2008 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 (Families, Housing, Community Services and Indigenous Affairs) A Bill for an Act to amend laws in order to provide economic security strategy payments, and for related purposes [Page Break] 1 Short title ............................................................................................ 1 2 Commencement .................................................................................. 1 3 Schedule(s) ......................................................................................... 2 Schedule 1--Economic security strategy payme nts under the Social Security Act 3 Social Security Act 1991 3 Social Security (Administration) Act 1999 9 Schedule 2--Economic security strategy payme nts under the Veterans' Entitlements Act 10 Veterans' Entitlements Act 1986 10 Schedule 3--Economic security strategy payme nts to families 15 A New Tax System (Family Assistance) Act 1999 15 A New Tax System (Family Assistance) (Administration) Act 1999 24 Schedule 4--Administrative scheme for economic security strategy payments 29 Schedule 5--Other ame ndments 30 Income Tax Assessment Act 1936 30 Income Tax Assessment Act 1997 30 Social Security Act 1991 32 Social Security (Administration) Act 1999 32 Veterans' Entitlements Act 1986 34 i Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 2 economic security strategy payments, and for 3 related purposes 4 The Parliament of Australia enacts: 5 1 Short title 6 This Act may be cited as the Social Security and Other Legislation 7 Amendment (Economic Security Strategy) Act 2008. 8 2 Commence ment 9 This Act commences on the day on which it receives the Royal 10 Assent. Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 1 [Page Break] 2 Each Act that is specified in a Schedule to this Act is amended or 3 repealed as set out in the applicable items in the Schedule 4 concerned, and any other item in a Schedule to this Act has effect 5 according to its terms. 6 2 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 2 Schedule 1--Economic security strategy 3 payments under the Social Security 4 Act 5 6 Social Security Act 1991 7 1 After Part 2.16 8 Insert: 9 Part 2.17--Economic security strategy payment 10 11 900 Qualification for economic security strategy payment 12 Qualified if this section applies 13 (1) A person is qualified for an economic security strategy payment if 14 subsection (2), (3) or (4) applies to the person. 15 Receipt of certain payments 16 (2) This subsection applies to a person if: 17 (a) the person was receiving one of the following payments in 18 respect of 14 October 2008: 19 (i) an age pension; 20 (ii) a disability support pension; 21 (iii) a wife pension; 22 (iv) a carer payment; 23 (v) a bereavement allowance; 24 (vi) a widow B pension; 25 (vii) a widow allowance; 26 (viii) partner allowance; 27 (ix) carer allowance; and 28 (b) except in the case of carer allowance, the person was 29 receiving that payment because of a claim the person made 30 on or before 14 October 2008. 31 Note: For receive see subsections 23(2) and (4). Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 3 [Page Break] 1 Pension age and receipt of other payments 2 (3) This subsection applies to a person if: 3 (a) the person reached pension age on or before 14 October 4 2008; and 5 (b) the person was receiving one of the following payments in 6 respect of 14 October 2008: 7 (i) a parenting payment; 8 (ii) austudy payment; 9 (iii) special benefit; 10 (iv) a payment under the ABSTUDY Scheme that includes 11 an amount identified as living allowance; and 12 (c) the person was receiving that payment because of a claim the 13 person made on or before 14 October 2008. 14 Note: For receive see subsections 23(2) and (4). 15 Qualified for seniors health card 16 (4) This subsection applies to a person if: 17 (a) on or before 14 October 2008, the person made a claim for a 18 seniors health card under Division 1 of Part 3 of the 19 Administration Act and had not withdrawn that claim on or 20 before 14 October 2008; and 21 (b) on 14 October 2008, the person was qualified for the card. 22 One payment under this section only 23 (5) A person cannot receive more than one payment under this section, 24 regardless of how many times the person qualifies under this 25 section. 26 (6) Despite anything else in this section, a person who is eligible for a 27 payment under section 118ZZQ of the Veterans' Entitlements Act 28 is not qualified for a payment under this section unless the person 29 is so qualified because he or she was receiving carer allowance in 30 respect of 14 October 2008. 31 901 Amount of economic security strategy payment--gene ral 32 (1) The amount of a person's economic security strategy payment 33 under this Part is the amount, specified in column 3 of the 34 following table, that corresponds to the family situation, specified 4 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 in column 2 of the table, that applied to the person on 14 October 2 2008: 3 Amount of economic security strateg y payment Item Person's famil y situation on 14 October 2008 Amount 1 Not member of couple $1,400.00 2 Partnered $1,050.00 3 M ember of illness separated couple $1,400.00 4 M ember of respite care couple $1,400.00 5 Partnered (partner in gaol) $1,400.00 4 5 Note: For member of couple, partnered, illness separated couple, respite 6 care couple and partnered (partner in gaol) see section 4. 7 (2) However, this section does not apply to a person if he or she is 8 qualified under section 900 for an economic security strategy 9 payment because he or she was receiving carer allowance in 10 respect of 14 October 2008. 11 902 Amount of economic security strategy payment--person 12 receiving care r allowance 13 (1) If a person: 14 (a) is qualified under section 900 for an economic security 15 strategy payment because he or she was receiving carer 16 allowance in respect of 14 October 2008; and 17 (b) would not be so qualified if he or she had not been receiving 18 carer allowance in respect of 14 October 2008; 19 the amount of the person's economic security strategy payment 20 under this Part is the amount worked out under subsection (3) for 21 the person's carer allowance. 22 (2) If a person: 23 (a) is qualified under section 900 for an economic security 24 strategy payment because he or she was receiving carer 25 allowance in respect of 14 October 2008; and 26 (b) would be so qualified even if he or she had not been 27 receiving carer allowance in respect of 14 October 2008; Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 5 [Page Break] 1 the amount of the person's economic security strategy payment 2 under this Part is the sum of the amount worked out under 3 subsection (3) for the person's carer allowance and the amount that 4 would have been worked out under section 901 for the person if 5 subsection 901(2) had not applied. 