House of Representatives

Explanatory Memorandum

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

Schedule 10 - Social and Community Services Pay Equity Special Account

Summary

This Schedule provides that a State pay equity order (Western Australia) is a pay equity order for the purposes of the Social and Community Services Pay Equity Special Account (the Account), and amends the amounts by which the Account will be credited accordingly.

This will enable the Account to be used to fund the Commonwealth's share of pay increases provided by a State pay equity order (Western Australia) by way of additional funding to Commonwealth programs, including those funded through the States and Territories.

Background

The State pay equity order (Western Australia)

In November 2012, the Social and Community Services Pay Equity Special Account was established (under the Social and Community Services Pay Equity Special Account Act 2012) to pay Commonwealth Government supplementation to service providers affected by the:

•

Fair Work Australia Social, Community and Disability Services (SACS) Industry Equal Remuneration Order (the National Case); and

•

the transitional pay equity order (Queensland).

Subsequently, the Western Australian (WA) Industrial Relations Commission made the decision on 29 August 2013 to bring the WA State SACS awards (the Social and Community Services (Western Australia) Interim Award 2011 (2013 WAIRC 00776) and the Crisis Assistance, Supported Housing Industry - Western Australian Interim Award 2011 (2013 WAIRC 00775)) into line with the National Award.

The decision was effective immediately, with 1 December 2013 being the latest date employers could implement the 2013-14 increase, with a back pay component to the date of the decision. The Commonwealth Government has committed to paying supplementation to eligible service providers, for the life of the roll-out of the annual increases (to 2020-21), as per the National Case.

The amendments made by this Schedule commence on the day this Act receives Royal Assent.

Explanation of the changes

Amendments to the Social and Community Services Pay Equity Special Account Act 2012

Item 1 provides, by addition of a new paragraph (c), that a pay equity order as defined in subsection 4(1) includes 'a State pay equity order (Western Australia)'.

Item 2 adds to subsection 4(1) the following definition of the term State pay equity order (Western Australia):

(a)

the order made by the Western Australian Industrial Commission on 29 August 2013 (2013 WAIRC 00776) varying the Social and Community Services (Western Australia) Interim Award 2011; or

(b)

the order made by the Western Australian Industrial Commission on 29 August 2013 (2013 WAIRC 00775) varying the Crisis Assistance, Supported Housing Industry - Western Australian Interim Award 2011.

Item 3 substitutes items 4 to 9 of the table set out in section 6 with new entries reflecting the revised amounts by which the Social and Community Services Pay Equity Special Account will be credited from 1 July 2015. The revised amounts set out in column 2 of items 4 to 9 reflect the requirements of the pay equity orders as amended by items 1 and 2 from 1 July 2015. This item also inserts a new item 3A in the table to provide for the required amount in respect of the pay equity orders as amended by items 1 and 2 for 2014-15 to be separately credited to the Social and Community Services Pay Equity Special Account upon commencement. Item 3A reflects the fact that the Social and Community Services Pay Equity Special Account was credited under the Act on 1 July 2014 with an amount for existing pay equity orders.

Items 4 and 13 add 'Schedule 1AA' to the headings at Part 1 of Schedule 1 and Part 1 of Schedule 2. This amendment limits Part 1 of Schedule 1 and Part 1 of Schedule 2 to programmes listed in Schedule 1AA of the relevant regulations.

Items 5 and 14 insert a note into Part 1 of Schedule 1 and Part 1 of Schedule 2 to clarify that the item numbers listed in Part 1 of each of those Schedules correspond with the item numbers set out in Schedule 1AA of the relevant regulations.

Items 6 to 12 and 15 to 17 delete the department titles from Schedules 1 and 2 as these arrangements have been superseded by machinery of government changes. Department titles are not required in order to identify those programmes within the scope of subclauses 7(2) and 7(3).

STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS

Prepared in accordance with Part 3 of the

Human Rights (Parliamentary Scrutiny) Act 2011

SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (2014 BUDGET MEASURES No. 6) BILL 2014

Schedule 1 - Energy supplement replacing clean energy supplement

This Schedule is compatible with the 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 Schedule

This Schedule (in Parts 1 to 6) renames the clean energy supplement (CES) as the 'energy supplement' and removes indexation arrangements to freeze permanently the rate of payment at the relevant amounts payable before 1 July 2014.

