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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Social Security Legislation Amendment
(Increased Employment Participation)
Bill 2014
No. , 2014
(Employment)
A Bill for an Act to amend the law relating to social
security, and for related purposes
No. , 2014
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedule(s) ........................................................................................ 2
Schedule 1--Job commitment bonus amendments
3
Part 1--Main amendments
3
Social Security Act 1991
3
Social Security (Administration) Act 1999
7
Part 2--Taxation amendments
9
Income Tax Assessment Act 1997
9
Part 3--Application provisions
10
Schedule 2--Relocation assistance amendments
11
Social Security (Administration) Act 1999
11
No. , 2014
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
1
A Bill for an Act to amend the law relating to social
1
security, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Social Security Legislation
5
Amendment (Increased Employment Participation) Act 2014.
6
2 Commencement
7
This Act commences on 1 July 2014.
8
2
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
No. , 2014
3 Schedule(s)
1
Each Act that is specified in a Schedule to this Act is amended or
2
repealed as set out in the applicable items in the Schedule
3
concerned, and any other item in a Schedule to this Act has effect
4
according to its terms.
5
Job commitment bonus amendments Schedule 1
Main amendments Part 1
No. , 2014
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
3
Schedule 1
--
Job commitment bonus
1
amendments
2
Part 1
--
Main amendments
3
Social Security Act 1991
4
1 Subsection 23(1)
5
Insert:
6
job commitment bonus means job commitment bonus under
7
subsection 861(1) or (3).
8
2 After Part 2.16
9
Insert:
10
Part 2.16A--Job commitment bonus
11
12
860 Simplified outline of this Part
13
A person aged 18 or over and under 31 who receives newstart
14
allowance, or certain youth allowance, for at least 12 months and
15
who then completes 12 months continuous gainful work may
16
qualify for a job commitment bonus of $2,500.
17
If the person then completes a further 12 months continuous
18
gainful work, the person may qualify for another job commitment
19
bonus of $4,000.
20
Gainful work covers work for financial gain or reward (whether as
21
an employee, a self-employed person or otherwise).
22
Schedule 1 Job commitment bonus amendments
Part 1 Main amendments
4
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
No. , 2014
861 Qualification for job commitment bonus
1
First bonus
2
(1) Subject to this section, a person is qualified for a job commitment
3
bonus under this subsection if:
4
(a) the person receives, while aged 18 or over and under 31,
5
either of, or a combination of, the following for a continuous
6
period of at least 12 months:
7
(i) newstart allowance;
8
(ii) youth allowance, where neither section 540AA (about
9
new apprentices) nor paragraph 541(1)(a) (about
10
full-time study) applies; and
11
(b) one of the following subparagraphs applies:
12
(i) after 12 months of that continuous period the person
13
starts gainful work in Australia, that continuous period
14
ends while the person is aged 18 or over and under 31
15
and the person is in gainful work in Australia on the day
16
(the start day) after that period ends;
17
(ii) that continuous period ends while the person is aged 18
18
or over and under 31 and the person starts gainful work
19
in Australia on a day (the start day) within 30 days after
20
that period ends; and
21
(c) the person completes a period (the first work period) of 12
22
months of continuous gainful work, where that period begins
23
on the start day; and
24
(d) the person is an Australian resident throughout the first work
25
period.
26
Note:
For gainful work see subsection (11) and for Australian resident see
27
subsection (12).
28
(2) Subsection (1) does not apply in relation to a person if the person
29
receives an income support payment in relation to any day in the
30
first work period.
31
Second bonus
32
(3) Subject to this section, a person is qualified for a job commitment
33
bonus under this subsection if:
34
Job commitment bonus amendments Schedule 1
Main amendments Part 1
No. , 2014
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
5
(a) the person is qualified for a job commitment bonus under
1
subsection (1); and
2
(b) the person completes a further period (the second work
3
period) of 12 months of continuous gainful work, where that
4
further period begins on the day after the end of the first
5
work period; and
6
(c) the person is an Australian resident throughout the second
7
work period.
8
Note:
For gainful work see subsection (11) and for Australian resident see
9
subsection (12).
10
(4) Subsection (3) does not apply in relation to a person if the person
11
receives an income support payment in relation to any day in the
12
second work period.
13
Continuous gainful work
14
(5) A period prescribed in an instrument under subsection (6) does not
15
break a period of continuous gainful work of a person.
16
(6) The Employment Secretary may, by legislative instrument,
17
prescribe a period for the purposes of subsection (5). Without
18
limiting this subsection, the instrument may:
19
(a) prescribe different periods for different kinds of gainful
20
work; and
21
(b) prescribe different periods for the same kind of gainful work
22
depending on whether that work is full-time, part-time or
23
casual work or is shiftwork.
24
Limitation--legislative instrument
25
(7) Subsection (1) or (3) does not apply in the circumstances
26
prescribed in an instrument under subsection (8).
27
(8) The Employment Secretary may, by legislative instrument,
28
prescribe circumstances for the purposes of subsection (7). Without
29
limiting this subsection, the circumstances may relate to the kinds
30
of gainful work to which subsections (1) and (3) do not apply.
31
Schedule 1 Job commitment bonus amendments
Part 1 Main amendments
6
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
No. , 2014
Limitation--multiple payments
1
(9) In connection with a particular application of paragraph (1)(a) in
2
relation to a person and the continuous period ending, the person
3
cannot qualify for more than one job commitment bonus under
4
subsection (1).
5
(10) In connection with a particular application of paragraph (3)(a) in
6
relation to a person, the person cannot qualify for more than one
7
job commitment bonus under subsection (3).
8
Definitions
9
(11) For the purposes of this section, gainful work means work for
10
financial gain or reward (whether as an employee, a self-employed
11
person or otherwise).