6 (3) Subject to subsection (4), the amount for a person's carer 7 allowance is worked out by adding together the amount applicable 8 under this section for each person (care receiver) whose care 9 qualified the person for carer allowance in respect of 14 October 10 2008. 11 (4) If subsection 953(2) applied in relation to the carer allowance in 12 respect of 14 October 2008, the 2 disabled children whose care 13 qualified the person for carer allowance in respect of 14 October 14 2008 are to be treated as if they were a single care receiver in 15 relation to the person qualified for the economic security strategy 16 payment. 17 (5) Subject to subsection (6), the amount applicable for a care receiver 18 is $1,000. 19 (6) If the rate at which carer allowance in respect of 14 October 2008 20 was paid took account of a determination under subsection 981( 1) 21 of a particular share (being a percentage or proportion) in relation 22 to a care receiver, the amount applicable for the care receiver is 23 that share of $1,000. 24 2 Certain claims that would otherwise be taken to have been 25 made on or before 14 October 2008 26 For the purposes of the provisions inserted by item 1, the following are 27 to be disregarded: 28 (a) the effect of section 12 of the Social Security 29 (Administration) Act 1999, so far as it relates to a 30 determination under that section that is made after 31 14 October 2008; 32 (b) the effect of section 15 of the Social Security 33 (Administration) Act 1999, so far as it relates to the Secretary 34 becoming satisfied of a matter, as mentioned in that section, 35 after 14 October 2008. 36 3 After section 1223ABA 6 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 Insert: 2 1223ABAAA Debts arising in respect of economic security strategy 3 payments 4 (1) If: 5 (a) an individual has been paid an economic security strategy 6 payment; and 7 (b) after the payment was made to the individual, a 8 determination in relation to the individual, at least so far as it 9 relates to 14 October 2008 or to a period that includes that 10 day, is or was (however described) changed, revoked, set 11 aside, or superseded by another determination; and 12 (c) the determination is one to which subsection (3) applies in 13 relation to the payment; and 14 (d) the decision to change, revoke, set aside or supersede the 15 determination is or was made for the reason, or for reasons 16 including the reason, that the individual knowingly made a 17 false or misleading statement, or knowingly provided false 18 information; and 19 (e) had the change, revocation, setting aside or superseding 20 occurred on or before 14 October 2008, the payment would 21 not have been made; 22 the amount of the payment is a debt due to the Commonwealth by 23 the individual. 24 (2) If: 25 (a) an individual has been paid an economic security strategy 26 payment; and 27 (b) after the payment was made to the individual, a 28 determination in relation to the individual, at least so far as it 29 relates to 14 October 2008 or to a period that includes that 30 day, is or was (however described) changed, revoked, set 31 aside, or superseded by another determination; and 32 (c) the determination is one to which subsection (3) applies in 33 relation to the payment; and 34 (d) the decision to change, revoke, set aside or supersede the 35 determination is or was made for the reason, or for reasons 36 including the reason, that the individual knowingly made a 37 false or misleading statement, or knowingly provided false 38 information; and Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 7 [Page Break] 1 (e) had the change, revocation, setting aside or superseding 2 occurred on or before 14 October 2008, the payment would 3 have been reduced; 4 the amount by which the payment would have been reduced is a 5 debt due to the Commonwealth by the individual. 6 (3) This subsection applies to: 7 (a) if the individual qualified for the payment because of 8 subsection 900(2)--a determination made under Part 3 of the 9 Administration Act because of which the individual was 10 receiving a payment of a kind referred to in paragraph 11 900(2)(a); and 12 (b) if the individual qualified for the payment because of 13 subsection 900(3)--a determination made under Part 3 of the 14 Administration Act because of which the individual was 15 receiving a payment of a kind referred to in paragraph 16 900(3)(b). 17 (4) If: 18 (a) an individual has been paid an economic security strategy 19 payment; and 20 (b) the individual qualified for the payment because of 21 subsection 900(4) in relation to having claimed a seniors 22 health card; and 23 (c) the individual knowingly made a false or misleading 24 statement, or knowingly provided false information, in 25 relation to the claim; and 26 (d) but for that statement or information, the payment would not 27 have been paid to the individual; 28 the amount of the relevant payment is a debt due to the 29 Commonwealth by the individual. 30 (5) Apart from section 1224AA, the other provisions of this Part under 31 which debts arise do not apply in relation to payments to which this 32 section applies. 33 4 Subsection 1231(1AA) 34 Repeal the subsection, substitute: 35 (1AA) However, the Secretary: 8 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 (a) must not make a determination that would reduce a payment 2 to nil if the reduction to nil would result in the person being 3 in severe financial hardship; and 4 (b) must not make a determination that would reduce (including 5 reduce to nil) an economic security strategy payment, unless 6 the person to whom the payment: 7 (i) is to be made; or 8 (ii) would, apart from the deduction, be made; 9 has requested that the Secretary determine under this section 10 the amount of a deduction that is to be made from the 11 payment. 12 Social Security (Administration) Act 1999 13 5 After section 12AA 14 Insert: 15 12AB Economic security strategy payment 16 A claim is not required for an economic security strategy payment. 17 6 After paragraph 47(1)(hs) 18 Insert: 19 (ht) economic security strategy payment; or 20 7 After section 47B 21 Insert: 22 47C Payme nt of economic security strategy payments 23 If an individual is qualified for an economic security strategy 24 payment, the Secretary must pay the payment to the individual in a 25 single lump sum: 26 (a) on 8 December 2008, or on such later date that the Secretary 27 considers to be the earliest date on which it is reasonably 28 practicable for the payment to be made; and 29 (b) in such manner as the Secretary considers appropriate. 