The Schedule (in Part 7) also makes minor changes to the partner income free area from 20 September 2014.

Human rights implications

The Schedule 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 Schedule has no effect on the right to social security.

Energy supplement

The energy supplement is paid as part of the primary social security, family assistance or veterans' entitlements payment to provide compensation to households for the cost of living impacts of the carbon tax.

This Schedule removes indexation of the energy supplement from 1 July 2014. Energy supplement will provide ongoing assistance to pensioners, seniors, allowees, veterans and families at a fixed rate.

Recipients will be better off because there will no longer be price pressures from the carbon tax and people will continue to receive the energy supplement.

There are no human rights impacts, as recipients will be better off after the carbon tax is repealed.

Partner income free area (PIFA)

The PIFA is part of the income testing arrangements for social security benefits. The PIFA determines the impact that the income of a person's partner has on the person's rate of payment - partner income below the PIFA has no impact, while income above the PIFA reduces the person's rate of payment by 60 cents in the dollar. The PIFA is calculated based on the rate of newstart or youth allowance that the partner would receive if they were qualified for payment.

This Schedule ensures that, for the purposes of calculating the PIFA, the partner's notional rate of newstart or youth allowance includes the maximum basic rate, the pension supplement (if relevant) and the energy supplement. The inclusion of these amounts is beneficial to recipients as it increases the amount the partner can earn before payment is affected.

Other possible rate components (pharmaceutical allowance, rent assistance and youth disability supplement) are disregarded as these components have specific qualification requirements and it is not possible to determine reasonably the partner's eligibility if they are not receiving payment. Disregarding these rate components will not reduce the amount of the PIFA as these components are already disregarded under existing policy. Recipients will not have their rate reduced as a result of these amendments.

There are no human rights impacts, as recipients will not be negatively affected by the amendments.

Conclusion

The amendments in the Schedule are compatible with human rights because they do not limit access to social security.

Schedule 2 - Indexation

This Schedule is compatible with the 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 Schedule

The Schedule will have the effect of fixing the value of assets test free areas and thresholds for certain Australian Government payments for two or three years.

From 1 July 2015 this measure will fix for a period of two years:

•

assets value limits for working age allowance payments and student payments and the assets value limit for parenting payment (single).

Indexation using the Consumer Price Index will resume after two years.

From 1 July 2017 this measure will fix for a period of three years:

•

assets test free areas for social security pension payments (other than parenting payment (single)) and equivalent Veterans' Affairs pension payments;

Indexation using the Consumer Price Index will resume after three years.

Human rights implications

The Schedule engages the following human right:

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 Schedule has no effect on the right to social security.

The changes to the value of assets test free areas for certain Australian Government payments assist in targeting payments according to need. Payments will not be reduced unless customers' circumstances change, such as their income or assets increasing in value.

Conclusion

The amendments in the Schedule are compatible with human rights because they do not limit access to social security.

Schedule 3 - Disability support pension

This Schedule is compatible with the 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 Schedule

This Schedule will amend the Social Security Act to extend program of support requirements to certain disability support pension recipients following a review of their qualification. This measure will be targeted to those pension recipients who are under 35 years of age at the time a notice is given in relation to review of their qualification and who made a claim for disability support pension before 3 September 2011 and were granted the pension after 2007.

This Schedule will also introduce a requirement that, in order for the Secretary to be satisfied a person has actively participated in a program of support, the person must undertake a program of support that was wholly or partly funded by the Commonwealth.

Human rights implications

This Schedule 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.

Extending the requirement to undertake a program of support, as provided by Part 1 of this Schedule, will help to ensure that assistance to develop work capacity is provided to those disability support pension recipients most likely to benefit from employment assistance. Assisting those people, who are able, to participate economically and socially will help ensure that the social security system remains sustainable and that available funds will be targeted to those recipients with the greatest need.

Right to equality and non-discrimination

This measure engages the right to equality and non-discrimination under Article 2(2) of the ICESCR and more generally under Article 26 of the International Covenant on Civil and Political Rights.

The measures in this Schedule reinforce the principle that labour market participation of people with disability, including disability support pension recipients with some work capacity, should be encouraged and supported.

Targeting the requirement to participate in a program of support to disability support pension recipients who are under 35 years of age at the time of a review of their qualification ensures those at the greatest risk of spending extended periods of time dependent on income support and most likely to benefit from employment assistance, participate in a program of support.

