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HOUSEHOLD STIMULUS PACKAGE BILL (NO. 2) 2009


2008-2009





               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA





                          HOUSE OF REPRESENTATIVES











                HOUSEHOLD STIMULUS PACKAGE BILL (NO. 2) 2009




                           EXPLANATORY MEMORANDUM















                     (Circulated by the authority of the
 Minister for Families, Housing, Community Services and Indigenous Affairs,
                          the Hon Jenny Macklin MP)
                HOUSEHOLD STIMULUS PACKAGE BILL (NO. 2) 2009



OUTLINE


This bill will amend the social security law,  the  family  assistance  law,
the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997,  the
Farm Household Support Act 1992 and  the  Veterans'  Entitlements  Act 1986.
Primarily, it will provide for household stimulus payments in the form of  a
single income family bonus, a back to school bonus, a training and  learning
bonus (including an education  entry  payment  supplement),  and  a  farmers
hardship bonus.  The bonus in each case  is  $950,  except  for  the  single
income family bonus, which is $900.

The  bonuses  are  a  further  substantive  step  towards   supporting   the
Australian  community  and  economy  during  the  current  global  financial
crisis.

Training and learning bonus and farmers hardship bonus

The bill provides for a training and learning  bonus  and  farmers  hardship
bonus of $950.  Recipients of  youth  allowance,  austudy  payment,  special
benefit, sickness allowance, ABSTUDY payment and education  allowance  under
the Veterans' Children Education Scheme or the Military  Rehabilitation  and
Compensation Act Education and Training Scheme may qualify for the  training
and  learning  bonus.   There  are  also  provisions  to   qualify   certain
individuals who receive family tax benefit Part A, who are not  entitled  to
a back to school bonus, but have children aged between 21  and  24  who  are
full-time  students,  to  receive   the   training   and   learning   bonus.
Additionally, people in receipt of certain financial assistance  to  farmers
and farm-related  small  business  will  also  be  eligible  for  a  farmers
hardship bonus of $950.

Education entry payment

The bill will reduce  the  qualification  period  for  the  education  entry
payment from 12 months  to  four  weeks  of  continuous  receipt  of  income
support payments, and will enable recipients of youth allowance  (other)  to
access education entry payments.  The bill also provides  for  an  education
entry payment  supplement  of  $950  payable  to  people  eligible  for  the
education entry payment under the Social Security Act 1991 or the  Veterans'
Entitlements Act 1986.  These  measures  are  taken  to  have  commenced  on
1 January 2009, and they  will  end  on  either  30  June  2010  or  a  date
determined by the Minister.

Back to school bonus and single income family bonus

The bill will provide for two new lump sum payments for families.

A back to school bonus of $950 will be available for each  FTB  child  in  a
family aged 4 to 18 who  attracts  family  tax  benefit  (FTB)  Part  A  for
3 February 2009.  This bonus will also be available to  people  who  receive
disability support pension or carer payment for 3 February  2009  where  the
recipient is aged less than 19 on that date.

A single income family bonus of $900 will be available for a family that  is
entitled to FTB Part B for 3 February 2009, regardless of  the  age  of  the
children.

If FTB for 3 February 2009 is shared between  two  people  under  the  usual
rules for that payment, the relevant new lump sum payment will be  similarly
shared.

Administrative scheme for household stimulus payments

The  bill  includes  provisions  to  enable  administrative  schemes  to  be
established.  In broad terms, the  purpose  of  each  administrative  scheme
will be to provide payments in circumstances where the statutory  regime  of
household stimulus package payments provided for in Schedules 1,  2,  and  3
does not necessarily produce an appropriate result.  The  relevant  Minister
is able to determine the details of the scheme by legislative instrument.

Other amendments

The  bill  will  amend  certain  Acts  to  provide   further   consequential
amendments relating to the household stimulus package payments provided  for
in this bill.  Notably, the amendments ensure that  the  payments  will  not
count as income for  social  security,  family  assistance,  farm  household
support and veterans' entitlements purposes, and will  be  income  tax-free.
The amendments will also ensure that, where  an  individual  is  subject  to
income management, any household stimulus package payment they receive  will
be income managed at 100 per cent.


Financial impact statement

Resourcing

|                                  |2008-09      |2009-10    |
|Training and learning bonus,      |$415.0 m     |$98.3 m    |
|including education entry payment |             |           |
|Farmers hardship bonus            |$20.4 m      |           |
|Back to school bonus              |$2,631.0 m   |           |
|Single income family bonus        |$1,345.2 m   |           |


                HOUSEHOLD STIMULUS PACKAGE BILL (No. 2) 2009



NOTES ON CLAUSES


Clause 1 sets out how the Act  is  to  be  cited,  that  is,  the  Household
Stimulus Package Act (No. 2) 2009.

Clause 2 provides a table that  sets  out  the  commencement  dates  of  the
various provisions in the Act.

Clause 3 provides that each Act that is specified in a Schedule  is  amended
or repealed as set out in that Schedule.


This explanatory memorandum uses the following abbreviations:

    . '1936 Tax Act' means the Income Tax Assessment Act 1936;


    . '1997 Tax Act' means the Income Tax Assessment Act 1997;

    . 'Family Assistance Act' means the A New Tax System (Family Assistance)
      Act 1999;

    . 'Family Assistance Administration Act' means  the  A  New  Tax  System
      (Family Assistance) (Administration) Act 1999;

    . 'Farm Household Support Act' means  the  Farm  Household  Support  Act
      1992;

    . 'FTB' means family tax benefit;


    . 'Social Security Act' means the Social Security Act 1991;

    .  'Social  Security  Administration  Act'  means  the  Social  Security
      (Administration) Act 1999; and


    .  'Veterans'  Entitlements  Act'  means  the   Veterans'   Entitlements
      Act 1986.



     Schedule 1 - Training and learning bonus and farmers hardship bonus


                                   Summary

This Schedule provides  for  a  training  and  learning  bonus  and  farmers
hardship bonus of $950.  Recipients of  youth  allowance,  austudy  payment,
special  benefit,  sickness  allowance,  ABSTUDY   payment   and   education
allowance under the Veterans' Children  Education  Scheme  or  the  Military
Rehabilitation and  Compensation  Act  Education  and  Training  Scheme  may
qualify for the  training  and  learning  bonus.   Certain  individuals  who
receive FTB Part A in relation to children aged 21 to 24  can  also  qualify
for the training and learning bonus  for  each  such  child.   Additionally,
people in receipt of certain  financial  assistance  to  farmers  and  farm-
related small business will also be eligible for a  farmers  hardship  bonus
of $950.

                                 Background

The Government is providing, as part of its Household  Stimulus  Package,  a
one-off bonus payment to specified recipients  of  income  support  payments
and FTB.  This training and learning bonus is intended to  assist  with  the
costs associated with study or training.

The Government is also providing, as part of part of its Household  Stimulus
Package, a one-off bonus payment to recipients  of  certain  income  support
and like payments under farm household assistance  schemes  administered  by
the Department of Agriculture, Fisheries and Forestry.

