SOCIAL SECURITY AND FAMILY ASSISTANCE LEGISLATION AMENDMENT (2009 BUDGET MEASURES) BILL 2009

i Social Security and Family Assistance Legislation Amendment (2009 Budget Measures) Bill

2009 No. , 2009

Contents

Short title ............................................................................................ 1

Commencement .................................................................................. 1

Schedule(s) ......................................................................................... 2

Schedule 1--Carer supplement

Part 1--Main amendments

Social Security Act 1991

Social Security (Administration) Act 1999

Part 2--Related amendments

Income Tax Assessment Act 1997

Schedule 2--Indexation

A New Tax System (Family Assistance) Act 1999

Social Security and Family Assistance Legislation Amendment (2009 Budget Measures) Bill 2009

No. , 2009 1

A Bill for an Act to amend the law relating to social

security and family assistance, and for related

purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Social Security and Family Assistance

Legislation Amendment (2009 Budget Measures) Act 2009.

2 Commence ment

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Social Security and Family Assistance Legislation Amendment (2009 Budget Measures)

Bill 2009 No. , 2009

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

The day on which this Act receives the

Royal Assent.

3. Schedule 2

30 June 2009.

30 June 2009

Note:

This table relates only to the provisions of this Act as originally

passed by both Houses of 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 contains additional information that is not

part of this Act. Information in this column may be added to or

edited 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repealed as set out in the applicable items in the Schedule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.

Carer supplement Schedule 1

Main amendments Part 1

Social Security and Family Assistance Legislation Amendment (2009 Budget Measures) Bill 2009

No. , 2009 3

Schedule 1

Carer supplement

Part 1

Main amendments

Social Security Act 1991

1 Subsection 23(1)

Insert:

carer supplement means carer supplement under Part 2.19B.

2 After Part 2.19A

Insert:

Part 2.19B--Carer supplement

992X Carer supplement for 2009 and later years

Qualifying for carer supplement

(1) A person (the qualified person) is qualified for carer supplement

for a year if the person was or is paid an instalment (the qualifying

instalment) of carer allowance, carer payment or carer service

pension in respect of a period that includes:

(a) 12 May in the year if the year is 2009; or

(b) 1 July in the year if the year is a later year.

Note:

There may be more than one qualifying instalment for carer

supplement for a year. For example, if a person is paid both an

instalment of carer allowance and an instalment of carer payment in

respect of a period including 1 July 2010, both instalments are

qualifying instalments for carer supplement for 2010 for the person.

Amount of carer supplement

(2) The amount of carer supplement for the qualified person for the

year is the total worked out in accordance with the table (taking

account of every relevant item of the table):

Schedule 1 Carer supplement

Part 1 Main amendments

4 Social Security and Family Assistance Legislation Amendment (2009 Budget Measures)

Bill 2009 No. , 2009

Amount of carer supplement

Item

If:

Include this amount i n

the total:

The qualify ing instalment is of carer allowance

The amount worked out

under subsection (3) for

each eligib le care

receiver (see

subsections (4) and (5))

The qualify ing instalment is of carer payment

$600

The qualify ing instalment is of carer service

pension

$600

Both of the following apply:

(a) the qualifying instalment is of carer

allo wance;

(b) the qualified person was or is also paid an

instalment of wife pension in respect of a

period that includes the day described in

subsection (1) for the year

$600

Both of the following apply:

(a) the qualifying instalment is of carer

allo wance;

(b) the qualified person was or is also paid an

instalment of partner service pension under

the Veterans' Entitlements Act in respect of

a period that includes the day described in

subsection (1) for the year

$600

Amount for eligible care receiver

(3) The amount for an eligible care receiver is:

(a) $600; or

(b) if the rate at which the qualifying instalment was paid takes

account of a determination under subsection 981(1) of a

particular share (being a percentage or proportion) in relation

to the eligible care receiver--that share of $600.

Example 1: Assume that:

(a) the qualified person qualifies for carer supplement for 2010

because he or she is paid a qualifying instalment of carer

allowance relating to 3 eligible care receivers; and

Carer supplement Schedule 1

Main amendments Part 1

Social Security and Family Assistance Legislation Amendment (2009 Budget Measures) Bill 2009

No. , 2009 5

(b) the rate of the qualifying instalment takes account of a

determination under subsection 981(1) of a half share in relation

to one of those eligible care receivers; and

pension for a period including 1 July 2010.