30 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 9 [Page Break] 1 2 Schedule 2--Economic security strategy 3 payments under the Veterans' 4 Entitlements Act 5 6 Veterans' Entitlements Act 1986 7 1 After Part VIIF 8 Insert: 9 Part VIIG--Economic security strategy payment 10 11 118ZZQ Eligibility for economic security strategy payment 12 Eligible if this section applies 13 (1) A person is eligible for an economic security strategy payment if 14 subsection (2) or (3) applies to the person. 15 Eligible for certain payments 16 (2) This subsection applies to a person if: 17 (a) one of the following payments was payable to the person in 18 respect of 14 October 2008: 19 (i) a service pension; 20 (ii) an income support supplement; 21 (iii) a carer service pension that is payable as a result of the 22 operation of subclause 8(2) or (4) of Schedule 5; and 23 (b) that payment was payable because of a claim the person 24 made on or before 14 October 2008. 25 Eligible for seniors concession allowance 26 (3) This subsection applies to a person if: 27 (a) on 14 October 2008, the person was eligible for seniors 28 concession allowance under section 118PA; or 29 (b) both: 10 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 (i) on or before 14 October 2008, the person made a claim 2 for a seniors health card under Division 2 of Part VIIC 3 and had not withdrawn that claim on or before 4 14 October 2008; and 5 (ii) on 14 October 2008, the person was eligible for the 6 card. 7 One payment under this section only 8 (4) A person cannot receive more than one payment under this section, 9 regardless of how many times the person becomes eligible under 10 this section. 11 118ZZR Amount of economic security strategy payment 12 The amount of a person's economic security strategy payment 13 under section 118ZZQ is the amount, specified in column 3 of the 14 following table, that corresponds to the family situation, specified 15 in column 2 of the table, that applied to the person on 14 October 16 2008: 17 Amount of economic security strateg y payment Item Person's famil y situation on 14 October 2008 Amount 1 Not member of couple $1,400.00 2 Partnered $1,050.00 3 Member of illness separated couple $1,400.00 4 Member of respite care couple $1,400.00 18 118ZZS Claim not required for economic security strategy payment 19 A claim is not required for an economic security strategy payment. 20 118ZZT Payment of economic security strategy payment 21 If an individual is eligible for economic security strategy payment, 22 the Commission must pay the payment to the individual in a single 23 lump sum: 24 (a) on 8 December 2008, or on such later date that the 25 Commission considers to be the earliest date on which it is 26 reasonably practicable for the payment to be made; and Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 11 [Page Break] 1 (b) in such manner as the Commission considers appropriate. 2 118ZZU Debts arising in respect of economic security strategy 3 payment 4 (1) This section applies in relation to an individual who has been paid 5 an economic security strategy payment (the relevant payment) 6 under this Part. 7 (2) If the individual was eligible for the relevant payment because of 8 subsection 118ZZQ(2), a relevant determination is a determination 9 made under Part III or Part IIIA because of which the payment 10 referred to in paragraph 118ZZQ(2)(a) was payable. 11 (3) If the individual was eligible for the relevant payment because of 12 subsection 118ZZQ(3) and because of holding or having held a 13 seniors health card, a relevant determination is a determination 14 made under this Act because of which the person became the 15 holder of the card. 16 (4) If: 17 (a) after the relevant payment was made to the individual, a 18 relevant determination in relation to the individual, at least so 19 far as it relates to 14 October 2008 or to a period that 20 includes that day, is or was (however described) changed, 21 revoked, set aside or superseded by another determination; 22 and 23 (b) the decision to change, revoke, set aside or supersede the 24 relevant determination is or was made for the reason, or for 25 reasons including the reason, that the individual knowingly 26 made a false or misleading statement, or knowingly provided 27 false information; and 28 (c) had the change, revocation, setting aside or superseding 29 occurred on or before 14 October 2008, the relevant payment 30 would not have been made; 31 the amount of the relevant payment is a debt due to the 32 Commonwealth by the individual. 33 (5) If: 34 (a) after the relevant payment was made to the individual, a 35 relevant determination in relation to the individual, at least so 36 far as it relates to 14 October 2008 or to a period that 12 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 includes that day, is or was (however described) changed, 2 revoked, set aside or superseded by another determination; 3 and 4 (b) the decision to change, revoke, set aside or supersede the 5 relevant determination is or was made for the reason, or for 6 reasons including the reason, that the individual knowingly 7 made a false or misleading statement, or knowingly provided 8 false information; and 9 (c) had the change, revocation, setting aside or superseding 10 occurred on or before 14 October 2008, the relevant payment 11 would have been reduced; 12 the amount by which the relevant payment would have been 13 reduced is a debt due to the Commonwealth by the individual. 14 (6) If: 15 (a) an individual was eligible for the relevant payment because 16 of subsection 118ZZQ(3) and because of having claimed a 17 seniors health card; and 18 (b) the individual knowingly made a false or misleading 19 statement, or knowingly provided false information, in 20 relation to the claim; and 21 (c) but for that statement or information, the relevant payment 22 would not have been paid to the individual; 23 the amount of the relevant payment is a debt due to the 24 Commonwealth by the individual. 25 (7) If: 26 (a) an individual was eligible for the relevant payment because 27 of subsection 118ZZQ(3) and because of holding or having 28 held a gold card; and 29 (b) the individual knowingly made a false or misleading 30 statement, or knowingly provided false information, that 31 resulted (directly or indirectly) in the individual becoming 32 the holder of the gold card; and 33 (c) but for that statement or information, the relevant payment 34 would not have been paid to the individual; 35 the amount of the relevant payment is a debt due to the 36 Commonwealth by the individual. 