This Schedule commences on Royal Assent.

                         Explanation of the changes

Item 1 provides  that  the  Military  Rehabilitation  and  Compensation  Act
Education and Training Scheme (MRCAETS) means the  scheme  determined  under
section 258 of the Military Rehabilitation and Compensation Act 2004.

Item 2 provides that the Veterans' Children Education  Scheme  (VCES)  means
the scheme determined under section 117 of the  Veterans'  Entitlements  Act
1986.

Training and learning bonus

Item 3 sets out qualification for the training and  learning  bonus  in  new
Part 2.18.  Under new  subsection  910(2),  a  person  is  qualified  for  a
training and learning bonus if the person was paid an instalment in  respect
of a period that included 3  February  2009  of  youth  allowance,  austudy,
special benefit, sickness allowance, a  payment  under  the  ABSTUDY  Scheme
that included  an  amount  identified  as  living  allowance,  an  education
allowance for primary, secondary, tertiary and homeless students and  double
orphan students under the VCES,  or  an  education  allowance  for  primary,
secondary, tertiary and homeless students under the MRCAETS.

However, a person  receiving  youth  allowance  is  only  qualified  if,  on
3 February  2009,  the  person  was  undertaking  full-time  study  or   was
qualified for youth allowance as  a  new  apprentice.   A  person  receiving
special benefit is only qualified for the training and  learning  bonus  if,
on 14 October 2008, the person was not of pension  age.   (People  receiving
special benefit who had reached pension age on 14 October 2008 received  the
economic security strategy payment under Part 2.17 of  the  Social  Security
Act.  This measure will ensure that special beneficiaries who missed out  on
the economic security strategy payment because of their age  on  14  October
2008 will receive the training and learning bonus.)

A  person  is  qualified  for  the  training  and  learning  bonus  if,   on
3 February 2009, the person was entitled to FTB  which  included  a  Part  A
rate on 3 February 2009 that was greater than nil (worked  out  taking  into
account at least one FTB child who was aged 21 or more  and  less  than  25)
and the person would have been entitled to back  to  school  bonus  if  that
child had been aged four or more and less than 19 on 3 February 2009.

New subsection 910(5) acknowledges that there  may  be  situations  where  a
person qualifies for the training and learning bonus  under  more  than  one
criterion outlined above.  However, regardless of how many  times  a  person
qualifies, they can only receive  the  training  and  learning  bonus  once.
Furthermore, an FTB child for whom another person is entitled  to  the  back
to school bonus, a person who is entitled to a back to school  bonus,  or  a
person who is entitled to a back to school bonus in their own right  is  not
qualified for a training and learning bonus.

A person who qualifies for the training  and  learning  bonus  because  they
receive a payment identified in subsection 910(2) receives  a  training  and
learning bonus of $950.   This  recognises  that  the  bonus  for  a  person
qualified under subsection 910(2) is to  contribute  to  that  person's  own
education expenses.

A person who qualifies for the training  and  learning  bonus  because  they
have one or more  qualifying  FTB  children,  as  determined  by  subsection
910(4), receives a training and learning bonus of $950 for  each  qualifying
FTB child.  This recognises that the bonus  for  a  person  qualified  under
subsection 910(4) is to contribute to the education  expenses  of  each  FTB
child of that person aged 21 to 24.

If the person also qualifies for the training  and  learning  bonus  because
they receive a payment identified  in  subsection  910(2),  they  receive  a
training and learning bonus equal to the sum $950 (to offset their  personal
education expenses) and $950 for each qualifying FTB child (to offset  their
children's education expenses).

Subsection 911(2) provides that, where a person is only receiving a  portion
of FTB Part A,  they  will  only  receive  the  equivalent  portion  of  the
training and learning bonus.

Farmers hardship bonus

Proposed Division 2 of Part 2.18 of  the  Social  Security  Act  will  allow
individuals in receipt of payment that is from an eligible payment type,  to
receive a one-off bonus payment under the farmers hardship bonus.   Eligible
payments under the farmers hardship bonus are the Exceptional  Circumstances
Relief Payment, Farm Help Income Support, Transitional  Income  Support  and
Interim Income Support payments.

These provisions are necessary  to  allow  individuals  in  receipt  of  the
Exceptional  Circumstances  Relief  Payment,  Farm  Help   Income   Support,
Transitional Income Support or Interim Income Support  payments,  access  to
the one-off farmers hardship bonus that is a component of this bill.

Items 4 and 5 amend paragraph  1231(1AA)(b)  to  include  the  training  and
learning bonus and farmers hardship bonus so that the Secretary cannot  make
a determination  to  reduce  the  bonus  to  nil,  unless  the  criteria  in
subsection 1231(1AA) are complied with.

Amendments to the Social Security (Administration) Act 1999

Item 6 amends section 12AB to provide that a claim is  not  required  for  a
training and learning bonus or a farmers hardship bonus.

Items 7 and 8 amend section 47 to  provide  that  a  training  and  learning
bonus and a farmers hardship bonus are lump sum  benefits  and,  subject  to
new subsection 47C(3) and  (4),  are  to  be  paid  to  the  person  who  is
qualified for them.

Items 9 and 10 amend section 47C to include the training and learning  bonus
and  the  farmers  hardship  bonus  in  the   section   and   to   add   new
subsections 47C(2), (3) and (4).

Subsection (2) provides that the bonus is paid in a single lump sum  on  the
date that the Secretary considers to be the earliest date  on  which  it  is
reasonable practicable to do so and in the manner  the  Secretary  considers
is appropriate.

However, a person qualified for youth allowance, ABSTUDY  living  allowance,
or education allowance under the VCES or MRCAETS  will  not  always  be  the
actual recipient of that allowance.   The  allowance  may  be  paid  to  the
person's parent, guardian  or,  in  some  cases,  to  a  boarding  house  or
residential college where the person lives while studying.  Subsections  (3)
and (4) allow the Secretary to pay the training and learning  bonus  that  a
person on youth allowance, ABSTUDY, VCES or  MRCAETS  is  qualified  for  to
that person's parent or another appropriate person.

Under subsection (3), if an individual is qualified  for  the  training  and
learning bonus because they receive youth allowance and the  whole  or  part
of the instalment of youth allowance for  the  period  including  3  October
2009 is paid to a parent of the individual in accordance with section 45  of
the Social Security Administration Act, the Secretary may pay the  whole  or
same proportion of the bonus to the parent or to any other person.

Under subsection (4), if an individual is qualified  for  the  training  and
learning bonus because they receive a payment under the  ABSTUDY  Scheme  or
an education allowance under the VCES or the MRCAETS, as identified  in  new
paragraph 910(2)(f) or (g), and the whole or part of an  instalment  of  the
payment is paid to a person ('recipient') other  than  the  individual,  the
Secretary may pay the whole or same proportion to the recipient  or  to  any
other person.

