fixed by Proclamation.

However, if the provisions do not commence within the period of 12 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.

 

6.  Schedule 3, items 1G to 4A

The day after this Act receives the Royal Assent.

 

7.  Schedule 3, item 4B

A single day to be fixed by Proclamation.

However, if the provisions do not commence within the period of 12 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.

 

8.  Schedule 3, items 5 to 7

The day after this Act receives the Royal Assent.

 

9.  Schedule 3, item 8

A single day to be fixed by Proclamation.

However, if the provisions do not commence within the period of 12 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.

 

[commencement]

(2)     Schedule 1, item 8, page 4 (lines 15 to 22), omit:

A social housing lessor may request the Secretary to make a deduction:

       (a)     to satisfy an ongoing or outstanding obligation of the social housing tenant for rent, household utilities or both; or

      (b)     to compensate for loss of, or damage to, property, arising as a result of the tenant’s occupancy of premises let by the lessor.

          substitute:

A social housing lessor may request the Secretary to make a deduction to satisfy an ongoing or outstanding obligation of the social housing tenant for rent, household utilities or both.

[liabilities for which deductions may be made]

(3)     Schedule 1, item 8, page 4 (line 28) to page 5 (line 1), omit “, or loss of or damage to property arising as a result of occupancy of premises,”.

[liabilities for which deductions may be made]

(4)     Schedule 1, item 8, page 5 (line 24) to page 6 (line 7), omit subsection 124QC(1), substitute:

             (1)  For the purposes of this Part, an authority of a State or Territory is a social housing lessor if:

                     (a)  the authority provides social housing in the State or Territory; and

                     (b)  the authority has a written agreement with the Human Services Department relating to the authority’s ability to request deductions under this Part; and

                     (c)  a Minister of the relevant State or Territory has provided a letter or document to the Commonwealth Minister setting out the social housing policies of the State or Territory;

unless a determination made under subsection (2) applies in relation to the authority.

          (1A)  For the purposes of this Part, a body is a social housing lessor if:

                     (a)  the body provides social housing in a State or Territory; and

                     (b)  the body:

                              (i)  is approved to provide social housing by the State or Territory and the approval has been notified, in writing, to the Secretary; or

                             (ii)  is registered as a community housing provider under a law of the State or Territory, and the registration has been notified, in writing, to the Secretary; and

                     (c)  the body has a written agreement with the Human Services Department relating to the body’s ability to request deductions under this Part; and

                     (d)  a Minister of the relevant State or Territory has provided a letter or document to the Commonwealth Minister setting out the social housing policies of the State or Territory;

unless a determination made under subsection (2) applies in relation to the body.

[definition of social housing lessor]

(5)     Schedule 1, item 8, page 6 (after line 11), at the end of section 124QC, add:

             (4)  The Commonwealth Minister may publish a letter or document provided by a Minister of a State or Territory setting out the social housing policies of the State or Territory on the Department’s website.

             (5)  In this section:

Commonwealth Minister means the Minister responsible for administering this Part.

[definition of social housing lessor]

(6)     Schedule 1, item 8, page 6 (line 24) to page 7 (line 17), omit subsection 124QF(1), substitute:

             (1)  A social housing lessor may request the Secretary to make a deduction from a divertible welfare payment payable to a social housing tenant if both of the following apply:

                     (a)  the tenant has an ongoing or outstanding obligation to pay an amount for rent, household utilities, or both, in relation to the tenant’s occupancy of premises let by the lessor;

                     (b)  the tenant’s agreement with the lessor for occupancy of the premises, or another agreement with the lessor, authorises the lessor to make requests under this Part for deductions from divertible welfare payments payable to the tenant.

[liabilities for which deductions may be made]

(7)     Schedule 1, item 8, page 7 (line 19), omit “, or the order was made,”.

[liabilities for which deductions may be made]

(8)     Schedule 1, item 8, page 7 (lines 30 and 31), omit subparagraphs 124QF(3)(a)(iii) and (iv).

[liabilities for which deductions may be made]

(9)     Schedule 1, item 8, page 8 (line 25), at the end of paragraph 124QG(2)(b), add “; or”.

