2002 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Family and Community Services Legislation Amendment (Disability Reform) Bill (No. 2) 2002 No. , 2002 (Family and Community Services) A Bill for an Act to amend the law relating to social security in its application to disabled persons, and for related purposes Contents Part 1--Amendment of the Social Security Act 1991 4 Social Security Act 1991 4 Part 2--Amendment of the Social Security (Administration) Act 1999 8 Social Security (Administration) Act 1999 8 Part 1--Amendment of the Social Security Act 1991 9 Social Security Act 1991 9 Part 2--Amendment of the Social Security (Administration) Act 1999 13 Social Security (Administration) Act 1999 13 Part 1--Amendment of the Social Security Act 1991 14 Social Security Act 1991 14 Part 2--Amendment of the Social Security (Administration) Act 1999 18 Social Security (Administration) Act 1999 18 A Bill for an Act to amend the law relating to social security in its application to disabled persons, and for related purposes The Parliament of Australia enacts: 1 Short title This Act may be cited as the Family and Community Services Legislation Amendment (Disability Reform) Act (No. 2) 2002. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, on the day or at the time specified in column 2 of the table. Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day on which this Act receives the Royal Assent 2. Schedule 1, items 1 to 14 1 July 2003 3. Schedule 1, item 15 The day on which this Act receives the Royal Assent 4. Schedule 1, items 16 and 17 1 July 2003 5. Schedule 2, items 1 to 9 20 September 2003 6. Schedule 2, item 10 The day on which this Act receives the Royal Assent, immediately after the commencement of item 15 of Schedule 1 7. Schedule 2, items 11 and 12 20 September 2003 8. Schedule 3, items 1 to 12 20 September 2003 9. Schedule 3, item 13 The day on which this Act receives the Royal Assent, immediately after the commencement of item 10 of Schedule 2 10. Schedule 3, items 14 and 15 20 September 2003 Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent. (2) Column 3 of the table is for additional information that is not part of this Act. This information may be included in any published version of this Act. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. Schedule 1--Amendments relating to disability support pension Part 1--Amendment of the Social Security Act 1991 Social Security Act 1991 1 Subparagraph 94(1)(c)(ii) Repeal the subparagraph, substitute: (ii) the person is participating in the supported wage system administered by the Department; and 2 Subparagraph 94(2)(b)(i) Omit "or on-the-job training", substitute ", on-the-job training or another work-related activity". 3 Subparagraph 94(2)(b)(ii) Omit "or on-the-job training--such training", substitute ", on-the-job training or another work-related activity--such training or activity". 4 Paragraph 94(3)(a) Omit "or on-the-job training", substitute ", on-the-job training or another work-related activity". 5 Paragraph 94(3)(b) Omit "if subsection (4) does not apply to the person--the availability", substitute "the availability". 6 Subsection 94(4) Repeal the subsection, substitute: (4) In this section, a reference to a person undertaking another work-related activity is a reference to a person who: (a) undertakes pre-vocational assistance; or (b) participates in a labour market program; or (c) undertakes vocational rehabilitation. 7 Subsection 94(5) (definition of educational or vocational training) Omit "does not include", substitute "includes". 8 Subsection 94(5) (definition of on-the-job training) Omit "does not include", substitute "includes". 9 Subsection 94(5) Insert: pre-vocational assistance means a program, course or activity, whether or not designed specifically for people with physical, intellectual or psychiatric impairments, that, in the opinion of the Secretary, will: (a) improve the prospects of obtaining work of any person undertaking it; or (b) assist such a person in seeking work. 10 Subsection 94(5) (paragraph (a) of the definition of work) Omit "30 hours", substitute "15 hours". 11 Paragraph 146T(1)(b) Omit "30 hours per week", substitute "15 hours per week". 12 Subparagraph 664C(1)(a)(i) Omit "30 hours per week", substitute "15 hours per week". 13 Paragraph 1061ZD(2)(b) Omit "30 hours per week", substitute "15 hours per week". 14 Paragraph 1061ZE(2)(c) Omit "30 hours per week", substitute "15 hours per week". 15 After clause 133 of Schedule 1A Insert: 133A Application and transitional provisions concerning amendments affecting disability support pension made by the Family and Community Services Legislation Amendment (Disability Reform) Act (No. 2) 2002 (1) The amendments made by Schedule 1 to the Family and Community Services Legislation Amendment (Disability Reform) Act (No. 2) 2002 apply in relation to any claim by a person for a disability support pension made on or after 1 July 2003. (2) If a person claims disability support pension before 1 July 2003, any determination made on or after that date in relation to: (a) the claim; or (b) a disability support pension granted in response to the claim; is to be made as if the amendments referred to in subclause (1) had not been made. (3) Subject to subclauses (4), (5) and (6), subclause (2) ceases to have effect in relation to a person who has claimed a disability support pension before 1 July 2003 if, at any time on or after that day: (a) that person ceases to be qualified for that pension under this Act disregarding the amendments of this Act made by Schedule 1 to the Family and Community Services Legislation Amendment (Disability Reform) Act (No. 2) 2002; or (b) that pension ceases to be payable to that person under this Act disregarding the amendments of this Act made by Schedule 1 to the Family and Community Services Legislation Amendment (Disability Reform) Act (No. 2) 2002; or (c) that pension is cancelled. (4) Subclause (3) does not apply to: (a) a person ceasing to be qualified for a disability support pension; or (b) a disability support pension ceasing to be payable to a person; or (c) the cancellation of a person's disability support pension; if the Secretary makes a determination under section 96 or 97 of the Social Security (Administration) Act 1999 in relation to the cessation or cancellation. (5) Subclause (3) does not apply to: (a) a person ceasing to be qualified for a disability support pension; or (b) a disability support pension ceasing to be payable to a person; if the Secretary makes a determination suspending the pension on the basis of the cessation. (6) In applying subclause (3), disregard: (a) a disability support pension ceasing to be payable to a person; or (b) the cancellation of a person's disability support pension; during any period during which the person is taken to be receiving the disability support pension under subsection 23(4A). Part 2--Amendment of the Social Security (Administration) Act 1999 Social Security (Administration) Act 1999 16 Paragraph 96(1)(a) Omit "30 hours per week", substitute "15 hours per week". 17 Paragraph 97(1)(a) Omit "30 hours per week", substitute "15 hours per week". Schedule 2--Amendments relating to newstart allowance Part 1--Amendment of the Social Security Act 1991 Social Security Act 1991 1 Paragraph 598(3AA)(b) Repeal the paragraph, substitute: (b) either is not required, under Subdivision BA, to satisfy the activity test or is the subject of a determination under subsection 603C(1A); 2 Paragraph 598(3B)(b) Repeal the paragraph, substitute: (b) either is not required, under Subdivision BA, to satisfy the activity test or is the subject of a determination under subsection 603C(1A); 3 Paragraph 600(5)(b) Repeal the paragraph, substitute: (b) either is not required, under Subdivision BA, to satisfy the activity test or is the subject of a determination under subsection 603C(1A). 4 After subsection 603C(1) Insert: (1A) If, despite the fact that a person is incapacitated for work because of sickness or an accident, the Secretary is satisfied that the person is able to undertake a suitable activity, the Secretary may determine that subsection (1) does not apply in relation to the person. 5 Subsection 603C(2) Insert: suitable activity, in relation to a person, means an activity of a kind referred to in a paragraph of subsection 606(1) that the person might be required to undertake under a Newstart Activity Agreement. 6 Subsection 603F(1) Repeal the subsection, substitute: (1) A person ceases to be exempt, under this Subdivision, from the activity test if: (a) the person's maximum exemption period ends; or (b) at any time the Secretary determines, under subsection 603C(1A), that the person is able to undertake a suitable activity within the meaning of subsection 603C(2). 7 Paragraphs 1068-D2(c) and (d) Repeal the paragraphs, substitute: (a) if the person is receiving job search allowance--the person is, under Subdivision BAA of Division 1 of Part 2.11, exempt from the activity test; and (b) if the person is receiving newstart allowance--either: (i) the person is, under Subdivision BA of Division 1 of Part 2.12, exempt from the activity test; or (ii) the person is the subject of a determination under subsection 603C(1A). 8 Paragraph 1068-G4(c) Repeal the paragraph, substitute: (c) to whom, or to whose partner, newstart allowance is payable and who, or whose partner, either: (i) is not required, under Subdivision BA of Division 1 of Part 2.12, to satisfy the activity test; or (ii) is the subject of a determination under subsection 603C(1A); 9 Subparagraph 1161(1)(a)(i) Repeal the subparagraph, substitute: (i) a newstart allowance the recipient of which either is not required, under Subdivision BA of Division 1 of Part 2.12, to satisfy the activity test or is the subject of a determination under subsection 603C(1A); or 10 After clause 133A of Schedule 1A Insert: 133B Application and transitional provisions concerning amendments affecting newstart allowance made by the Family and Community Services Legislation Amendment (Disability Reform) Act (No. 2) 2002 (1) The amendments made by Schedule 2 to the Family and Community Services Legislation Amendment (Disability Reform) Act (No. 2) 2002 apply, on and after 20 September 2003, in relation to any claimant for newstart allowance whose claim: (a) is made but not determined before that date; or (b) is made on or after that date. (2) If: (a) a recipient of newstart allowance is, before 20 September 2003, exempt from the activity test in relation to that allowance under Subdivision BA of Division 1 of Part 2.12; and (b) the recipient: (i) gives the Secretary either a certificate of a medical practitioner, or written evidence as referred to in subsection 603F(5) or (5A), before that date though no decision to extend the maximum exemption period is made before that date; or (ii) gives the Secretary either a certificate of a medical practitioner, or written evidence as referred to in subsection 603F(5) or (5A), on or after that date; the amendments referred to in subclause (1) apply in relation to the recipient with effect from that date. (3) If: (a) a recipient of newstart allowance is not, before 20 September 2003, exempt from the activity test in relation to that allowance