Explanatory Memorandum
(Circulated by authority of the Minister for Family and Community Services, Senator the Honourable Jocelyn Newman)Schedule 4 - Youth allowance and austudy payment
1. Summary of proposed changes
This Schedule amends the Social Security Act 1991 (the Social Security Act) to address certain technical issues identified during the implementation of the youth allowance package.
2. Background
The technical amendments made by this Schedule generally make minor drafting clarifications and technical refinements to ensure that the youth allowance package operates in line with the original policy intentions, including the alignment where appropriate with the pre-existing AUSTUDY provisions.
3. Clauses and Schedule involved in the changes
| Clause 2: | provides the commencement rules for this Schedule. |
| Clause 3: | provides that each Act that is specified in this Schedule is amended as set out in the Schedule. |
| Schedule 4 - Youth allowance and austudy payment | |
| Part 1 - Amendments commencing on Royal Assent | |
| Item 1: | repeals paragraphs 551C(1)(c) and (d) and substitutes new paragraphs. |
| Item 2: | amends paragraph 552(b). |
| Item 3: | inserts a new paragraph 552A(1)(aa). |
| Items 4 and 5: | repeal subsections 561B(1) and 561C(1) and substitute new subsections. |
| Item 6: | inserts a new Subdivision EA in Division 9 of Part 2.11 relating to youth allowance. |
| Item 7: | amends paragraph 569D(4)(a). |
| Item 8: | inserts a new subsection 569H(6A). |
| Items 9 and 10: | repeal the table and notes in each of points 1066A-B1 and 1066B-B1 and substitute a new table and notes in each case. |
| Items 11 and 12: | amend subsection 1067A(10). |
| Items 13 and 14: | repeal paragraphs 1067F(1)(b) and (2)(b) respectively. |
| Item 15: | inserts a new paragraph 1067G-B4(d). |
| Item 16: | repeals the table in point 1067G-B4 and substitutes a new table. |
| Items 17 and 18: | repeal paragraphs 1067K(1)(a) and (2)(a) respectively. |
| Item 19: | repeals points 1067L-B2 and -B3 and substitutes new points. |
| Items 20 and 21: | amend point 1069-F2 to add a new subpoint (4). |
| Item 22: | amends paragraph 1069-H30(c). |
| Item 23: | amends paragraph 1123(2)(a). |
| Item 24: | inserts new sections 1126A and 1126B. |
| Item 25: | repeals section 1127 and substitutes a new section. |
| Item 26: | repeals section 1128. |
| Items 27 and 28: | repeal sections 1198A and 1198B and substitute a new section 1198B. |
| Item 29: | repeals subsections 1223(3) and (4) and substitutes new subsections. |
| Part 2 - Amendments commencing on 1 July 1998 | |
| Item 30: | amends the index of definitions in section 3. |
| Items 31 to 34: | amend the definitions of homeless person, independent young person, parent and prescribed educational scheme in subsection 5(1). |
| Item 35: | repeals the definition of receiving full-time education at a school, college or university in subsection 5(1). |
| Item 36: | repeals paragraph 540A(1)(a). |
| Item 37: | repeals subsection 543A(2) and substitutes a new subsection. |
| Item 38: | amends paragraph 550A(a). |
| Items 39 and 40: | amend section 552A. |
| Item 41: | amends paragraph 569D(4)(c). |
| Item 42: | amends paragraph 576A(a). |
| Items 43 and 44: | amend section 578A. |
| Items 45 and 46: | amend section 614. |
| Items 47 and 48: | amend subparagraphs 737(1)(b)(i) and 738(1)(b)(i) respectively. |
| Item 49: | repeals section 833 and substitutes a new section. |
| Item 50: | inserts a new subsection 887(5C). |
| Item 51: | repeals subparagraph 1067A(9)(a)(iii) and substitutes a new subparagraph. |
| Item 52: | repeals paragraph 1067A(10)(c) and substitutes a new paragraph. |
| Item 53: | amends paragraph 1067F(1)(d). |
| Item 54: | amends point 1067G-F3. |
| Item 55: | amends paragraph 1067G-F8(d). |
| Item 56: | amends the table in Module L of the Youth Allowance Rate Calculator. |
| Item 57: | adds a new entry to the table in Module L of the Youth Allowance Rate Calculator. |
| Item 58: | amends paragraph 1067K(1)(d). |
| Item 59: | repeals paragraphs 1068(1)(a) and (b) and substitutes new paragraphs. |
| Items 60 to 68: | amend point 1068-B1. |
| Item 69: | repeals paragraph 1068-D2(a). |