Evidence indicates that the impairment levels of disability support pension recipients who have been receiving this pension for long periods worsen over time, so those most recently granted the pension are more likely to have more work capacity and be able to participate economically and socially.

Recipients assessed as having an ability to work at least eight hours a week will be provided with the support needed to assist them develop their work capacity while still receiving disability support pension. This will assist people to build their capacity and may increase their chance of gaining employment.

Conclusion

This Schedule is compatible with human rights because it advances the protection of human rights and does not limit or preclude people from gaining or maintaining access to social security in Australia.

Schedule 4 - Portability for students and new apprentices

This Schedule is compatible with the 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 Schedule

This Schedule will generally align the portability rules for student payment recipients (youth allowance and austudy payment) with the portability rules for jobseekers, so that recipients of student payments will no longer be eligible for payment while overseas for a period of up to six weeks, regardless of the reason for the absence. This Schedule limits the six-week portability period to absences that are for the purpose of seeking eligible medical treatment or attending to an acute family crisis.

The Schedule also allows the Secretary to make principles that must be complied with when deciding how much of a period of absence is for the purpose of undertaking studies that form part of the course of education.

Students and apprentices will still be able to travel overseas for other purposes, using their own resources.

The purpose of student payments is to assist students financially while they study, with additional incentives for students to work while on study breaks.

Human rights implications

Right to education

The measure is compatible with the right to education in Article 13 of the International Covenant on Economic, Social and Cultural Rights (ICESCR). Students will remain eligible for all payments (both within Australia and overseas) while undertaking approved study or training. Eligibility is only affected while overseas and not undertaking an approved activity, such as study.

Right to freedom of movement:

The measure engages the right to freedom of movement, which is contained in Articles 12 and 13 of the International Covenant on Civil and Political Rights . Students will remain able to move freely, whether within Australia or overseas. However, they will no longer receive youth allowance or austudy payment while overseas, unless they are undertaking eligible study, receiving eligible medical treatment or attending an acute family crisis.

Any impact on students' freedom of movement is reasonable and consistent with the policy objectives.

Right to social security

The measure engages the right to social security contained in Article 9 of the ICESCR.

The right to social security requires that a system be established under domestic law, and that public authorities must take responsibility for the effective administration of the system. The social security scheme must provide a minimum essential level of benefits to all individuals and families that will enable them to cover essential living costs.

The changes to eligibility for overseas payment do not affect students' ability to access social security within Australia. The measure ensures that social security is appropriately targeted and only affects those recipients of youth allowance and austudy payment who elect to travel overseas for a purpose other than studying, receiving eligible medical treatment or attending an acute family crisis.

Conclusion

These amendments are compatible with human rights. To the extent that they may adversely impact on a person's access to education, social security or freedom of movement, the limitation is reasonable and proportionate.

Schedule 5 - Portability of disability support pension

This Schedule is compatible with the 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 Schedule

This Schedule introduces new rules that generally limit the period a person who is outside Australia can be paid disability support pension (DSP). Under the new rules, most DSP recipients will be limited to a total of 28 days payment overseas every 52 weeks.

The change will not apply to DSP recipients assessed as having a severe and permanent disability and no future work capacity, or to those who are terminally ill and returning to their country of origin or to be with family. The change includes safeguards consistent with similar provisions for other payments. The change will also not affect severely disabled DSP recipients paid under Australia's international social security agreements. In limited circumstances currently specified in legislation, disability support pension recipients will be able to be paid for more than 28 days.

Human rights implications

This Schedule has considered the human rights implications particularly with reference to the right to social security contained within Articles 9 of the International Covenant on Economic, Social and Cultural Rights, the right to freedom of movement contained in Articles 12 and 13 of the International Covenant on Civil and Political Rights, and the rights of persons with disabilities contained in Article 18 of the Covenant on the Rights of Persons with Disabilities. It is concluded that the Schedule does not place limitations on human rights.

Right to freedom of movement

The measure engages the right to freedom of movement, which is contained in Articles 12 and 13 of the International Covenant on Civil and Political Rights . Disability support pensioners will remain able to move freely, whether within Australia or overseas. However, they will no longer receive DSP while overseas, if they are absent from Australia for more than 28 days in a 12 month period.

