Revised Explanatory Memorandum
(Circulated by the authority of the Minister for Social Services, the Hon Christian Porter MP)Schedule 7 - Cessation of Partner Allowance
Summary
This Schedule will cease Partner Allowance from 1 January 2022.
Background
Partner Allowance is a non-activity tested income support payment for older partners of income support recipients, who face barriers to finding employment because of their previous limited participation in the workforce. To qualify for Partner Allowance, a person must have lodged their claim prior to 20 September 2003, which is when the payment was closed to new entrants. Recipients of Partner Allowance must have been born on or before 1 July 1955, they must be an Australian resident, they must not have qualified for parenting payment during the period they are seeking Partner Allowance, and they must not have any recent workforce experience. Recipients must also be a member of a couple, where their partner is at least 21 years old and also receiving income support, during the period they are claiming Partner Allowance.
While Partner Allowance has been closed to new applicants since 20 September 2003, this Schedule will cease the payment entirely from 1 January 2022. By the time this measure takes effect on 1 January 2022, all persons in receipt of Partner Allowance immediately before 1 January 2022 will be of pension age. As a result, all recipients of Partner Allowance are expected to have transitioned into Age Pension by the time this measure comes into effect.
Explanation of the changes
This Schedule ceases Partner Allowance from 1 January 2022. Item 21 repeals Part 2.15A of the Social Security Act, which provides qualification and payability for Partner Allowance.
Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997
Item 1 is a necessary consequential amendment to remove references to Partner Allowance from the Income Tax Assessment Act 1936.
Items 2 to 6 are necessary consequential amendments to remove references to Partner Allowance from the Income Tax Assessment Act 1997 and substitute references to Jobseeker Payment, created by Schedule 1 to this Bill, where appropriate, to reflect the introduction of Jobseeker Payment which will replace several working age payments from 20 March 2020.
Social Security Act
Items 7 to 63 make consequential amendments as a result of the repeal of Part 2.15A of the Social Security Act 1991, to remove redundant references to Partner Allowance or partner bereavement payment.
Social Security Administration Act
Items 64 to 66 make consequential amendments to the Social Security Administration Act to remove references to Partner Allowance as a result of the repeal of Part 2.15A of the Social Security Act.
Veterans' Entitlements Act
Item 67 makes a consequential amendment to remove references to Partner Allowance from the Veterans' Entitlements Act.
Item 68 is a savings provision.
Subitem 68(1) provides that former Part 2.15A and Part 3.6 of the Social Security Act continue to apply after commencement, despite their repeal, to allow the qualification or rate of Partner Allowance to be worked out for days before commencement.
Subitem 68(2) provides that if a person was receiving Partner Allowance and the person's partner died before commencement, then Division 9 of Part 2.15A will continue to apply on or after commencement.
Subitem 68(3) makes clear that no payment of Partner Allowance is to be made on or after commencement in relation to a day on or after commencement.
Subitem 68(4) states that if a person continues to receive Partner Allowance after the commencement date of this measure, for instance as a result of a bereavement period, the Partner Allowance recipient does not qualify for Age Pension before that bereavement period has passed.
Items 69 and 70 are savings provisions in relation to maintaining the tax treatment of Partner Allowance payments, despite the repeal of the relevant provisions.
Item 71 is a savings provision ensuring that the provision for determining any qualifying residence exemption for Partner Allowance and the provision relating to working out whether a person is in severe financial hardship in the days prior to commencement will continue to apply after commencement in relation to Partner Allowance, despite the repeal of the relevant provisions.
Item 72 is a savings provision, which maintains the effect of qualification provisions after commencement of this Schedule in respect of days before commencement, despite the repeal of the relevant provisions.
Item 73 is a savings provision which maintains the effect of Partner Allowance rate provisions after commencement of this Schedule in respect of days before commencement, despite the repeal of the relevant provisions.
Item 74 is a savings provision which maintains the effect of qualification for concession card provisions after commencement of this Schedule in respect of days before commencement, despite the repeal of the relevant provisions.
Item 75 is a saving and transitional provision which maintains the effect of various means testing, payment, compensation recovery and debt provisions after commencement of this Schedule in respect of days before commencement, despite the repeal of the relevant provisions.
Item 76 is a savings provision which maintains the effect of various administration provisions after commencement of this Schedule in respect of days before commencement, despite the repeal of the relevant provisions.
Item 77 is a savings provision which maintains the effect of rate provisions after commencement of this Schedule in respect of days occurring before, on or after that commencement, despite the repeal of the relevant provisions in the Veterans' Entitlements Act.