2004-2005-2006-2007 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Social Security Amendment (2007 Measures No. 1) Bill 2007 No. , 2007 (Workforce Participation) A Bill for an Act to amend the Social Security Act 1991, and for related purposes [Page Break] 1 Short title ........................................................................................... 1 2 Commencement ................................................................................. 1 3 Schedule(s) ........................................................................................ 2 Schedule 1--Mobility allowance 4 Social Security Act 1991 4 Schedule 2--Youth allowance 8 Social Security Act 1991 8 Schedule 3--Parenting payment recipients having a partial capacity to work 9 Social Security Act 1991 9 Schedule 4--Dependent children 13 Social Security Act 1991 13 Schedule 5--Participation requirements and activity test 17 Social Security Act 1991 17 Schedule 6--Technical amendments 18 Social Security Act 1991 18 [Page Break] 2 1991, and for related purposes 3 The Parliament of Australia enacts: 4 1 Short title 5 This Act may be cited as the Social Security Amendment (2007 6 Measures No. 1) Act 2007. 7 2 Commencement 8 (1) Each provision of this Act specified in column 1 of the table 9 commences, or is taken to have commenced, in accordance with 10 column 2 of the table. Any other statement in column 2 has effect 11 according to its terms. 12 Social Security Amendment (2007 Measures No. 1) Bill 2007 No. , 2007 1 [Page Break] Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 The day on which this Act receives the and anything in Royal Assent. this Act not elsewhere covered by this table 2. Schedule 1 The later of: (a) 8 December 2007; and (b) the day after this Act receives the Royal Assent. 3. Schedules 2 The later of: and 3 (a) 1 January 2008; and (b) the day after this Act receives the Royal Assent. 4. Schedules 4 The day after this Act receives the Royal and 5 Assent. 5. Schedule 6, Immediately after the commencement of 20 September item 1 item 67 of Schedule 7 to the Social Security 1997 Legislation Amendment (Budget and Other Measures) Act 1996. 6. Schedule 6, Immediately after the commencement of 17 June 1998 item 2 item 91 of Schedule 9 to the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998. 1 Note: This table relates only to the provisions of this Act as originally 2 passed by both Houses of the Parliament and assented to. It will not be 3 expanded to deal with provisions inserted in this Act after assent. 4 (2) Column 3 of the table contains additional information that is not 5 part of this Act. Information in this column may be added to or 6 edited in any published version of this Act. 7 3 Schedule(s) 8 Each Act that is specified in a Schedule to this Act is amended or 9 repealed as set out in the applicable items in the Schedule [Page Break] 2 according to its terms. [Page Break] 2 Schedule 1--Mobility allowance 3 4 Social Security Act 1991 5 1 At the end of subsection 1035(1) 6 Add: 7 ; or (h) all of the following apply: 8 (i) the person is a handicapped person; 9 (ii) the person is undertaking a vocational rehabilitation 10 program; 11 (iii) the Secretary is of the opinion that: 12 (A) the person is unable to use public transport 13 without substantial assistance, either 14 permanently or for an extended period; and 15 (B) the person's inability to use public transport 16 without substantial assistance is due to the 17 person's physical or mental disability; 18 (iv) the person is an Australian resident. 19 2 At the end of subsection 1035(2) 20 Add: 21 ; or (e) a vocational rehabilitation program. 22 3 Subsection 1035(3) 23 Insert: 24 vocational rehabilitation program means a rehabilitation program 25 (or follow-up program) under Part III of the Disability Services Act 26 1986 that provides a person with assistance to obtain or retain 27 unsupported paid employment. 28 Note: A vocational rehabilitation program may include vocational training 29 within the meaning of section 19. 30 4 Paragraph 1035A(1)(d) 31 Omit "(7)", substitute "(9)". 