House of Representatives

Social Security and Veterans' Entitlements Legislation Amendment (Miscellaneous Matters) Bill 2000

Explanatory Memorandum

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

Social Security and Veterans' Entitlements Legislation Amendment (Miscellaneous Matters) Bill 2000

Outline and Financial Impact Statement

This Bill contains various amendments to the Social Security Act 1991, the Social Security (Administration) Act 1999, the Social Security (Administration and International Agreements)(Consequential Amendments) Act 1999, the Social Security (International Agreements) Act 1999 the A New Tax System (Family Assistance) Act 1999, the Income Tax Assessment Act 1936, the Taxation Administration Act 1953, the Health Insurance Act 1973, and the Veterans' Entitlements Act 1986.

The Bill gives effect to a range of 1999 Budget and related matters namely: the simplification of international payments relating to portability; other measures relating to the requirement to claim a comparable foreign payment; simplification of the provisions relating to qualifying residence; the use of tax file numbers for data matching purposes with the objective of strengthening compliance with social security law; and provisions relevant to the 4% concession for social security payments associated with the introduction of the GST. In addition, the Bill contains some technical amendments to associated social security legislation.

Schedule 1 amends the Social Security Act 1991 for the following purposes:

·
to amend the international portability provisions (Part 1 - Beneficiaries leaving Australia), including:

-
standardisation of the portability rules;
-
consolidating working life residence rules;
-
phasing out of special needs pensions; and
-
extending to two years the short residence rule;

·
to amend the pension bonus provisions (Part 2)
·
to amend the provisions relating to retirement assistance for farmers (Part 3)
·
to amend the provision relating to the requirement to claim a comparable foreign payment, by extending that requirement to persons from all countries (Part 4 - Claiming unclaimed overseas entitlements)
·
to simplify the provisions relating to qualifying residence (Part 5).

Schedule 2 amends the Social Security (Administration) Act 1999 for the following purposes:

·
the use of tax file numbers for data matching purposes with the objective of strengthening compliance with the social security law (Part 1)
·
measures relating to the requirement to claim a comparable foreign payment (Part 2);
·
consequential amendments relating to the international portability provisions (Part 3).

Schedule 3 amends Veterans' Entitlements Act 1986 to align the provisions relating to international portability with those in the Social Security Act 1991, insofar as those provisions relate to:

·
rent assistance;
·
telephone allowance;
·
pharmaceutical allowance; and
·
remote area allowance.

Schedule 4 and Schedule 5 amend the Income Tax Assessment Act 1936 and the Taxation Administration Act 1953, respectively, to authorise the use of tax file numbers for data matching purposes with the objective of strengthening compliance with social security law.

Schedule 6 amends the Health Insurance Act 1973 to make a consequential amendment resulting from the amendments simplifying the qualifying residence provisions in the Social Security Act 1991 (Schedule 1, Part 5).

Schedule 7 amends the Social Security (Administration and International Agreements)(Consequential Amendments) Act 1999. These are technical amendments to correct two renumbering errors, caused by the confluence of the Further 1998 Budget Measures Legislation (Social Security) Act 1999 and the Social Security (Administration and International Agreements)(Consequential Amendments) Act 1999 which passed the Parliament in November 1999 and December 1999 respectively.

Schedule 8 amends the A New Tax System (Family Assistance) Act 1999 in relation to international portability, to provide for the consistent treatment of certain customers in relation to the international portability amendments made by Schedule 1, Part 1.

Schedule 9 amends the Social Security (International Agreements) Act 1999 to make a technical amendment in relation to the international portability amendments.

Schedule 10 amends the Further 1998 Budget Measures Legislation (Social Security) Act 1999. These are technical amendments to correct renumbering errors caused by the confluence of the Further 1998 Budget Measures Legislation (Social Security) Act 1999 and the Social Security (Administration and International Agreements) (Consequential Amendments) Act 1999 which passed the Parliament in November 1999 and December 1999 respectively.

FINANCIAL IMPACT

The financial impact of these measures is:

1. International Portability and related provisions

Schedule 1, Parts 1, 4 and 5 - Amendment of the Social Security Act 1991

Schedule 2, Parts 2 and 3 - Amendment of the Social Security (Administration) Act 1999

Schedule 3 - Amendment of the Veterans' Entitlements Act 1986

Schedule 6 - Amendment of the Health Insurance Act 1973

Schedule 8 - Amendment of the A New Tax System (Family Assistance) Act 1999

Schedule 1

Part 1 - international portability;
Part 4 - extension of the requirement to claim a comparable foreign payment; and
Part 5 - provisions relating to qualifying residence:

Schedule 2

Part 2 - extension of the requirement to claim a comparable foreign payment
Part 3 - international portability

Schedule 3 - standardised the rules for the payment of social security benefits outside Australia (Veterans' Entitlements Act 1986)

Schedule 6 - consequential amendment relating to qualifying residence (Health Insurance Act 1973)

Schedule 8 - consequential amendments as a result of the international portability provisions of the Social Security Act 1991 made by Schedule 1, to ensure consistent portability arrangements apply in relation to non-residents.

Date of Effect of all the above measures: 20 September 2000

Financial Impact of all the above measures:

2000-2001 $4.9m (administrative savings)
2001-2002 $10.4m (administrative savings)
2002-2003 $10.7m (administrative savings)

2. Amendments to the pension bonus provisions (Schedule 1,Part 2), and amendments to the provisions relating to retirement assistance for farmers (Schedule 1, Part 3)

Date of Effect: Part 2 and Part 3 of Schedule 1 commence, or are taken to have commenced, immediately after the commencement of Schedule 1 to the A New Tax System (Compensation Measures Legislation Amendment) Act 1999.

Financial Impact: There are no financial implications from these changes as the effect of the changes was anticipated in calculating the financial implications for the total compensation package implemented by the A New Tax System (Compensation Measures Legislation Amendment) Act 1999.

3. Schedules 2, 4 and 5 - Amendment of the Social Security (Administration) Act 1999, the Income Tax Assessment Act 1936 and the Taxation Administration Act 1953

Amendments to authorise the use of tax file numbers for data matching purposes.

Date of Effect: 1 July 2000

Financial Impact:

(net outlays) 2000-2001 $20.6m (savings)
2001-2002 $29.7m (savings)
2002-2003 $30.4m (savings)

4. Schedule 7 - Amendment of the Social Security (Administration and International Agreements) ( Consequential Amendments) Act 1999

Schedule 9 - Amendment of the Social Security (International Agreements) Act 1999

Schedule 10 - Amendment of the Further 1998 Budget Measures Legislation Amendment (Social Security) Act 1999

Financial Impact: There are no financial implications arising from these technical amendments.

SOCIAL SECURITY AND VETERANS' ENTITLEMENTS LEGISLATION AMENDMENT (MISCELLANEOUS MATTERS) BILL 2000

NOTES ON CLAUSES

Clause 1 - Short title

Clause 1 of the Social Security and Veterans' Entitlements Legislation Amendment (Miscellaneous Matters) Bill 2000 sets out how the Act is to be cited.

Clause 2 - Commencement

Clause 2 provides for the commencement of the Act and its schedules.

Except as follows, the Act commences on the day on which it receives the Royal Assent: - subclause 2(1):

Subclause 2(2) provides that the following provisions commence on 20 September 2000:

·
Schedule 1, Part 1 - provisions relating to international portability
·
Schedule 1, Part 4 - provisions relating to the requirement to claim a comparable foreign payment
·
Schedule 1, Part 5 - simplifying the provisions relating to qualifying residence

other than items 71, 72 and 123)

Subclause 2(3) provides that items 71, 72 and 123 of Schedule 1 (relating to international portability) commence immediately after the commencement of item 4 of Schedule 1 to the A New Tax System (Family Assistance and Related Measures) Act 2000. Items 71, 72 and 123 amend provisions affected by that Act, so it is necessary to ensure that Act commences first.

Subclause 2(4) provides that Part 2 of Schedule 1 (relating to pension bonus) and Part 3 of Schedule 1 (relating to retirement assistance for farmers) commence immediately after Schedule 1 to the A New Tax System (Compensation Measures Legislation Amendment) Act 1999.

Subclause 2(5) provides that Part 1 of Schedule 2 and Schedules 4 and 5 (relating to the use of tax file numbers in data matching) commence on 1 July 2000.

Subclause 2(6) provides that item 1 of Schedule 7 (which makes a technical amendment to the Social Security (Administration) Act 1999) commences immediately after the commencement of item 2 of Schedule 5 to the Further 1998 Budget Measures Legislation Amendment (Social Security) Act 1999.

Subclause 2(7) provides that item 2 of Schedule 7 (which makes a technical amendment to the Social Security (Administration) Act 1999) commences immediately after the commencement of item 34 of Schedule 5 to the Further 1998 Budget Measures Legislation Amendment (Social Security) Act 1999.

Subclause 2(8) provides that Schedule 8, which amends the A New Tax System (Family Assistance) Act 1999 in relation to international portability, commences on 20 September 2000 or after the commencement of item 1 of Schedule 1 of the A New Tax System (Family Assistance and Related Measures) Act 2000, whichever is the later. Schedule 8 amends provisions affected by that Act, so it is necessary to ensure that Act commences first.

Subclause 2(9) provides that item 123 of Schedule 1 and Schedule 9 (which make technical amendments in relation to international portability) commence on 1 August 2000.

Clause 3 - Schedules

Clause 3 provides that each Act specified in the Schedules is amended according to the terms of those Schedules.