12
(12) For the purposes of this section, Australian resident has the
13
meaning given by section 7 (disregarding
14
subparagraph 7(2)(b)(iii)).
15
862 Amount of job commitment bonus
16
(1) The amount of a person's job commitment bonus under
17
subsection 861(1) is $2,500.
18
(2) The amount of a person's job commitment bonus under
19
subsection 861(3) is $4,000.
20
863 Non-receipt of social security payment
21
(1) This section applies for the purposes of a provision of this or
22
another Act if:
23
(a) the provision provides a benefit (whether the benefit is a
24
pension, benefit, payment, supplement or any other sort of
25
benefit) if a person meets specified criteria; and
26
(b) one of the specified criteria is that the person is receiving a
27
social security payment, or is a recipient of a social security
28
payment.
29
(2) For the purposes of the provision, a person is not taken to be
30
receiving a social security payment, or to be a recipient of a social
31
Job commitment bonus amendments Schedule 1
Main amendments Part 1
No. , 2014
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
7
security payment, merely because the person receives a job
1
commitment bonus.
2
Social Security (Administration) Act 1999
3
3 At the end of section 13
4
Add:
5
(6) This section does not apply in relation to a job commitment bonus.
6
4 After Subdivision FC of Division 1 of Part 3
7
Insert:
8
Subdivision FD--Time limits for claims for job commitment
9
bonus
10
27D Time limit for claim
11
(1) Subject to this section, a person's claim for a job commitment
12
bonus must be made within the period (the initial period) of 90
13
days after the person is qualified for the bonus.
14
Extension in special circumstances
15
(2) The claim may be made after the end of the initial period if the
16
Secretary is satisfied that there are special circumstances applying
17
to the person that prevented the person from making the claim
18
within that period. If so, then, subject to subsection (3), the claim
19
must be made within 90 days after the end of that period.
20
First bonus and second bonus may be claimed together
21
(3) If a person is qualified for a job commitment bonus under
22
subsections 861(1) and (3) of the 1991 Act, the person's claim for
23
the bonus under subsection 861(1) of that Act may be made at the
24
same time as the person claims the bonus under subsection 861(3)
25
of that Act.
26
5 Subsection 37(1)
27
After "Subject to", insert "this section and".
28
Schedule 1 Job commitment bonus amendments
Part 1 Main amendments
8
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
No. , 2014
6 After subsection 37(6)
1
Insert:
2
(6A) The Secretary must determine that a claim for a job commitment
3
bonus is to be granted if the Secretary is satisfied that the claimant
4
is qualified for the bonus.
5
7 After paragraph 47(1)(hs)
6
Insert:
7
(hsa) job commitment bonus; or
8
8 After section 47B
9
Insert:
10
47BA Payment of job commitment bonus
11
If a person is qualified for a job commitment bonus, the Secretary
12
must pay the bonus to the person in a single lump sum:
13
(a) on the day that the Secretary considers to be the earliest day
14
on which it is reasonably practicable for the bonus to be paid;
15
and
16
(b) in such manner as the Secretary considers appropriate.
17
Job commitment bonus amendments Schedule 1
Taxation amendments Part 2
No. , 2014
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
9
Part 2
--
Taxation amendments
1
Income Tax Assessment Act 1997
2
9 Section 11-
15 (table item headed "social security or like
3
payments")
4
Before:
5
matched savings scheme (income management)
payment under the Social Security Act 1991 .................
52-10
insert:
6
job commitment bonus under the Social Security Act
1991 ................................................................................
52-10
10 After paragraph 52-10(1)(wa)
7
Insert:
8
(wb) job commitment bonus under the Social Security Act 1991; or
9
11 After subsection 52-10(1EA)
10
Insert:
11
(1EB) Job commitment bonus under the Social Security Act 1991 is
12
exempt from income tax.
13
12 Section 52-40 (after table item 13A)
14
Insert:
15
16
14
Job commitment
bonus
Part 2.16A
Not applicable
Not applicable
Schedule 1 Job commitment bonus amendments
Part 3 Application provisions
10
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
No. , 2014
Part 3
--
Application provisions
1
13 Application provisions
2
(1)
Paragraph 861(1)(a) of the Social Security Act 1991, as inserted by this
3
Act, applies in relation to a person's receipt of newstart allowance or
4
youth allowance before, on or after the commencement of this item.
5
(2)
Subparagraphs 861(1)(b)(i) and (ii) of the Social Security Act 1991, as
6
inserted by this Act, apply in relation to a person's gainful work that
7
starts on or after the commencement of this item.
8
Relocation assistance amendments Schedule 2
No. , 2014
Social Security Legislation Amendment (Increased Employment
Participation) Bill 2014
11
Schedule 2
--
Relocation assistance
1
amendments
2
3
Social Security (Administration) Act 1999
4
1 Paragraph 42S(3)(b)
5
Omit "12", substitute "26".
6
2 Paragraph 42S(3)(b)
7
Omit "the person has been paid relocation assistance in relation to the
8
employment to which the voluntary act or misconduct related",
9
substitute "relocation assistance, in relation to the employment to which
10
the voluntary act or misconduct related, has been paid to or for the
11
benefit of the person".
12
3 Paragraph 42S(3B)(a)
13
Omit "by the Commonwealth to a person", substitute "by or on behalf
14
of the Commonwealth to or for the benefit of a person".
15
4 Application provision
16
The amendment made by item 1 applies in relation to a person who
17
becomes unemployed on or after the commencement of that item, where
18
the relocation assistance was paid on or after that commencement as a
19
result of the agreement connected with the payment of that assistance
20
being signed by the person on or after that commencement.
21
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