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Australian Senate Standing Committee for the Scrutiny of Bills - Scrutiny Digests

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Coronavirus Economic Support and Recovery (No-One Left Behind) Bill 2020 [2020] AUSStaCSBSD 106 (17 June 2020)


Chapter 1

Comment bills

1.1 The committee comments on the following bills and, in some instances, seeks a response or further information from the relevant minister.

Coronavirus Economic Support and Recovery (No-one Left Behind) Bill 2020

Purpose
This bill seeks to create the Coronavirus Economic Support and Recovery (No-One Left Behind) Act 2020, which will provide for a coronavirus economic support and recovery fund, amend the law relating to social security and expand eligibility for the JobKeeper scheme
Sponsor
Senator Larissa Waters
Introduced
Senate on 11 June 2020

Parliamentary scrutiny
Significant matters in delegated legislation[1]

1.2 Schedule 1 to the bill seeks to establish a $22.3 billion Coronavirus Economic Support and Recovery Fund. Subitem 1(3) provides that, in 2020-21, the Fund must provide for a $2.3 billion recovery package for the arts and entertainment sector, a $12 billion manufacturing investment fund, a $6 billion electricity transmission fund, and additional funding of $2 billion for the Australian Renewable Energy Agency. Subitem 1(4) provides for certain limitations on both the manufacturing and electricity transmission investments of the Fund.

1.3 Beyond these provisions, little detail about how the Fund will operate is provided on the face of the bill, with the establishment, governance and operation of the Fund to be set out in delegated legislation.

1.4 The committee's view is that significant matters, such as how a fund to which the Commonwealth will invest a significant amount of public money is to operate, should be included on the face of primary legislation unless a sound justification provided. In this instance, the explanatory memorandum contains no explanation as to why further details as to how the Fund is to operate was not included in the bill or any indication of what specific matters are likely to be included in the delegated legislation made under the bill.

1.5 The committee draws this matter to the attention of senators and leaves to the Senate as a whole the appropriateness of allowing the establishment, governance and operation of the proposed Coronavirus Economic Support and Recovery Fund to be set out in delegated legislation.

2020_10600.jpg

Delegation of legislative power
Broad discretionary powers[2]

1.6 Part 1 of Schedule 2 to the bill seeks to provide that if a person is receiving a disability support pension or carer payment, the rate of the pension or payment is increased by the amount of the COVID-19 supplement. Proposed subsections 121(3) and 211(3) provide that the minister may, by legislative instrument, extend the initial period of the supplement by a period of up to 3 months. Proposed subsections 121(5) and 211(5) provide that the minister may, by legislative instrument, determine the amount of the supplement. Proposed subsections 121(7) and 211(7) provide that the minister may, by legislative instrument, determine the amount of the supplement for any extension period.

1.7 The committee commented on similar provisions in the Coronavirus Economic Response Package Omnibus Bill 2020.[3] The committee considers that these provisions provide the minister with a broad discretionary power to alter or extend the operation of supplement payments by legislative instrument in circumstances where there is limited guidance on the face of the primary legislation as to when these powers should be exercised.

1.8 Noting the above, the committee considers that if the Parliament is sitting changes to the COVID-19 supplement scheme should be made by introducing a bill for consideration by the Parliament, rather than relying on the use of the broad discretionary power to modify the scheme by delegated legislation.


[1] Schedule 1. The committee draws senators’ attention to this provision pursuant to Senate Standing Order 24(1)(a)(iv) and (v).

[2] Schedule 2, Part 1. The committee draws senators’ attention to this provision pursuant to Senate Standing Order 24(1)(a)(ii) and (iv).

[3] Senate Standing Committee for the Scrutiny of Bills, Scrutiny Digest 5 of 2020, pp. 14–15; Senate Standing Committee for the Scrutiny of Bills, Scrutiny Digest 6 of 2020, pp. 24–25.


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