| Item 70: | amends the definition of FA child in subsection 1132A(1BB). |
| Items 71 and 72: | amend subparagraphs 1157E(1)(c)(ii) and 1157F(1)(c)(iv) respectively. |
| Item 73: | repeals section 1169 and substitutes a new section. |
| Items 74 and 75: | amend table entries in section 1190. |
| Items 76 and 77: | insert and amend, respectively, table entries in subsection 1191(1). |
| Item 78: | repeals subsection 1192(6). |
| Item 79: | amends paragraph 1236(1B)(a). |
| Item 80: | renumbers a clause of Schedule 1A to the Social Security Act. |
| Item 81: | amends subclause 111A(2) of Schedule 1A to the Social Security Act. |
| Part 3 - Amendment commencing on 20 September 1998 | |
| Item 82: | renumbers a clause of Schedule 1A to the Social Security Act. |
| Part 4 - Amendments commencing on 1 January 1999 | |
| Items 83 to 86: | amend subsections 543A(2), (2A) and (2B), including repealing and substituting substantial passages. |
| Part 5 - Amendment commencing on 1 July 1999 | |
| Item 87: | repeals section 584A and substitutes a new section. |
| Part 6 - Amendments commencing on 1 July 2000 | |
| Items 88 and 89: | insert new paragraphs 552A(1)(da) and 578A(1)(da) respectively. |
4. Explanation of the changes
Part 1 - Amendments commencing on Royal Assent
Item 1 amends the youth allowance administrative exclusion provision so that it also applies if a person does not attend as directed a particular place for a particular purpose (eg, a jobs network office), in line with the equivalent newstart allowance provision.
Items 2 and 3 include reference to the Assistance for Isolated Children Scheme in the list of payments receipt of which will preclude a young person from youth allowance and austudy payment.
Items 4 and 5 clarify that information gathering notices may be given to a youth allowance recipient regardless of whether the allowance is being paid to the young person, a parent or a nominee (currently, the latter is unintentionally excluded).
Items 6 and 29 consolidate the provisions under which debts arise:
- (a)
- where a youth allowance recipients combined parental income or family actual means exceed the amount estimated as the basis for the rate calculation; and
- (b)
- where the persons combined parental income increases by 25% or more.
Item 7 relaxes the requirement for a statement to be given about a persons substantial physical disability for the purpose of 25% concessional study-load status, so that an appropriate medical officer may give the statement as an alternative to the Commonwealth Rehabilitation Service.
Item 8 clarifies the overall time for which a student may attract austudy payment if the student becomes a 25% concessional study-load student after doing some of the study on another basis. This is consistent with the rules for students who change status the other way around.
Items 9, 10, 27 and 28 align the rates of under 21 year old disability support pension with youth allowance rates instead of with newstart allowance rates, which are no longer applicable to this age group, including the correct indexation treatment.
Items 11 and 12 clarify the period over which a person must have supported himself or herself through paid employment to meet the test of independence and remove the requirement for that employment to have been in Australia.
Items 13 to 19 provide special rates of:
- (a)
- youth allowance and austudy payment for partnered long-term income support students; and
- (b)
- austudy payment for sole parents with youth allowance recipient children;
in line with pre-existing AUSTUDY rates. These people have continued to be paid the correct rates since 1 July 1998 on an ex-gratia basis, pending this legislation.
Items 20 and 21 clarify that guardian allowance is not to be included in the family allowance rate of a family whose only FA child or children are over 16, as is the case with rent assistance, and in keeping with the original policy intention.
Item 22 clarifies for the family allowance income test that only a youth allowance recipient child aged under 18 may be an FA child for the income free area. This is consistent with the treatment given to child recipients of other relevant student payments.