37 (8) The other provisions of this Act under which debts arise do not 38 apply in relation to payments to which this section applies. Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 13 [Page Break] 1 (9) A debt that arises under this section is a recoverable amount 2 within the meaning of subsection 205(8). 3 14 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 2 Schedule 3--Economic security strategy 3 payments to families 4 5 A New Tax System (Family Assistance) Act 1999 6 1 Subsection 3(1) 7 Insert: 8 economic security strategy payment to families means a payment 9 to which an individual is entitled under section 89 or 93. 10 2 Subsection 3(1) 11 Insert: 12 Military Rehabilitation and Compensation Act Education and 13 Training Scheme means the scheme determined under section 258 14 of the Military Rehabilitation and Compensation Act 2004 (as the 15 scheme is in force at the commencement of this definition). 16 3 Subsection 3(1) 17 Insert: 18 Veterans' Children Education Scheme means the scheme 19 prepared under section 117 of the Veterans' Entitlements Act 1986 20 (as the scheme is in force at the commencement of this definition). 21 4 After Part 5 22 Insert: Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 15 [Page Break] 1 Part 6--Economic security strategy payment to 2 families 3 Division 1--Entitlements in respect of eligible children 4 89 When is an individual entitle d to an economic security strategy 5 payment to families? 6 (1) An individual (the entitled individual) is entitled to an economic 7 security strategy payment to families if subsection (2), (3), (4), (5), 8 (6), (7) or (8) applies to the individual. 9 FTB category 10 (2) This subsection applies to the individual if: 11 (a) in relation to 14 October 2008, a determination under 12 section 16 of the Family Assistance Administration Act was 13 in force in respect of the individual as a claimant; and 14 (b) the rate (the applicable rate) of family tax benefit payable 15 under the determination in relation to 14 October 2008 16 consisted of or included a Part A rate greater than nil worked 17 out taking into account one or more FTB children. 18 (3) This subsection applies to the individual if: 19 (a) in relation to 14 October 2008, a determination under 20 section 17 of the Family Assistance Administration Act was 21 in force in respect of the individual as a claimant; and 22 (b) the determination was made as a result of a claim made in the 23 2008-09, 2009-10 or 2010-11 income year; and 24 (c) if the claim was made in the 2008-09 income year--the rate 25 (the applicable rate) of family tax benefit payable under the 26 determination in relation to 14 October 2008 consisted of or 27 included a Part A rate greater than nil worked out taking into 28 account one or more FTB children; and 29 (d) if the claim was made in the 2009-10 or 2010-11 income 30 year: 31 (i) the individual has satisfied the FTB reconciliation 32 conditions under section 32B of the Family Assistance 33 Administration Act for all of the same-rate benefit 34 periods in the 2008-09 income year; and 16 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 (ii) the rate (the applicable rate) of family tax benefit that 2 was payable under the determination after the individual 3 satisfied those conditions, and that was payable in 4 relation to 14 October 2008, consisted of or included a 5 Part A rate greater than nil worked out taking into 6 account one or more FTB children. 7 (4) This subsection applies to the individual if: 8 (a) in relation to 14 October 2008, a determination under 9 section 18 of the Family Assistance Administration Act was 10 in force in respect of the individual as a claimant; and 11 (b) the determination was made as a result of a claim made in the 12 2008-09 income year or a later income year; and 13 (c) the rate (the applicable rate) of family tax benefit payable 14 under the determination in relation to 14 October 2008 15 consisted of or included a Part A rate greater than nil worked 16 out taking into account one or more FTB children. 17 Youth allowance category 18 (5) This subsection applies to the individual (the recipient) if the 19 recipient has been paid an instalment of youth allowance in relation 20 to which the following conditions are satisfied: 21 (a) the instalment was in respect of a period that included 22 14 October 2008; 23 (b) the instalment was of another individual who, on 14 October 24 2008, was under 25 years of age and was not independent 25 (within the meaning of Part 3.5 of the Social Security Act 26 1991); 27 (c) the instalment was paid to the recipient: 28 (i) on behalf of the other individual in accordance with 29 subsection 45(1) of the Social Security (Administration) 30 Act 1999; or 31 (ii) as payment nominee in accordance with Part 3A of the 32 Social Security (Administration) Act 1999. 33 ABSTUDY category 34 (6) This subsection applies to the individual if: 35 (a) the whole or a part of an instalment under the scheme known 36 as the ABSTUDY scheme that includes an amount identified Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 17 [Page Break] 1 as living allowance was paid in respect of a dependent 2 student; and 3 (b) the instalment was in respect of a period that included 4 14 October 2008; and 5 (c) on 14 October 2008, the student was a dependent student 6 under the scheme and was under 25 years of age; and 7 (d) on 14 October 2008, the individual was a parent or guardian 8 of the student; and 9 (e) the individual is either: 10 (i) the parent or guardian to whom the whole or part was 11 paid; or 12 (ii) if no amount of the instalment was paid to a parent or 13 guardian of the student and no amount of the instalment 14 was paid to the student--the parent or guardian with 15 whom the student usually lives who is determined by 16 the Secretary to be the most appropriate parent or 17 guardian to be entitled to a payment under this section. 18 Education allowance category 19 (7) This subsection applies to the individual if: 20 (a) the whole or a part of an education allowance under 21 section 3.2, 3.3, 3.4, 3.5 or 3.6A of the Veterans' Children 22 Education Scheme was paid in respect of a student; and 23 (b) the allowance was in respect of a period that included 24 14 October 2008; and 25 (c) on 14 October 2008, the student was under 25 years of age; 26 and 27 (d) on 14 October 2008, the individual was a parent or guardian 28 of the student; and 29 (e) the individual is either: 30 (i) the parent or guardian to whom the whole or part was 31 paid; or 32 (ii) if no amount of the allowance was paid to a parent or 33 guardian of the student and no amount of the allowance 34 was paid to the student--the parent or guardian with 35 whom the student usually lives who is determined by 36 the Secretary to be the most appropriate parent or 37 guardian to be entitled to a payment under this section. 