Social Services and Other Legislation Amendment (Supporting Retirement Incomes) Bill 2018 [2018] AUSStaCSBSD 272 (5 December 2018)

• Social Services and Other Legislation Amendment (Supporting Retirement Incomes) Bill 2018
• Delegated legislation not subject to disallowance 100

---

Social Services and Other Legislation Amendment (Supporting Retirement Incomes) Bill 2018

Purpose	This bill seeks to amend the Social Security Act 1991 and the Veterans' Entitlements Act 1986 to: • provide new means test rules to encourage the take-up of lifetime retirement income products; • amend the Pension Loans Scheme; and • amend the pension work bonus
Portfolio	Families and Social Services
Introduced	House of Representatives on 29 November 2018

Delegated legislation not subject to disallowance ^[100]

1.168 Item 36 seeks to insert proposed section 1120AB into the Social Security Act 1991, which would provide for the value of asset-tested income streams (lifetime) that are not managed investments. This section is largely replicated in proposed section 52BAB of the Veterans' Entitlements Act 1986.^[101] The proposed sections set out how asset-tested income streams (lifetime) would be valued for the purpose of the assets test, which is a part of the social security means test.

1.169 Proposed subsection 1120AB(8) would allow the secretary to determine a kind of condition of release for the purposes of a person's assessment day for an asset-tested income stream (lifetime)). A determination would be a notifiable instrument. The committee notes that notifiable instruments are not subject to the tabling, disallowance or sunsetting requirements imposed on legislative instruments. As such, there can be no parliamentary scrutiny over a notifiable instrument. Given the impact on parliamentary scrutiny by not making such an instrument a legislative instrument, the committee would expect the explanatory materials to provide a justification for the use of a notifiable instrument. However, the explanatory memorandum provides no such explanation, merely stating what is intended to be determined by a notifiable instrument:

It is intended that the conditions of release that will be determined in a notifiable instrument under new section 1120AB(7) should mirror the specific conditions of release outlined in sub-regulation 1.06A(3)(a) of the SIS Regulations. These are the conditions of release that determine when payments from an innovative superannuation income stream can commence.^[102]

1.170 In addition, proposed subsection 1120AB(11) would allow the secretary to make a notifiable instrument detailing the life expectancy of a man aged 65 for the purpose of step 1 of the method statement for calculating a person's threshold day for an asset-tested stream (lifetime). The secretary would need to be satisfied that the instrument is consistent with the most recent Life Tables published from time to time by the Australian Government Actuary.

1.171 Proposed subsections 52BAB(9) and (12) of the Veterans' Entitlements Act 1986^[103] largely replicates these provisions (with the Repatriation Commission rather than the secretary able to make the notifiable instrument) and the same explanation is provided in the explanatory memorandum.^[104]

1.172 The committee requests the minister's advice as to why it is appropriate to make a number of instruments under the bill notifiable instruments rather than legislative instruments, which are not subject to disallowance or sunsetting.

---

[100] Schedule 1, item 36, proposed subsections 1120AB(8) and (11); Schedule 1, item 77, proposed subsections 52BAB(9) and (12). The committee draws senators’ attention to these provisions pursuant to Senate Standing Order 24(1)(a)(v).

[101] Schedule 1, item 77.

[102] Explanatory memorandum, p. 13.

[103] Schedule 1, item 77, proposed subsection 52BAB(9).

[104] Explanatory memorandum, p. 27.