2004-2005 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 (Family and Community Services) A Bill for an Act to provide for one-off payments to carers, and for related purposes [Page Break] 1 Short title.......................................................................................1 2 Commencement .............................................................................1 3 Schedule(s)....................................................................................1 Schedule 1--2005 one-off payments to carers 3 Part 1--Main amendments 3 Social Security Act 1991 3 Social Security (Administration) Act 1999 6 Part 2--Related amendments 8 Income Tax Assessment Act 1936 8 Income Tax Assessment Act 1997 8 Social Security Act 1991 10 Schedule 2--Administrative scheme for 2005 one-off payments to carers 11 i Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 [Page Break] 2 carers, and for related purposes 3 The Parliament of Australia enacts: 4 1 Short title 5 This Act may be cited as the Social Security Legislation 6 Amendment (One-off Payments for Carers) Act 2005. 7 2 Commencement 8 This Act commences on the day on which it receives the Royal 9 Assent. 10 3 Schedule(s) 11 Each Act that is specified in a Schedule to this Act is amended or 12 repealed as set out in the applicable items in the Schedule Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 1 [Page Break] 2 according to its terms. 2 Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 [Page Break] Main amendments Part 1 1 2 Schedule 1--2005 one-off payments to carers 3 Part 1--Main amendments 4 Social Security Act 1991 5 1 After Part 2.5A 6 Insert: 7 Part 2.5B--2005 one-off payment to people eligible 8 for carer payment 9 10 249 2005 one-off payment to carers (carer payment related) 11 A person (the qualified person) is qualified for a 2005 one-off 12 payment to carers (carer payment related) if the person has been 13 paid an instalment of carer payment in respect of a period that 14 includes 10 May 2005. 15 Note: The person may also be qualified for a 2005 one-off payment to carers 16 (carer allowance related) under Part 2.19B. 17 250 What is the amount of the payment? 18 The amount of the one-off payment to the qualified person is 19 $1000. 20 Note: The amount is $1000, regardless of the number of people for whom 21 the qualified person provides care. 22 Part 2.5C--2005 one-off payment to people eligible 23 for carer service pension 24 25 251 2005 one-off payment to carers (carer service pension related) 26 A person (the qualified person) is qualified for a 2005 one-off 27 payment to carers (carer service pension related) if the person has 28 been paid an instalment of carer service pension as a result of the 29 operation of subclause 8(2) or (4) of Schedule 5 to the Veterans' Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 3 [Page Break] Part 1 Main amendments 1 Entitlements Act 1986 in respect of a period that includes 10 May 2 2005. 3 252 What is the amount of the payment? 4 The amount of the one-off payment to the qualified person is 5 $1000. 6 Note: The amount is $1000, regardless of the number of people for whom 7 the qualified person provides care. 8 2 After Part 2.19A 9 Insert: 10 Part 2.19B--2005 one-off payment to people 11 eligible for carer allowance 12 13 992Q 2005 one-off payment to carers (carer allowance related) 14 (1) A person (the qualified person) is qualified for a 2005 one-off 15 payment to carers (carer allowance related) if the following 16 conditions are satisfied in relation to one or more instalments of 17 carer allowance that have been paid to the person: 18 (a) the instalment was in respect of a period that included 19 10 May 2005; 20 (b) the reason why the instalment covered 10 May 2005 was not 21 only because of clause 16 or 17 of Schedule 2 to the Social 22 Security (Administration) Act 1999. 23 (2) For the purposes of this Part, the instalment, or each instalment, in 24 relation to which paragraphs (1)(a) and (b) are satisfied is a 25 qualifying instalment. 26 Note: The person may also be qualified for a 2005 one-off payment to carers 27 (carer payment related) under Part 2.5B. 28 992R In respect of what care receivers is the payment payable? 29 (1) Subject to subsection (2), each person to whose care a qualifying 30 instalment relates is an eligible care receiver in relation to the 31 qualified person. 4 Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 [Page Break] Main amendments Part 1 1 (2) If subsection 953(2) applied in relation to a qualifying instalment, 2 the 2 disabled children to whom the instalment relates are to be 3 treated as if they were a single eligible care receiver in relation to 4 the qualified person. 