32 5 Subparagraph 1035A(6)(a)(ii) 33 Omit "; and", substitute "; or". [Page Break] 2 youth allowance or parenting payment recipients". 3 6 At the end of paragraph 1035A(6)(a) 4 Add: 5 (iii) is receiving parenting payment; and 6 7 Subparagraph 1035A(7)(b)(ii) 7 Omit "; and", substitute "; or". 8 8 At the end of paragraph 1035A(7)(b) 9 Add: 10 (iii) was receiving parenting payment; and 11 9 Paragraph 1035A(7)(c) 12 Omit "or youth allowance", substitute ", youth allowance or parenting 13 payment". 14 10 Paragraph 1035A(7)(c) 15 After "the allowance", insert "or payment". 16 11 At the end of section 1035A 17 Add: 18 Newstart allowance, youth allowance, disability support pension 19 and parenting payment recipients 20 (8) A person satisfies this subsection if: 21 (a) the person: 22 (i) is receiving newstart allowance; or 23 (ii) is receiving youth allowance, but is not undertaking 24 full-time study and is not a new apprentice; or 25 (iii) is receiving disability support pension; or 26 (iv) is receiving parenting payment; and 27 (b) the person is working for at least 15 hours per week on wages 28 set in accordance with the program administered by the 29 Commonwealth known as the supported wage system; and 30 (c) the work is not performed by the person in the course of 31 employment that is supported by supported employment [Page Break] 2 Services Act 1986; and 3 (d) the person is required to travel to and from the person's home 4 for the purpose of performing the work. 5 Note 1: For undertaking full-time study see section 541B. 6 Note 2: For new apprentice see subsection 23(1). 7 (9) A person satisfies this subsection if: 8 (a) at a particular time, the person starts to earn income from 9 work or the person's income from work increases; and 10 (b) immediately before that time, the person: 11 (i) was receiving newstart allowance; or 12 (ii) was receiving youth allowance, but was not undertaking 13 full-time study and was not a new apprentice; or 14 (iii) was receiving disability support pension; or 15 (iv) was receiving parenting payment; and 16 (c) the newstart allowance, youth allowance, disability support 17 pension or parenting payment ceased to be payable to the 18 person because the rate of the allowance, pension or payment 19 was nil due to the income, or increased income, the person 20 earned from his or her work; and 21 (d) since the time mentioned in paragraph (a), the person has 22 been working: 23 (i) for at least 15 hours per week on wages set in 24 accordance with the program administered by the 25 Commonwealth known as the supported wage system; 26 or 27 (ii) at least 15 hours per week on wages that are at or above 28 the relevant minimum wage; and 29 (e) the work has not been performed by the person in the course 30 of employment that is or was supported by supported 31 employment services within the meaning of section 7 of the 32 Disability Services Act 1986; and 33 (f) the person has been required to travel to and from the 34 person's home for the purpose of performing that work; and 35 (g) since the time mentioned in paragraph (a), no income support 36 payment has been payable to the person because the rate of 37 the payment is nil due to the income, or increased income, 38 the person has been earning from the work. [Page Break] 2 Note 2: For new apprentice see subsection 23(1). 3 12 At the end of paragraph 1046(2)(b) 4 Add: 5 ; or (vi) to undertake a vocational rehabilitation program. 6 13 Paragraph 1046(2A)(b) 7 Omit "and (7)", substitute ", (7), (8) and (9)". 8 14 After subparagraph 1046(2B)(b)(ii) 9 Insert: 10 (iia) to receive parenting payment for a reason other than the 11 application of section 500J, 500ZB or 500ZE of this Act 12 or section 81 of the Administration Act; or 13 15 Subsection 1046(6) 14 Insert: 15 vocational rehabilitation program means a rehabilitation program 16 (or follow-up program) under Part III of the Disability Services Act 17 1986 that provides a person with assistance to obtain or retain 18 unsupported paid employment. 