                    Schedule 2 - Education entry payment


                                   Summary

This Schedule contains amendments to reduce  the  qualification  period  for
the education entry payment from 12  months  to  four  weeks  of  continuous
receipt of  income  support  payments.   The  reduced  qualification  period
begins on 1 January 2009  and  ends  on  either  30  June  2010  or  a  date
determined by the Minister.  The Schedule also  provides  for  an  education
entry payment  supplement  of  $950  payable  to  people  eligible  for  the
education entry payment under the  Social  Security  Act  or  the  Veterans'
Entitlements Act.

                                 Background


Education entry payment is a payment made under Part  2.13A  of  the  Social
Security Act and Part VIIAA of the  Veterans'  Entitlements  Act  to  assist
recipients of certain welfare payments with the up-front costs of  education
and training.

The Government has decided to  expand  the  scope  of  the  education  entry
payment and relax the 'time on payment' qualification criterion as  part  of
the Household Stimulus Package of reforms, and  to  supplement  the  payment
with an additional payment of $950 to align with the training  and  learning
bonus under the proposed Division 1 of Part  2.18  of  the  Social  Security
Act.

The main amendments in this Schedule commence on 1 January  2009.   However,
Part 2 commences at the same time as item 65 of  Schedule 2  to  the  Social
Security  Legislation  Amendment  (Employment  Services  Reform)  Act   2009
commences (expected to be 1 July 2009).  The  amendments  will  have  effect
until 30 June 2010, or such later date as  determined  by  the  Minister  by
legislative instrument.

                         Explanation of the changes

Item 1 amends section  665U  of  the  Social  Security  Act  to  reduce  the
qualification  period  for  an  education  entry  payment  for  a   newstart
allowance recipient from 12 months to four weeks.  A new subsection  665U(3)
will provide that, during the designated period,  the  qualification  period
is reduced to four weeks.  Subsection (4) states that the designated  period
is the period beginning on 1 January 2009 and ending on  30  June  2010  or,
where the Minister has made a  legislative  instrument  specifying  a  later
date, that later date.

Items 2 to 7 provide that the qualification period, to receive an  education
entry payment, for a recipient of widow  allowance,  partner  allowance,  or
parenting payment partnered, is reduced to four  weeks.   A  new  subsection
(2) will be inserted in sections 665ZC, 665ZQ and 665ZU, which  operates  so
that, during the designated  period,  subparagraph  (b)(ii),  requiring  the
recipient to be a  long-term  social  security  recipient,  is  omitted  and
replaced with a subparagraph providing that the  recipient  must  have  been
receiving income support payments for a continuous period of at  least  four
weeks.  The recipient's payment type may have changed over that  period  and
the period may have occurred before 1 January 2009.

A replacement Note 1 provides that an income support  payment  is  a  social
security benefit, a job search  allowance,  a  social  security  pension,  a
youth  training  allowance,  a  service  pension  or   an   income   support
supplement.

Note 1A provides a reference to section 38B, which  sets  out  the  notional
continuous period of receipt of income support payments.

In each case, a new subsection (3) will provide that the  designated  period
is the period beginning on 1 January 2009 and ending on  30  June  2010  or,
where the Minister has made a  legislative  instrument  specifying  a  later
date, that later date.

Education entry payment for recipients of youth allowance (other)

Item 8 inserts a new Division 12A  after  Division  12  of  Part  2.13A,  to
enable recipients of youth allowance (other) to receive an  education  entry
payment (and hence an education entry supplement under the new  Division  14
- see item 9).

Youth allowance (other) is youth allowance payable to a person  who  is  not
undertaking full-time study and who is not a  new  apprentice.   Under  this
proposal, recipients of youth allowance  (other)  will  be  able  either  to
undertake  full-time  study  or  to  include  short-term  vocational-related
courses in their activity agreements and then  receive  an  education  entry
payment to contribute to the up-front cost of that  study.   If  the  person
commences full-time study, they cease to be  eligible  for  youth  allowance
(other)  and  will  receive  youth  allowance  (student)  instead.    People
undertaking short-term courses under their activity agreements will be  able
to remain on youth allowance (other).

Subsection 665ZX(1) provides that a person is  qualified  for  an  education
entry payment if either the Secretary is satisfied that the  person  intends
to  enrol  in,  or  the  person  is  enrolled  in,  a  'qualifying  course'.
Immediately before commencing the  course,  the  person  must  be  receiving
youth  allowance,  not  undertaking  full-time  study  and  not  be  a   new
apprentice, and the person must have been continuously receiving  an  income
support payment for at least four weeks.  The  person  must  also  not  have
received, within the last 12 months, a payment under Part 2.13A.

The meaning of a  qualifying  course  is  set  out  in  subsection  (2).   A
qualifying course is:  (a) an approved course for  ABSTUDY  purposes  or  an
approved course of  education  or  study  (as  defined);  or  (b)  a  course
included in the person's youth allowance  activity  agreement  (or,  from  1
July 2009, the person's Employment Pathway Plan).

An education entry payment is $208.  A person must  make  a  claim  for  the
education entry payment to be  qualified  for  the  payment.   Division  12A
ceases to have effect at the end of 30 June  2010  or,  where  the  Minister
determines a later date in a legislative instrument, that later date.

Education entry payment supplement

Item 9 inserts a new Division 14 at the end of Part  2.13A  to  provide  for
the education entry payment supplement.  If a person  is  qualified  for  an
education entry payment  under  Part  2.13A  or  under  Part  VIIAA  of  the
Veterans' Entitlements  Act,  they  are  eligible  for  an  education  entry
payment supplement.

The education entry supplement is $950.

If a person makes a claim for the education entry  payment,  then  they  are
taken to have made a claim for an education entry payment  supplement.   For
the purposes  of  the  social  security  law,  an  education  entry  payment
supplement payable to a person who  is  qualified  for  an  education  entry
payment under the Social Security Act is taken to be part of  the  education
entry payment payable to the person, except so far as any provision  in  the
social security law expressly provides for or in relation  to  an  education
entry  payment  supplement.   For  example,  the  education  entry   payment
supplement is specifically subject to  the  income  management  regime  (see
item 20 of Schedule 5), whereas the education entry payment itself  is  not;
and special rules apply to the  recovery  of  the  education  entry  payment
supplement (see item 17 of Schedule 5).

Division 14 ceases to have effect at the end of 30 June 2010 or,  where  the
Minister determines a later date in a  legislative  instrument,  that  later
date.

Item 10 repeals  subparagraph  665ZX(b)(ii)  and  replaces  it  with  a  new
subparagraph to commence on 1 July 2009.  The  subparagraph  provides  that,
as part of a person's qualification for  an  education  entry  payment,  the
course is to be provided for by a term, whether the term is required  to  be
complied with or not, of the person's  Youth  Allowance  Employment  Pathway
Plan.  This amendment takes into account the proposed change  from  activity
agreements to employment pathway plans under reforms to be put in  place  by
the Social Security and Other  Legislation  Amendment  (Employment  Services
Reform) Bill 2008, commencing on 1 July 2009.
      Schedule 3 - Back to school bonus and single income family bonus


                                   Summary

This Schedule will provide for two new lump sum payments for families.