Schedule 1 - Amendment of the Social Security Act 1991

Part 1 - Beneficiaries leaving Australia

This Part amends the "international portability" provisions of the Social Security Act 1991 - that is, those provisions which deal with the rules for payment of social security payments when the customer leaves Australia temporarily.

·
some consequential amendments are required to the Social Security (Administration) Act 1999 on account of these amendments. These consequential amendments are contained in Part 3 of Schedule 2.
·
in addition, other consequential amendments are required to the A New Tax System (Family Assistance) Act 1999 to ensure consistent portability arrangements apply in relation to non-residents - as to which see Schedule 8.

At present, each payment has its own "international portability" rules, and while they are for the most part similar, there are many inconsistencies. These amendments will standardise those rules in a central area of the Act, with a standard maximum portability period of 26 weeks (in most cases), and will effect the necessary consequential amendments to remove the now-redundant provisions from the provisions relating to each payment.

New rules to be subject to maintaining qualification for the benefit

A key feature of the new rules is that presence in Australia per se is no longer to be required as a criterion for qualification for any of the payments (although all payments retain the requirement that a customer be an Australian resident). However, the facility for portability of the payment is subject to the customer remaining qualified for it. That is to say, the specific qualification requirements of the payment may effectively require a customer to remain in Australia in order to maintain qualification for the payment, and it is intended that this specific requirement should prevail over the more general provision relating to 26 weeks portability (see new section 1212E). This requirement is illustrated by the following examples.


Example 1: The new provisions will provide overseas portability in relation to newstart allowance for up to 26 weeks; however, to qualify for newstart allowance, a person must comply with the activity test - see s601, and the following sections. In practice, such a person will have limited opportunity to use the portability provisions because of the overriding requirement to comply with the activity test, which is intended to prevail in this case.

However, this does not mean that the portability provisions could never apply to a person receiving newstart - it may transpire that the person obtains an exemption from the activity test ( - see s602 and the following sections), in which case the person could gain full access to the portability provisions.

Example 2: Remote area allowance may be paid as an "add-on" to a person receiving newstart, if the person is physically present in the remote area. (See Module J to Benefit Rate Calculator B, - point 1068-J1)

In accordance with s14 (2), a person may be temporarily absent from the remote area for up to 8 weeks, after which the person ceases to qualify for remote area allowance. It is desired that this specific provision should prevail over the general portability provisions introduced by this proposal.

In addition, the opportunity is taken to repeal redundant provisions (such as the requirement to provide departure certificates), and to generally tidy up the relevant provisions.

Item 1

This item repeals subsection 14(3), which is a requirement that a person be "in Australia" in order to receive remote area allowance.

Item 2

This item repeals subsection 43(2), which is a redundant provision relating to departure certificates.

Item 3

This item repeals section 97, which is a redundant provision relating to departure certificates.

Item 4

This item repeals subsection 147(2), which contains redundant provisions relating to portability and departure certificates.

Item 5

This item amends subsection 198(4) (relating to qualification for carer payment) to remove the requirement that a customer be "in Australia", and substitute a requirement that the customer be "an Australian resident".

Item 6

This item repeals and substitutes section 198AB (which relates to carer payment). The effect of this amendment is to remove the "international portability" rules from that provision and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 7

This item amends subsection 198AC(1) (which relates to carer payment) to remove the requirement that a person be "in Australia".

Item 8

This item amends paragraph 198AC(2)(c) (which relates to carer payment) to remove the requirement that a person be "in Australia".

Item 9

This item amends subsection 198AC(2) (which relates to carer payment) to remove the requirement that a person be "in Australia".

Item 10

This item repeals subsection 351(2), which is a redundant provision relating to departure certificates.

Item 11

This item repeals and substitutes subparagraph 408BA(2)(e)(ii), which relates to widow allowance. The effect of this amendment is to remove the requirement that a person be "in Australia".

Item 12

This item repeals note 3 to subsection 408BA(2). The note relates to the requirement that a person be "in Australia" and is redundant following the amendment made by item 11.

Item 13

This item repeals subsections 408BA(4), (4A) and (5) (which relates to widow allowance). The effect of this amendment is to remove the "international portability" rules from the provisions relating to that payment and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 14

This item repeals paragraph 500(1)(c), which relates to parenting payment. The effect of this amendment is to remove the requirement that a person be "in Australia".

Item 15

This item repeals section 500A (which relates to parenting payment). The effect of this amendment is to remove the "international portability" rules from the provisions relating to that payment and make it subject to the new centralised "international portability" rules in Part 4.2.

Item 16

This provision amends subsection 500F(1) to prevent the expiry of the qualification of parenting-payment child in a specific circumstance relating to international portability.

New section 1218C of the Bill provides for extension of a person's portability period in the exceptional circumstance listed in that section (eg serious illness, natural disaster, etc). This facility is available in relation to all payments; however, in the case of parenting payment it is clear that the ability to obtain an extension would be illusory if the qualification of the child in respect of whom the parenting payment was being paid should expire.

This section will automatically extend the qualification of a parenting payment child to the extent that the person receiving the parenting payment for the child obtains an extension of his or her portability period under new section 1218C.

Item 17

This provision amends s500G to prevent the expiry of the qualification of parenting-payment child (being a child born outside Australia) in a specific circumstance relating to international portability.

New section 1218C of the Bill provides for extension of a person's portability period in the exceptional circumstance listed in that section (eg serious illness, natural disaster, etc). This facility is available in relation to all payments; however, in the case of parenting payment it is clear that the ability to obtain an extension would be illusory if the qualification of the child in respect of whom the parenting payment was being paid should expire.

This section will automatically extend the qualification of a parenting payment child to the extent that the person receiving the parenting payment for the child obtains an extension of his or her portability period under new section 1218C.

Item 18

This item repeals and substitutes paragraph 540(d) (which relates to youth allowance) to remove a reference to Subdivision F (which required the person to be "in Australia", and which is repealed by item 20), and retain the requirement that a person be an Australian resident, in consistent manner with other payments under the Act.

Item 19

This item amends paragraph 541(1)(b) that relates to the activity test for youth allowance. This amendment will provide that, in order to satisfy the activity test a person must be looking for work "in Australia".

Item 20

This item repeals Subdivision F of Division 1 of Part 2.11, which contains the existing residency provision relating to youth allowance, and the requirement that the person be "in Australia".

The requirement that a person be "in Australia" is removed, while the requirement that a person be an Australian resident is retained - see item 18.

Item 21

This item repeals and substitutes paragraph 568(c) (which relates to austudy payment) to remove a reference to Subdivision D (which required the person to be "in Australia", and which is repealed by item 22), and retain the requirement that a person be an Australian resident, in consistent manner with other payments under the Act.

Item 22

This item repeals Subdivision D of Division 1 of Part 2.11A, which contains the existing residency provision relating to austudy payment, and the requirement that the person be "in Australia".

The requirement that a person be "in Australia" is removed, while the requirement that a person be an Australian resident is retained - see item 21.

Item 23

This item repeals subparagraph 593(1)(g)(iii), which relates to newstart allowance, and contains a requirement that a person be "in Australia".

Item 24

This item repeals a redundant note to paragraph 593(1)(g).

Item 25

This item correct a cross-reference in Note 13 to subsection 593(1) to ensure that the note correctly refers to the new provisions in Part 4.2. (See item 108).

Item 26

This item repeals subsection 593(1A) (which relates to newstart allowance). The effect of this amendment is to remove the "international portability" rules from the provisions relating to that payment and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 27

This item repeals subparagraph 593(1B)(b)(iii), which relates to newstart allowance, and which contains a requirement that a person be "in Australia".

Item 28

This item repeals a redundant note to paragraph 593(1B)(b).

Item 29

This item repeals subparagraph 593(2)(g)(iii), which relates to newstart allowance, and which contains a requirement that a person be "in Australia".

Item 30

This item correct a cross-reference in Note 10 to subsection 593(2) to ensure that the note correctly refers to the new provisions in Part 4.2.

Item 31

This item repeals subsection 593(3), which relates to newstart allowance and contains an exemption from the activity test for those members of the Reserve Forces who are attending a training course outside Australia. This provision has been transferred to the new "international portability" provisions in Part 4.2 (see item 108).

Item 32

This item amends subsection 601(1), which relates to the activity test for newstart allowance. This amendment will provide that, in order to satisfy the activity test a person must be looking for work "in Australia".

Item 33

This amendment removes a trailing "and", and is consequential upon the amendment made by item 34.

Item 34

This item repeals subparagraph 660XBA(1)(f), which relates to mature age allowance, and contains a requirement that a person be "in Australia".

Item 35

This item repeals subsection 660XBA(3) (which relates to mature age allowance). The effect of this amendment is to remove the "international portability" rules from the provisions relating to that payment and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 36

This item repeals section 660XBH, which provides that a person is not disqualified for mature age allowance if that person is a member of the Reserve Forces attending a training course outside Australia. This provision has been transferred to the new "international portability" provisions in Part 4.2 (see item 108).

Item 37

This amendment removes a trailing "and" from paragraph 660XBI(1)(b), and is consequential upon the amendment made by item 38.

Item 38

This item repeals paragraph 660XBI(1)(c), which relates to mature age partner allowance, and contains a requirement that a person be "in Australia".

Item 39

This item repeals subsection 660XBI(2) (which relates to mature age partner allowance). The effect of this amendment is to remove the "international portability" rules from the provisions relating to that payment and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 40

This item repeals a redundant note (Note 3) from subsection 660XBI(2).

Item 41

This item repeals section 660XBK, which provides that a person is not disqualified for mature age partner allowance if that person is a member of the Reserve Forces attending a training course outside Australia. This provision has been transferred to the new "international portability" provisions in Part 4.2 (see item 108).