18 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 (8) This subsection applies to the individual if: 2 (a) the whole or a part of an education allowance under 3 section 3.2, 3.3, 3.4 or 3.5 of the Military Rehabilitation and 4 Compensation Act Education and Training Scheme was paid 5 in respect of a student; and 6 (b) the allowance was in respect of a period that included 7 14 October 2008; and 8 (c) on 14 October 2008, the student was under 25 years of age; 9 and 10 (d) on 14 October 2008, the individual was a parent or guardian 11 of the student; and 12 (e) the individual is either: 13 (i) the parent or guardian to whom the whole or part was 14 paid; or 15 (ii) if no amount of the allowance was paid to a parent or 16 guardian of the student and no amount of the allowance 17 was paid to the student--the parent or guardian with 18 whom the student usually lives who is determined by 19 the Secretary to be the most appropriate parent or 20 guardian to be entitled to a payment under this section. 21 90 In respect of what children is the payment payable? 22 Each of the following is an eligible child in relation to the entitled 23 individual: 24 (a) if subsection 89(2) applies to the entitled individual--each 25 FTB child taken into account in determining the applicable 26 rate; 27 (b) if subsection 89(3) applies to the entitled individual--each 28 FTB child taken into account in determining the applicable 29 rate; 30 (c) if subsection 89(4) applies to the entitled individual--each 31 FTB child taken into account in determining the applicable 32 rate; 33 (d) if subsection 89(5) applies to the entitled individual--the 34 other individual, or each other individual, covered by 35 paragraph 89(5)(b); 36 (e) if subsection 89(6) applies to the entitled individual--the 37 dependent student, or each dependent student, covered by 38 paragraph 89(6)(a); Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 19 [Page Break] 1 (f) if subsection 89(7) applies to the entitled individual--the 2 student, or each student, covered by paragraph 89(7)(a); 3 (g) if subsection 89(8) applies to the entitled individual--the 4 student, or each student, covered by paragraph 89(8)(a). 5 91 What is the amount of the payme nt? 6 Add together the amounts applicable under this section for each 7 eligible child 8 (1) The amount of the economic security strategy payment to the 9 entitled individual is worked out by adding together the amounts 10 applicable under this section for each eligible child. 11 Amount is $1,000 unless another subsection applies 12 (2) Subject to this section, the amount applicable for an eligible child 13 is $1,000. 14 Reduced amount if applicable rate took account of an individual's 15 shared care percentage 16 (3) If the applicable rate (see section 89) took account of a shared care 17 percentage in relation to an eligible child covered by paragraph 18 90(a), (b) or (c), the amount applicable for the eligible child is that 19 percentage of $1,000. 20 Reduced amount if applicable rate took account of a section 28 21 percentage determination 22 (4) If the applicable rate (see section 89) took account of a 23 determination under section 28 of a particular percentage in 24 relation to one or more FTB children (being an eligible child or 25 eligible children)--the amount applicable for the eligible child, or 26 for each of those eligible children, is: 27 (a) unless paragraph (b) applies--that percentage of $1,000; or 28 (b) if subsection (3) also applies in relation to the eligible 29 child--that percentage of the amount worked out under 30 subsection (3) for the eligible child. 20 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 Reduced amount if applicable rate took account of a section 29 2 percentage determination 3 (5) If the applicable rate (see section 89) took account of a 4 determination under section 29 of a particular percentage in 5 relation to one or more FTB children (being an eligible child or 6 eligible children)--the amount applicable for the eligible child, or 7 for each of those eligible children, is: 8 (a) unless paragraph (b) applies--that percentage of $1,000; or 9 (b) if subsection (3) also applies in relation to the eligible 10 child--that percentage of the amount worked out under 11 subsection (3) for the eligible child. 12 Reduced amount for part of education allowance 13 (6) If: 14 (a) subsection 89(7) or (8) applies in circumstances where the 15 entitled individual was paid a part (the applicable part) of the 16 allowance concerned in relation to an eligible child; and 17 (b) another parent or guardian of the eligible child was paid a 18 part of the allowance concerned; 19 the amount applicable for the eligible child is worked out as 20 follows: Amount of applicable part 21 $1,000 Amount of allowance concerned 22 92 General rules 23 Overlapping categories 24 (1) If, at the time the Secretary determines whether an individual is 25 entitled to an economic security strategy payment to families under 26 this Division, 2 or more subsections of section 89 would otherwise 27 apply to the individual in relation to an eligible child, then the first 28 of those subsections applies to the individual in relation to that 29 child and none of the others apply to the individual in relation to 30 that child. 31 Note: For the purposes of this section, section 91 of this Act (amount of 32 payment) and section 71J of the Family Assistance Administration 33 Act (debts), it is necessary to know which subsection of section 89 of 34 this Act applies to an individual. Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 21 [Page Break] 1 More than one recipient per child in FTB category 2 (2) If an economic security strategy payment to families under this 3 Division in relation to an eligible child is paid to an individual 4 because subsection 89(2), (3) or (4) applied to the individual, then 5 another individual can be paid an economic security strategy 6 payment to families under this Division in relation to that child 7 only if subsection 89(2), (3) or (4) applies to the other individual. 