[income management and cashless welfare]

(10)   Schedule 1, item 8, page 8 (after line 25), at the end of subsection 124QG(2), add:

                     (c)  if:

                              (i)  the social housing tenant is subject to the income management regime (within the meaning of Part 3B); and

                             (ii)  all or part of the divertible welfare payment is a category E welfare payment, category H welfare payment, category I welfare payment, category P welfare payment, category Q welfare payment, category R welfare payment or category S welfare payment (all within the meaning of that Part); and

                            (iii)  the deductible portion under Division 5 of that Part is nil; or

                     (d)  if:

                              (i)  the social housing tenant is a trial participant or voluntary participant (within the meaning of Part 3D); and

                             (ii)  all or part of the divertible welfare payment is a restrictable payment (within the meaning of that Part); and

                            (iii)  the tenant’s percentage of the payment that is the restricted portion under paragraph 124PJ(1)(a) or subsection 124PJ(2) is 0%.

[income management and cashless welfare]

(11)   Schedule 1, item 8, page 9 (lines 6 to 11), omit subsection 124QG(5), substitute:

             (5)  If a divertible welfare payment payable to a social housing tenant is suspended under this Act but such payments subsequently resume, the Secretary:

                     (a)  may deduct any amounts that would otherwise have been deducted under this Part during the period of suspension from payments paid to the tenant after the suspension ends; and

                     (b)  must make any deduction from more than one payment paid to the tenant after the suspension ends.

[deductions from divertible welfare payments]

(12)   Schedule 1, item 8, page 9 (line 18), omit “either”, substitute “any”.

[income management and cashless welfare]

(13)   Schedule 1, item 8, page 9 (line 23), at the end of paragraph 124QH(2)(b), add “;”.

[income management and cashless welfare]

(14)   Schedule 1, item 8, page 9 (after line 23), at the end of subsection 124QH(2), add:

                     (c)  the amount worked out under subsection (3) or (4).

[income management and cashless welfare]

(15)   Schedule 1, item 8, page 9 (after line 23), at the end of section 124QH, add:

Income management regime

             (3)  If:

                     (a)  the social housing tenant is subject to the income management regime (within the meaning of Part 3B); and

                     (b)  all or part of the divertible welfare payment is a category E welfare payment, category H welfare payment, category I welfare payment, category P welfare payment, category Q welfare payment, category R welfare payment or category S welfare payment (all within the meaning of that Part);

the amount is the amount that would be the deductible portion, under Division 5 of that Part, of the divertible welfare payment or part (as the case requires) if no deduction was made under section 124QG from the divertible welfare payment or part (as the case requires).

Cashless welfare arrangements

             (4)  If:

                     (a)  the social housing tenant is a trial participant or voluntary participant (within the meaning of Part 3D); and

                     (b)  all or part of the divertible welfare payment is a restrictable payment (within the meaning of that Part);

the amount is the amount equal to the tenant’s percentage under paragraph 124PJ(1)(a) or subsection 124PJ(2) of the divertible welfare payment or part (as the case requires).

[income management and cashless welfare]

(16)   Schedule 2, item 5, page 18 (lines 8 to 15), omit:

A social housing lessor may request the Secretary to make a deduction:

       (a)     to satisfy an ongoing or outstanding obligation of the social housing tenant for rent, household utilities or both; or

      (b)     to compensate for loss of, or damage to, property, arising as a result of the tenant’s occupancy of premises let by the lessor.

          substitute:

A social housing lessor may request the Secretary to make a deduction to satisfy an ongoing or outstanding obligation of the social housing tenant for rent, household utilities or both.

[liabilities for which deductions may be made]

(17)   Schedule 2, item 5, page 18 (lines 21 and 22), omit “, or loss of or damage to property arising as a result of occupancy of premises,”.

[liabilities for which deductions may be made]

(18)   Schedule 2, item 5, page 19 (lines 3 to 28), omit subsection 67D(1), substitute:

             (1)  A social housing lessor may request the Secretary to make a deduction from family tax benefit (other than family tax benefit advance), whether an instalment or other payment, payable to a social housing tenant if both of the following apply:

                     (a)  the tenant has an ongoing or outstanding obligation to pay an amount for rent, household utilities, or both, in relation to the tenant’s occupancy of premises let by the lessor;

                     (b)  the tenant’s agreement with the lessor for occupancy of the premises, or another agreement with the lessor, authorises the lessor to make requests under this Part for deductions from family tax benefit payable to the tenant.

