House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Family and Community Services, Senator the Honourable Jocelyn Newman)

Schedule 3 - Miscellaneous amendments

Schedule 3 contains a range of technical amendments to the Social Security Act 1991 , consisting of the repeal of redundant provisions and correcting various cross-references and minor drafting errors.

Several of these proposals are contained in multiple items (eg repeals of certain redundant references. Proposals which fall into this category are summarised here for ease of reference:

Summary of proposals covered by multiple items

Amendments to repeal redundant savings and transitional provisions from the Social Security Act 199l

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Items 2, 4, 5, 7, 8, 9, 10, 11, 12, 13, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 51, and 52

These amendments repeal savings and transitional provisions which were time-limited, and which are redundant because their "use-by" date has now expired, and as a result their effect is now spent.

Remove redundant references to the Aboriginal Enterprise Incentive Scheme from the Social Security Act

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Items 1, 3, 6, 42, 43, 44, 45, 46, 47, 48, 49, and 50

The Aboriginal Enterprise Incentive Scheme (AEIS) was operated by ATSIC until 1993, when it was discontinued. These amendments will remove references to AEIS from the Social Security Act 1991.

Item 1

This item repeals a redundant reference to the Aboriginal Enterprise Incentive Scheme - see summary at commencement of Schedule.

Item 2

This item repeals a redundant saving/transitional provision - see summary at commencement of Schedule.

Item 3

This item repeals a redundant reference to the Aboriginal Enterprise Incentive Scheme - see summary at commencement of Schedule.

Item 4

This item repeals a redundant saving/transitional provision - see summary at commencement of Schedule.

Item 5

This item repeals a redundant saving/transitional provision - see summary at commencement of Schedule.

Item 6

This item repeals a redundant reference to the Aboriginal Enterprise Incentive Scheme - see summary at commencement of Schedule.

Items 7 to 13 (inclusive)

These items repeal redundant saving/transitional provisions - see summary at commencement of Schedule.

Item 14

This is a technical amendment to section 694 of the Act, to align the duration of the sickness allowance ordinary waiting period (s694(3)) with equivalent newstart allowance provisions (s621(3)).

Item 15

In relation to the qualification conditions for mobility allowance, s1035(1)(c)(ii)(C) provides:

(C)

the person is undertaking job search activities as part of an activity plan developed by a Disability Panel established by the Secretary;

The Disability Panel is now defunct, and this item will substitute a procedure for an agreement to be reached with the Secretary of the Department.

Item 16

In relation to the qualification conditions for mobility allowance, s1035(1)(ca)(ii)(C) provides:

(C)

the person is undertaking job search activities under the Competitive Employment Placement and Training Program administered by the Health Department;

The function referred to has now been reallocated to the Department of Family and Community Services, and this item makes an appropriate amendment.

Item 17

In assessing qualification for pensioner education supplement, the current provisions only allow the use of a medical certificate provided by an officer of the Commonwealth Rehabilitation Service. This can be too restrictive, and for this reason the equivalent austudy provisions were broadened to allow use of certificate provided by an appropriate medical practitioner who has a detailed knowledge of the person's physical condition.

This amendment similarly broadens the provision relating to pensioner education supplement, to allow the use of a certificate provided by an appropriate medical practitioner who has a detailed knowledge of the person's physical condition

Item 18

This amendment will correct an incorrect cross-reference to the Veterans' Entitlements Act 1986.

Subparagraph 1061PZG(1)(b)(iii) refers to "an invalidity income support supplement under the Veterans' Entitlements Act 1986". In fact, the term used in that Act is "income support supplement" which may be paid on various grounds, including incapacity for work.

This amendment will substitute an accurate cross-reference.

Items 19 to 24 (inclusive)

Under the Social Security Act 1991, a liquid assets waiting period (LAWP) can commence the day a person becomes unemployed. An income maintenance period (IMP) is imposed once a person has received payment for their leave entitlements. The IMP applies to newstart, sickness allowance, youth allowance and austudy payment.