Items 42 to 44 inclusive

These items repeal subsections 660YBA(8), (9) and (10) (which relate to mature age allowance - post 30 June 1996). The effect of these amendments is to remove the requirement that a person be "in Australia", and remove the "international portability" rules from the provisions relating to that payment and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 45

This item repeals section 660YBC, which provides that a person is not disqualified for mature age allowance (post-30 June 1996) if that person is a member of the Reserve Forces attending a training course outside Australia. This provision has been transferred to the new "international portability" provisions in Part 4.2. (See item 108).

Item 46

This amendment removes a trailing "and" from paragraph 666(1)(g), and is consequential upon the amendment made by item 47.

Item 47

This item repeals paragraph 666(1)(h), which relates to sickness allowance, and contains a requirement that a person be "in Australia".

Item 48

This amendment removes a trailing "and" from paragraph 667(4)(c), and is consequential upon the amendment made by item 49.

Item 49

This item repeals paragraph 667(4)(d), which relates to sickness allowance (persons undertaking a rehabilitation program), and contains a requirement that a person be "in Australia".

Item 50

This item repeals section 674 (which relates to sickness allowance). The effect of this amendment is to remove the "international portability" rules from the provisions relating to that payment and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 51

This amendment removes a trailing "and" from paragraph 729(2)(f), and is consequential upon the amendment made by item 52.

Item 52

This item repeals paragraph 729(2)(fa) which relates to special benefit, and contains a requirement that a person be "in Australia".

Item 53

This item repeals subsection 729(5) (which relates to special benefit). The effect of this amendment is to remove the "international portability" rules from the provisions relating to that payment and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 54

This item repeals and substitutes paragraph 771HA(1)(d) (in relation to partner allowance) to omit a requirement that a person be "in Australia".

Item 55

This item repeals a redundant note.

Item 56

This item repeals subsections 771HA(4) and (5), which relate to special benefit. The effect of this amendment is to remove the "international portability" rules from the provisions relating to that payment and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 57

Phasing out of special needs pensions

This item adds a new section 771PA to place a "sunset clause" on the grant of special needs pensions, which will no longer be granted after 20 September 2000. Persons currently receiving those pensions will not be affected by this amendment.

Item 58

This amendment removes a trailing "and" from paragraph 774(b), and is consequential upon the amendment made by item 59.

Item 59

This item repeals subsection 774(c), which relates to special needs wife pension. The effect of this amendment is to remove the "international portability" rules from the provisions relating to that payment and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 60

This amendment removes a trailing "and" from paragraph 778(g), and is consequential upon the amendment made by item 61.

Item 61

This item repeals paragraph 774(h) which relates to special needs widow B pension. The effect of this amendment is to remove the "international portability" rules from the provisions relating to that payment and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 62

This item repeals paragraph 953(1)(e), which relates to carer allowance, and which contains a reference to "in Australia".

Item 63

This item repeals paragraph 953(2)(e), which relates to carer allowance, and which contains a reference to "in Australia".

Item 64

This item repeals a redundant note in subsection 953(2) - Note 3.

Item 65

This item repeals paragraph 954(1)(e), which relates to carer allowance, and which contains a reference to "in Australia".

Item 66

This item repeals a redundant note in subsection 954(1) - Note 3.

Item 67

This item repeals and substitutes section 956 (which relates to carer allowance). The effect of this amendment is to remove the "international portability" rules from that provision and make it subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 68

This item amends subsection 957(1) (which relates to carer allowance) to remove the requirement that a person be "in Australia".

Item 69

This item amends paragraph 957(2)(c) (which relates to carer allowance) to remove the requirement that a person be "in Australia".

Item 70

This item amends subsection 957(2) (which relates to carer allowance) to remove the requirement that a person be "in Australia".

Item 71

This is a consequential amendment to subparagraph 999(1)(d)(ii) to include a reference to the new subsection 999(1A) inserted by item 72.

Item 72

This item inserts a new subsection 999(1A) into section 999 (which relates to double orphan pension). The effect of this amendment is to make that provision subject to the new centralised "international portability" rules in Part 4.2 (see item 108).

Item 73

This item amends subparagraph 1035(1)(a)(iv) (which relates to mobility allowance) to remove the requirement that a person be "in Australia".

Item 74

This item amends subparagraph 1035(1)(b)(iv) (which relates to mobility allowance) to remove the requirement that a person be "in Australia".

Item 75

This item amends subparagraph 1035(1)(ba)(v) (which relates to mobility allowance) to remove the requirement that a person be "in Australia".

Item 76

This item amends subparagraph 1035(1)(c)(iii) (which relates to mobility allowance) to remove the requirement that a person be "in Australia".

Item 77

This item amends subparagraph 1035(1)(ca)(iii) (which relates to mobility allowance) to remove the requirement that a person be "in Australia".

Item 78

This item amends subparagraph 1035(1)(d)(iii) (which relates to mobility allowance) to remove the requirement that a person be "in Australia".

Item 79

This item amends subsection 1061G(1) (which relates to advance pharmaceutical allowance) to remove the requirement that a person be "in Australia".

Item 80

This item amends paragraph 1061R(a) (which relates to telephone allowance) to remove the requirement that a person be "in Australia".

Item 81

This item amends point 1064-C1 - Module C of Pension Rate Calculator A (which applies to age, disability support, wife pensions and carer payments -people who are not blind). The effect of this amendment is to remove from Module C (pharmaceutical allowance) the requirement that a person be "in Australia".

Item 82

This item amends paragraph 1064-D1(e) - Module D of Pension Rate Calculator A (which applies to age, disability support, wife pensions and carer payments -people who are not blind). The effect of this amendment is to remove from Module D (rent assistance) the requirement that a person be "in Australia". At the same time, the amendment ensures that the rent, in relation to which rent assistance is paid, is paid on premises "in Australia".

Item 83

This item repeals point 1064-H4 - Module H of Pension Rate Calculator A (which applies to age, disability support, wife pensions and carer payments -people who are not blind). The effect of this amendment is to remove from Module H (remote area allowance) the requirement that a person be "in Australia".

Item 84

This item amends point 1065-C1 - Module C of Pension Rate Calculator B (which applies to age and disability support pension -people who are blind). The effect of this amendment is to remove from Module C (pharmaceutical allowance) the requirement that a person be "in Australia".

Item 85

This item repeals point 1065-E3 - Module E of Pension Rate Calculator B (which applies to age and disability support pension -people who are blind). The effect of this amendment is to remove from Module E (remote area allowance) the requirement that a person be "in Australia".

Item 86

This item amends point 1066-C1 - Module C of Pension Rate Calculator C (which applies to sole parent pension, bereavement allowance and widow B pension). The effect of this amendment is to remove from Module C (pharmaceutical allowance) the requirement that a person be "in Australia".

Item 87

This item repeals and substitutes point 1066-D1 - Module D of Pension Rate Calculator C (which applies to sole parent pension, bereavement allowance and widow B pension). The effect of this amendment is to remove from Module D (rent assistance) the requirement that a person be "in Australia". At the same time, the amendment ensures that the rent, in relation to which rent assistance is paid, is paid on premises "in Australia".

Item 88

This item repeals point 1066-H3 - Module H of Pension Rate Calculator C (which applies to sole parent pension, bereavement allowance and widow B pension). The effect of this amendment is to remove from Module H (remote area allowance) the requirement that a person be "in Australia".

Item 89

This item amends point 1066A-D1 - Module D of Pension Rate Calculator D (which applies to disability support pension (people under 21 who are not blind). The effect of this amendment is to remove from Module D (pharmaceutical allowance) the requirement that a person be "in Australia".

Item 90

This item repeals and substitutes point 1066A-EA2(g) - Module EA of Pension Rate Calculator D (which applies to disability support pension (people under 21 who are not blind). The effect of this amendment is to remove from Module EA (rent assistance - under 18) the requirement that a person be "in Australia". At the same time, the amendment ensures that the rent, in relation to which rent assistance is paid, is paid on premises "in Australia".

Item 91

This item repeals and substitutes point 1066A-EB2(h) - Module EB of Pension Rate Calculator D (which applies to disability support pension (people under 21 who are not blind). The effect of this amendment is to remove from Module EB (rent assistance - 18 and over) the requirement that a person be "in Australia". At the same time, the amendment ensures that the rent, in relation to which rent assistance is paid, is paid on premises "in Australia".

Item 92

This item repeals point 1066A-I3 - Module I of Pension Rate Calculator D (which applies to disability support pension (people under 21 who are not blind). The effect of this amendment is to remove from Module I (remote area allowance) the requirement that a person be "in Australia".

Item 93

This item amends point 1066B-D1 - Module D of Pension Rate Calculator E (which applies to disability support pension (people under 21 who are blind). The effect of this amendment is to remove from Module D (pharmaceutical allowance) the requirement that a person be "in Australia".

Item 94

This item repeals point 1066B-F3 - Module F of Pension Rate Calculator E (which applies to disability support pension (people under 21 who are blind). The effect of this amendment is to remove from Module F (remote area allowance) the requirement that a person be "in Australia".

Item 95

This item repeals point 1067G-C1 - Module C of the Youth Allowance Rate Calculator. The effect of this amendment is to remove from Module C (pharmaceutical allowance) the requirement that a person be "in Australia".

Item 96

This item repeals and substitutes paragraph 1067G-D1(f) - Module D of the Youth Allowance Rate Calculator. The effect of this amendment is to remove from Module D (rent assistance) the requirement that a person be "in Australia". At the same time, the amendment ensures that the rent, in relation to which rent assistance is paid, is paid on premises "in Australia".