8 Only one recipient per child in youth allowance or ABSTUDY 9 category 10 (3) If an economic security strategy payment to families under this 11 Division in relation to an eligible child is paid to an individual 12 because subsection 89(5) or (6) applied to the individual, then no 13 other individual can be paid an economic security strategy payment 14 to families under this Division in relation to that child. 15 More than one recipient per child in education allowance category 16 (4) If an economic security strategy payment to families under this 17 Division in relation to an eligible child is paid to an individual 18 because subsection 89(7) or (8) applied to the individual, then 19 another individual can be paid an economic security strategy 20 payment to families under this Division in relation to that child 21 only if subsection 89(7) or (8) applies to the other individual. 22 One payment per individual per eligible child 23 (5) If an economic security strategy payment to families under this 24 Division in relation to an eligible child is paid to an individual, no 25 further economic security strategy payment to families under this 26 Division in relation to that child can be paid to the individual. 27 Division 2--Other entitlements 28 93 When is an individual entitle d to an economic security strategy 29 payment to families? 30 (1) An individual (the entitled individual) is entitled to an economic 31 security strategy payment to families if subsection (2), (3), (4) or 32 (5) applies to the individual. 22 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 Youth allowance category 2 (2) This subsection applies to the individual if the individual has been 3 paid an instalment of youth allowance in relation to which the 4 following conditions are satisfied: 5 (a) the instalment was in respect of a period that included 6 14 October 2008; 7 (b) the instalment was of the individual who, on 14 October 8 2008, was under 25 years of age and was not independent 9 (within the meaning of Part 3.5 of the Social Security Act 10 1991). 11 ABSTUDY category 12 (3) This subsection applies to the individual if: 13 (a) the whole or a part of an instalment under the scheme known 14 as the ABSTUDY scheme that includes an amount identified 15 as living allowance was paid to the individual as a dependent 16 student; and 17 (b) the instalment was in respect of a period that included 18 14 October 2008; and 19 (c) on 14 October 2008, the individual was a dependent student 20 under the scheme and was under 25 years of age. 21 Education allowance category 22 (4) This subsection applies to the individual if: 23 (a) an education allowance under section 3.3, 3.5 or 3.6A of the 24 Veterans' Children Education Scheme was paid to the 25 individual as a student; and 26 (b) the allowance was in respect of a period that included 27 14 October 2008; and 28 (c) on 14 October 2008, the individual was under 25 years of 29 age. 30 (5) This subsection applies to the individual if: 31 (a) an education allowance under section 3.3 or 3.5 of the 32 Military Rehabilitation and Compensation Act Education and 33 Training Scheme was paid to the individual as a student; and 34 (b) the allowance was in respect of a period that included 35 14 October 2008; and Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 23 [Page Break] 1 (c) on 14 October 2008, the individual was under 25 years of 2 age. 3 94 What is the amount of the payme nt? 4 The amount of the economic security strategy payment to the 5 entitled individual is $1,000. 6 A New Tax System (Family Assistance) (Administration) Act 7 1999 8 5 After Division 4A of Part 3 9 Insert: 10 Division 4B--Economic security strategy payment to 11 families 12 65G Payme nt of economic security strategy payment to families 13 If an individual is entitled to an economic security strategy 14 payment to families, the Secretary must pay the payment to the 15 individual in a single lump sum: 16 (a) on the date that the Secretary considers to be the earliest date 17 on which it is reasonably practicable for the payment to be 18 made; and 19 (b) in such manner as the Secretary considers appropriate. 20 Note: The individual does not have to make a claim for the pay ment. 21 6 At the end of subsection 66(1) 22 Add: 23 ; (h) economic security strategy payment to families. 24 7 Section 70 25 Omit "or one-off payment to families", substitute ", one-off payment to 26 families or economic security strategy payment to families". 27 8 After section 71I 28 Insert: 24 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 71J Debts arising in respect of economic security strategy payment 2 to families 3 (1) This section applies in relation to an individual (the recipient) who 4 has been paid an economic security strategy payment to families 5 (the relevant payment). 6 What determinations are relevant? 7 (2) Each of the following is a relevant determination in relation to the 8 recipient: 9 (a) if the relevant payment was made because, at that time, 10 subsection 89(2) of the Family Assistance Act applied to the 11 recipient--the determination referred to in paragraph 12 89(2)(a) of that Act; 13 (b) if the relevant payment was made because, at that time, 14 subsection 89(3) of the Family Assistance Act applied to the 15 recipient--the determination referred to in paragraph 16 89(3)(a) of that Act; 17 (c) if the relevant payment was made because, at that time, 18 subsection 89(4) of the Family Assistance Act applied to the 19 recipient--the determination referred to in paragraph 20 89(4)(a) of that Act; 21 (d) if the relevant payment was made because, at that time, 22 subsection 89(5) of the Family Assistance Act applied to the 23 recipient--a determination made under Part 3 of the Social 24 Security (Administration) Act 1999 because of which the 25 instalment that satisfied paragraphs 89(5)(a), (b) and (c) of 26 the Family Assistance Act was paid; 27 (e) if the relevant payment was made because, at that time, 28 subsection 89(6) of the Family Assistance Act applied to the 29 recipient--a determination under the ABSTUDY Policy 30 Manual because of which the whole or part of the instalment 31 was paid in the circumstances described in that subsection; 32 (f) if the relevant payment was made because, at that time, 33 subsection 89(7) of the Family Assistance Act applied to the 34 recipient--a determination under the Veterans' Children 35 Education Scheme because of which the whole or part of the 36 allowance was paid in the circumstances described in that 37 subsection; Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 25 [Page Break] 1 (g) if the relevant payment was made because, at that time, 2 subsection 89(8) of the Family Assistance