A back to school bonus of $950 will be available for each  FTB  child  in  a
family aged 4 to 18 who attracts FTB Part  A  for  3  February  2009.   This
bonus will also be  available  to  people  who  receive  disability  support
pension or carer payment for 3 February 2009 where  the  recipient  is  aged
less than 19 on that date.

A single income family bonus of $900 will be available for a family that  is
entitled to FTB Part B for 3 February 2009, regardless of  the  age  of  the
children.

If FTB for 3 February 2009 is shared between  two  people  under  the  usual
rules for that payment, the relevant new lump sum payment will be  similarly
shared.

                                 Background


On 3 February 2009, the Government announced a further  series  of  measures
as part of its Household Stimulus  Package  to  support  sustained  economic
growth, including further financial  assistance  for  families  relating  to
training and education.  This builds on the financial  assistance  delivered
to families as part  of  the  Government's  Economic  Security  Strategy  in
December 2008.

This assistance is to take the form of new lump sum  payments.   A  back  to
school bonus of $950 will be available for each FTB child in a  family  aged
four to 18 who attracts FTB Part A  for  3  February  2009  and  people  who
receive disability support pension or carer payment for 3 February 2009  who
are aged less than 19 on that date.  A single income family  bonus  of  $900
will be available for a family who is entitled to FTB Part B for 3  February
2009, regardless of the age of the children.

These new lump sum payments would be paid to families who receive their  FTB
as fortnightly instalments and to recipients of disability  support  pension
and carer payment in March 2009.  The bonus payments will also be  available
to families and recipients who get arrears for  3 February  2009.   For  the
small number of recipients who receive  their  FTB  as  a  lump  sum  for  a
previous income year, the bonus payments would be paid  after  their  actual
income for the 2008-09 income year is known.

The new bonus payments to families would be exempt from tax  and  would  not
be taken as income for the purposes  of  the  social  security  law  or  the
Veterans' Entitlements Act.

The back to school bonus  and  the  single  income  family  bonus  would  be
provided for in the family assistance law.

The amendments made by this Schedule commence on the day of Royal Assent.

                         Explanation of the changes

Amendments to the Family Assistance Act

Definitions

Items 1 and 2 insert new definitions into  subsection  3(1)  of  the  Family
Assistance Act.  Item 1 defines back to school bonus to mean  a  payment  to
which an individual is entitled under new section  95  or  new  section  98.
Item 2 defines single income family bonus to mean  a  payment  to  which  an
individual is entitled under new section 101.

Item 3 inserts new Part 7 into the Family Assistance  Act,  which  sets  out
the new entitlement and payment amount rules applicable to the new  back  to
school bonus and the single income family bonus.

In broad terms, new Division 1 of Part 7 sets out the  situations  in  which
an individual is entitled to a  back  to  school  bonus  in  respect  of  an
eligible child (new Subdivision A) and the situations in which  a  recipient
of disability support pension or carer payment is  entitled  to  a  back  to
school bonus (Subdivision B).  New  Division  2  of  Part  7  sets  out  the
situations in which an individual is entitled  to  a  single  income  family
bonus.

Division 1 - Back to school bonus

Subdivision A - Entitlements in relation to eligible children

When is an individual entitled to a back to school bonus?

An individual is entitled to a back to school  bonus  in  the  circumstances
set out in new section 95.

Section  16  of  the  Family  Assistance  Administration  Act  enables   the
Secretary to make an  entitlement  determination  on  a  claim  for  FTB  by
instalment where the claimant satisfies the relevant eligibility rules.

An individual who  is  entitled  to  payment  of  FTB  under  a  section  16
determination that includes 3 February 2009 is also entitled to  a  back  to
school bonus if the individual's rate of FTB for 3  February  consisted  of,
or included, a Part A rate greater than nil worked out taking  into  account
at least one FTB child who was aged four or more  and  less  than  19  on  3
February (new subsection 95(2) refers).

Individuals who have an entitlement only to the  rent  assistance  component
of FTB Part A that is worked out using Part 3A of Schedule 1 to  the  Family
Assistance Act because they have a regular care  child  only  (a  child  for
whom the individual has less than 35 per cent care) would  not  be  entitled
to a back to school bonus.  The concept of 'eligible child' (in new  section
96) would also operate to ensure that, where an individual has a mix of  FTB
and regular care children, only the FTB children aged 4  or  more  and  less
than 19 on 3 February 2009 can attract the back to school  bonus.   This  is
the position for each of the FTB categories covered  under  new  subsections
95(2), (3) and (4).

Section  17  of  the  Family  Assistance  Administration  Act  enables   the
Secretary to make an entitlement determination on a  claim  for  FTB  for  a
past period where the claimant satisfies the relevant eligibility rules.

An individual who is entitled  to  FTB  for  a  past  period  that  includes
3 February 2009 under a section 17 determination is also entitled to a  back
to school bonus if the individual's past period entitlement is  based  on  a
claim made in 2008-09 and the  individual's  rate  of  FTB  for  3  February
consisted or, or included, a Part A rate greater than nil worked out  taking
into account at least one FTB child aged four or more and less than 19 on  3
February.  If the individual's past period entitlement is based on  a  claim
made in 2009-10 or 2010-11, then there is the  additional  requirement  that
the individual satisfy the relevant FTB reconciliation conditions for  2008-
09.  Subsection 95(3) is the relevant new provision.   Section  32B  of  the
Family Assistance Administration Act sets out when an  individual  satisfies
the relevant reconciliation conditions.  This generally occurs when the  Tax
Office has assessed the taxable income of the individual or  their  partner,
if they are required to lodge a tax return.

This means that, where an individual makes  claims  in  the  2008-09  income
year for both FTB by instalment (prospectively) and for a past  period  that
falls in that income year and covers 3 February 2009, the  individual  would
be entitled to a back to school bonus if their estimated income  results  in
payment of FTB Part A  for  3  February  2009.   Recipients  who  choose  to
receive their FTB as a lump sum after the end of the  relevant  income  year
would be entitled to a back to school bonus at that  time  if  their  actual
income results in payment of FTB Part A for 3 February 2009.

Section 18 deals with entitlement determinations on bereavement  claims.   A
bereavement claim can be made where an eligible individual dies and  another
individual claims the unpaid FTB (including for 3 February  2009)  or  where
an individual wants to be paid a single payment  that  includes  3  February
2009 because of the death of an FTB child.

An individual who  is  entitled  to  payment  of  FTB  under  a  section  18
determination that includes 3 February 2009 is also entitled to  a  back  to
school bonus if  the  rate  of  FTB  payable  under  the  determination  for
3 February consisted of, or included, a Part A rate greater than nil  worked
out taking into account at least one FTB child  who  was,  or  but  for  the
child's death would have been, aged four or more  and  less  than  19  on  3
February (new subsection 95(4) refers).

In the case of bereavement claims, an individual will be able to access  the
back to school bonus based on an estimate of income for FTB Part A  purposes
if the actual income is not yet known.

In respect of which children is the back to school bonus payable?