Item 97

This item repeals point 1067G-K5 - Module K of the Youth Allowance Rate Calculator. The effect of this amendment is to remove from Module K (remote area allowance) the requirement that a person be "in Australia".

Item 98

This item repeals paragraph 1067L-C1(a) - Module C of the Austudy Payment Rate Calculator. The effect of this amendment is to remove from Module C (pharmaceutical allowance) the requirement that a person be "in Australia".

Item 99

This item repeals and substitutes paragraph 1067L-F5 - Module F of the Austudy Payment Rate Calculator. The effect of this amendment is to remove from Module F (remote area allowance) the requirement that a person be "in Australia".

Item 100

This item repeals paragraph 1068-D1(b) - Module D of Benefit Rate Calculator B (which applies to widow allowance, newstart allowance (18 or over ), sickness allowance (18 or over), partner allowance, and mature age allowance under Part 2.12B.

The effect of this amendment is to remove from Module D (pharmaceutical allowance) the requirement that a person be "in Australia".

Item 101

This item repeals and substitutes paragraph 1068-F1(d) - Module F of Benefit Rate Calculator B (which applies to widow allowance, newstart allowance (18 or over ), sickness allowance (18 or over), partner allowance, and mature age allowance under Part 2.12B.

The effect of this amendment is to remove from Module F (rent assistance) the requirement that a person be "in Australia". At the same time, the amendment ensures that the rent, in relation to which rent assistance is paid, is paid on premises "in Australia".

Item 102

This item repeals point 1068-J6 - Module J of Benefit Rate Calculator B (which applies to widow allowance, newstart allowance (18 or over ), sickness allowance (18 or over), partner allowance, and mature age allowance under Part 2.12B.

The effect of this amendment is to remove from Module J (remote area allowance) the requirement that a person be "in Australia".

Item 103

This item amends point 1068A-C1 - Module C of the Parenting Payment Rate Calculator (Single). The effect of this amendment is to remove from Module C (pharmaceutical allowance) the requirement that a person be "in Australia".

Item 104

This item repeals and substitutes paragraph 1068A-D1(e) - Module D of the Parenting Payment Rate Calculator (Single). The effect of this amendment is to remove from Module D (rent assistance) the requirement that a person be "in Australia". At the same time, the amendment ensures that the rent, in relation to which rent assistance is paid, is paid on premises "in Australia".

Item 105

This item repeals point 1068A-F3 - Module F of the Parenting Payment Rate Calculator (Single). The effect of this amendment is to remove from Module F (remote area allowance) the requirement that a person be "in Australia".

Item 106

This item repeals paragraph 1068B-E1(c) - Module E of the Parenting Payment Rate Calculator (Partnered). The effect of this amendment is to remove from Module E (pharmaceutical allowance) the requirement that a person be "in Australia".

Item 107

This item repeals paragraph 1068B-F1(f) - Module F of the Parenting Payment Rate Calculator (Partnered). The effect of this amendment is to remove from Module F (rent assistance) the requirement that a person be "in Australia". At the same time, the amendment ensures that the rent, in relation to which rent assistance is paid, is paid on premises "in Australia".

(Amendments to Part 4.2)

The ensuing items revise Part 4.2 - Overseas Portability to introduce the standardised "international portability" provisions.

Item 108

This item repeals and substitutes a new heading for Division 1 of Part 4.2 "Division 1- Preliminary".

Item 109

Item 109 repeals existing sections 1211, 1212 and 1213, and substitutes the following sections:

New section 1211 - Social Security (International Agreements) Act overrides Part

This section provides that, if the provisions of the Social Security (International Agreements) Act 1999 apply to a person, then Part 4.2 does not apply.

·
the Social Security (International Agreements) Act 1999 applies to persons from a country with which Australia has a relevant international social security agreement. Part 4.2 does not apply to such persons.

New section 1212 - Meaning of terms used in this Part

This section provides definitions for the purposes of the new provisions.

New section 1212A - Meaning of acute family crisis

This section provides a definition of acute family crisis . This is relevant to the Table in new section 1217 (items 12, 15, 18 and 19).

New section 1212B - Meaning of humanitarian purpose

This section provides a definition of humanitarian purpose . This is relevant to the Table in new section 1217 (items 12, 15 18 and 19).

New section 1212C- Meaning of temporary absence

This section provides a definition of temporary absence . This is relevant throughout the Table in new section 1217 (column 4 refers)

·
for this purpose, temporary absence is defined within the terms of subsection 7(3) of the Social Security Act 1991, which provides as follows;


7.(3) In deciding for the purposes of this Act whether or not a person is residing in Australia, regard must be had to:

(a)
the nature of the accommodation used by the person in Australia; and
(b)
the nature and extent of the family relationships the person has in Australia; and
(c)
the nature and extent of the person's employment, business or financial ties with Australia; and
(d)
the nature and extent of the person's assets located in Australia; and
(e)
the frequency and duration of the person's travel outside Australia; and
(f)
any other matter relevant to determining whether the person intends to remain permanently in Australia.

New section 1212D - Part does not affect need for qualification

This section emphasises, for the avoidance of doubt, that nothing in this Part overrides the qualification provisions.

Item 110

Item 110 repeals existing sections 1213A, which will become redundant after the amendments.

Item 111

Item 111 repeals existing sections 1215, 1216, 1216A, 1216B and 1217, and substitutes the following Part and sections:

New Division 2 - Portability of social security benefits

Subdivision A- Basic portability provisions

New section 1213 - Persons to whom Division applies

This section is an application provision which provides that the Division applies to a person who leaves Australia, and was receiving a social security payment before he or she left (or, before leaving, had made a claim for a payment which was subsequently granted).

New section 1214 - Some payments generally portable with no time limit

This section provides for unlimited portability in relation to some payments - as to which see new section 1217 (Column 5 in the Table in that Section).

New section 1215 - Some payments generally portable with time limit

This section provides that a person ceases to have a right to payment after the expiry of that person's portability period - as to which see new section 1217.

New section 1216 - Amounts added to the person's rate

This section provides that the social security "add-ons" - remote area allowance, rent assistance pharmaceutical allowance and (the almost defunct) incentive allowance - are not to be available at the end of the persons portability period, or 26 weeks, whichever is the earlier.

New section 1217 - Meaning of maximum portability period, allowable absence, and portability period

This section sets out the meaning of maximum portability period, allowable absence and portability period for the purposes of ascertaining the portability available to a customer. This is established by reference to Column 5 of the Table contained in that section, having regard to the payment that person is receiving (Column 2), any conditions which apply to the person (Column 3), any conditions relating to the absences which are allowed in relation to both those matters (Column 4).

·
in particular, in relation to severely disabled persons , it should be noted that subsection (5) provides that where the condition of a severely disabled person improves to the extent that the person becomes a disabled person (as to which, refer to items 2 and 3 in the Table), then for the purpose of establishing that person's portability period, the absence is taken to have commenced when the person ceased to be a severely disabled person (This is to protect the person from an otherwise harsh consequence, since in all other circumstances the portability period commences when the person left Australia).

Subdivision B- Exceptions to the Subdivision A rules

New section 1218 - Exception - full-time students outside Australia for purposes of Australian course

This section maintains an existing exception in the Social Security Act 1991, which allows for the continuation of a person's youth allowance or austudy payment where the person's overseas absence is for the purpose of undertaking studies that form part of the person's studies at an Australian educational institution.

·
subsection (3) maintains the existing rule in relation to full-time students, already in the Social Security Act 1991, that returns to Australia of less than 13 weeks do not affect the continuity of a break for the purposes of the Division.

New section 1218A - Exception - Reserve service

This section maintains an existing exception in the Social Security Act 1991, which allows for the continuation of a person's parenting payment, youth allowance, austudy payment, newstart allowance, mature age allowance or mature age partner allowance where the person's overseas absence is for the purpose of undertaking Reserve service.

New section 1218B - Exception - waiting period in Australia before parenting payment is portable

This section maintains an existing exception in the Social Security Act 1991, which prevents portability for a person's parenting payment until, having previously had parenting payment cease because of overseas absence, the person returns to Australia for a continuous period of not less than 26 weeks.

New section 1218C - Extension of person's portability period

This section provides a discretion for the Secretary to extend a person's portability period, where the person finds him or herself in any of the grievous circumstances listed in that section.

Item 112

This item repeals a redundant heading.

Item 113

This item repeals sections 1218, 1218A, 1218B, 1218C and 1219. The new provisions described above now overtake these sections.

Item 114

No portability based on short residence - extension to 2 years

At present, the Social Security Act 1991 provides that, where an Australian resident proceeds overseas and ceases to be a resident, then, when that person returns and commences to receive an age pension, disability support pension or a bereavement allowance, then that person must maintain residence for 12 months before portability becomes available.

This item will extend that requirement, from 12 months to 2 years.

This amendment only applies to new grants of the above payments made on or after 20 September 2000 (- see Item 126 - new item 129 in Schedule 1A).

Item 115

This amendment removes a trailing "and" from paragraph 1220(1)(e), and is consequential upon the amendment made by item 116.

Item 116

This item repeals paragraph 1220(1)(g), which contains a redundant reference to "in Australia".

Item 117

No portability based on short residence - extension to 2 years

This item complements the amendment made by item 114, operating in relation to the external territories.

Item 118

This amendment removes a trailing "and" from paragraph 1220(2)(e), and is consequential upon the amendment made by item 119.

Item 119

This item repeals paragraph 1220(2)(g), which contains a redundant reference to "in Australia".

Item 120

This item repeals subsection 1220(3), which was the Secretary's discretion not to apply the 12 months residence waiting period (see items 114 and 117). This discretion is not appropriate under the standardised portability rules.

