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House of Representatives

Social Security and Family Assistance Legislation Amendment (2009 Budget Measures) Bill 2009

Explanatory Memorandum

(Circulated by the authority of the Minister for Families, Housing, Community Services and Indigenous Affairs, the Hon Jenny Macklin MP)

SOCIAL SECURITY AND FAMILY ASSISTANCE LEGISLATION AMENDMENT (2009 BUDGET MEASURES) BILL 2009

OUTLINE

This bill gives effect to a number of measures announced as part of the 2009 Budget.

Carer supplement

A new ongoing payment, carer supplement, will be introduced into the social security law.

A person will be qualified for carer supplement if the carer is qualified for and receives an instalment of a qualifying payment. The qualifying payments are carer allowance, carer payment and Department of Veterans' Affairs carer service pension. A person who receives wife pension or Department of Veterans' Affairs partner service pension as well as carer allowance will also be eligible for carer supplement.

Around 500,000 carers are expected to benefit each year.

In 2009, carer supplement will be paid to people who received a qualifying payment for the period including 12 May 2009.

From 1 July 2010, carer supplement will be paid to people who receive a qualifying payment for a period which includes the test day (1 July) each year.

The amount of carer supplement payable in relation to a single qualifying instalment will be $600. A person can be eligible for more than one amount of $600 as part of their carer supplement.

Carer supplement will not be indexed.

Indexation

Amendments are made to the indexation arrangements for certain family assistance income threshold amounts so that these amounts are not indexed on 1 July of 2009, 2010 and 2011. The relevant income threshold amounts are the higher income free area for family tax benefit (FTB) Part A (both the basic amount and the additional amount for each FTB child after the first), the FTB Part B income limit and the baby bonus income limit. Indexation will again occur in accordance with the usual rules on 1 July 2012.

Financial impact statement

Carer supplement

Financial impact Total resourcing - all portfolios
2008-09 $384.8 m
2009-10 $7.6 m
2010-11 $445.8 m
2011-12 $469.4 m

Indexation

Financial impact Total resourcing - all portfolios
2008-09 $0.6 m
2009-10 - $209.6 m
2010-11 - $291.0 m
2011-12 - $432.1 m

NOTES ON CLAUSES

Clause 1 sets out how the Act is to be cited, that is, as the Social Security and Family Assistance Legislation Amendment (2009 Budget Measures) Act 2009 .

Clause 2 provides a table that sets out the commencement dates of the various sections in, and Schedules to, the Act.

Clause 3 provides that each Act that is specified in a Schedule is amended or repealed as set out in that Schedule.

This explanatory memorandum uses the following abbreviations:

·
'Family Assistance Act' means the A New Tax System (Family Assistance) Act 1999 ;
·
'FTB' means family tax benefit;
·
'Social Security Act' means the Social Security Act 1991 ;
·
'Social Security Administration Act' means the Social Security (Administration) Act 1999 ; and
·
'Veterans Entitlements Act' means the Veterans' Entitlements Act 1986 .


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