19 Note: A vocational rehabilitation program may include vocational training 20 within the meaning of section 19. [Page Break] 2 Schedule 2--Youth allowance 3 4 Social Security Act 1991 5 1 Paragraph 541(1)(b) 6 Before "the person satisfies", insert "subject to subsection (4),". 7 2 At the end of section 541 8 Add: 9 People who cease undertaking full-time study 10 (4) For the purposes of paragraph (1)(b), a person who has: 11 (a) ceased undertaking full-time study; and 12 (b) been given a notice under section 68 of the Administration 13 Act that has the effect of requiring the person to inform the 14 Department of that cessation; and 15 (c) refused or failed to comply with the notice in respect of that 16 cessation; 17 cannot satisfy the Secretary that, at a particular time after the 18 refusal or failure, the person is actively seeking, and willing to 19 undertake, paid work in Australia unless, before that time, the 20 person has informed the Department of that cessation or the 21 Department has become aware of that cessation. 22 Note: For undertaking full-time study see section 541B. 23 3 Application 24 The amendments made by this Schedule apply in relation to a person 25 who: 26 (a) is, before, on or after the commencement of this Schedule, 27 given a notice under section 68 of the Administration Act 28 that has the effect of requiring the person to inform the 29 Department if the person ceases undertaking full-time study; 30 and 31 (b) on or after the commencement of this Schedule, ceases 32 undertaking full-time study. [Page Break] 2 Schedule 3--Parenting payment recipients 3 having a partial capacity to work 4 5 Social Security Act 1991 6 1 Before paragraph 1061PJ(2)(e) 7 Insert: 8 (dc) subject to subsection (2D), a benefit PP (partnered); 9 2 After subsection 1061PJ(2C) 10 Insert: 11 (2D) Paragraph (2)(dc) only applies if the person receiving the payment: 12 (a) has a partial capacity to work; and 13 (b) on the day (the relevant day) (being a day occurring on or 14 after 1 July 2006) immediately before the person first 15 qualified for parenting payment, was a transitional DSP 16 applicant and was: 17 (i) receiving a disability support pension; or 18 (ii) receiving a youth allowance in respect of which 19 subsection (2A) applied; or 20 (iii) receiving a newstart allowance in respect of which 21 subsection (2B) applied; and 22 (c) if he or she was receiving a disability support pension-- 23 ceased to be qualified for it because he or she no longer had a 24 continuing inability to work within the meaning of 25 section 94; and 26 (d) if he or she was receiving a disability support pension-- 27 ceased to be so qualified as a result of the first decision about 28 the person's capacity to work made on or after 1 July 2006; 29 and 30 (e) was, on the relevant day, qualified for a pensioner education 31 supplement in relation to a particular course of education or 32 study; and 33 (f) at all times since the relevant day, has been a member of a 34 couple; and [Page Break] 2 for: 3 (i) parenting payment; and 4 (ii) a pensioner education supplement in relation to that 5 particular course of education or study. 6 Note 1: For partial capacity to work see section 16B. 7 Note 2: For transitional DSP applicant see subsection 23(1). 8 3 Subparagraph 1061PZG(1)(b)(ia) 9 Omit "or newstart allowance", substitute ", newstart allowance or 10 benefit PP (partnered)". 11 4 Subsection 1061PZG(1) (note 1) 12 Repeal the note, substitute: 13 Note 1: Recipients of youth allowance, newstart allowance or benefit PP 14 (partnered) only qualify for pensioner education supplement in the 15 limited circumstances set out in subsection 1061PJ(2A), (2B) or (2D). 16 5 After subsection 1061Q(2C) 17 Insert: 18 (2D) A person is qualified for a telephone allowance if: 19 (a) the person is receiving a benefit PP (partnered); and 20 (b) the person has a partial capacity to work; and 21 (c) the person is a telephone subscriber. 22 Note 1: For partial capacity to work see section 16B. 23 Note 2: For telephone subscriber see subsection (5). 24 6 Paragraph 1061Q(3D)(b) 25 After "newstart allowance", insert "or parenting payment". 