Item 121

Working life residence proportionality to apply after 26 weeks

This item repeals and substitutes sections 1220A and 1220B, as follows:

New Section 1220A - Proportionality - age pension rate

At present, the Act provides for full overseas portability of age pension for up to 12 months after the person leaves Australia. After this time, the age pension continues to be portable, but at a reduced rate proportional to the person's working life residence. (This procedure appears in the Act in the pension portability rate calculator - section 1221).

As part of the standardisation process, new section 1220A will reduce the period of full portability to 26 weeks, after which the proportional working life residence rate will apply.

New Section 1220B - Proportionality - disability support pension rate for a severely disabled person

At present, the Act provides for full overseas portability of disability support pension (severely disabled person) for up to 12 months after the person leaves Australia. After this time, the disability support pension continues to be portable, but at a reduced rate proportional to the person's working life residence. (This procedure appears in the Act in the pension portability rate calculator - section 1221).

As part of the standardisation process, new section 1220B will reduce the period of full portability to 26 weeks, after which the proportional working life residence rate will apply.

Item 122

This item repeals subsections 1221(1), (2) and (3) and substitutes new subsections 1221(1) and (2), with a new section header as follows:

Section 1221 - Proportionality - wife pension and widow B pension rate for entitled persons

At present, the Act provides for full overseas portability for entitled persons in receipt of wife pension and widow B pension for up to 12 months after the person leaves Australia. After this time, the wife pension or widow B pension continues to be portable, but at a reduced rate proportional to the person's working life residence. (This procedure appears in the Act in the pension portability rate calculator - section 1221).

As part of the standardisation process, new subsections 1221(1) and (2) will reduce the period of full portability to 26 weeks, after which the proportional working life residence rate will apply.

Item 123

This item inserts a new point 1221-A2 the pension portability rate calculator, to correct an anomaly which in some circumstances could enable a person to receive more overseas than if the person were in Australia.

New point 1221-A2 will limit a person's entitlement in these circumstances to the amount that would apply if the person were still in Australia.

Item 124

This is a technical amendment consequential upon the amendments made by item 125.

Item 125

This item repeals redundant items in the pension portability rate calculator - section 1221.

Item 126 - Schedule 1A

This item inserts savings provisions in Schedule 1A

Schedule 1A

New Item 128

This item provides that the new portability rules contained in sections 1213A, 1215, 1216, 1220A, 1220B and 1221 do not apply to a person who is overseas at the commencement of the Act, until that person returns to Australia for a continuous period of more than 26 weeks.

New Item 129

This item provides that the amendments made to section1220 relating to " No portability based on short residence - extension to 2 years " (as to which see items 114 to 120 inclusive) only applies to new grants of the above payments made on or after 20 September 2000.

New Item 130

This item "saves" other provisions of the Act, in relation to persons who were absent from Australia on 20 September 2000, until such time as those persons return to Australia.

Part 2 - Pension bonus

As part of the Government's Tax Reform Package, pension rates are to be increased by 4% from 1 July 2000 to compensate for the effects of the GST. The 4% increase in pension rates takes the form of a pension supplement that is added to a person's maximum basic rate of pension. Amendments intended to achieve this objective were undertaken in the A New Tax System (Compensation Measures Legislation Amendment) Act 1999 (the Compensation Act).

Certain technical amendments were not undertaken by the Compensation Act. Those technical amendments are included in Part 2 and Part 3 of this Schedule. In respect of Part 2, those amendments ensure the 4% supplement is included in the calculation of a person's pension bonus.

Paragraph 93H(b) of the Social Security Act 1991 (the Social Security Act) is concerned with the calculation of a person's annual pension rate where the person is permanently blind. The annual pension rate is required for the purposes of working out the amount of a person's pension bonus. Item 101 amends paragraph 93H(b) to ensure that the 4% pension supplement is included as part of the calculation of the amount of pension bonus payable to a person who is permanently blind.

Section 93J of the Social Security Act is concerned with the amount of pension bonus that is payable to a person. One of the factors taken into account in calculating the amount of pension bonus payable to a person is their basic rate of pension at the time it is granted. Where a person's marital status has changed during the periods in which they accrued the bonus, the calculation of the amount of pension bonus payable is based on those proportions of the overall qualifying period that the person was single as well as a member of a couple. For example, a 5 year bonus payable to a single person who had been married for the first 3 years of accruing their bonus would be based on:


2/5 of the basic annual pension rate granted (single); and

3/5 of an annual notional partnered pension rate.

Subsection 93J(3) is relevant to the calculation of a person's annual notional single pension rate for the purposes of the pension bonus scheme. Subsection 93J(4) is relevant to the calculation of a person's annual notional partnered pension rate for the purposes of the pension bonus scheme. Items 102 and 103 respectively amend subsections 93J(3) and 93J(4) so that the 4% pension supplement is included in the calculation of the annual notional single pension rate and the annual notional partnered pension rate.

Part 3 - Retirement assistance for farmers

As part of the Government's Tax Reform Package, pension rates are to be increased by 4% from 1 July 2000 to compensate for the effects of the GST. The 4% increase in pension rates takes the form of a pension supplement that is added to a person's maximum basic rate of pension. Amendments intended to achieve this objective were undertaken in the A New Tax System (Compensation Measures Legislation Amendment) Act 1999 (the Compensation Act).

Certain technical amendments were not undertaken by the Compensation Act. Those technical amendments are included in Part 2 and Part 3 of this Schedule. In respect of Part 3, the amendments ensure the 4% supplement is included for the purposes of the retirement assistance for farmers scheme.

Paragraph 1185K of the Social Security Act is relevant to the operation of the farmer's income test for the purposes of the retirement assistance for farmers scheme (RAFS). One of the qualification criteria for RAFS is satisfaction of the farmer's income test. To be able to satisfy that test, a farmer's income over the three years preceding the transfer of the farm property must be less than the person's maximum basic entitlement for age pension for the same period. Item 104 amends subsection 1185K(4) to ensure that, when calculating a farmer's maximum basic entitlement, the 4% pension supplement is included as part of that calculation.

Part 4 - Claiming unclaimed overseas entitlements

At present, only persons from an a country with which Australia has a social security agreement are required to take reasonable steps to obtain a "comparable foreign payment" from that country.

These amendments, in conjunction with amendments to s66 of the Social Security (Administration) Act 1999 will extend that requirement to persons from all countries, with effect from 20 September 2000.

Amnesty

An amnesty is provided - see Item 133.

Item 131

This is a consequential amendment that repeals the definition of CFP country that will be redundant after these amendments.

Item 132

This is a consequential amendment to repeal section 38A (relating to CFP countries ) which will be redundant after these amendments.

Item 133

This item inserts a new item 132 into Schedule 1A, to give effect to the social security amnesty.

Schedule 1A

New Item 131 - Amnesty

In consideration that some persons may already be receiving a "comparable foreign payment" (ie a pension) which has not been disclosed to the Secretary, a social security amnesty period is established under these provisions (from 20 September 2000 to 19 January 2001) during which a person may disclose the existence of any previously undisclosed "comparable foreign payment" without incurring an overpayment in relation to any period before the disclosure to the Secretary.

Part 5 - Simplifying qualifying residence

This Part contains amendments simplifying the qualifying residence provisions.

Item 134

This item repeals a redundant definition - exempt resident .

·
Most categories of visa listed under "exempt resident" (437, 781, 783 & 784) are no longer issued, and the Department of Immigration and Multicultural Affairs advises that none of those granted are still valid.

Item 135

This item repeals a redundant definition - former exempt resident .

Item 136

This item makes a technical amendment to correct an incorrect cross-reference.

Item 137

This item repeals a redundant definition - special purpose visa , and is consequential upon Item 139.

Item 138

This item repeals a redundant reference - special purpose visa , and is consequential upon Item 139.

Item 139

This item removes the holder of a special purpose visa from the list of persons contained in the definition of Australian resident .

The Department of Immigration and Multicultural Affairs has advised that the inclusion of special purpose visa holders in the definition is not consistent with the provisions in the Migration Act and Migration Regulations. Under subsection 33(2) of the Migration Act, special purpose visas are temporary visas, taken to have been granted to:

(a)
non-citizens who have a prescribed status under migration regulation 2.40; or
(b)
non-citizens who the Minister declares in writing to have been granted a special purpose visa under paragraph 33(2)(b) of the Migration Act.

There is a significant difference between special purpose visa holders and the others included in the definition of "Australian resident" in the Social Security Act. Under migration regulation 2.40, special purpose visas allow people to come to Australia for very limited duration and for special purposes. Therefore no one can legitimately remain indefinitely in Australia on his or her special purpose visa.

Item 140

This item repeals subsection 7(4A), which is redundant.

This section provides that for the purposes of wife pension and carer payment, residence of a claimant in an external Territory is taken not to interrupt the continuity of residence of the claimant in Australia. However, as continuous residence is not a qualification criterion for either of these payments this section is inoperative.

Item 141

References to Visas

At present the Act refers to certain visa holders by listing in the Act the type of visa held by that person. The Act contains a provision to enable the Minister to make a determination adding further classes of visa to this list. However, this approach has its drawbacks, as it requires the casual reader to consult both the Act and any published determinations, and it requires the legislation to be periodically updated (as listed classes of visa become defunct, etc).

To avoid this, this item will amend subsection 7(6AA) so that in the future the list of visas will be contained solely in a determination made by the Minister.