Act applied to the 3 recipient--a determination under the Military Rehabilitation 4 and Compensation Act Education and Training Scheme 5 because of which the whole or part of the allowance was paid 6 in the circumstances described in that subsection; 7 (h) if the relevant payment was made because, at that time, 8 subsection 93(2) of the Family Assistance Act applied to the 9 recipient--a determination made under Part 3 of the Social 10 Security (Administration) Act 1999 because of which the 11 instalment that satisfied paragraphs 93(2)(a) and (b) of the 12 Family Assistance Act was paid; 13 (i) if the relevant payment was made because, at that time, 14 subsection 93(3) of the Family Assistance Act applied to the 15 recipient--a determination under the ABSTUDY Policy 16 Manual because of which the whole or part of the instalment 17 was paid in the circumstances described in that subsection; 18 (j) if the relevant payment was made because, at that time, 19 subsection 93(4) of the Family Assistance Act applied to the 20 recipient--a determination under the Veterans' Children 21 Education Scheme because of which the allowance was paid 22 in the circumstances described in that subsection; 23 (k) if the relevant payment was made because, at that time, 24 subsection 93(5) of the Family Assistance Act applied to the 25 recipient--a determination under the Military Rehabilitation 26 and Compensation Act Education and Training Scheme 27 because of which the allowance was paid in the 28 circumstances described in that subsection. 29 Situation in which whole amount is a debt 30 (3) If: 31 (a) after the relevant payment was made to the recipient, a 32 relevant determination in relation to the recipient, at least so 33 far as it relates to 14 October 2008, is or was (however 34 described) changed, revoked, set aside, or superseded by 35 another determination; and 36 (b) the decision to change, revoke, set aside or supersede the 37 relevant determination is or was made for the reason, or for 38 reasons including the reason, that the following person 26 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 knowingly made a false or misleading statement, or 2 knowingly provided false information: 3 (i) unless subparagraph (ii) or (iii) applies--the recipient; 4 (ii) if the relevant determination is covered by 5 paragraph (2)(d)--the recipient or the other individual, 6 or one of the other individuals, covered by paragraph 7 89(5)(b) of the Family Assistance Act; 8 (iii) if the relevant determination is covered by 9 paragraph (2)(e), (f) or (g)--the recipient or the student, 10 or one of the students, covered by paragraph 89(6)(a), 11 (7)(a) or (8)(a) of the Family Assistance Act; and 12 (c) had the change, revocation, setting aside or superseding 13 occurred on or before 14 October 2008, the relevant payment 14 would not have been made; 15 the amount of the relevant payment is a debt due to the 16 Commonwealth by the recipient. 17 Situation in which part of amount is a debt 18 (4) If: 19 (a) after the relevant payment was made to the recipient, a 20 relevant determination in relation to the recipient, at least so 21 far as it relates to 14 October 2008, is or was (however 22 described) changed, revoked, set aside, or superseded by 23 another determination; and 24 (b) the decision to change, revoke, set aside or supersede the 25 relevant determination is or was made for the reason, or for 26 reasons including the reason, that the following person 27 knowingly made a false or misleading statement, or 28 knowingly provided false information: 29 (i) unless subparagraph (ii) or (iii) applies--the recipient; 30 (ii) if the relevant determination is covered by 31 paragraph (2)(d)--the recipient or the other individual, 32 or one of the other individuals, covered by paragraph 33 89(5)(b) of the Family Assistance Act; 34 (iii) if the relevant determination is covered by 35 paragraph (2)(e), (f) or (g)--the recipient or the student, 36 or one of the students, covered by paragraph 89(6)(a), 37 (7)(a) or (8)(a) of the Family Assistance Act; and Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 27 [Page Break] 1 (c) had the change, revocation, setting aside or superseding 2 occurred on or before 14 October 2008, the amount of the 3 relevant payment would have been reduced; 4 the amount by which the relevant payment would have been 5 reduced is a debt due to the Commonwealth by the recipient. 6 9 Paragraph 74(a) 7 Omit "or one-off payment to families", substitute ", one-off payment to 8 families or economic security strategy payment to families". 9 10 Subsection 82(3) (paragraph (a) of the definition of debt) 10 After "71I,", insert "71J,". 11 11 Subsection 93A(6) (at the end of the definition of family 12 assistance payment) 13 Add: 14 ; or (d) a payment of economic security strategy payment to families. 15 12 Subsection 106(3) 16 Omit "or one-off payment to families", substitute ", one-off payment to 17 families or economic security strategy payment to families". 18 13 Subsection 109D(4) 19 After "one-off payment to families", insert "or economic security 20 strategy payment to families". 21 14 Paragraph 109D(5)(a) 22 Omit "or one-off payment to families", substitute ", one-off payment to 23 families or economic security strategy payment to families". 24 15 Section 219TA (at the end of the definition of relevant 25 benefit) 26 Add: 27 ; or (j) economic security strategy payment to families. 28 28 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 2 Schedule 4--Administrative scheme for 3 economic security strategy payments 4 5 1 Administrative scheme for economic security strategy 6 payments 7 (1) Subject to this item, a Minister administering the A New Tax System 8 (Family Assistance) Act 1999, the Social Security Act 1991 or the 9 Veterans' Entitlements Act 1986 may, by legislative instrument, 10 determine a scheme under which economic security strategy payments 11 may be made to persons in particular circumstances. The Minister may, 12 by legislative instrument, vary or revoke the scheme. 13 (2) The circumstances in which the scheme provides for payments must be 14 circumstances: 15 (a) in which the Minister considers that Part 6 of the A New Tax 16 System (Family Assistance) Act 1999, Part 2.17 of the Social 17 Security Act 1991 or Part VIIG of the Veterans' Entitlements 18 Act 1986 does not produce appropriate results; and 19 (b) occurring in the financial year starting on 1 July 2008. 