Where an individual is entitled to the  back  to  school  bonus  because  of
their entitlement to FTB Part A, each FTB child of  the  individual  who  is
aged four or more and less than 19 and taken  into  account  in  determining
the individual's rate of FTB Part A in relation to 3 February 2009 would  be
an eligible child in relation to  the  entitled  individual.   The  relevant
rules are in new paragraphs 96(a), (b) and (c).

What is the amount of the bonus?

New section 97 sets out the rules for working out the amount of an  entitled
individual's back to school bonus.  Broadly,  the  amount  of  the  back  to
school bonus for an entitled individual is worked  out  by  adding  together
the amounts applicable for  each  eligible  child  of  the  individual  (new
subsection 97(1) refers).

New subsection 97(2) provides that the amount  applicable  for  an  eligible
child is $950.

However, if the individual's rate of FTB Part A in relation  to  3  February
2009 in respect of  an  eligible  child  takes  account  of  a  shared  care
percentage (under section 59 of the Family Assistance Act), then the  amount
applicable to the individual for the eligible child is  that  percentage  of
$950.  The relevant rule is in new subsection 97(3).

An individual has a shared care percentage for an FTB  child  under  section
59 where there is a pattern of  care  in  relation  to  the  child  and  the
individual has been determined under subsection 22(6A) as  having  at  least
35 per cent care but not more than 65 per cent   care.   An  individual  who
has more than 65 per cent care of an FTB child can potentially  receive  the
full amount of FTB in respect of the FTB child (and therefore  the  back  to
school bonus of $950 in respect of the FTB child).

Similarly, the amount of the back to school bonus could also be affected  by
a specified percentage determination due to a blended  family  determination
under section 28 of the Family Assistance Act (where there is an  instalment
or past period determination) or under section 29 (where  there  is  a  past
period determination).  The  amount  applicable  to  an  individual  for  an
eligible child in respect of whom there is such a  percentage  determination
would be that percentage  of  $950.   For  example,  if  the  individual  is
eligible for three FTB children aged four or more and  less  than  19  on  3
February 2009 and the specified percentage for each child under  section  28
of the Family Assistance Act is 50 per cent, the individual is eligible  for
$1,425 (that is, $950 x 50 per cent x 3).
Where an individual has a shared care percentage under  section  59  of  the
Family Assistance Act in relation to a particular FTB child  and  a  section
28 or 29 specified percentage, both percentages would be taken into  account
in determining the amount of an individual's  back  to  school  bonus.   For
example, if an individual has 100 per cent care of two FTB children, 50  per
cent care of one FTB child (due to  section  59  of  the  Family  Assistance
Act), plus a specified percentage under section 28 of 50 per  cent  for  the
three  children,  the  individual  is  eligible  for  $1,187.50  (that   is,
[2 x $950 x 50 per cent] plus [1 x $950 x 50 per cent x 50 per cent]).

The relevant rules are set out in new subsections 97(4) and (5).

Subdivision B - Other entitlements

When is an individual entitled to a back to school bonus?

An individual is entitled to a back to school bonus under new section 98  if
the individual was receiving carer payment or disability support pension  in
relation to 3 February 2009 and the individual was aged less than  19  on  3
February.

The concept of receiving  is  defined  in  subsection  3(1)  of  the  Family
Assistance Act by reference to provisions in the Social Security Act.

What is the amount of the bonus?

The amount of the back to school bonus  to  the  individual  entitled  under
section 99 is $950.

Subdivision C - General rules

The rules in new section 100 prevent duplicate payments of  back  to  school
bonus under new Subdivisions A and B of Division 1 of new Part 7. 

New subsection 100(1) provides that, if an individual  is  paid  a  back  to
school bonus under Subdivision A  for  a  particular  eligible  child,  that
eligible child cannot get the back to school bonus under Subdivision B.

New subsection 100(2) provides that, if an individual (recipient) is paid  a
back to school bonus under Subdivision B, then another individual cannot  be
paid a back to school bonus for the recipient under Subdivision A.

Division 2 - Single income family bonus

Entitlement to single income family bonus

New section 101 sets  out  the  circumstances  in  which  an  individual  is
entitled to a single income family bonus.

Section  16  of  the  Family  Assistance  Administration  Act  enables   the
Secretary to make an  entitlement  determination  on  a  claim  for  FTB  by
instalment where the claimant satisfies the relevant eligibility rules.

An individual who  is  entitled  to  payment  of  FTB  under  a  section  16
determination that includes 3 February 2009 is also  entitled  to  a  single
income family  bonus  if  the  individual's  rate  of  FTB  for  3  February
consisted of, or included, a Part B rate greater than  nil  (new  subsection
101(2) refers).

Section  17  of  the  Family  Assistance  Administration  Act  enables   the
Secretary to make an entitlement determination on a  claim  for  FTB  for  a
past period where the claimant satisfies the relevant eligibility rules.

An individual who is entitled  to  FTB  for  a  past  period  that  includes
3 February 2009 under a section 17  determination  is  also  entitled  to  a
single income family bonus if the individual's past  period  entitlement  is
based on a claim made in 2008-09  and  the  individual's  rate  of  FTB  for
3 February consisted of, or included, a Part B rate greater  than  nil.   If
the individual's past period entitlement is based on a claim made  in  2009-
10 or 2010-11, then there is the additional requirement that the  individual
satisfy the relevant FTB reconciliation conditions for 2008-09.   Subsection
101(3) is the relevant new provision.  Section 32B of the Family  Assistance
Administration Act sets  out  when  an  individual  satisfies  the  relevant
reconciliation conditions.  This generally occurs when the  Tax  Office  has
assessed the taxable income of the individual or their partner, if they  are
required to lodge a tax return.

This means that, where an individual makes  claims  in  the  2008-09  income
year for both FTB by instalment (prospectively) and for a past  period  that
falls in that income year and covers 3 February 2009, the  individual  would
be entitled to a single  income  family  bonus  if  their  estimated  income
results in payment of FTB Part  B  for  3  February  2009.   Recipients  who
choose to receive their FTB as a lump sum after  the  end  of  the  relevant
income year would be entitled to a  single  income  family  bonus  if  their
actual income results in payment of FTB Part B for 3 February 2009.

Section 18 deals with entitlement determinations on bereavement  claims.   A
bereavement claim can be made where an eligible individual dies and  another
individual claims the unpaid FTB (including for 3 February  2009)  or  where
an individual wants to be paid a single payment  that  includes  3  February
2009 because of the death of an FTB child.

An individual who  is  entitled  to  payment  of  FTB  under  a  section  18
determination that includes 3 February 2009 is also  entitled  to  a  single
income family bonus if the rate of FTB payable under the  determination  for
3 February consisted of, or included, a Part B rate greater  than  nil  (new
subsection 101(4) refers).

In the case of bereavement claims, an individual will be able to access  the
single income family bonus based on an estimate of income  for  FTB  Part  B
purposes if the actual income is not yet known.

What is the amount of the payment?