For the avoidance of doubt, it is intended that the first determination made will include those visas which are presently listed in subsection 7(6AA) (unless they become defunct in the interim). These visas are:

s7(6AA)


"(a) a subclass 820 visa-Extended eligibility (spouse);

(c) a subclass 826 visa-Interdependency,

(d) a subclass 832 visa-Close ties;

(e) a subclass 833 visa-Certain unlawful citizens"

·
similar amendments are made in subsequent items in this Schedule to other provisions in the Act containing "lists" of visas
·
a determination made by the Minister is a disallowable instrument (see item145).

Item 142

This item repeals subsection 7(6A), which relates to a qualifying residence exemption for special benefit

Subsection 7(6A) gives a qualifying residence exemption for special benefit to a person who is an exempt resident, a former exempt resident or a family member of an exempt resident at the time that person arrived in Australia.

Subsection 7(6A) (and, indeed, the whole concept of an exempt resident) is now redundant. Most categories of visa listed under "exempt resident" (437, 781, 783 and 784) are no longer issued.

·
consequential amendments are also made to the following provisions:
subsection 7(6C) - Item 143
section 25A,
paragraph 729(2)(f)(ii) and Note 2.
paragraph 739A(6)(a).

In addition consequential amendments are made to remove references to exempt resident from subsection 5BA of the Health Insurance Act 1973, 5BA(4)(iv), 5BA(4)(v) and 5BA(4)(vi) - as to which see Schedule 6 of this Act.

Item 143

This item repeals subsection 7(6C), and is associated with the amendment made by Item 142.

Item 144

This amendment is consequential upon the amendment made by Item 142.

Item 145

This item provides that a determination made by the Minister under paragraph 7(6AA)(f) is a disallowable instrument - as to which see item 141.

Item 146

This item repeals a redundant definition - inhabitant of Australia in subsection 23(1).

The term is no longer used in the Act.

Item 147

This item repeals section 25A, and is associated with the amendment made by Item 142.

Item 148

This item repeals subsection 23(13) that is redundant following the repeal of the term inhabitant of Australia - as to which see item 146.

Item 149

Section 201AA describes those people who are subject to a newly arrived resident's waiting period for carer payment, and those people to whom the waiting period does not apply.

At present there is no provision to allow the Minister to determine the holders of other types of visa as being exempt from the waiting period for carer payment.

This amendment will insert new subsection 201AA(5) to that effect.

Item 150

Section 315 describes the qualifications for bereavement allowance. Specifically, paragraph (d) contains the various options for meeting the residence requirements for the payment.

The residence requirements for bereavement allowance are different from, and in some ways more stringent than, the comparable provisions for age pension. Subparagraphs (ii) and (iii) provide for five continuous years as an Australian resident immediately before the claim, or 10 continuous years as an Australian resident at any time. The five years option is related to the old sole parent pension and widow B pension provisions but, as those payments are no longer granted, there is no need to keep that link (parenting payment qualification is based on a period of, or periods totalling, 104 weeks).

Since widow B Pension is not granted any longer and sole parent pension was replaced by parenting payment (single) with a 104 week qualifying residence requirement it is logical to align subparagraph 315(1)(d) (ii) with a 104 week period.

This amendment will amend that provision accordingly.

Item 151

Subparagraph 315(1)(d)(iii) is redundant following the amendment made by item 150, and is therefore repealed.

Item 152

This item amends section 408BA, which relates to the qualifications for widow allowance.

At present paragraph 408BA(2)(d) contains the various options for meeting the residence requirements for the payment.

One of the criteria (subparagraph 408BA(2)(d) (ii)) for meeting the residence requirements for widow allowance is that the person has, at any time, been an Australian resident for a continuous period of at least 10 years. This is more stringent than the requirement for age pension, as it does not allow for a situation where the person has more than 10 years' residence, made up of shorter periods.

This amendment will align the residence qualification in subparagraph 408BA(2)(d) (ii) with those for age pension by providing for qualification after 10 years "qualifying Australian residence".

Item 153

This item repeals a redundant provision - s.660YCFA(3)

·
This is one of a range of redundant provisions repealed in this Schedule; - mature age allowance (s.660YCFA(3) and s.660YCFB(2)) and partner allowance (s.771HNB(2)).
·
These provisions have ceased to be operative since, if the persons covered by those provisions stayed in Australia they would have been granted permanent visa and either (or both) have already served a newly arrived resident's waiting period (s.660YCFA(4)(b) or s.771HNA(4)(b)) or have held a permanent visa last time they left Australia (s.660YCFA(4)(c) or s.771HNA(4)(c)). If those persons left Australia without getting permanent residence, and returned at some future date, then the newly arrived resident's waiting period would apply.

Item 154

This item repeals a redundant provision - s660YCFB(2) - see item 153.

Item 155

This item makes a consequential amendment to subsection 660YCFB(3) following the repeal of a redundant provision - see items 153 and 154.

Item 156

References to Visas

This item will amend paragraph 729(2)(f) to omit references to specific visas. In the future, the list of visas will be contained solely in a determination made by the Minister.

For the avoidance of doubt, it is intended that the first determination made will include those visas that are presently listed in paragraph 729(2)(f) (unless they become defunct in the interim). These visas are:

paragraph 729(2)(f):

(iii)
a subclass 820 visa-Extended eligibility (spouse);
(iv)
a subclass 826 visa-Interdependency;

·
this amendment is similar to that made by item 141.

Item 157

This item repeals the redundant note 2 to subsection 729(2).

Item 158

References to Visas

This item will amend subsection 739A(1) to omit references to specific visas. In the future, the list of visas will be contained solely in a determination made by the Minister under new paragraph 739(1)(e).

For the avoidance of doubt, it is intended that the first determination made will include those visas that are presently listed in subsection 739A(1) (unless they become defunct in the interim). These visas are:

subsection 739A(1):

(c)
a subclass 820 visa-Extended eligibility (spouse);
(d)
a subclass 826 visa-Interdependency;

·
this amendment is similar to that made by item 141.
·
a determination made under this provision is a disallowable instrument - see item 163.

Item 159

References to Visas

This item will amend subsection 739A(2) to omit references to specific visas. In the future, the list of visas will be contained solely in a determination made by the Minister.

For the avoidance of doubt, it is intended that the first determination made will include those visas that are presently listed in subsection 739A(2) (unless they become defunct in the interim). These visas are:

subsection 739A(2):

(c)
a subclass 820 visa-Extended eligibility (spouse);
(d)
a subclass 826 visa-Interdependency;

·
this amendment is similar to that made by item 141.
·
a determination made under this provision is a disallowable instrument - see item 163.

Item 160

References to Visas

This item will amend paragraph 739A(3)(b) to omit references to specific visas. In the future, the list of visas will be contained solely in a determination made by the Minister.

For the avoidance of doubt, it is intended that the first determination made will include those visas that are presently listed in paragraph 739A(3)(b) (unless they become defunct in the interim). These visas are:

paragraph 739A(3)(b):

(c)
a subclass 820 visa-Extended eligibility (spouse);
(d)
a subclass 826 visa-Interdependency;

·
this amendment is similar to that made by item 141.
·
a determination made under this provision is a disallowable instrument - see item 163.

Item 161

References to Visas

This item will amend paragraph 739A(4)(b) to omit references to specific visas. In the future, the list of visas will be contained solely in a determination made by the Minister.

For the avoidance of doubt, it is intended that the first determination made will include those visas that are presently listed in paragraph 739A(4)(b) (unless they become defunct in the interim). These visas are:

paragraph 739A(4)(b):

(c)
a subclass 820 visa-Extended eligibility (spouse);
(d)
a subclass 826 visa-Interdependency;

·
this amendment is similar to that made by item 141.
·
a determination made under this provision is a disallowable instrument - see item 163.

Item 162

References to Visas

This item will amend subsection 739A(6) to omit references to specific visas. In the future, the list of visas will be contained solely in a determination made by the Minister.

For the avoidance of doubt, it is intended that the first determination made will include those visas that are presently listed in subsection 739A(6) (unless they become defunct in the interim). These visas are:

subsection 739A(6):

(c)
a subclass 820 visa-Extended eligibility (spouse);
(d)
a subclass 826 visa-Interdependency;

·
this amendment is similar to that made by item 141.
·
a determination made under this provision is a disallowable instrument - see item 163.

Item 163

This item amends section 739A to provide that determinations made under paragraph 739A(1)(e), subsection 739A(2), paragraph 739A(3)(b), paragraph 739A(4)(b) or subsection 739A(6) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

Item 164

This item repeals redundant provisions in section 771HNA and 771HNB - see item 153.

Item 165

This item makes a consequential amendment to subsection 771HNB(3) following the repeal of a redundant provision - see item 153 and 164.

Schedule 2 - Amendment of the Social Security (Administration) Act 1999

Part 1 - Tax file numbers

1. Summary of proposed changes

These amendments to the Social Security (Administration) Act 1999 (the Administration Act), combined with the amendments contained in Schedules 4 and 5, authorise the use of tax file numbers (TFNs) as the primary matching key for data-matching purposes.

2. Background

With the exception of data matching against tax returns conducted under the Data-Matching Program, TFNs cannot be used in Centrelink/Australian Tax Office data matching for compliance purposes. The Australian Tax Office (ATO) currently provides Centrelink with Employment Declaration Form, Prescribed Payment System and Reportable Payment System data on a regular basis, with matching being carried out using identity data (eg name, date of birth etc). There are difficulties in identifying customers who inadvertently or deliberately provide different personal details to the ATO and Centrelink. This measure provides for TFNs to be used as the primary matching key.

3. Explanation of the changes

Item 1 of Schedule 2 inserts new section 204A into the Administration Act. Combined with the amendments made by Schedules 4 and 5, the effect of the amendment is to allow TFNs to be used as the primary matching key for data matching purposes with the objective of strengthening compliance with the social security law.

