House of Representatives

Budget Savings (Omnibus) Bill 2016

Supplementary Explanatory Memorandum

(Circulated by the authority of the Treasurer, the Hon Scott Morrison MP)
Amendments to be moved on behalf of the Government

Chapter 5 Closing carbon tax compensation to new welfare recipients (Chapter 21)

Outline of chapter

Amendments 7 to 18 amend Schedule 21 to the Bill. Schedule 21 contains amendments relating to closing carbon tax compensation to new welfare recipients.

Parts 1 and 7 of the Schedule relate to energy supplement under the family assistance law and single income family supplement. These parts are unchanged. However, the explanatory memorandum to the Bill did not reflect the insertion of an application provision at item 5 of Part 1. Item 5 provided that new subsection 58A(3AA), which was inserted by item 4, applies in relation to elections made before, on or after that commencement. This insertion should have resulted in all item numbers after item 4 being increased by one. The explanatory memorandum for this Schedule should be read from item 5 as if each item explanation relates to the subsequent item.

Part 2 of the Schedule relates to energy supplement under the social security law. Amendment 7 omits items 26 to 35, and amendment 10 omits items 39 to 85 of this Schedule. Items 36, 37 and 38 are retained, relating to energy supplement paid to holders of a seniors health card under the Social Security Act or the Veterans' Entitlements Act. Note that these items are referred to as items 35, 36 and 37 respectively in the explanatory memorandum

Amendments 8 and 9 amend item 38 to omit paragraph (i). Paragraph (i) related to the main amendments in proposed section 22, identifying ongoing welfare recipients who would continue to receive energy supplement. This reference is no longer necessary as proposed section 22 is omitted by amendment 7 above. The explanatory memorandum refers to item 38 as item 37.

Amendment 11 omits Part 3 of Schedule 21, which related to Energy supplement under the Farm Household Support Act.

Amendment 12 omits items 90 to 103 of Part 4 of Schedule 21 to the Bill.

Those items had provided for the cessation of the payment of energy supplement to new recipients of income support and compensation payments under the Veterans' Entitlements Act from 20 March 2017.

Amendment 13 omits item 105 of Part 4 to Schedule 21 to the Bill.

That item had provided for the cessation of the payment of energy supplement to new Gold Card holders under the Veterans' Entitlements Act from 20 March 2017.

Amendment 14 is a consequential amendment to item 106 as a result of the omission of item 105 Amendment 13.

Amendments 15 and 16 amend item 107 of Part 4 to Schedule 21 of the Bill.

Item 107 is a transitional provision which was applicable to a person who was paid energy supplement with their income support payment which ceased within a period of 6 weeks that ends on 19 September 2016.

The amendments include a technical amendment to paragraph 107(h) to reflect the amendment which omits paragraph 107(i). Paragraph 107(i) had referred to provisions omitted by Amendment 9.

Amendment 17 omits items 108 to 118 of Part 4 of Schedule 21 to the Bill.

Those items had provided for the cessation of the payment of energy supplement to new recipients of income support under the Veterans' Entitlements Act from 20 March 2017.

Amendment 18 omits Part 5 of Schedule 21 of the Bill.

Those items had provided for the cessation of the payment of energy supplement to new recipients of certain compensation payments under the Military Rehabilitation and Compensation Act from 20 March 2017.

Part 6 of Schedule 21 is retained, making amendments to various telephone allowance provisions consequential upon ceasing payment of energy supplement to new seniors health care card holders.


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