As a general rule, the amount of the single  income  family  bonus  is  $900
(new subsection 102(1) refers).

However, if the individual's rate of FTB Part B in relation  to  3  February
2009 was worked out taking into account only one FTB child and there  was  a
shared care percentage in relation to that child (under  section 59  of  the
Family Assistance Act), then the amount of the single  income  family  bonus
for the entitled individual is that percentage of $900.  The  relevant  rule
is in new subsection 102(2).

Where the individual's rate of FTB Part B in relation  to  3  February  2009
was worked out taking into account more than one FTB child and there  was  a
shared care percentage in relation to each child (under  section 59  of  the
Family Assistance Act), then the amount of the single  income  family  bonus
to the individual  is  the  highest  of  those  percentages  of  $900.   The
relevant rule is in new subsection 102(3).

It follows that if the individual's rate  of  FTB  Part  B  in  relation  to
3 February 2009 was worked out taking into account more than one  FTB  child
and there was no shared care percentage in  relation  to  at  least  one  of
those children, then the amount of the single income  family  bonus  to  the
entitled individual would be the full $900.

These rules  are  consistent  with  the  way  in  which  the  amount  of  an
individual's FTB Part B supplement is determined.

The amount of the single income family bonus could also  be  affected  by  a
specified percentage determination due to  a  blended  family  determination
under section 28 of the Family Assistance Act (where there is an  instalment
or past period determination) or under section 29 (where  there  is  a  past
period determination).  The effect is similar to  that  described  above  in
relation to the back to school bonus.  The relevant rules are  provided  for
in new subsections 102(4) and (5).

For example, if the individual has three FTB children (with no  shared  care
percentage for at least one of those children) on 3 February  2009  and  the
specified  percentage  for  each  child  under  section  28  of  the  Family
Assistance Act is 50 per cent, the  individual  is  eligible  for  a  single
income family bonus of $450 (that is $900 x 50 per cent).  If an  individual
has a shared care percentage of 50 per cent for the  individual's  only  FTB
child (due to section 59 of the Family Assistance  Act),  plus  a  specified
percentage under section 28 of 50 per cent for the child, the individual  is
eligible for $225 (that is, $900 x 50 per cent x 50 per cent).

Amendments to the Family Assistance Administration Act

Payment

Part 3 of the Family Assistance Administration Act provides  the  rules  for
payment of the  various  family  assistance  payments  available  under  the
family assistance law.

Item 4 inserts a new Division 4C and section 65H into Part 3 of  the  Family
Assistance  Administration  Act.   New  section  65H  outlines  the  payment
arrangements for the new back to school bonus and the single  income  family
bonus.  Each bonus will be paid as a single lump  sum  on  a  date  that  is
determined by the  Secretary  to  be  the  earliest  date  on  which  it  is
reasonably practicable to make the payment and in an appropriate manner.

A note at the end of new section 65H indicates to the reader  that  a  claim
would not be required for the new payment.

Inalienability

Section 66 of the Family Assistance  Administration  Act  lists  the  family
assistance payments that are absolutely inalienable.  Both the new  back  to
school bonus and the single income family bonus are included in the list  as
new paragraph 66(1)(i) by item 5.

Debts

An amount paid by way of a back to school bonus or a  single  income  family
bonus will only be a debt to the extent  that  a  provision  in  the  Family
Assistance Administration Act expressly provides for it.  Item  6  makes  an
amendment to section 70 of the Family Assistance Administration Act to  this
effect.

Item 7 inserts new section 71K into  the  Family  Assistance  Administration
Act.  This new provision sets out when a back to school bonus and  a  single
income family bonus is a debt.  In broad terms,  a  debt  would  only  arise
where some or all of the payment was incorrectly  paid  because  a  relevant
individual knowingly made a  false  or  misleading  statement  or  knowingly
provided false information.

Where an individual is paid a back  to  school  bonus  or  a  single  income
family bonus because of entitlement to FTB or receipt of disability  support
pension  or  carer  payment  in  relation  to  3  February  2009   and   the
determination  relating  to  that  entitlement  or  payment  (the   relevant
determination) is later changed with the effect that the individual was  not
entitled to the bonus, and a reason for  the  determination  needing  to  be
changed was that the recipient of  the  bonus  knowingly  made  a  false  or
misleading statement or  knowingly  provided  false  information,  then  the
bonus paid would be a debt due to the Commonwealth by  the  recipient.   The
relevant rules are in new subsection 71K(3).

Similar rules, set out in  new  subsection  71K(4),  would  apply  where  an
individual is paid in excess of the amount of their entitlement  to  a  back
to school bonus or a single income family  bonus  because  of  a  subsequent
change to the relevant determination, except that the  amount  of  the  debt
would be the difference between the amount of  bonus  paid  and  the  amount
that should have been paid.

The relevant determinations are listed in new subsection 71K(2).

Section 74 of the Family Assistance  Administration  Act  applies  where  an
amount of family assistance is paid by cheque,  a  person  who  is  not  the
payee obtains the cheque, the cheque is not endorsed by  the  payee  to  the
person and  the  person  obtains  the  benefit  of  the  cheque.   In  these
circumstances, the amount of the cheque is a debt owed by the person.   This
provision is amended by item 8 so that it  also  applies  where  a  back  to
school bonus or a single income family bonus is paid by cheque.

Section 82 of the Family Assistance Administration Act lists the methods  by
which a debt can be recovered.  Item 9 amends  the  definition  of  debt  in
subsection 82(3) so that it also refers to new section  71K  (where  payment
of a back to school bonus or a single income family bonus is a debt).

Item 10 inserts a reference to a payment of back to school bonus  or  single
income family bonus at the  end  of  the  definition  of  family  assistance
payment in subsection 93A(6) of the Family  Assistance  Administration  Act.
This would enable the bonuses paid to a financial institution to the  credit
of an account with that institution to be recovered from the institution  in
certain circumstances (for example, where the back  to  school  bonus  or  a
single income family bonus is paid into an incorrect account).

Review and appeals

Where the Secretary reviews certain decisions, there is  a  requirement  for
the Secretary to give notice of the review decision to the person or  people
whose entitlement or possible entitlement to  family  assistance,  the  2004
one-off payment to families or the economic  security  strategy  payment  to
families is affected  by  the  review  decision  (subsection 106(3)  of  the
Family Assistance Administration Act refers).

Item 11 amends subsection 106(3) so that  the  same  rule  also  applies  in
relation to review decisions relating to the back to school  bonus  and  the
single income family bonus.

As a general rule, an application for review of a decision must be  made  no
later than 52 weeks after the applicant has been notified of  the  decision.
There  are  exceptions  to  this  general  rule  (for  example,  where   the
Commissioner of Taxation reviews and changes  a  person's  taxable  income).
Items 12 and 13 amend subsection 109D(4)  and  paragraph 109D(5)(a)  of  the
Family  Assistance  Administration  Act  respectively  to  ensure  that  the
exceptions should  apply  also  to  applications  for  review  of  decisions
relating to the payment of the back to school bonus and  the  single  income
family bonus as relevant.