New subsection 204A(1) provides that the Secretary may require the Commissioner of Taxation to provide the Secretary with information about persons, including tax file numbers. The information that the Secretary can seek under this provision is limited to information contained in TFN declarations.

New subsection 204A(2) limits the purposes for which the information provided pursuant to subsection (1) may be used. The purposes are limited to ensuring that social security payments are made only to those persons who are entitled to receive them and to ensuring that the rate at which payments are made is correct.

Part 2 - Claiming unclaimed overseas entitlements

At present, only persons from an a country with which Australia has a social security agreement are required to take reasonable steps to obtain a "comparable foreign payment" from that country.

These amendments, in conjunction with amendments to the Social Security Act 1991 will extend that requirement to persons from all countries, with effect from 20 September 2000.

Amnesty

An amnesty is provided - see Item 133 in Part 4 of Schedule 1.

Item 2

Section 66 presently provides that persons may be required to seek a comparable foreign payment from a CFP country (being a country with which Australia has a social security agreement.

This item (and item 3) will amend section 66 to require that a person may be required to seek a comparable foreign payment from any foreign country.

Item 3

This item makes a similar amendment to Item 2.

Item 4

Limitation in s82 Social Security (International Agreements) Act 1999 - Power to suspend

Section 82 provides for "cancellations" of a payment for failure to comply with certain provisions. In contrast, other similar provisions relate to "cancellations or suspensions". This limitation has the potential to quite onerous consequences as, once cancelled, a person must return to Australia to lodge a fresh claim.

To avoid this outcome, this item will amend section 82 to provide for "cancellations or suspensions".

Part 3 - Beneficiaries leaving Australia

The amendments in this Part are consequential upon the amendments made to the Social Security Act 1991 by Part 1 of Schedule 1.

Item 5

This item is a consequential amendment to repeal subsection 109(6). This subsection relates to section 1218 of the Social Security Act 1991, which is repealed by item 113 of Schedule 1.

Item 6

This item is a consequential amendment to repeal subsection 118(10). This subsection relates to section 1218 of the Social Security Act 1991, which is repealed by item 113 of Schedule 1.

Item 7

This is a consequential amendment to subsection 135(1), as a result of the amendment made by item 8.

Item 8

This item is a consequential amendment to repeal subsection 135(4). This subsection relates to section 1218A of the Social Security Act 1991, which is repealed by item 113 of Schedule 1.

Item 9

This item is a consequential amendment to repeal paragraph 144(q). This paragraph relates to section 1218A of the Social Security Act 1991, which is repealed by item 113 of Schedule 1.

Item 10

This item is a consequential amendment to repeal paragraph 151(2)(f). This paragraph relates to section 1218A of the Social Security Act 1991, which is repealed by item 113 of Schedule 1.

Item 11

This item is a consequential amendment to repeal section 190. This section relates to section 1218A of the Social Security Act 1991, which is repealed by item 113 of Schedule 1.

Item 12

This item is a consequential amendment to amend subsection 234(3). This paragraph which is omitted by this amendment relates to section 1218A of the Social Security Act 1991, which is repealed by item 113 of Schedule 1.

Item 13

This item is a consequential amendment to amend subsection 234(4). This words omitted by this amendment relate to section 1218A of the Social Security Act 1991, which is repealed by item 113 of Schedule 1.

Item 14

This is a savings provision to ensure that proceedings which are on foot at the time the amendments in items 5 to 13 come into operation, and which are founded in the provisions affected by those amendments, are preserved.

Schedule 3 - Amendments of the Veterans' Entitlements Act 1986

1. Summary of proposed changes

In the 1999-2000 Budget the Department of Family and Community Services (FaCS) simplified and standardised the rules for the payment of social security benefits outside Australia. To maintain parity between the two portfolios in relation to income support payments the Department of Veterans' Affairs adopted relevant elements of the (FaCS) measure. This involved changes to the administration of the following ancillary allowances:

·
rent assistance;
·
telephone allowance;
·
pharmaceutical allowance; and
·
remote area allowance.

The changes will enable rent assistance, telephone allowance and pharmaceutical allowance to be paid to a person for a maximum of 26 weeks if the person is overseas temporarily. If the person is absent for less than 26 weeks, then they may continue to be paid the allowance, subject to the person continuing to meet all other eligibility criteria for the allowance, for the period of the absence. If the absence is for more than 26 weeks, but is still of a temporary nature, the allowances may be paid for the first 26 weeks of the absence, again subject to the person continuing to meet all other eligibility criteria for the allowance.

These changes limit the payment of pharmaceutical allowance for temporary absences to a maximum of 26 weeks. Unlike rent assistance, telephone allowance and remote area allowance which all ceased from the day after departure from Australia, pharmaceutical allowance was previously payable for up to 12 months, whilst a person was overseas. Pharmaceutical allowance was payable until the 1 January after the person left Australia. Accordingly, if a person left Australia on 3 February 1999 they would receive pharmaceutical allowance until 31 December 1999. The person's pharmaceutical allowance would cease on 1 January 2000. If the person left on 15 November 1999, they would receive pharmaceutical allowance until 31 December 1999. This practice had been in contrast to that employed at FaCS where pharmaceutical allowance ceased from the day after the person left Australia. This measure will align FaCS and DVA pensioners with both now being able to receive pharmaceutical allowance for up to 26 weeks for a temporary absence from Australia. For permanent departures from Australia, pharmaceutical allowance will cease from the day after departure.

In relation to remote area allowance, the temporary absence is limited to 8 weeks, the same as is currently applicable for a temporary absence for those who remain within Australia. As remote area allowance is paid to assist with the high cost of living in remote areas, it would generally be inappropriate to continue to pay the allowance for extended absences, when the additional expenses are not being incurred. If the person is absent for less than 8 weeks, then they may continue to be paid the allowance, subject to their continuing to meet all other eligibility criteria for the allowance, for the period of the absence. If the absence is for more than 8 weeks, but is still of a temporary nature, the allowances may be paid for the first 8 weeks of the absence, subject to the person continuing to meet all other eligibility criteria for the allowance.

No changes have been made to the payment of rent assistance, telephone allowance and remote area allowance where a person leaves Australia permanently. In these cases the allowance ceases from the day after departure.

2. Background

Currently, both service pension and income support supplement (ISS) are payable to pensioners living overseas. However to receive either payment, the person must have been an Australian resident and in Australia on the day they lodged the claim for the payment. In addition, Commonwealth veterans, allied veterans and allied mariners must have been an Australian resident for at least 10 years prior to their claim, unless they were a refugee. Rent assistance, telephone allowance and remote area allowance were not previously payable whilst a pensioner was overseas.

3. Explanation of the changes - Schedule 3

Items 1 to 6 amend the definition of rent in paragraph 5N(2)(a). The amendments make it clear that the person's residence, for which they are paying rent and may receive rent allowance, must be in Australia. Rent assistance is not available for residences outside Australia.

Item 7 inserts into the general definitions in subsection 5Q(1), a definition for the term temporarily , in relation to a departure or absence from Australia.

Item 8 repeals and replaces subsection 5Q(3) and inserts a new subsection in to section 5Q.

By repealing current subsection 5Q(3), a person will be able to be temporarily absent from Australia for up to 8 weeks and continue to receive remote area allowance. If the person is absent for less than 8 weeks, then Remote Area Allowance may continue to be paid, subject to the person continuing to meet all other eligibility criteria for the allowance, for the period of the absence. If the absence is for more than 8 weeks, but is still of a temporary nature, the allowance may be paid for the first 8 weeks of the absence, subject to the person continuing to meet all other eligibility criteria for the allowance.

New subsection 5Q(3) provides that when determining whether a person has left Australia temporarily or permanently, the following factors need to be considered:

·
the purpose for leaving Australia;
·
the intended length of the absence; and
·
how often the person leaves Australia.

New subsection 5Q(4) provides that when determining whether a person is absent from Australia temporarily or permanently, the following factors must be considered:

·
the purpose of the absence;
·
the intended length of the absence; and
·
the frequency of such absences.

Item 9 amends paragraph 5R(12)(c) by omitting the words "(but still in Australia)". Subsection 5R(12) enables the Commission to make a determination to pay a person remote area allowance for an absence of more than 8 weeks, where the person has an FP child. This item amends the provision so that it is no longer limited to those people who are absent from the remote area but are still within Australia. A person who is absent from the remote area because they have travelled overseas temporarily may now be the subject of a determination under subsection 5R(12).

Item 10 repeals the current note and substitutes two new notes. The first note advises the reader that:

·
rent assistance is not payable to a person who leaves Australia permanently; and
·
a person who is temporarily absent from Australia, may receive rent assistance for the duration of the temporary absence where the temporary absence is less than 26 weeks, or if the temporary absence is more than 26 weeks, then for the first 26 weeks of the absence.

The second note alerts the reader to the different circumstances that may apply to a person in regard to payment of pharmaceutical allowance, depending on whether the person left Australia before or after 20 September 2000. If the person leaves Australia before 20 September 2000 then the previous provisions of the VEA apply in relation to payment of pharmaceutical allowance overseas. If the person leaves Australia on or after 20 September 2000 then the provisions in this Bill apply.

Item 11 amends subsection 118A(1) so that it reflects the insertion of new subsection 118(2A) that must be considered when determining a person's eligibility for pharmaceutical allowance.

Item 12 repeals subsection 118A(2) and substitutes two new subsections.

New subsection 118A(2) provides that a person who leaves Australia permanently is not eligible for pharmaceutical allowance from the day after the person leaves Australia.