5 992S What is the amount of the payment? 6 Add together the amounts applicable under this section for each 7 eligible care receiver 8 (1) The amount of the one-off payment to the qualified person is 9 worked out by adding together the amounts applicable under this 10 section for each eligible care receiver. 11 Amount is $600 unless subsection (3) applies 12 (2) Subject to subsection (3), the amount applicable for an eligible care 13 receiver is $600. 14 Reduced amount if instalment rate took account of a subsection 15 981(1) determination 16 (3) If the rate at which a qualifying instalment was paid took account 17 of a determination under subsection 981(1) of a particular share 18 (being a percentage or proportion) in relation to an eligible care 19 receiver, the amount applicable for the eligible care receiver is that 20 share of $600. 21 3 At the end of subsection 1223ABA(1) 22 Add: 23 ; or (c) 2005 one-off payment to carers (carer payment related); or 24 (d) 2005 one-off payment to carers (carer service pension 25 related); or 26 (e) 2005 one-off payment to carers (carer allowance related). 27 4 After subsection 1223ABA(3) 28 Insert: 29 (3A) If the relevant payment is a payment of 2005 one-off payment to 30 carers (carer payment related), a relevant determination is a 31 determination made under Part 3 of the Social Security Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 5 [Page Break] Part 1 Main amendments 1 (Administration) Act 1999 because of which the instalment referred 2 to in section 249 of this Act was paid. 3 (3B) If the relevant payment is a payment of 2005 one-off payment to 4 carers (carer service pension related), a relevant determination is a 5 determination made under the Veterans' Entitlements Act 1986 6 because of which the instalment referred to in section 251 of this 7 Act was paid. 8 (3C) If the relevant payment is a payment of 2005 one-off payment to 9 carers (carer allowance related), a relevant determination is a 10 determination made under Part 3 of the Social Security 11 (Administration) Act 1999 because of which the, or an, instalment 12 that satisfied paragraphs 992Q(1)(a) and (b) of this Act was paid. 13 What is the relevant date? 14 (3D) The relevant date is: 15 (a) 11 May 2004, if the relevant payment is a payment of: 16 (i) one-off payment to carers (carer payment related); or 17 (ii) one-off payment to carers (carer allowance related); or 18 (b) 10 May 2005, if the relevant payment is a payment of: 19 (i) 2005 one-off payment to carers (carer payment related); 20 or 21 (ii) 2005 one-off payment to carers (carer service pension 22 related); or 23 (iii) 2005 one-off payment to carers (carer allowance 24 related). 25 5 Subsections 1223ABA(4) and (5) 26 Omit "11 May 2004" (wherever occurring), substitute "the relevant 27 date". 28 6 Subsection 1223ABA(6) 29 Omit "of one-off payment to carers (carer payment related) or one-off 30 payment to carers (carer allowance related)", substitute "to which this 31 section applies". 32 Social Security (Administration) Act 1999 33 7 After section 12AA 6 Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 [Page Break] Main amendments Part 1 1 Insert: 2 12AB 2005 one-off payments to carers 3 A claim is not required for: 4 (a) 2005 one-off payment to carers (carer payment related); or 5 (b) 2005 one-off payment to carers (carer service pension 6 related); or 7 (c) 2005 one-off payment to carers (carer allowance related). 8 8 Subsection 47(1) (after paragraph (ha) of the definition of 9 lump sum benefit) 10 Insert: 11 (hb) 2005 one-off payment to carers (carer payment related); or 12 (hc) 2005 one-off payment to carers (carer service pension 13 related); or 14 (hd) 2005 one-off payment to carers (carer allowance related); or 15 9 After section 47B 16 Insert: 17 47C Payment of 2005 one-off payments to carers 18 (1) If an individual is entitled to a payment of: 19 (a) 2005 one-off payment to carers (carer payment related); or 20 (b) 2005 one-off payment to carers (carer service pension 21 related); or 22 (c) 2005 one-off payment to carers (carer allowance related); 23 the Secretary must pay the payment to the individual in a single 24 lump sum. 25 (2) The lump sum must be paid: 26 (a) on the date that the Secretary considers to be the earliest date 27 on which it is reasonably practicable for the payment to be 28 made; and 29 (b) in such manner as the Secretary considers appropriate. Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 7 [Page Break] Part 2 Related amendments 1 2 Part 2--Related amendments 3 Income Tax Assessment Act 1936 4 10 Subsection 159J(6) (paragraph (ad) of the definition of 5 separate net income) 6 Repeal the paragraph, substitute: 7 (ad) does not include any of the following paid under the Social 8 Security Act 1991: 9 (i) carer allowance; 10 (ii) one-off payment to carers (carer payment related); 11 (iii) one-off payment to carers (carer allowance related); 12 (iv) 2005 one-off payment to carers (carer payment related); 13 (v) 2005 one-off payment to carers (carer service pension 14 related); 15 (vi) 2005 one-off payment to carers (carer allowance 16 related); and 17 11 Subsection 159J(6) (after paragraph (ada) of the definition 18 of separate net income) 19 Insert: 20 (adb) does not include payments to carers under the scheme 21 determined under Schedule 2 to the Social Security 22 Legislation Amendment (One-off Payments for Carers) Act 23 2005; and 24 Income Tax Assessment Act 1997 25 12 Section 11-15 (table item headed "social security or like 26 payments") 27 Before: pension bonus.......................................................................... 52-10 and 52-65 28 insert: 2005 one-off payment to carers (carer payment related), 2005 52-10 one-off payment to carers (carer service pension related) or 2005 one-off payment to carers (carer allowance related) ......... 8 Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 [Page Break] Related amendments Part 2 payments under the scheme determined under Schedule 2 to 52-10 the Social Security Legislation Amendment (One-off Payments for Carers) Act 2005................................................................ 1 13 Subsection 52-10(1) 2 Omit "(other than payments of pension bonus, one-off payment to the 3 aged, one-off payment to carers (carer allowance related) or one-off 4 payment to carers (carer payment related))", substitute: 5 , other than payments of: 6 (a) pension bonus; or 7 (b) one-off payment to the aged; or 8 (c) one-off payment to carers (carer payment related); or 9 (d) one-off payment to carers (carer allowance related); or 10 (e) 2005 one-off payment to carers (carer payment related); or 11 (f) 2005 one-off payment to carers (carer service pension 12 related); or 13 (g) 2005 one-off payment to carers (carer allowance related); or 14 (h) payments under the schemes referred to in subsections (1E) 15 and (1F). 16 14 Subsection 52-10(1D) 17 Repeal the subsection, substitute: 18 (1D) The following payments under the Social Security Act 1991 are 19 exempt from income tax: 20 (a) one-off payment to carers (carer payment related) (see 21 Part 2.5A of that Act); 22 (b) one-off payment to carers (carer allowance related) (see 23 Part 2.19A of that Act); 24 (c) 2005 one-off payment to carers (carer payment related) (see 25 Part 2.5B of that Act); 26 (d) 2005 one-off payment to carers (carer service pension 27 related) (see Part 2.5C of that Act); 28 (e) 2005 one-off payment to carers (carer allowance related) (see 29 Part 2.19B of that Act). 30 15 After subsection 52-10(1E) 31 Insert: Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 9 [Page Break] Part 2 Related amendments 1 (1F) Payments to carers under the scheme determined under Schedule 2 2 to the Social Security Legislation Amendment (One-off Payments 3 for Carers) Act 2005 are exempt from income tax. 4 Social Security Act 1991 5 16 After paragraph 8(8)(jab) 6 Insert: 7 (jac) a payment under the scheme determined under Schedule 2 to 8 the Social Security Legislation Amendment (One-off 9 Payments for Carers) Act 2005; 10 Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 [Page Break] 1 2 Schedule 2--Administrative scheme for 2005 3 one-off payments to carers 4 5 1 Administrative scheme for 2005 one-off payments to carers 6 (1) Subject to this item, the Minister may, by legislative instrument, 7 determine a scheme under which one-off payments may be made to 8 carers in particular circumstances. The Minister may, by legislative 9 instrument, vary or revoke the scheme. 10 (2) The circumstances in which the scheme provides for payments must be 11 circumstances: 12 (a) in which the Minister considers that Parts 2.5B, 2.5C and 13 2.19B of the Social Security Act 1991 do not produce 14 appropriate results; and 15 (b) occurring in the financial year starting on 1 July 2004. 16 (3) Without limiting the generality of subitem (1), the scheme may deal 17 with the following: 18 (a) the circumstances in which payments are to be made; 19 (b) the amount of the payments; 20 (c) what a person has to do to get a payment; 21 (d) administrative matters, such as determination of entitlement 22 and how and when payments will be made. 23 (4) Payments under the scheme are to be made out of the Consolidated 24 Revenue Fund, which is appropriated accordingly. Social Security Legislation Amendment (One-off Payments for Carers) Bill 2005 No. , 2005 11