Nominees

Item 14 inserts a reference to the back  to  school  bonus  and  the  single
income family bonus at the end of the  definition  of  relevant  benefit  in
section 219TA of the  Family  Assistance  Administration  Act.   This  would
enable the Secretary to appoint a payment nominee  who  would  be  paid  the
bonus on behalf of the entitled individual.

     Schedule 4 - Administrative scheme for household stimulus payments


                                   Summary

This Schedule contains provisions to enable  administrative  schemes  to  be
established.  In broad terms, the  purpose  of  each  administrative  scheme
will be to provide payments in circumstances where the statutory  regime  of
household stimulus package payments provided for in Schedules 1,  2,  and  3
does  not  necessarily  produce  an  appropriate  result  in   relation   to
circumstances that occur in the 2008-09 income year.  The relevant  Minister
is able to determine the details of the scheme by legislative instrument.

                                 Background


Administrative payment schemes are common features  of  Acts  providing  for
lump-sum and one-off welfare-related payments.  Their purpose is  to  enable
payments that are similar in purpose to those provided for  in  the  Act  to
people  who  have  missed  out  on  the  Act  payments  due  to   unforeseen
circumstances or unintentional limits in the operation of the Act.

This Schedule enables an administrative scheme to be  established  alongside
the statutory regime providing for household stimulus package payments.

The amendments made by this Schedule commence on Royal Assent.

                         Explanation of the changes

Item 1 provides for the establishment  of  an  administrative  scheme  by  a
relevant Minister  administering  the  Family  Assistance  Act,  the  Social
Security Act, the Farm Household Support Act or the  Veterans'  Entitlements
Act, under which household stimulus payments  can  be  made  to  people  who
would not otherwise qualify for such a payment in  specified  circumstances.
The purpose of the scheme is to provide payments in circumstances where  the
statutory  regime  of  household  stimulus   package   payments   does   not
necessarily produce an appropriate result in relation to circumstances  that
occur in the 2008-09 income year.

The  details  of  the  administrative  scheme  (including  such  matters  as
qualification, amount of the payment and administrative  matters)  would  be
set out in a legislative instrument, which would be subject to the  ordinary
Parliamentary scrutiny and disallowance processes for such instruments.

Payments  under  the  administrative  scheme  would  be  made  out  of   the
Consolidated Revenue Fund, and the bill provides  a  standing  appropriation
(in accordance with subitem 1(5)).

The administrative scheme provisions in  this  bill  are  substantially  the
same as those  used  for  'one-off  payments'  in  previous  years  and  the
economic security strategy payments, including  the  legislative  instrument
basis, and the appropriation arrangements, for the scheme.

A scheme would be made only to cover unusual  situations  that  come  within
the spirit of the household stimulus package payment measures  but  are  not
strictly covered by the primary legislation.  It  would  be  impractical  to
include  such  situations  in  primary  legislation.    For   example,   the
administrative scheme may be used to make the training  and  learning  bonus
available to recipients of FTB Part A with dependent children  aged  19  and
20, for whom  there  are  no  study  details  available.   In  these  cases,
recipients would need to  provide  evidence  that  the  dependent  child  is
undertaking qualifying full-time study in order to  qualify  for  the  bonus
before payment eligibility could be determined.

The special (standing) appropriation mechanism is appropriate  to  fund  any
such payments, consistent with the  appropriation  mechanism  for  household
stimulus package payments under the primary  legislation  and  for  payments
generally under the social security law, the family assistance law  and  the
Veterans' Entitlements Act.

                        Schedule 5 - Other amendments


                                   Summary

This Schedule will amend  certain  Acts  to  provide  further  consequential
amendments relating to the household stimulus package payments provided  for
in this bill.  Notably, the amendments ensure that  the  payments  will  not
count as income for social security, family assistance  and  farm  household
assistance purposes, and will be income tax-free.  The amendments will  also
ensure that, where an  individual  is  subject  to  income  management,  any
household stimulus package payment they receive will be  income  managed  at
100 per cent.

                                 Background

In the past, one-off lump-sum welfare-related payments have  typically  been
income tax-exempt and not treated as  income  for  the  purposes  of  income
tests in welfare-related legislation  (such  as  the  Social  Security  Act,
Family  Assistance  Act  and  Veterans'  Entitlements  Act).   In  addition,
recovery  of  those  payments  from   recipients   has   been   limited   to
circumstances where the  payments  have  been  obtained  fraudulently.   The
household stimulus payments under this bill will be  treated  in  a  similar
fashion.

Accordingly, amendments to income tax and other Acts are necessary.

The amendments made by this Schedule commence on Royal Assent.

                         Explanation of the changes

Amendments to the Farm Household Support Act

The Farm Household Support Act regulates the  provision  of  income  support
and  advice  to  farmers  and  certain  small  business  operators  who  are
dependent on income from agriculture  or  farmers.   Centrelink  administers
the Farm Household Support Act and, where applicable, its operation  mirrors
the  provisions  of  the  Social  Security  Act  and  the  Social   Security
Administration Act.  The amendments provide for the payment of  benefits  in
a manner similar to other  welfare  support  payments  delivered  under  the
Social Security Act.

Items 1, 2 and 3 amend sections 24A, 24AA and  24B  of  the  Farm  Household
Support Act  to  clarify  that  the  calculation  of  rates  of  exceptional
circumstances relief payment  and  farm  help  income  support  under  those
sections must  disregard  the  farmers  hardship  bonus  payable  under  the
proposed Division 2 of Part 2.18 of the Social Security Act.

These amendments are necessary to ensure  that  the  one-off  bonus  payment
does not affect the rate  of  income  support  payment  for  individuals  in
receipt of the Exceptional Circumstances Relief Payment or Farm Help  Income
Support, Transitional Income Support or  Interim  Income  Support  payments.
As guidelines for Transitional Income Support  and  Interim  Income  Support
are based on the Farm Household Support Act,  these  legislative  amendments
will also amend the calculations used to determine the rate at  which  these
payments are made.

Amendments to the 1936 Tax Act

A taxpayer's dependants' separate net income (SNI) is used to determine  the
taxpayer's eligibility to certain dependant  offsets.   SNI  is  income  and
other specified amounts earned, derived or received, less  certain  expenses
incurred in earning that income.  Payments such as  carer  allowance,  child
care benefit and FTB are not included as part of SNI.  It  is  not  intended
that the household stimulus  package  payments  (or  any  payment  under  an
administrative scheme determined under Schedule 4 to the bill) form part  of
SNI.

Item 4 amends paragraph (ac) of the definition of  separate  net  income  in
subsection 159J(6) of the 1936 Tax Act to exclude the back to  school  bonus
and single income family bonus.

Item 5 inserts paragraphs (adai), (adaj) and (adak) into subsection  159J(6)
to amend the definition of separate net income to exclude the  training  and
learning bonus  and  the  farmers  hardship  bonus  paid  under  the  Social
Security Act, the education entry payment supplement paid under  the  Social
Security Act or a payment made under an administrative  scheme  set  out  in
Schedule 4 to this bill from the concept of SNI.