The amount of carer supplement for the qualified person for 2010 is

$2,100, made up of $600 each for 2 of the eligible care receivers, $300

(which is half of $600) for the eligible care receiver to whom the

half-share determination relates and $600 relating to the partner

service pension.

Example 2: Assume that the qualified person qualifies for carer supplement for

2011 because he or she is paid a qualifying instalment of carer

allowance relating to one eligible care receiver and also because the

qualifying person is paid a qualifying instalment of carer payment.

The amount of carer supplement for the qualified person for 2011 is

$1,200, made up of $600 relating to carer allowance relating to the

eligible care receiver and $600 relating to carer payment.

Definition of eligible care receiver

(4) Each person to whose care a qualifying instalment of carer

allowance relates is an eligible care receiver in relation to the

qualified person.

(5) However, if subsection 953(2) applies in relation to a qualifying

instalment, the 2 disabled children to whom the instalment relates

are to be treated as if they were a single eligible care receiver in

relation to the qualified person.

Definition of carer service pension

(6) In this section:

carer service pension means carer service pension that is payable

because of subclause 8(2) or (4) of Schedule 5 to the Veterans'

Entitlements Act.

3 Subsection 1222(2) (after table item 4A)

Insert:

1223ABC

(debts in respect of carer

supplement for 2009)

deductions

legal proceedings

garnishee notice

repayment by instalments

1231, 1234A

1232

1233

1234

1223ABD

(debts in respect of carer

deductions

legal proceedings

1231, 1234A

1232

Schedule 1 Carer supplement

Part 1 Main amendments

6 Social Security and Family Assistance Legislation Amendment (2009 Budget Measures)

Bill 2009 No. , 2009

supplement for 2010 and

later years)

garnishee notice

repayment by instalments

1233

1234

4 After section 1223ABB

Insert:

1223ABC Debts in respect of carer supple ment for 2009

(1) This section applies if:

(a) carer supplement for 2009 is paid to a person; and

(b) after it is paid, a determination under Part 3 of the

Administration Act or under the Veterans' Entitlements Act

because of which any of the following instalments was paid

is or was (however described) changed, revoked, set aside, or

superseded by another determination:

(i) a qualifying instalment (see section 992X);

(ii) an instalment of wife pension affecting the amount of

the carer supplement paid;

(iii) an instalment of partner service pension under the

Veterans' Entitlements Act affecting the amount of the

carer supplement paid; and

earlier determination is or was made for the reason, or for

reasons including the reason, that the person knowingly made

a false or misleading statement, or knowingly provided false

information.

When the whole payment is a debt

(2) The amount of the carer supplement paid to the person is a debt

due to the Commonwealth by the person if carer supplement for

2009 would not have been paid to the person had the change,

revocation, setting aside or superseding occurred on or before

12 May 2009.

When part of the payment is a debt

(3) If the amount of carer supplement for 2009 paid to the person

would have been reduced had the change, revocation, setting aside

or superseding occurred on or before 12 May 2009, the amount by

Carer supplement Schedule 1

Main amendments Part 1

Social Security and Family Assistance Legislation Amendment (2009 Budget Measures) Bill 2009

No. , 2009 7

which the carer supplement paid to the person would have been

reduced is a debt due to the Commonwealth by the person.

Limit on debts under this section

(4) The total of debts arising under this section in relation to the carer

supplement paid to the person cannot exceed the amount of the

carer supplement.

Most other provisions under which debts arise do not apply

(5) Apart from section 1224AA, the other provisions of this Part under

which debts arise do not apply in relation to payments of carer

supplement for 2009.

1223ABD Debts in respect of carer supple ment for 2010 and later

years

(1) This section applies if:

(a) carer supplement for 2010 or a later year is paid to a person;

and

(b) a debt (the primary debt) due to the Commonwealth by the

person arises (under this Act or the Veterans' Entitlements

Act) in connection with any of the following instalments that

is equal to all of the instalment or, if the instalment is of carer

allowance, all or part of the instalment:

(i) a qualifying instalment (see section 992X);

(ii) an instalment of wife pension affecting the amount of

the carer supplement paid;

(iii) an instalment of partner service pension under the

Veterans' Entitlements Act affecting the amount of the

carer supplement paid; and

supplement would have been paid, had the circumstances that

gave rise to the primary debt not occurred.