[liabilities for which deductions may be made]

(19)   Schedule 2, item 5, page 19 (line 30), omit “, or the order was made,”.

[liabilities for which deductions may be made]

(20)   Schedule 2, item 5, page 20 (lines 8 and 9), omit subparagraphs 67D(3)(a)(iii) and (iv).

[liabilities for which deductions may be made]

(21)   Schedule 2, item 5, page 21 (line 5), at the end of paragraph 67E(2)(b), add “; or”.

[income management and cashless welfare]

(22)   Schedule 2, item 5, page 21 (after line 5), at the end of subsection 67E(2), add:

                     (c)  if:

                              (i)  the social housing tenant is subject to the income management regime (within the meaning of Part 3B of the Social Security (Administration) Act 1999); and

                             (ii)  the deductible portion under Division 5 of that Part is nil; or

                     (d)  if:

                              (i)  the social housing tenant is a trial participant or voluntary participant (within the meaning of Part 3D of the Social Security (Administration) Act 1999); and

                             (ii)  the tenant’s percentage of the restricted portion under paragraph 124PJ(1)(a) or subsection 124PJ(2) of that Act is 0%.

[income management and cashless welfare]

(23)   Schedule 2, item 5, page 21 (line 21), omit “either”, substitute “any”.

[income management and cashless welfare]

(24)   Schedule 2, item 5, page 21 (line 26), at the end of subsection 67F(2), add “;”.

[income management and cashless welfare]

(25)   Schedule 2, item 5, page 21 (after line 26), at the end of subsection 67F(2), add:

                     (c)  the amount worked out under subsection (3) or (4).

[income management and cashless welfare]

(26)   Schedule 2, item 5, page 21 (after line 26), at the end of section 67F, add:

Income management regime

             (3)  If the social housing tenant is subject to the income management regime (within the meaning of Part 3B of the Social Security (Administration) Act 1999), then the amount is the amount that would be the deductible portion, under Division 5 of that Part, of the family tax benefit if no deduction was made under section 67E of this Act from the family tax benefit.

Cashless welfare arrangements

             (4)  If the social housing tenant is a trial participant or voluntary participant (within the meaning of Part 3D of the Social Security (Administration) Act 1999), then the amount is the amount equal to the tenant’s percentage under paragraph 124PJ(1)(a) or subsection 124PJ(2) of that Act of the family tax benefit.

[income management and cashless welfare]

(27)   Schedule 3, page 27 (after line 4), before item 1, insert:

1A  Section 3

Before “The”, insert “(1)”.

1B  At the end of section 3

Add:

             (2)  The object of this Act is to be achieved in ways that include:

                     (a)  protecting tenants of rental dwellings covered by allocations; and

                     (b)  protecting investors; and

                     (c)  providing rights to investors; and

                     (d)  recognising the contributions, in cash or in kind, made by States and Territories to participants in the Scheme.

[protection and rights]

(28)   Schedule 3, page 27 (after line 4), after proposed item 1B, insert:

1C  After section 3

Insert:

3A  Severability

Additional and severable operation of Act and tax law provisions

             (1)  Without limiting the effect of this Act or the tax law provisions apart from this section, this Act and the tax law provisions also have effect as provided by this section.

             (2)  To avoid doubt, none of the following subsections of this section limit the operation of any other subsection of this section.

External affairs

             (3)  This Act and the tax law provisions have the effect they would have if their operation were expressly confined to give effect to Australia’s rights and obligations under paragraph 1 of Article 2 and Article 11 of the International Covenant on Economic, Social and Cultural Rights done at New York on 16 December 1966, as in force for Australia from time to time.

Note:          The International Covenant on Economic, Social and Cultural Rights is in Australian Treaty Series 1976 No. 5 ([1976] ATS 5) and could in 2018 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

Corporations

             (4)  This Act and the tax law provisions have the effect they would have if their operation were expressly confined to the following:

                     (a)  the regulation of activities, functions, relationships or business of an investor or approved participant that is a constitutional corporation;

                     (b)  the creation of rights or privileges belonging to an investor or approved participant that is a constitutional corporation;

                     (c)  the imposition of obligations on an investor or approved participant that is a constitutional corporation;

                     (d)  in respect of the matters mentioned in paragraphs (a) to (c), the regulation of the conduct of persons or entities through which the constitutional corporation acts;

                     (e)  the regulation of persons or entities whose conduct affects or is capable of affecting the activities, functions, relationships or business of an investor or an approved participant that is a constitutional corporation.