While in the majority of cases it is expected that both periods would commence at the same time, there are situations where leave payments are not paid at the same time, such that the LAWP and the IMP have different commencements. In these cases, the legislation can operate unfairly in relation to persons who are in the same financial circumstances.

These amendments will ensure that in the circumstance summary the IMP will commence at the same time as the LAWP.

Items 25 to 34 (inclusive)

These items repeal redundant saving/transitional provisions - see summary at commencement of Schedule.

Items 35 to 39 (inclusive)

These items are technical amendments to the compensation provisions to remove references to section 710 of the Act which has been repealed, and correct a incorrect example relating to section 1168 (item 37).

Item 40

This amendment corrects a drafting error.

Subsection 1179(4) currently provides (emphasis added):

1179.(4)

If the person claiming compensation is not a member of a couple, the recoverable amount is equal to the smallest of the following amounts:

(a)

the sum of the payments of the compensation affected payments payable to the person for:

(i)

the periodic payments period; or

(ii)

if a lump sum compensation payment is received before 20 March 1997-the old lump sum preclusion period; or

(iii)

if a lump sum compensation affected payment is received before 20 March 1997-the new lump sum preclusion period;

Both paragraphs (ii) and (iii) apply "before 20 March 1997" . In fact, the latter paragraph should apply "on or after 20 March 1997" .

This item makes the appropriate amendment.

Item 41

This amendment corrects 2 drafting errors.

Paragraph 1179(5)(c) currently provides (emphasis added):

1179.(5) If:

(a)

the person claiming compensation is a member of a couple; and

(b)

the person's partner neither receives nor claims a compensation affected payment for the periodic payments period or the lump sum preclusion period;

the recoverable amount is equal to the smallest of the following amounts:

(c)

the sum of the payments of the compensation affected payment payable to the person for:

(i)

the periodic payments period; or

(ii)

if a lump sum compensation payment is received before 20 March 1997-the old lump sum preclusion period; or

(iii)

if a lump sum compensation affected payment is received before 20 March 1997-the new lump sum preclusion period;

Both paragraphs (ii) and (iii) apply "before 20 March 1997" . In fact, the latter paragraph should apply "on or after 20 March 1997" .

In addition, the word " affected " is incorrect in this context, and should be omitted.

This item makes the appropriate amendments.

Items 42 to 50 (inclusive)

This items repeal redundant references to the Aboriginal Enterprise Incentive Scheme - see summary at commencement of Schedule.

Items 51 and 52

These items repeal redundant saving/transitional provisions - see summary at commencement of Schedule.

Items 53 and 54

These Items correct drafting errors in Schedule 1B.

Item 96A of Schedule 1B of the Social Security Act 1991 provides (emphasis added):

Application of revised Schedule 1B

96A.(1)

Subject to subclause (2), this Act, as amended by items 1, 2 and 4 of Schedule 14A of the amending Act, applies to claims lodged on or after the date of commencement of those items.

96A.(2)

Despite section 8 of the Acts Interpretation Act 1901 , the amendments made by items 1, 2 and 4 of Schedule 14A to the amending Act, apply in relation to:

(a)

all medical, psychiatric or psychological examinations attended, or reports required, under subsection 105(1) on or after the date of commencement of those items; and

(b)

all legal proceedings, applications for review of decisions, or determinations, to the extent that the proceedings, applications or determinations relate to, or involve, a medical, psychiatric or psychological examination referred to in paragraph (a).

96A.(3)

In this clause:

amending Act means the Social Security Legislation Amendment (Family and Other Measures) Act 1997 .

In fact, subitem 96A(2) should refer to "Schedule 16" (instead of Schedule 14A) and the reference to the amending Act should refer to the " Social Security and Veterans' Affairs Legislation Amendment (Family and other Measures) Act 1997 ".

These items make the appropriate amendments.