20 (3) Without limiting the generality of subitem (1), the scheme may deal 21 with the following: 22 (a) the circumstances in which payments are to be made; 23 (b) the amount of the payments; 24 (c) what a person has to do to get a payment; 25 (d) debt recovery; 26 (e) administrative matters, such as determination of entitlement 27 and how and when payments will be made. 28 (4) Payments under the scheme are to be made out of the Consolidated 29 Revenue Fund, which is appropriated accordingly. 30 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 29 [Page Break] 1 2 Schedule 5--Other amendments 3 4 Income Tax Assessment Act 1936 5 1 Subsection 159J(6) (paragraph (ac) of the definition of 6 separate net income) 7 Omit "or one-off payment to families", substitute ", one-off payment to 8 families or economic security strategy payment to families". 9 2 Subsection 159J(6) (after paragraph (adaf) of the definition 10 of separate net income) 11 Insert: 12 (adag) does not include economic security strategy payment under 13 the Social Security Act 1991 or the Veterans' Entitlements 14 Act 1986; and 15 (adah) does not include payments under the scheme determined 16 under Schedule 4 to the Social Security and Other 17 Legislation Amendment (Economic Security Strategy) Act 18 2008; and 19 Income Tax Assessment Act 1997 20 3 Section 11-15 (at the end of the table item headed "family 21 assistance") 22 Add: economic security strategy payment to families ............................. 52-150 payments to families under the scheme determined under Schedule 4 to the Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008...................... 52-160 23 4 Section 11-15 (table item headed "social security or like 24 payments") 25 After: disability services payment ....................................................... 53-10 26 insert: economic security strategy payment under the Social Security Act 1991 ................................................................. 52-10 30 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] economic security strategy payment under the Veterans' Entitlements Act 1986.......................................................... 52-65 1 5 Section 11-15 (table item headed "social security or like 2 payments") 3 After: payments under a scheme determined under item 1 of Schedule 2 to the Social Security and Veterans' Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Act 2008.......... 52-10 4 insert: payments under the scheme determined under Schedule 4 to the Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008................................................................ 52-160 5 6 At the end of subsection 52-10(1) (before the note) 6 Add: 7 ; or (x) economic security strategy payment under the Social Security 8 Act 1991. 9 7 After subsection 52-10(1E) 10 Insert: 11 (1F) Economic security strategy payment under the Social Security Act 12 1991 is exempt from income tax. 13 8 At the end of subsection 52-65(1) (before the note) 14 Add: 15 ; or (d) economic security strategy payment under the Veterans' 16 Entitlements Act 1986. 17 9 After subsection 52-65(1C) 18 Insert: 19 (1D) Economic security strategy payment under the Veterans' 20 Entitlements Act 1986 is exempt from income tax. 21 10 Section 52-75 (after table item 5A) 22 Insert: Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 31 [Page Break] 5B Economic security strategy Part VIIG Not applicable payment 1 11 Subsection 52-150(1) 2 Omit "or one-off payment to families", substitute ", one-off payment to 3 families or economic security strategy payment to families". 4 12 At the end of Division 52 5 Add: 6 Subdivision 52-H--Other exempt payments 7 52-160 Economic security strategy payme nts are exempt 8 Payments under the scheme determined under Schedule 4 to the 9 Social Security and Other Legislation Amendment (Economic 10 Security Strategy) Act 2008 are exempt from income tax. 11 Social Security Act 1991 12 13 Paragraph 8(8)(jaa) 13 After "one-off payment to families", insert "or economic security 14 strategy payment to families". 15 14 After paragraph 8(8)(yg) 16 Insert: 17 (yh) economic security strategy payment under the Veterans' 18 Entitlements Act; 19 (yi) a payment under the scheme determined under Schedule 4 to 20 the Social Security and Other Legislation Amendment 21 (Economic Security Strategy) Act 2008; 22 Social Security (Administration) Act 1999 23 15 Section 123TC 24 Insert: 25 economic security strategy payment means: 32 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 [Page Break] 1 (a) an economic security strategy payment under Part 2.17 of the 2 1991 Act; or 3 (b) an economic security strategy payment under Part VIIG of 4 the Veterans' Entitlements Act; or 5 (c) an economic security strategy payment to families under 6 Part 6 of the Family Assistance Act; or 7 (d) a payment under the scheme determined under Schedule 4 to 8 the Social Security and Other Legislation Amendment 9 (Economic Security Strategy) Act 2008. 10 16 After Subdivision DA of Division 5 of Part 3B 11 Insert: 12 Subdivision DB--Economic security strategy payments 13 123XPC Deductions from economic security strategy payme nts 14 Scope 15 (1) This section applies if: 16 (a) a person is subject to the income management regime; and 17 (b) an economic security strategy payment is payable to the 18 person. 19 (2) However, this section does not apply in relation to an economic 20 security strategy payment under Part VIIG of the Veterans' 21 Entitlements Act if the person is subject to the income management 22 regime because of section 123UB or 123UF. 23 Deductions from economic security strategy payments 24 (3) The following provisions have effect: 25 (a) the Secretary must deduct from the economic security 26 strategy payment the deductible portion of the payment; 27 (b) an amount equal to the deductible portion of the payment is 28 credited to the Special Account; 29 (c) an amount equal to the deductible portion of the payment is 30 credited to the person's income management account. Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008 33 [Page Break] 1 (4) For the purposes of subsection (3), the deductible portion of an 2 economic security strategy payment is 100% of the amount of the 3 payment. 4 Veterans' Entitlements Act 1986 5 17 Paragraph 5H(8)(paa) 6 After "one-off payment to families", insert "or economic security 7 strategy payment to families". 8 18 After paragraph 5H(8)(zzaf) 9 Insert: 10 (zzag) economic security strategy payment under Part VIIG; 11 19 At the end of subsection 5H(8) 12 Add: 13 ; (zzf) a payment under the scheme determined under Schedule 4 to 14 the Social Security and Other Legislation Amendment 15 (Economic Security Strategy) Act 2008. 34 Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 No. , 2008