Taxation

             (5)  This Act and the tax law provisions have the effect they would have if their operation were expressly confined to determining the tax liability of a person.

Territories

             (6)  This Act and the tax law provisions have the effect they would have if their operation were expressly confined to apply in relation to the following:

                     (a)  a rental dwelling that is located in a Territory;

                     (b)  an approved participant or investor who is a resident of a Territory;

                     (c)  an approved participant or investor that is:

                              (i)  a body corporate that is incorporated in a Territory; or

                             (ii)  a body corporate that is taken to be registered in a Territory under section 119A of the Corporations Act 2001; or

                            (iii)  a trust, if the proper law of the trust and the law of the trust’s administration are the law of a Territory; or

                            (iv)  an entity, the core or routine activities of which are carried out in or in connection with a Territory.

[severability]

(29)   Schedule 3, page 27 (after line 4), after proposed item 1C, insert:

1D  Section 4 (definition of allocation)

Omit “an approved rental”, substitute “a rental”.

1E  Section 4

Insert:

constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies.

investor, in relation to a rental dwelling covered by an allocation, means a person:

                     (a)  who is the legal or beneficial owner of the rental dwelling; and

                     (b)  who is not an approved participant in relation to the rental dwelling.

tax law provisions means the following provisions of the Income Tax Assessment Act 1997:

                     (a)  item 23 of the table in section 67‑23;

                     (b)  Division 380.

[rental dwellings; severability; protection and rights]

(30)   Schedule 3, page 27 (after line 4), after proposed item 1E, insert:

1F  Paragraph 5(a)

Repeal the paragraph, substitute:

                     (a)  the obligations of participants that have been approved by the Secretary (approved participants);

[approval of participants]

(31)   Schedule 3, page 27 (after line 4), after proposed item 1F, insert:

1G  After paragraph 6(c)

Insert:

                    (ca)  the adjustment, in certain circumstances, of the amount of an incentive that:

                              (i)  is to be provided to an approved participant; or

                             (ii)  has previously been provided to an approved participant;

1H  Paragraph 6(d)

After “dwelling”, insert “covered by an allocation”.

1J  Before paragraph 6(d)

Insert:

                   (cb)  the passing on of contributions made by States and Territories, or their monetary equivalent, by approved participants in certain circumstances;

1K  At the end of section 6

Add:

                   ; (e)  the protection of tenants of rental dwellings covered by allocations;

                      (f)  the protection of investors;

                     (g)  the rights of investors.

[protection and rights; rental dwellings]

(32)   Schedule 3, page 27 (after line 4), after proposed item 1K, insert:

1L  Before subsection 7(2)

Insert:

Conditions imposed by Secretary under the Scheme

[conditions of allocation]

(33)   Schedule 3, item 3, page 27 (lines 16 to 24), omit the item, substitute:

3  At the end of section 7

Add:

             (4)  Regulations made for the purposes of subparagraph (2)(b)(i) may provide for the Secretary to make a legislative instrument prescribing matters relating to the income of a tenant or tenants.

Condition disapplied by Secretary under the Scheme

             (5)  The National Rental Affordability Scheme may provide that, in certain circumstances, the Secretary may decide that the condition mentioned in subparagraph (2)(b)(ii) does not apply if the Secretary is satisfied that the Secretary’s decision will not result in an increase in rental costs for low and moderate income households.

Conditions varied or imposed directly by Scheme

             (6)  Without limiting paragraph 8(a), the National Rental Affordability Scheme may:

                     (a)  vary a condition of an allocation (other than a condition mentioned in paragraph (2)(a) or subparagraph (2)(b)(ii)) or impose a condition of an allocation; and

                     (b)  set out the circumstances (if any) in which the condition is varied or imposed.

The condition is varied or imposed accordingly by force of this subsection.

             (7)  Subsection (6) has effect despite anything in this Act or the National Rental Affordability Scheme.

