Explanatory Memorandum
(Circulated by authority of the Minister for Employment and Workplace Relations, the Honourable Bill Shorten MP)Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
This Bill is compatible with human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 .
Overview of the Bill
The Bill amends the Social Security Act 1991, the Social Security (Administration) Act 1999, the Farm Household Support Act 1992 and the Income Tax Assessment Act 1997 to create a new Income Support Bonus commencing in 2013.
The Income Support Bonus will be paid twice yearly, in March and September, to recipients of the following qualifying payments: ABSTUDY Living Allowance, Austudy, Newstart Allowance, Parenting Payment, Sickness Allowance, Special Benefit, Youth Allowance, Transitional Farm Family Payment or the Exceptional Circumstances Payment. People who are receiving more than the basic amount of Pension Supplement will not be eligible to receive the Income Support Bonus.
Each Income Support Bonus payment will be $105 for a single recipient and $87.50 for most recipients who are a member of a couple. Members of a couple separated by illness, or couple where a partner is in respite care, or couple where a partner is in gaol, will be paid at the single rate of $105. Income Support Bonus payments each year will total $210 for single people, $175 for most eligible members of a couple, and $210 for eligible members of a couple separated by illness, couple where a partner is in respite care, or couple where a partner is in gaol. If both members of a couple are eligible, the combined payment will total $350 or $420 depending upon their circumstances.
The Income Support Bonus will be tax-free and indexed to CPI twice annually, in March and September, from September 2013. The payments are not means-tested.
More than one million Australians will receive the Income Support Bonus every year with funding of more than $1.1 billion over four years.
Human rights implications
The Bill engages the following human rights:
Right to social security
Article 9 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) recognises the right of everyone to social security.
The introduction of the Income Support Bonus recognises that households relying on income support allowances as their main source of income may find it difficult to manage when unanticipated expenses, such as urgent repairs or unexpectedly large bills, arise. People in paid employment are more likely to be able to set aside some money for such circumstances, while allowance recipients may not be able to do so.
The Income Support Bonus will provide payments twice a year to eligible recipients to help them plan expenditure and build a buffer against unexpected costs.
The Income Support Bonus will be payable to allowance recipients who are not already receiving additional supplements to assist with household costs, such as the Utilities Allowance or more than the basic amount of Pension Supplement.
Payment will be made automatically to people receiving qualifying payments on 20 March and 20 September each year. They will not need to apply separately to access the Income Support Bonus.
A person's access to social security is enhanced by the proposed measure since the legislation provides for two additional payments every year which are indexed and tax-exempt.
Conclusion
The Bill is compatible with human rights because it generally advances human rights.