26 7 After subsection 1061ZA(2C) 27 Insert: 28 (2D) Subject to subsection (3), a person is qualified for a pensioner 29 concession card on a day if, on that day: 30 (a) the person is receiving a benefit PP (partnered); and 31 (b) the person has a partial capacity to work; and [Page Break] 2 under subsection (2). 3 Note: For partial capacity to work see section 16B. 4 8 Subsections 1061ZA(3) and (4) 5 Omit "and (2B)", substitute ", (2B) and (2D)". 6 9 After paragraph 1061ZD(5A)(b) 7 Insert: 8 ; or (c) a benefit PP (partnered) while subsection 1061ZA(2D) 9 applies to the person; 10 10 Paragraph 1061ZEA(2)(f) 11 Omit "or (2B)", substitute ", (2B) or (2D)". 12 11 Subparagraph 1061ZEA(2)(g)(ii) 13 Omit "or (2B)", substitute ", (2B) or (2D)". 14 12 Subparagraph 1061ZEB(2)(a)(ii) 15 Omit "and", substitute "or". 16 13 After subparagraph 1061ZEB(2)(a)(ii) 17 Insert: 18 (iii) the person has been receiving parenting payment; and 19 14 Paragraph 1061ZEB(2)(b) 20 Omit "or newstart allowance", substitute ", newstart allowance or 21 parenting payment". 22 15 Paragraph 1061ZEB(2)(c) 23 Repeal the paragraph, substitute: 24 (c) at the time of the cessation the person: 25 (i) was qualified for a pensioner concession card under 26 subsection 1061ZA(2A), (2B) or (2D); or 27 (ii) was qualified for a pensioner concession card under 28 subsection 1061ZA(1) because a pension PP (single) 29 was payable to the person; and [Page Break] 2 to work. 3 16 After paragraph 1061ZEB(4)(b) 4 Insert: 5 (ba) a benefit PP (partnered) while subsection 1061ZA(2D) 6 applies to the person; or 7 17 Subsection 1061ZK(5) 8 Omit "or (2B)", substitute ", (2B) or (2D)". 9 18 Point 1068B-E1 (paragraph (d)) 10 Omit "either or both", substitute "one or more". 11 19 Point 1068B-E1 (at the end of paragraph (d)) 12 Add: 13 ; (iii) the person has a partial capacity to work. 14 20 At the end of point 1068B-E1 15 Add: 16 Note 4: For partial capacity to work see section 16B. 17 21 Application 18 The amendments made by this Schedule apply, on or after the 19 commencement of this Schedule, in relation to a person who made a 20 claim for parenting payment on or after 1 July 2006 that was granted on 21 or after that date. [Page Break] 2 Schedule 4--Dependent children 3 4 Social Security Act 1991 5 1 Subsection 23(1) 6 Insert: 7 family law order means: 8 (a) a parenting order within the meaning of section 64B of the 9 Family Law Act 1975; or 10 (b) a family violence order within the meaning of section 4 of 11 that Act; or 12 (c) a State child order registered under section 70D of that Act; 13 or 14 (d) an overseas child order registered under section 70G of that 15 Act. 16 2 Subsection 23(1) 17 Insert: 18 parenting plan has the meaning given by the Family Law Act 19 1975. 20 3 Subsection 23(1) 21 Insert: 22 registered parenting plan has the meaning given by the Family 23 Law Act 1975. 24 4 After point 1067G-B3 25 Insert: 26 Certain children treated as dependent children if in recipient's 27 care for at least minimum period 28 1067G-B3AA For the purposes of point 1067G-B3, the maximum basic rate 29 for a person receiving youth allowance is worked out as if the 30 person had a dependent child if: [Page Break] 2 apprentice; and 3 (b) either: 4 (i) the person is legally responsible (whether alone or 5 jointly with another person) for the day-to-day care, 6 welfare and development of a child under 16; or 7 (ii) under a family law order, registered parenting plan or 8 parenting plan that is in force, a child under 16 is 9 supposed to live or spend time with the person; and 10 (c) the child is in the person's care for at least 14% of: 11 (i) the instalment period in relation to which the maximum 12 basic rate is being worked out; or 13 (ii) if the Secretary, under point 1067G-B3AB, determines 14 another period for the person for the purposes of this 15 subparagraph--that other period; and 16 (d) none of subsections 5(3), (6) and (7) prevents the child from 17 being a dependent child of the person. 18 Note 1: For undertaking full-time study see section 541B. 19 Note 2: For new apprentice, family law order, registered parenting plan and 20 parenting plan see subsection 23(1). 