The policy objective of this measure is to strengthen the residence basis of Australia's social security system by requiring most DSP recipients to be present in Australia for the great majority of the year and, where they have the capacity to do so, engage in activities that will assist them to participate socially and economically.

The impact on a disability support pensioner's freedom to leave Australia for more than 28 days in a 12-month period due to the loss of disability support pension is considered to be proportionate and reasonable. This is because of the range of exceptions to the general 28 days portability rule.

Where a disability support pensioner is absent for the purposes of seeking eligible medical treatment, to attend to an acute family crisis or for a humanitarian purpose, there is no limit to the total number of days of absence from Australia, so long as each continuous period of absence is no longer than four weeks. Severely impaired disability support pensioners and terminally ill disability support pensioners have an unlimited portability period. Disability support pensioners who are undertaking full-time studies overseas can continue to receive the pension throughout the period of study.

Further, the Secretary may extend a disability support pensioner's portability period, in the situation where the person is unable to return to Australia due to serious accident or illness of the person or a family member, the death of a family member of the person, the person is undertaking life-saving treatment, the person is involved in legal proceedings, or where there is a natural disaster, political or social unrest, industrial action or war in the country in which the person is located.

Rights of persons with disabilities

This measure also engages the right of persons with disabilities in relation to liberty of movement, contained in Article 18 of the Convention on the Rights of People with Disabilities. Disability support pensioners will remain free to leave Australia. Any impact on a disability support pensioner's freedom to leave Australia due to the loss of disability support pension is reasonable and consistent with policy objectives as discussed above.

Right to social security

The measure engages the right to social security contained in Article 9 of the International Covenant on Economic, Social and Cultural Rights.

The right to social security requires that a system be established under domestic law, and that public authorities must take responsibility for the effective administration of the system. The social security scheme must provide a minimum essential level of benefits to all individuals and families that will enable them to cover essential living costs.

The changes to the portability period for disability support pensioners do not affect their ability to access social security within Australia. The measure ensures that social security is appropriately targeted, and only affects disability support pensioners who elect to travel overseas for more than 28 days in a 12-month period, and where the range of exceptions to the 28-day portability rule do not apply.

Conclusion

This Schedule is compatible with human rights because it advances the protection of human rights, it does not limit or preclude people from gaining or maintaining access to social security in Australia and any impact on freedom of movement is reasonable and consistent with the policy objectives.

Schedule 6 - Young Carer Bursary Programme

This Schedule is compatible with the 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 Schedule

This Schedule amends the Social Security Act 1991 and the Veterans' Entitlements Act 1986 to ensure that a payment of a bursary under the programme established by the Commonwealth and known as the Young Carer Bursary Programme is not counted as income.

Human rights implications

Right to social security

The amendments made by this Schedule will engage Article 9 of the International Covenant on Economic, Social and Cultural Rights (ICESCR).

Article 9 of ICESCR recognises the right to social security for all persons. The amendments to the Social Security Act and Veterans' Entitlements Act engage with the right to social security under ICESCR.

The amendments to the Social Security Act make clear that a payment of a bursary under the Young Carer Bursary Programme is not income for the purposes of the Social Security Act. This amendment promotes the right to social security in ensuring that the entitlement to a social security benefit is not affected by a payment of a bursary under the Young Carer Bursary Programme.

Similarly, the amendments to the Veterans' Entitlements Act make clear that a payment of a bursary under the Young Carer Bursary Programme is not income for the purposes of the Veterans' Entitlements Act. This amendment promotes the right to social security in ensuring that the entitlement to a social security benefit is not affected by a payment of a bursary under the Programme.

Conclusion

This Schedule is compatible with human rights because it advances the right to social security for all persons.

Schedule 7 - Seniors health card

This Schedule is compatible with the 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 Schedule

This Schedule includes tax-free superannuation income in the assessment of income for qualification for the Commonwealth Seniors Health Card. Income generated from various account-based superannuation income streams will be deemed, using the same method as for income support payments, from 1 January 2015. Veterans who hold a Seniors Health Card will also be affected by this measure.

People who are seniors health cardholders immediately before commencement of the measure will not have the deemed rate of their tax-free superannuation included in the income test, unless they cease to be the holder of a card after this time. Income from superannuation products purchased following commencement of the Schedule will be included in the test.

