Explanatory Memorandum
(Circulated by authority of the Minister for Family and Community Services, Senator the Honourable Jocelyn Newman)Schedule 2 - Amendments relating to bonuses for older Australians
This Schedule contains amendments to ensure that older Australians are not disadvantaged in qualifying for a savings bonus on 1 July 2000 under the provisions of the A New Tax System (Bonuses for Older Australians) Act 1999.
Under the existing provisions of that Act, older Australians may be disqualified from receiving a self-funded retirees bonus if they received a "disqualifying payment" (ie an income support payment) during the 3 months ending on 1 July 2000.
Significant changes to income support payments result from the New Tax System which commences on 1 July 2000. These changes will allow many people who are not currently able to receive a payment to be paid an income support payment. This means that if as a result of these changes an older Australian became qualified for an income support payment for the first time on 1 July 2000, then the fact of that 1 day "overlap" with the last day of the 3-month disqualifying period might preclude that person from receiving a self funded retirees bonus.
To avoid this unfair result, Schedule 2 amends the A New Tax System (Bonuses for Older Australians) Act 1999 to ensure that the disqualifying period for the self funded retirees bonus ends on 30 June 2000, avoiding overlap with the revised income support provisions.
Items 1, 2 and 3
These Items amend section 12 of the A New Tax System (Bonuses for Older Australians)1999 to substitute 30 June 2000 as the day on which the "disqualifying period" ends in relation to customers of the Department of Family and Community Services.
Items 4, 5 and 6
These Items amend section 41 of the A New Tax System (Bonuses for Older Australians)1999 to substitute 30 June 2000 as the day on which the "disqualifying period" ends in relation to customers of the Australian Taxation Office.
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- The A New Tax System (Bonuses for Older Australians)1999 divides older Australians into 3 categories for the purposes of paying bonuses under the Act. Thus, customers who are required to lodge a tax return will have their bonus paid by the Australian Taxation Office; customers who normally deal with the Department of Veterans' Affairs will have their bonus paid by that Department; and anyone else will have their bonus paid by the Department of Family and Community Services.
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- Customers of the Department of Veterans' Affairs are not eligible for a self funded retirees bonus under the Act (since, by definition, they are persons who are on income support), so there is no need to amend the provisions that relate to those customers.