[conditions of allocation]

(34)   Schedule 3, item 4, page 27 (lines 25 to 28), omit the item, substitute:

4  After paragraph 8(b)

Insert:

                   (ba)  the transfer of all allocations made to an approved participant to another approved participant or other approved participants in certain circumstances;

                   (bb)  the transfer of an allocation to another rental dwelling in certain circumstances;

[transfer of allocations]

(35)   Schedule 3, page 27 (after line 28), after item 4, insert:

4A  After section 10

Insert:

10A  Acceptance of undertakings

             (1)  The Secretary may accept a written undertaking given by an approved participant in relation to the National Rental Affordability Scheme.

             (2)  The undertaking must be expressed to be an undertaking under this section.

             (3)  The approved participant may withdraw or vary the undertaking at any time, but only with the written consent of the Secretary.

             (4)  The consent of the Secretary is not a legislative instrument.

             (5)  The Secretary may, by written notice given to the approved participant, cancel the undertaking.

10B  Enforcement of undertakings

             (1)  The Secretary may apply to the Federal Court of Australia for an order under subsection (2) if:

                     (a)  an approved participant has given an undertaking under section 10A; and

                     (b)  the undertaking has not been withdrawn or cancelled; and

                     (c)  the Secretary considers that the approved participant has breached the undertaking.

             (2)  If the Federal Court of Australia is satisfied that the approved participant has breached the undertaking, the Court may make any or all of the following orders:

                     (a)  an order directing the approved participant to comply with the undertaking;

                     (b)  an order directing the approved participant to pay to the Commonwealth an amount up to the amount of any financial benefit that the approved participant has obtained directly or indirectly and that is reasonably attributable to the breach;

                     (c)  any order that the Court considers appropriate directing the approved participant to compensate any other person who has suffered loss or damage as a result of the breach;

                     (d)  any other order that the Court considers appropriate.

[enforceable undertakings]

(36)   Schedule 3, page 27 (after line 28), after proposed item 4A, insert:

4B  Subsection 11(1)

Repeal the subsection, substitute:

             (1)  The Secretary may, by written instrument, delegate the Secretary’s power to approve a rental dwelling for the purposes of the National Rental Affordability Scheme to an SES employee in the Department.

[delegation]

(37)   Schedule 3, item 5, page 28 (lines 1 to 4), omit the item, substitute:

5  Application

(1)       Paragraph 5(a) of the National Rental Affordability Scheme Act 2008, as substituted by item 1F of this Schedule, applies to an obligation that arose before, or arises on or after, the day this item commences.

(2)       Paragraph 6(ca) of the National Rental Affordability Scheme Act 2008, as inserted by item 1G of this Schedule, applies to an incentive provided before, on or after the day this item commences.

(3)       Paragraph 6(cb) of the National Rental Affordability Scheme Act 2008, as inserted by item 1J of this Schedule, applies to a contribution made by a State or Territory before, on or after the day this item commences.

(4)       Paragraphs 6(f) and (g) of the National Rental Affordability Scheme Act 2008, as inserted by item 1K of this Schedule, apply in relation to an investor, whether the person becomes an investor before, on or after the day this item commences.

(5)       Subsections 7(4), (5), (6) and (7) of the National Rental Affordability Scheme Act 2008, as inserted by item 3 of this Schedule, apply in relation to an allocation that exists on the day this item commences.

(6)       Paragraphs 8(ba) and (bb) of the National Rental Affordability Scheme Act 2008, as inserted by item 4 of this Schedule, apply in relation to an allocation that exists on the day this item commences.

[application]

(38)   Schedule 3, page 28 (after line 10), at the end of the Schedule, add:

7  Transitional—variation of condition relating to charges of rent

(1)       This item applies in relation to an allocation that exists on the day this item commences.

(2)       Despite paragraph 7(6)(a) of the National Rental Affordability Scheme Act 2008, the National Rental Affordability Scheme may vary the condition of the allocation mentioned in subparagraph 7(2)(b)(ii) of that Act for the purposes of the amendment made by item 1 of this Schedule. The condition is varied accordingly by force of this item.

8  Transitional—delegation

An instrument made under subsection 11(1) of the National Rental Affordability Scheme Act 2008 that is in force immediately before the day this item commences, continues in force (and may be dealt with) as if it had been made under subsection 11(1) of that Act as amended by this Act.

[transitional]