View full documentView full document Previous section | Next section
House of Representatives

Social Services and Other Legislation Amendment (2014 Budget Measures No. 6) Bill 2014

Explanatory Memorandum

(Circulated by the authority of the Minister for Social Services, the Hon Kevin Andrews MP)

General outline and financial impact statement

OUTLINE

This Bill will reintroduce the following measures, previously introduced in the Social Services and Other Legislation Amendment (2014 Budget Measures No. 1) Bill 2014 and the Social Services and Other Legislation Amendment (2014 Budget Measures No. 2) Bill 2014, in Schedules numbered as set out below.

Budget measures

1. From 20 September 2014, rename the clean energy supplement as the energy supplement, and permanently cease indexation of the payment.

2. Implement the following changes to Australian Government payments:

from 1 July 2015 - pause indexation for two years of the assets value limits for all working age allowances, student payments and parenting payment single; and
from 1 July 2017 - pause indexation for three years of the assets test free areas for all pensions (other than parenting payment single).

3. From Royal Assent, review disability support pension recipients under age 35 against revised impairment tables and apply the Program of Support requirements.

4. From 1 January 2015, limit the six-week overseas portability period for student payments.

5. Generally limit the overseas portability period for disability support pension to 28 days in a 12-month period from 1 January 2015.

6. Exclude from the social security and veterans' entitlements income test any payments made under the new Young Carer Bursary Programme from 1 January 2015.

7. Include untaxed superannuation income in the assessment for the Commonwealth Seniors Health Card (with products purchased before 1 January 2015 by existing cardholders exempt from the new arrangements), and extend from six to 19 weeks the portability period for cardholders.

8. From 1 January 2015, remove relocation scholarship assistance for students relocating within and between major cities.

9. Implement the following family payment reforms from 1 July 2015:

limit the family tax benefit Part A large family supplement to families with four or more children;
remove the family tax benefit Part A per-child add-on to the higher income free area for each additional child after the first; and
improve targeting of family tax benefit Part B by reducing the primary earner income limit from $150,000 a year to $100,000 a year.

Social and Community Services Pay Equity Special Account

Schedule 10 to the Bill will add the Western Australian Industrial Relations Commission decision of 29 August 2013 as a pay equity decision under the Social and Community Services Pay Equity Special Account Act 2012, allowing payment of Commonwealth supplementation to service providers affected by the decision.

Financial impact statement

MEASURE FINANCIAL IMPACT OVER THE FORWARD ESTIMATES
Budget measures
Clean energy supplement renamed energy supplement and indexation ceased Saving of $369.2 million **
Pause asset value limits and assets test free areas for various Australian Government payments Saving of $78.0 million ***

Disability support pension - ability to work Expense of $46.4 million over five years **
Limit the six-week portability period for student payments Saving of $143.1 million **
Disability support pension - reduce portability to 28 days in a 12-month period. Saving of $5 million **
Young Carer Bursary Programme - income exemption The programme will cost $3.0 million over four years
Commonwealth Seniors Health Card - include untaxed superannuation in assessment Saving of $20.9 million
Remove relocation scholarship assistance for certain students Saving of $290.1 million
Family payment reforms, starting 1 July 2015 $1,834.3 million **
Social and Community Services Pay Equity Special Account No further financial impact from this Bill ($104 million was set aside in the contingency reserve in the 2013 Budget to cover the cost of supplementation until 2020-21)

Note:

* indicative only - indicative financial impact refers to administered funding for affected social security payments only and is not net of implementation funding

** indicative only - indicative financial impact refers to whole-of-government financial impact, including administered and implementation funding

*** indicative only - indicative financial impact for item 1 refers to administered funding for affected social security and Veterans' Affairs payments only and is not net of implementation funding

STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS

The statements of compatibility with human rights appear at the end of this explanatory memorandum.


View full documentView full documentBack to top