21 1067G-B3AB The Secretary may, in writing, determine a period of either 14 22 days or 28 days for the purposes of subparagraph 23 1067G-B3AA(c)(ii). In making the determination, the Secretary 24 must have regard to the guidelines (if any) determined under point 25 1067G-B3AD. 26 1067G-B3AC A determination made under point 1067G-B3AB is not a 27 legislative instrument. 28 1067G-B3AD The Secretary may, by legislative instrument, determine 29 guidelines to be complied with when making a determination under 30 point 1067G-B3AB. 31 5 After point 1068-B1A 32 Insert: [Page Break] 2 care for at least minimum period 3 1068-B1B For the purposes of point 1068-B1A, the maximum basic rate for a 4 person receiving newstart allowance, mature age allowance under 5 Part 2.12B or sickness allowance is worked out as if the person had 6 a dependent child if: 7 (a) either: 8 (i) the person is legally responsible (whether alone or 9 jointly with another person) for the day-to-day care, 10 welfare and development of a child under 16; or 11 (ii) under a family law order, registered parenting plan or 12 parenting plan that is in force, a child under 16 is 13 supposed to live or spend time with the person; and 14 (b) the child is in the person's care for at least 14% of: 15 (i) the instalment period in relation to which the maximum 16 basic rate is being worked out; or 17 (ii) if the Secretary, under point 1068-B1C, determines 18 another period for the person for the purposes of this 19 subparagraph--that other period; and 20 (c) none of subsections 5(3), (6) and (7) prevents the child from 21 being a dependent child of the person; and 22 (d) the person is not a member of a couple. 23 Note: For family law order, registered parenting plan and parenting plan 24 see subsection 23(1). 25 1068-B1C The Secretary may, in writing, determine a period of either 14 days 26 or 28 days for the purposes of subparagraph 1068-B1B(b)(ii). In 27 making the determination, the Secretary must have regard to the 28 guidelines (if any) determined under point 1068-B1E. 29 1068-B1D A determination made under point 1068-B1C is not a legislative 30 instrument. 31 1068-B1E The Secretary may, by legislative instrument, determine guidelines 32 to be complied with when making a determination under point 33 1068-B1C. 34 6 After subsection 1188C(5) 35 Insert: [Page Break] 2 subsection (5), a person is taken to have a dependent child if point 3 1068-B1B has the effect that the person's maximum basic rate of 4 newstart allowance is worked out as if the person had a dependent 5 child. 6 (5B) Subsection (5A) does not limit the circumstances in which a person 7 has a dependent child for the purposes of the item mentioned in 8 that subsection. 9 7 At the end of section 1188C 10 Add: 11 (8) To avoid doubt, for the purposes of item 34 of Table A in 12 subsection (5), a person is taken to have a dependent child if point 13 1067G-B3AA has the effect that the person's maximum basic rate 14 of youth allowance is worked out as if the person had a dependent 15 child. 16 (9) Subsection (8) does not limit the circumstances in which a person 17 has a dependent child for the purposes of the item mentioned in 18 that subsection. 19 8 Application 20 The amendments made by items 4 and 5 of this Schedule apply in 21 relation to instalment periods that start on or after the commencement of 22 this Schedule. [Page Break] 2 Schedule 5--Participation requirements and 3 activity test 4 5 Social Security Act 1991 6 1 Subparagraph 502A(1)(b)(ii) 7 Repeal the subparagraph, substitute: 8 (ii) paid work that the Secretary regards as suitable; or 9 2 Subparagraph 603AA(1)(b)(ii) 10 Repeal the subparagraph, substitute: 11 (ii) paid work that the Secretary regards as suitable; or 12 3 Subparagraph 731G(1)(b)(ii) 13 Repeal the subparagraph, substitute: 14 (ii) paid work that the Secretary regards as suitable; or [Page Break] 2 Schedule 6--Technical amendments 3 4 Social Security Act 1991 5 1 Subsection 598(2A) (definition of maximum reserve 6 amount) 7 Omit "14(1)", substitute "14A(1)". 8 2 Subsection 676(3A) (definition of maximum reserve 9 amount) 10 Omit "14(1)", substitute "14A(1)".