under Subdivision BA of Division 1 of Part 2.12; and (b) the recipient: (i) gives the Secretary a certificate of a medical practitioner before that date though no decision under section 603C is made before that date on the basis of that certificate; or (ii) gives the Secretary a certificate of a medical practitioner on or after that date; the amendments referred to in subclause (1) also apply in relation to the recipient with effect from that date. Part 2--Amendment of the Social Security (Administration) Act 1999 Social Security (Administration) Act 1999 11 After paragraph 64(1)(e) Insert: (ea) the person is receiving a newstart allowance and is the subject of a determination under subsection 603C(1A); or 12 Paragraph 64(4)(h) After "paragraph (1)(e),", insert "(ea)," Schedule 3--Amendments relating to youth allowance Part 1--Amendment of the Social Security Act 1991 Social Security Act 1991 1 Subsection 542A(1) Omit "subsection (2)", substitute "subsections (1A) and (2)". 2 After subsection 542A(1) Insert: (1A) If, despite the fact that a person is incapacitated for work because of sickness or an accident, the Secretary is satisfied that the person is able to undertake a suitable activity, the Secretary may determine that subsection (1) does not apply in relation to the person. 3 Subsection 542A(3) Insert: suitable activity, in relation to a person, means an activity of a kind referred to in a paragraph of subsection 544B(1) that the person might be required to undertake under a Youth Allowance Activity Agreement. 4 Subsection 542C(1) Repeal the subsection, substitute: (1) A person ceases to have a temporary incapacity exemption if: (a) the person's maximum exemption period ends; or (b) at any time the Secretary determines, under subsection 542A(1A), that the person is able to undertake a suitable activity within the meaning of subsection 542A(3). 5 Paragraph 546(6)(a) Repeal the paragraph, substitute: (a) has a temporary incapacity exemption under section 542A or is the subject of a determination under subsection 542A(1A); or 6 Subsection 549B(1) After "who", insert ", for a reason other than a determination under subsection 542A(1A),". 7 Subsection 549B(2) After "exemption", insert "or is the subject of a determination under subsection 542A(1A)". 8 Point 1067G-C1 Omit "the person has a temporary incapacity exemption under section 542A", substitute "if the person either has a temporary incapacity exemption under section 542A or is the subject of a determination under subsection 542A(1A)". 9 Paragraphs 1067G-H3(a) and (b) Repeal the paragraphs, substitute: (a) who has, or whose partner has, a temporary incapacity exemption under section 542A; or (b) who is, or whose partner is, the subject of a determination under subsection 542A(1A); 10 Point 1067G-H5 Omit "has a temporary incapacity exemption under section 542A", substitute "either has a temporary incapacity exemption under section 542A or is the subject of a determination under subsection 542A(1A)". 11 Paragraph 1067G-H9(a) Omit "and had a temporary incapacity exemption under section 542A", substitute "either had a temporary incapacity exemption under section 542A or was the subject of a determination under subsection 542A(1A)". 12 Paragraph 1067G-H9(c) Omit ", and has a temporary incapacity exemption under section 542A, again", substitute "again and either has a temporary incapacity exemption under section 542A or is the subject of a determination under subsection 542A(1A)". 13 After clause 133B of Schedule 1A Insert: 133C Application and transitional provisions concerning amendments affecting youth allowance made by the Family and Community Services Legislation Amendment (Disability Reform) Act (No. 2) 2002 (1) The amendments made by Schedule 3 to the Family and Community Services Legislation Amendment (Disability Reform) Act (No. 2) 2002 apply, on and after 20 September 2003, in relation to any claimant for youth allowance whose claim: (a) is made but not determined before that date; or (b) is made on or after that date. (2) If: (a) a recipient of youth allowance has, before 20 September 2003, a temporary incapacity exemption; and (b) the recipient: (i) gives the Secretary either a certificate of a medical practitioner, or written evidence as referred to in subsection 542C(5) or (6), before that date, though no decision to extend the maximum exemption period is made before that date; or (ii) gives the Secretary either a certificate of a medical practitioner, or written evidence as referred to in subsection 542C(5) or (6), on or after that date; the amendments referred to in subclause (1) apply in relation to the recipient with effect from that date. (3) If: (a) a recipient of youth allowance does not, before 20 September 2003, have a temporary incapacity exemption; and (b) the recipient: (i) gives the Secretary a certificate of a medical practitioner before that date though no decision under section 542A is made before that date on the basis of that certificate; or (ii) gives the Secretary a certificate of a medical practitioner on or after that date; the amendments referred to in subclause (1) also apply in relation to the recipient with effect from that date. Part 2--Amendment of the Social Security (Administration) Act 1999 Social Security (Administration) Act 1999 14 Paragraph 64(1)(h) Repeal the paragraph, substitute: (h) the person is receiving a youth allowance and: (i) has a temporary incapacity exemption under section 542A of the 1991 Act; or (ii) is the subject of a determination under subsection 542A(1A). 15 Subparagraph 64(4)(h)(iv) Omit "paragraph (1)(h)", substitute "subparagraph (1)(h)(i)".