House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Minister for Families, Community Services and Indigenous Affairs, the Hon Mal Brough MP)

Families, Community Services and Indigenous Affairs Legislation Amendment (Further 2007 Budget Measures) Bill 2007

OUTLINE

This bill gives effect to a number of measures announced in the 2007-08 Budget.

Pension bonus scheme

This measure increases the flexibility of the pension bonus scheme (PBS) and makes it easier for members to access their accrued pension bonus. From 1 January 2008, the changes mean that a PBS member will be entitled to a top up of the pension bonus in certain circumstances and there will be a new payment for surviving partners whose partner did not claim age pension or a pension bonus before he or she died. Centrelink and DVA decision makers will also have more discretion to accept late bonus claims in special circumstances.

Assurance of support

This measure is aimed at improving the operation of the assurance of support scheme and simplifying arrangements for people seeking to provide an assurance of support.

The measure commences on 1 January 2008.

Crisis payment

This measure establishes a further ground of qualification for crisis payment. Crisis payment will be payable to certain persons who have entered Australia for the first time on a qualifying humanitarian visa on or after 1 January 2008. Crisis payment is being extended to this group of people to help reduce the significant financial burden faced by humanitarian entrants during the initial settlement period.

Funeral investments

From 1 January 2008, the threshold for funeral investments that are exempt from the income and assets test will be raised from $5,000 to $10,000. The new threshold will also be subject to indexation in line with the Consumer Price Index. To allow people with existing investments to take advantage of the new threshold, a person or couple will be able to have up to two exempt investments under the changes.

Multiple birth allowance

From 1 January 2008, payment of multiple birth allowance will be extended to FTB children under 16 years of age and to older FTB children who are undertaking full-time study, until the end of the calendar year in which they turn 18. Multiple birth allowance is currently available in respect of multiple births of three or more children where the children are under the age of six years.

NOTES ON CLAUSES

Clause 1 sets out how the Act is to be cited, that is, the Families, Community Services and Indigenous Affairs Legislation Amendment (Further 2007 Budget Measures) Act 2007 .

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

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

This Explanatory Memorandum uses the following abbreviations:

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'AoS' means assurance of support;

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'DFISA' means defence force income support allowance;

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'Legislative Instruments Act' means the Legislative Instruments Act 2003 ;

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'Migration Act' means the Migration Act 1958 ;

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'PBS' means pension bonus scheme;

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'Social Security Act' means the Social Security Act 1991 ;

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'Social Security Administration Act' means the Social Security (Administration) Act 1999 ; and

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'Veterans' Entitlements Act' means the Veterans' Entitlements Act 1986 .