House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Minister for Families and Social Services, Senator the Hon Anne Ruston)

Schedule 1 - Additional economic support payments

Summary

Schedule 1 provides for the payment of two further Economic Support Payments of $250 to around five million social security and veterans' payment recipients and concession cardholders in the lead up to Christmas and in the new year as part of the Australian Government's economic response to COVID-19.

To be eligible, recipients must be residing in Australia and receive or hold one of the following payments or concession cards on 27 November 2020 and/or 26 February 2021:

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Age Pension, Disability Support Pension or Carer Payment

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Carer Allowance, Double Orphan Pension or Family Tax Benefit Part A and/or Part B (if not in receipt of a primary income support payment)

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Commonwealth Seniors Health Card;

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Pensioner Concession Card (if not in receipt of a primary income support payment

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certain Department of Veterans' Affairs payments and cards.

The payments will be made progressively from 30 November 2020 and 1 March 2021.

People will only be able to receive one $250 payment in each round of payments, even if they qualify in multiple ways. Each member of a couple will receive payments if both are on eligible payments or hold eligible concession cards.

Schedule 1 commences the day after the Act receives Royal Assent.

Explanation of the changes

Part 1 - Family assistance amendments

Family Assistance Act

Item 1 amends subsection 3(1) to add definitions of the new additional economic support payments 2020 and 2021 for family assistance recipients. Those new payments are introduced by new Part 10 of the Act (inserted by item 2 ).

Item 2 inserts new Part 10 into the Act.

New Part 10 - Additional economic support payments

New Division 1 - Additional economic support payment 2020

New section 117 - When is an individual entitled to an additional economic support payment 2020?

New section 117 sets out when a person is eligible for the additional economic support payment 2020 under the Family Assistance Act. The person must:

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meet one of the eligibility requirements in new section 123;

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not be receiving any social security income support payment on 27 November 2020;

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not be receiving a payment under a prescribed educational scheme on that date; and

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be residing in Australia on that date.

The definition of income support payment in subsection 23(1) of the Social Security Act includes all social security pensions (as defined in subsection 23(1) of the Social Security Act) and social security benefits (as defined in subsection 23(1) of the Social Security Act), service pension under the Veterans' Entitlements Act, income support supplement under the Veterans' Entitlements Act and veteran payment under the Veterans' Entitlements Act.

If the income support payment the person receives on 27 November 2020 or 26 February 2021 is an age pension, disability support pension or carer payment the person can still receive their additional economic support payment 2020 or 2021 under the Social Security Act.

If the income support payment the person receives on 27 November 2020 or 26 February 2021 is service pension, income support supplement or veteran payment the person can still receive an additional economic support payment 2020 or 2021 under the Veterans' Entitlements Act.

The Family Assistance Act adopts the definition of prescribed educational scheme in subsection 5(1) of the Social Security Act. This definition includes five schemes and two of these are no longer in operation. The three schemes that are in operation are the ABSTUDY Scheme, Veterans' Children Education Scheme and the scheme to provide education and training under section 258 of the MRCA.

New section 118 - What is the amount of the payment?

The additional economic support payment 2020 is $250.

New section 119 - More than one entitlement

New section 119 ensures that a person can only receive one additional economic support payment 2020, even if they are entitled under more than one provision of new section 123, or under the Social Security Act or the Veterans' Entitlements Act.

New Division 2 - Additional economic support payment 2021

New section 120 - When is an individual entitled to an additional economic support payment 2021?

New section 120 sets out when a person is eligible for the additional economic support payment 2021 under the Family Assistance Act. It adopts the same criteria as new section 117 (discussed above) but has a test date of 26 February 2021.

New section 121 - What is the amount of the payment?

The additional economic support payment 2021 is also $250.

New section 122 - More than one entitlement

New section 122 ensures that a person can only receive one additional economic support payment 2021, even if they are entitled under more than one provision of new section 123, or under the Social Security Act or the Veterans' Entitlements Act.

New Division 3 - Eligibility

New section 123 - Eligibility

New section 123 sets eligibility requirements for both additional economic support payments 2020 and 2021. A person must be eligible for a family tax benefit (Part A or B) payment on 27 November 2020 (for the additional economic support payment 2020) or 26 February 2021 (for the additional economic support payment 2021).

A person may be eligible for family tax benefit because of a determination under section 16 (FTB by instalment), 17 (FTB for a past period claim) or 18 (FTB for a bereavement claim) of the Family Assistance Administration Act. New subsections 123(2), (3) and (4) are separate eligibility provisions for people who receive family tax benefit under section 16, 17 or 18 of the Family Assistance Administration Act respectively.

Family Assistance Administration Act

Item 3 inserts new Division 4DB into Part 3.