Items 23, 24 and 25 extend the standard disposal of assets provisions to family members of non-independent youth allowance recipients and claimants for the purposes of the youth allowance family assets test. This is on a similar basis to the treatment for all payments of partners who dispose of assets, with the overall result that the full value of assets disposed of beyond the disposal limit are taken into account under the test.
Item 26 makes a minor technical correction.
Part 2 - Amendments commencing on 1 July 1998
Items 31 and 32 clarify the reduced application of the definitions of homeless person and independent young person now that the youth allowance definition of independent covers much of the field.
Items 34, 39, 40 and 43 to 46 correct existing references to the ABSTUDY Scheme to reflect the current structure.
Item 36 omits the requirement for a person who has claimed disability support pension to be subject to the youth allowance activity test, or be exempted from it, before youth allowance may be accessed while the disability support pension assessment proceeds.
Item 37 clarifies the Governments intention that 16, or 15 if independent, is the youngest that a person may be to receive youth allowance, to close a technical loophole.
Items 38 and 42 relax the youth allowance and austudy payment activity test breach provisions to allow for a reasonable excuse.
Items 47 and 48 make a beneficial technical correction to clarify that 16 rather than 18 remains the relevant age for the purpose of excluding a student from special benefit if the person is not a homeless person.
Item 49 brings family allowance qualification for a student child into line with youth allowance study criteria for consistency.
Item 50 consolidates provisions allowing a higher rate of family allowance to be paid to a family as an alternative to youth allowance with effect from the date of an earlier youth allowance claim. This will ensure that the provisions apply for subsequent FA children as well as for the first FA child in the family (as currently provided).
Item 51 refines the drafting (without any change in effect) of a provision inserted as a non-Government amendment during passage of the youth allowance package relating to independence on the ground of it being unreasonable to live at home due to a lack of stable accommodation.
Item 52 corrects, in the self-support test of youth allowance independence, the existing reference to the 18 month period in respect of which a Commonwealth training award applies as a measurement of self-support. This will ensure that customers may get the benefit of the provision where appropriate.
Items 53 and 58 clarify the duration of the 39 week period over which a persons status as a long term income support student is measured for youth allowance and austudy payment rate purposes.
Item 57 adds austudy payment to the list of payments receipt of which by a young persons partner will exempt the young person from the youth allowance assets test, and by a young persons parent will exempt the young person from the youth allowance parental income test.
Items 59 to 69 make a series of technical amendments to Benefit Rate Calculator B to reflect the fact that the rate of a former newstart or sickness allowance recipient aged under 21 is now worked out under the Youth Allowance Rate Calculator.
Items 70, 71 and 72 make technical amendments to include reference to youth allowance in provisions relating to the family allowance income hardship provisions and fringe benefits provisions, in view of the fact that youth allowance has subsumed many of the student and youth payments previously covered for young people.
Item 73 amends the existing provision that dictates the order in which compensation reductions and various means test rate reductions are made to accommodate the youth allowance parental income test and family actual means test.
Items 74 to 77 make technical corrections to a number of indexation provisions to ensure the correct operation and drafting of those provisions.
Items 30, 33, 35, 41, 54, 55, 56, 78, 79, 80 and 81 make certain minor technical corrections.
Part 3 - Amendment commencing on 20 September 1998
Item 82 makes a minor technical correction.
Part 4 - Amendments commencing on 1 January 1999
Items 83 to 86 refine the drafting (without any change in effect) of provisions inserted as non-Government amendments during the passage of the youth allowance package. The provisions relate to the exemption for a person under 18 from the full-time study requirement, and will be refined with effect from the commencement of those amendments.
Part 5 - Amendment commencing on 1 July 1999
Item 87 amends the payment by instalments provision for austudy payment to bring it into line with amendments made by the Social Security and Veterans Affairs Legislation Amendment (Payment Processing) Act 1998 to other social security programs.
Part 6 - Amendments commencing on 1 July 2000
Items 88 and 89 include reference to the Ready Reserve Education Assistance Scheme in the list of payments receipt of which will preclude a young person from youth allowance and austudy payment.
5. Commencement
The amendments in this Schedule will commence on Royal Assent or on such other date as is specified in the heading of the Part in which they appear.