Amendments to the 1997 Tax Act

Items 6 to 10 make consequential amendments to the table  in  section  11-15
of the 1997 Tax Act, inserting references to the various household  stimulus
payments payable under this bill.

The effect of items 11 and 12 is to make the training  and  learning  bonus,
farmers hardship bonus and education entry payment  supplement  exempt  from
income tax under section 52-10 of the 1997 Tax Act.

Item 13 amends subsection 52-150(1) to make the back  to  school  bonus  and
the single income family bonus exempt from income tax.

Item 14 inserts a new section 52-165 into Subdivision 52-H,  which  provides
that payments made under an administrative scheme, as set out in  Schedule 4
to this bill, are exempt from income tax.

Amendments to the Social Security Act

The back to school bonus and single income family bonus  payments  will  not
be counted as income for social security purposes.  Subsection 8(8)  of  the
Social Security Act lists payments that are not income for  social  security
purposes.  Item 15 adds a reference to the back to school bonus  and  single
income family bonus into paragraph 8(8)(jaa).

Item 16 inserts new paragraph  (yj)  into  subsection  8(8)  of  the  Social
Security Act, to provide that a payment made under an administrative  scheme
determined under Schedule 4 to the bill is not to be treated as  income  for
the purposes of the social security law.

Item 17 inserts new section 1223ABAAB into Part 5.2 of the  Social  Security
Act.  This new provision sets out when a  training  and  learning  bonus,  a
farmers hardship bonus and an education entry payment supplement made to  an
individual is a debt.  In broad terms, a debt would  only  arise  where  the
payment was incorrectly paid because a relevant individual knowingly made  a
false or misleading statement or  knowingly  provided  false  or  misleading
information.

Under  proposed  subsections  (1)  and  (2),  an  individual  will  owe  the
Commonwealth a debt of an amount equal to the training and  learning  bonus,
farmers hardship bonus or education entry payment supplement  paid  to  them
if:

    . a determination has been made that the individual is entitled  to  the
      payment or allowance that qualifies the individual for  the  bonus  or
      supplement; and


    . the determination is changed, revoked, set aside or superseded; and

    . the reason, or one of the reasons, the determination was changed, etc,
      was that the individual knowingly made a false or misleading statement
      or knowingly provided false or misleading information; and

    . had the determination been changed, etc, before 3 February  2009,  the
      individual would not have been paid the bonus or supplement.

Under proposed subsection (3), a person will owe the Commonwealth a debt  of
an amount equal to the training and learning bonus paid to them if:

    . the Secretary has made payment to the person  under  subsection 47C(3)
      or (4) of the Administration Act (relating to payment of the bonus  to
      parents or others); and


    . the reason, or one of the reasons why the Secretary paid the bonus  to
      that  person  was  that  the  person  made  a  statement  or  provided
      information; and

    . the Secretary becomes satisfied that the statement or information  was
      false or misleading and had been provided by the person  knowing  that
      it was false or misleading; and

    . the Secretary is satisfied  the  payment  should  have  been  paid  to
      another person.

Apart  from  section  1224AA  (relating  to  fraudulent  cashing  of  social
security cheques), the other provisions in the social security law  relating
to creation of social security debts  do  not  apply  to  the  training  and
learning  bonus,  farmers  hardship  bonus  or   education   entry   payment
supplement (proposed subsection (4))  That is, debts in  relation  to  those
stimulus payments cannot arise other than under this  section  (and  section
1224AA).

Amendments to the Social Security Administration Act

The amendments made to the Social Security Administration Act by  items  18,
19 and 20 of this Schedule provide for deductions to be made from  household
stimulus payments, in certain circumstances, for the purposes of the  income
management  regime  established  under  Part 3B  of  the   Social   Security
Administration Act.

Item 18 inserts a newly  defined  term,  household  stimulus  payment,  into
section 123TC of the Social Security  Administration  Act.   The  definition
refers to each of the payments provided for by the amendments  contained  in
Schedules 1, 2, 3 and 4 to this bill (other  than  education  entry  payment
payable to youth allowance (other) recipients under  proposed  Division  12A
of Part 2.13A of the Social Security Act).

Item 19 omits  the  current  heading  to  Subdivision DB  of  Division 5  of
Part 3B of the  Social  Security  Administration  Act,  and  inserts  a  new
heading to the Subdivision.  Subdivision DB  currently  contains  provisions
relating  to  economic  security  strategy  payments   introduced   by   the
Government in 2008, and its title reflects  this.   Provisions  relating  to
the new household stimulus payments are  inserted  into  Subdivision  DB  by
item 20 of this Schedule.  As a consequence, item 19 alters the  heading  to
Subdivision DB so that it refers to economic security strategy payments  and
household stimulus payments.

Item 20 inserts  new  section 123XPD  in  Subdivision DB  of  Division 5  of
Part 3B of the  Social  Security  Administration  Act.   New  section 123XPD
provides for the deduction of amounts from  a  person's  household  stimulus
payment if the person is subject to the income management regime.

New subsection 123XPD(3) provides  that,  if  section  123XPD  applies,  the
Secretary must deduct  100  per  cent  of  the  net  amount  of  a  person's
household  stimulus  payment  and  credit  the  person's  income  management
account and the Income Management Special Account accordingly.   (The  terms
income management account, net amount and Special  Account  are  defined  in
section 123TC of the Social Security Administration Act.)  The treatment  of
household stimulus payments under subsection 123XPD(3)  is  consistent  with
the existing treatment of other lump  sum  payments  under  Part 3B  of  the
Social Security Administration Act.

New subsection 123XPD(1) provides that section 123XPD applies  if  a  person
is subject to the income management regime and a household stimulus  payment
is payable to the person.

The  phrase  subject  to  the  income  management  regime  is   defined   in
section 123TC of the Social Security Administration Act.  A  person  can  be
subject to the income management regime because of the operation of  any  of
the  following  sections  contained  in  Part  3B  of  the  Social  Security
Administration Act:  section 123UB (the Northern Territory scheme of  income
management);  section  123UC  (the  child  protection   scheme   of   income
management);  section 123UD  or  123UE  (school  enrolment  and   attendance
requirements,  which  have   not,   at   this   time,   been   implemented);
section 123UF  (the  Cape  York  Welfare  Reform   trials);   section 123UFA
(voluntary income management agreements).

Amendments to the Veterans' Entitlements Act

Items 21 and 22 amend subsection 5H(8) of the Veterans' Entitlements Act  to
provide that the back to school bonus and the  single  income  family  bonus
payable under Family Assistance Act, and payments under  the  administrative
scheme established under Schedule 4 to this bill  are  not  income  for  the
purposes of the Veterans' Entitlements Act.  (All payments under the  Social
Security Act are not income under the Veterans' Entitlements Act,  so  there
is no need to specify  separately  the  training  and  learning  bonus,  the
farmers hardship  bonus  and  the  education  entry  payment  supplement  in
subsection 5H(8).)

 


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