The Schedule will also extend the period for which seniors health cardholders may travel temporarily overseas without losing qualification for the card from six weeks to up to 19 weeks.

Human rights implications

Right to social security

This Schedule ensures people on similar incomes will be treated the same for qualification for the seniors health card.

The Schedule engages Article 11 of the International Covenant on Economic, Social and Cultural Rights (ICESCR), which provides for the right of everyone to the enjoyment of the highest attainable standard of physical and mental health. Holders of a seniors health card are entitled to a range of concessions, including concessions on pharmaceutical and health services.

Conclusion

The Schedule is compatible with human rights because it maintains the right to health. The Schedule is compatible with human rights.

Schedule 8 - Relocation scholarships

This Schedule is compatible with the 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 Schedule

This Schedule will restrict qualification for the relocation scholarship payment to students relocating to or from regional or remote areas from 1 January 2015. Students relocating from major cities will only remain qualified for a relocation scholarship payment if they relocate to a regional or remote area.

The measure will continue to recognise the reduced level of course and institution choice in regional and remote areas and the higher proportion of regional or remote students who need to relocate to study, compared to students from major cities.

Students from major cities are more likely than students from regional or remote areas to have a suitable education institution near to their parental home.

The relocation scholarship payment is currently paid at a rate of $4,145 in the first year the student is required to live away from home and $1,036 each year thereafter for students relocating from major cities (2014 rates). Recognising that they may have higher costs, students relocating from regional or remote areas are paid at a higher rate of $2,073 in the second and third year they are required to live away from home to study.

Qualification for the relocation scholarship payment is restricted to recipients of youth allowance (or ABSTUDY recipients under equivalent provisions in the ABSTUDY policy manual) undertaking higher education or higher education preparatory courses.

Human rights implications

Right to education

The Schedule engages the right to education in Article 13 of the International Covenant on Economic, Social and Cultural Rights (ICESCR).

Students who relocate within or between major cities will no longer be eligible for the relocation scholarship payment, which assists with the costs of relocating to study.

Although this measure will reduce the level of relocation assistance available to students who relocate within or between major cities, this measure remains compatible with the right to education because other assistance remains available for students who relocate away from home to study, including the higher 'away from home' rate of youth allowance, and rent assistance (depending on their rental situation).

The measure will continue to recognise the reduced level of course and institution choice in regional and remote areas and the higher proportion of regional and remote students who need to relocate to study, compared to students from major cities. As such, this measure focuses relocation assistance on students who need it most. Any impact on students from major cities and their ability to access education will be limited and proportionate to the policy objectives.

Right to equality and non-discrimination

The measure engages the right to equality and non-discrimination under articles 2 and 26 of the International Covenant on Civil and Political Rights (ICCPR).

While the measure makes a distinction in qualification for the relocation scholarship payment based on the location of students' parental homes and whether they move to a major city or a regional or remote area to study, it will help to ensure the financial sustainability of student payments while further recognising the reduced level of course and institution choice in regional and remote areas and the higher proportion of regional and remote students who need to relocate to study, compared to students from major cities. In focussing relocation assistance on those who need it most, the measure is compatible with the right to equality and non-discrimination.

Right to freedom of movement

To remove doubt, the measure does not engage the right to freedom of movement, which is contained in articles 12 and 13 of the ICCPR. Students will remain able to move freely, whether to study or otherwise. Students from major cities who relocate within or between major cities will remain eligible for other assistance to live away from home to study, including the higher 'away from home' rate of youth allowance, and rent assistance depending on their rental situation.

Right to adequate standard of living

The measure engages the right to an adequate standard of living, contained in article 11(1) of the ICESCR.

Students relocating within or between major cities will no longer be eligible for the relocation scholarship payment, currently paid at a rate of $4,145 in the first year the student is required to live away from home and $1,036 each year thereafter for students relocating from major cities (2014 rates). This will reduce the total value of support available to these students to support their standard of living. However, this reduction is reasonable and proportionate to the policy objective of prioritising funds to assist students relocating to or from regional or remote areas.

Students affected by the measure will retain access to other assistance to assist them with the costs of an adequate standard of living while studying, such as youth allowance, ABSTUDY and rent assistance.

Right to social security

The measure engages the right to social security contained in article 9 of the ICESCR.