(2) If the primary debt is equal to all of the instalment, an amount,

equal to so much of the carer supplement as would not have been

paid if the instalment had not been paid, is a debt due to the

Commonwealth by the person.

Schedule 1 Carer supplement

Part 1 Main amendments

8 Social Security and Family Assistance Legislation Amendment (2009 Budget Measures)

Bill 2009 No. , 2009

Note:

If the instalment is the only qualifying instalment, the debt will equal

the amount of the carer supplement, because none of it would have

been paid if the qualifying instalment had not been paid.

(3) If:

(a) the primary debt arises in connection with an instalment of

carer allowance because of a failure to take account, or an

error in taking account, of a determination under subsection

981(1); and

(b) the primary debt is equal to part of the instalment;

an amount, equal to so much of the carer supplement as would not

have been paid if the failure or error had not occurred, is a debt due

to the Commonwealth by the person.

Consolidation of debts under this section

(4) If, apart from this subsection, 2 or more debts would arise under

either or both of subsections (2) and (3) in relation to the carer

supplement, then, instead of those debts arising, there is a single

debt that:

(a) is due to the Commonwealth by the person; and

(b) is equal to the lesser of:

(i) the sum of the debts that would arise apart from this

subsection; and

(ii) the amount of the carer supplement.

When debt is taken to arise under this section

(5) A debt is taken to have arisen under this section when the carer

supplement was paid to the person.

Social Security (Administration) Act 1999

5 Before section 13

Insert:

12G Carer supplement

A claim is not required for carer supplement.

6 Subsection 47(1) (after paragraph (gc) of the definition of

lump sum benefit)

Carer supplement Schedule 1

Main amendments Part 1

Social Security and Family Assistance Legislation Amendment (2009 Budget Measures) Bill 2009

No. , 2009 9

Insert:

(gd) carer supplement; or

7 After section 47AA

Insert:

47AB Payment of carer supplement

If an individual is qualified for carer supplement for a year, the

Secretary must pay the supplement to the individual:

(a) on the date or dates that the Secretary considers to be the

earliest date or dates on which it is reasonably practicable for

the payment to be made; and

(b) in such manner as the Secretary considers appropriate.

8 Section 123TC (after paragraph (aa) of the definition of

category C welfare payment)

Insert:

(ab) carer supplement; or

9 Section 123TC (after paragraph (aa) of the definition of

category G welfare payment)

Insert:

(ab) carer supplement; or

10 Section 123TC (after paragraph (ga) of the definition of

category I welfare payment)

Insert:

(gb) carer supplement; or

11 Section 123TC (after paragraph (ba) of the definition of

category Q welfare payment)

Insert:

(bb) carer supplement; or

12 Section 123TC (after paragraph (fa) of the definition of

category S welfare payment)

Insert:

(fb) carer supplement; or

Schedule 1 Carer supplement

Part 2 Related amend ments

10 Social Security and Family Assistance Legislation Amendment (2009 Budget Measures)

Bill 2009 No. , 2009

Part 2

Related amendments

Income Tax Assessment Act 1997

13 Section 11-

15 (table item headed "social security or like

payments")

After:

carer adjustment payment ......................................................... . 53-10

insert:

carer supplement......................................................................... 52-10

14 After paragraph 52-10(1)(aa)

Insert:

(ab) carer supplement; or

15 After subsection 52-10(1AA)

Insert:

(1AB) Carer supplement under Part 2.19B of the Social Security Act 1991

is exempt from income tax.

Indexation Schedule 2

Social Security and Family Assistance Legislation Amendment (2009 Budget Measures) Bill 2009

No. , 2009 11

Schedule 2

Indexation

A New Tax System (Family Assistance) Act 1999

1 At the end of clause 3 of Schedule 4

Add:

No indexation of certain amounts on 1 July 2009, 1 July 2010 and

1 July 2011

(7) The FTB basic HIFA (A), the FTB additional HIFA (A), the FTB

income limit (B) and the baby bonus income limit are not to be

indexed on 1 July 2009, 1 July 2010 and 1 July 2011.

Commonwealth of Australia Bills

SOCIAL SECURITY AND FAMILY ASSISTANCE LEGISLATION AMENDMENT (2009 BUDGET MEASURES) BILL 2009