New subsection 118A(2A) provides that a person who is temporarily absent from Australia, may receive pharmaceutical allowance for the duration of the temporary absence if the temporary absence is less than 26 weeks, or if the temporary absence is more than 26 weeks, for the first 26 weeks of the absence.

Item 13 repeals subsection 118A(4) as it is no longer relevant.

Item 14 inserts two new subsections after subsection 118Q(3).

New subsection 118Q(3A) provides that a person who leaves Australia permanently is not eligible for telephone allowance from the telephone allowance payday after the person leaves Australia.

Telephone allowance is paid quarterly so if a person leaves Australia permanently, their telephone allowance will be cancelled only from the first telephone allowance payday that occurs after they have left Australia.

New subsection 118Q(3B) provides that a person who is temporarily absent from Australia, may receive telephone allowance for the duration of the temporary absence if the temporary absence is less than 26 weeks. If the temporary absence is for more than 26 weeks, then the person may not receive an instalment of telephone allowance for any telephone allowance payday that falls after the first 26 weeks of the absence.

Item 15 amends paragraph SCH6-C3(e) so that it provides that a person who is temporarily absent from Australia, may receive rent assistance for the duration of the temporary absence if the temporary absence is less than 26 weeks, or if the temporary absence is more than 26 weeks, for the first 26 weeks of the absence.

Item 16 amends point SCH6-D2 of the Rate Calculator so that pharmaceutical allowance is not payable if a person is not eligible to receive it because:

·
the person has left Australia permanently, as provided for by new subsection 118A(2); or
·
the person has been temporarily absent from Australia for more than 26 weeks, as provided for by new subsection 118A(2A).

Item 17 repeals point SCH6-G3 and substitutes two new subpoints SCH6-G3(1) and (2).

New subpoint SCH6-G3(1) provides that additional remote area allowance is not payable for an FA child who leaves Australia permanently from the day after the FA child leaves Australia.

New subpoint SCH6-G3(2) provides that additional remote area allowance is payable for an FA child who is temporarily absent from Australia for the duration of the temporary absence if the temporary absence is less than 8 weeks, or if the temporary absence is more than 8 weeks, for the first 8 weeks of the absence.

Item 18 provides that the amendments to the VEA contained in Schedule 3 apply only to people who leave Australia on or after 20 September 2000. For persons who leave Australia before 20 September 2000 the previous provisions apply.

4. Commencement

Subitem 2 provides that this Schedule commences or is taken to have commenced on 20 September 2000.

Schedule 4 - Amendment of the Income Tax Assessment Act 1936

1. Summary of proposed changes

The amendments made by this Schedule to the Income Tax Assessment Act 1936 (the Tax Assessment Act), combined with the amendments contained in Schedules 2 and 5, authorise the use of tax file numbers (TFNs) as the primary matching key for data-matching purposes.

2. Background

With the exception of data matching against tax returns conducted under the Data-Matching Program, TFNs cannot be used in Centrelink/Australian Tax Office data matching for compliance purposes. The Australian Tax Office (ATO) currently provides Centrelink with Employment Declaration Form, Prescribed Payment System and Reportable Payment System data on a regular basis, with matching being carried out using identity data (eg name, date of birth etc). There are difficulties in identifying customers who inadvertently or deliberately provide different personal details to the ATO and Centrelink. This measure provides for TFNs to be used as the primary matching key.

Section 202 of the Tax Assessment Act deals with the objects sought to be achieved by the establishment of the tax file number system.

3. Explanation of the changes

Item 1 of Schedule 4 amends section 202 of the Tax Assessment Act to provide that one of the objects of the establishment of the TFN system is the facilitation of the administration of section 204A of the Administration Act. In combination with the amendment contained in Schedule 5, the effect of that change is that, where TFNs are used pursuant to section 204A of the Social Security (Administration) Act 1999, that use is lawful.

Schedule 5 - Amendment of the Taxation Administration Act 1953

1. Summary of proposed changes

The amendments made by this Schedule to the Taxation Administration Act 1953 (the Tax Administration Act), combined with the amendments contained in Schedules 2 and 4, authorise the use of tax file numbers (TFNs) as the primary matching key for data-matching purposes.

2. Background

With the exception of data matching against tax returns conducted under the Data-Matching Program, TFNs cannot be used in Centrelink/Australian Tax Office data matching for compliance purposes. The Australian Tax Office (ATO) currently provides Centrelink with Employment Declaration Form, Prescribed Payment System and Reportable Payment System data on a regular basis, with matching being carried out using identity data (eg name, date of birth etc). There are difficulties in identifying customers who inadvertently or deliberately provide different personal details to the ATO and Centrelink. This measure provides for TFNs to be used as the primary matching key.

Section 8WB of the Tax Administration Act provides the circumstances in which the recording, use or disclosure of another person's tax file number is taken to be lawful.

3. Explanation of the changes

Item 1 of Schedule 5 amends section 8WB of the Tax Administration Act to provide that the use, recording or disclosure of another person's TFN is lawful where that use, recording or disclosure occurs pursuant to section 204A of the Social Security (Administration) Act 1999.

Schedule 6 - Amendment of the Health Insurance Act 1973

This Schedule amends section 5BA of the Health Insurance Act 1973 to make consequential amendments following the repeal of the definitions of exempt resident and former exempt resident from subsection 7(1) of the Social Security Act 1991, and substitute a reference to "a person who has a qualifying residence exemption" which is the term now used in the Social Security Act 1991 (see Schedule 1, Part 5, items 134 and 135).

Section 5BA of the Health Insurance Act 1973 currently provides as follows:


"...........

(4)
For the purposes of subsection (2), a person has a qualifying disadvantaged low income residence exemption if, and only if, the person:

(a)
resides in Australia; and
(b)
is:

(i)
a refugee; or
(ii)
a former refugee; or
(iii)
a family member of the refugee, or former refugee, at the time the refugee or former refugee arrived in Australia; or
(iv)
an exempt resident; or
(v)
a former exempt resident; or
(vi)
a family member of the exempt resident, or former exempt resident, at the time the exempt resident or former exempt resident arrived in Australia.


............."

·
A person who is a "disadvantaged person" under the Health Insurance Act 1973 becomes entitled to certain concessions under that Act.

Item 1

This item repeals and substitutes subparagraphs 5BA(4)(b)(iv) (v) and (vi), which refer to the definitions of exempt resident and former exempt resident in the Social Security Act 1991, and which have been repealed by items 134 and 135 of Part 5 in Schedule 1.

Schedule 7 - Amendment of the Social Security (Administration and International Agreements)(Consequential Amendments) Act 1999

This Schedule contains technical amendments to correct two renumbering errors, caused by the confluence of the Further 1998 Budget Measures Legislation (Social Security) Act 1999 and the Social Security (Administration and International Agreements)(Consequential Amendments) Act 1999 which passed the Parliament in November 1999 and December 1999 respectively.

Items 1 and 2 of the Schedule will correct the renumbering errors.

Schedule 8 - Amendment of the A New Tax System (Family Assistance) Act 1999

This Schedule makes consequential amendments as a result of the international portability provisions of the Social Security Act 1991 made by Schedule 1, to ensure consistent portability arrangements apply in relation to non-residents.

(These amendments are expressed to be made subsequent to the amendments made by the A New Tax System (Family Assistance and Related Measures) Bill 2000 - subclause 2(8) of the Bill).

Family tax benefit

Item 1

This item repeals and substitutes a new subparagraph 21(1)(b)(ii) to take account of the new subsection 21(1A) inserted by item 2.

Item 2

This item inserts new subsection 21(1A) to ensure that, in the case of a non-resident who is a "visa-holder", that non-resident is afforded the same portability options in relation to family tax benefit that are provided under the standardised portability provisions in the Social Security Act 1991 (as to which see Schedule 1).

Child care benefit

Items 3, 5 and 7

This item repeals and substitutes new subparagraphs 42(1)(b)(ii), 44(1)(d)(ii) and 45(1)(f)(ii) to take account of the new subsections 42(1A), 44(1A) and 45(1A) inserted by items 4, 6 and 8 respectively.

Items 4, 6 and 8

This item inserts new subsections 42(1A), 44(1A) and 45(1A) to ensure that, in the case of a non-resident who is a "visa-holder", that non-resident is afforded the same portability options in relation to child care benefit that are provided under the standardised portability provisions in the Social Security Act 1991 (as to which see Schedule 1).

Item 9

This item inserts a new section 63A, as follows:

New section 63A

This section provides a discretion for the Secretary to extend a person's portability period, where the person finds him or herself in any of the grievous circumstances listed in that section.

·
this provision is cast in the same terms as new section 1218C of the Social Security Act 1991, inserted by item 111 of Schedule 1.

Schedule 9 - Amendment of the Social Security (International Agreements) Act 1999

Item 1

This item amends section 13 to correct an anomaly which in some circumstances could enable a person to receive more overseas than if the person were in Australia.

The amendment will limit a person's entitlement in these circumstances to the amount that would apply if the person were still in Australia.

·
this amendment is in similar terms to the amendment made by item 123 of Schedule 1, in relation to section 1221 of the Social Security Act 1991 (Pension portability rate calculator).

Schedule 10 - Amendment of the Further 1998 Budget Measures Legislation (Social Security) Act 1999

This Schedule contains technical amendments to correct renumbering errors, caused by the confluence of the Further 1998 Budget Measures Legislation (Social Security) Act 1999 and the Social Security (Administration and International Agreements)(Consequential Amendments) Act 1999 which passed the Parliament in November 1999 and December 1999 respectively.

Items 1 to 8 inclusive of the Schedule will correct the renumbering errors.


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).