The right to social security requires that a system be established under domestic law, and that public authorities must take responsibility for the effective administration of the system. The social security scheme must provide a minimum essential level of benefits to all individuals and families that will enable them to cover essential living costs.

The changes to the relocation scholarship payment will help to ensure that the social security system remains sustainable and that available funds will be targeted to those recipients with the greatest need. Students who lose access to the relocation scholarship payment will retain access to youth allowance and ABSTUDY and a range of other income support.

Conclusion

These amendments are compatible with human rights. To the extent that they may adversely impact on a person's access to education, social security, an adequate standard of living or the right to equality and non-discrimination, the limitation is reasonable and proportionate to the policy objectives.

Schedule 9 - Family tax benefit

This Schedule is compatible with the 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 Schedule

This Schedule amends the A New Tax System (Family Assistance) Act 1999 to implement a number of reforms to the family tax benefit. These reforms will improve the sustainability of the family payments system over the long term, while continuing to provide assistance to families in need and encouraging increased workforce participation.

The amendments in this Schedule will enable the following family payment reforms from 1 July 2015:

•

limit the family tax benefit Part A large family supplement to families with four or more children;

•

remove the family tax benefit Part A per-child add-on to the higher income free area for each additional child after the first;

•

improve targeting of family tax benefit Part B by reducing the primary earner income limit from $150,000 a year to $100,000 a year;

Human rights implications

These amendments engage the human right discussed below.

Right to social security

Article 9 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) recognises the right of everyone to benefit from social security.

Article 26 of the Convention on the Rights of the Child (CRC) requires countries to recognise the right of the child to benefit from social security. Benefits should take into account the resources and the circumstances of the child and persons having responsibility for the maintenance of the child.

The United Nations Committee on Economic, Cultural and Social Rights has stated that a social security scheme should be sustainable and that the conditions for benefits must be reasonable, proportionate and transparent.

Changes to family tax benefit Part A will have the effect of better targeting the payment. The removal of the per-child add-on that currently applies under the family tax benefit Part A income test means that the higher income free area (currently $94,316) will remain, but without the add-on of $3,796 for a second or subsequent child. To the extent that this limits the right to social security, this is reasonable and proportionate.

Limiting the family tax benefit Part A large family supplement better targets this supplement to families with four or more children. To the extent that this limits the right to social security, this change is reasonable and proportionate. Very large families will have extra support.

Reforms to family tax benefit Part B are intended to better target the payment to low and middle-income families, and to families with young children. To the extent that reducing the primary earner income limit for family tax benefit Part B from $150,000 to $100,000 limits the right to social security, this is reasonable and proportionate, as it will not impact on families most in need. Families with a primary earner earning income above the new limit rely less on family tax benefit Part B to meet everyday expenses.

These reforms will help ensure the sustainability of the family payments system.

Conclusion

These amendments are compatible with human rights because they advance the protection of human rights and, to the extent that these changes limit access to family payments, these limitations are reasonable and proportionate.

Schedule 10 - Social and Community Services Pay Equity Special Account

This Schedule is compatible with the 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 Schedule

This Schedule provides that the State pay equity order (Western Australia) is a pay equity order for the purposes of the Social and Community Services Pay Equity Special Account (the Account), and amends the amounts by which the Account will be credited accordingly.

This will enable the Account to be used to fund the Commonwealth's share of pay increases provided by the State pay equity order (Western Australia) by way of additional funding to Commonwealth programs, including those funded through the States and Territories.

Human rights implications

This Schedule engages and promotes the human right, Right to work and rights in work.

Fair Work Australia determined that Social and Community Service industry workers historically received significantly less remuneration for performing comparable work to public sector employees. Equal remuneration is set out under Article 7 of the International Covenant on Economic, Social and Cultural Rights, and includes remuneration which provides all workers, as a minimum, with fair wages and equal remuneration for work of equal value without distinction of any kind - in particular, women being guaranteed conditions of work not inferior to those enjoyed by men, with equal pay for equal work.

The Social and Community Services Pay Equity Special Account essentially facilitates the administration of funding to affected Commonwealth-funded employers with Social and Community Services workers, and enhances transparency to government. This Schedule extends these arrangements to workers affected by the State pay equity order (Western Australia).

Conclusion

This Schedule is compatible with human rights as it does not raise any human rights issues.

Minister for Social Services, the Hon Kevin Andrews MP