New Division 4DB - Additional economic support payments

New section 65JC - Payment of additional economic support payment 2020

New section 65JC provides for the additional economic support payment 2020 to be paid as a lump sum as soon as practicable after 27 November 2020. New subsection 65JC(2) provides that the Secretary must not pay the additional economic support payment 2020 on or after 1 July 2023 if the individual is entitled to the payment because subsection 123(2) or (4) of the Family Assistance Act applies to the individual on 27 November 2020.

New section 65JD - Payment of additional economic support payment 2021

New section 65JD provides for the additional economic support payment 2021 to be paid as a lump sum as soon as practicable after 26 February 2021. New subsection 65JD(2) provides that the Secretary must not pay the additional economic support payment 2021 on or after 1 July 2023 if the individual is entitled to the payment because subsection 123(2) or (4) of the Family Assistance Act applies to the individual on 26 February 2021.

Item 4 amends subsection 66(1) so that additional economic support payments 2020 and 2021 are inalienable in the same way as other payments under the family assistance law.

Item 5 amends section 70 so that an overpayment of additional economic support payments 2020 or 2021 can also be a debt under the Act.

Item 6 inserts new section 72A.

New section 72A - Debts arising in respect of additional economic support payment

New section 72A ensures that the additional economic support payment 2020 or 2021 can be recovered as a debt if a person's underlying family tax benefit eligibility for the relevant date (27 November 2020 or 26 February 2021) is later revoked because the person knowingly made a false or misleading statement, or knowingly provided false information.

Item 7 amends paragraph 74(a) so that if the additional economic support payment 2020 or 2021 is paid by cheque, if another person improperly cashes it, that other person owes a debt to the Commonwealth for the amount of the payment. This ensures that additional economic support payments 2020 or 2021 are treated in the same way as other payments under the family assistance law.

Item 8 amends subsection 93A(6) so that a payment of the additional economic support payment 2020 or 2021 may also be recovered from a financial institution if the Secretary is satisfied that the payment was intended to be paid to someone other than the account-holder. Recovery will be available in the same way as other payments under the family assistance law.

Items 9 and 10 amend sections 106 and 109D so that review provisions apply to decisions relating to the additional economic support payment 2020 and 2021 in the same way as they apply to other payments under the family assistance law.

The amendment to subsection 106(3) ensures that a person affected by a review decision, initiated by the Secretary, of a decision relating to the additional economic support payment 2020 or 2021 is given notice of the review decision.

The amendments to subsection 109D(4) and paragraph 109D(5)(a) ensure that where an application for review of a decision relating to the additional economic support payment 2020 or 2021 is made because the Commissioner of Taxation reviewed a previous decision about a person's taxable income, the review application can be made within 13 weeks after the Commissioner notifies the person of the outcome of the income review.

Item 11 amends section 219TA so that the nominee provisions in Part 8B of the Act are also available to recipients of the additional economic support payment 2020 and 2021.

Part 2 - Social security amendments

Social Security Act

Item 12 amends paragraph 8(8)(jaa) so that the additional economic support payment 2020 and 2021 under the Family Assistance Act is not income for the purposes of the Social Security Act.

Item 13 inserts new paragraphs 8(8)(yo) and (yp) so that the additional economic support payment 2020 and 2021 under the Veterans' Entitlements Act (added by Part 3 of this Schedule) is not income for the purposes of the Social Security Act.

Item 14 inserts new paragraph 23(4AA)(ad).

The effect of this amendment is that a person will qualify for the additional economic support payment 2020 under new section 309 of the Social Security Act if on 27 November 2020 they are taken to be receiving age pension, disability support pension, or carer payment under subsection 23(4A) of the Social Security Act. Also, the effect of this amendment is that a person qualifies for the additional economic support payment 2021 under section 311 of the Social Security Act if, on 26 February 2021, the person is taken to be receiving age pension, disability support pension, or carer payment under subsection 23(4A) of the Social Security Act.

Subsection 23(4A) of the Social Security Act treats a person as though they are still 'receiving' a social security pension (which includes age pension, disability support pension, and carer payment) for the purposes of receiving certain supplementary payments and benefits listed in subsection 23(4AA) of the Social Security Act. The person will be deemed to be receiving the pension for an additional 12 week period if they ceased to be eligible for their pension because either their own or their partner's employment income reduced the rate of their pension to nil.

Item 15 inserts new Part 2.6C.

New Part 2.6C - Additional economic support payments

New Division 1 - Additional economic support payment 2020

New section 309 - Additional economic support payment 2020

New section 309 sets out when a person is eligible for the additional economic support payment 2020 under the Social Security Act. The person must:

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meet one of the eligibility requirements in new section 313; and

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be residing in Australia on 27 November 2020.

New section 309 also ensures that a person can only receive one additional economic support payment 2020, even if they are entitled under more than one provision of new section 313, or under the Family Assistance Act or the Veterans' Entitlements Act.

New section 310 - Amount of economic support payment 2020

The additional economic support payment 2020 is $250.

New Division 2 - Additional economic support payment 2021

New section 311 - Additional economic support payment 2021

New section 311 sets out when a person is eligible for the additional economic support payment 2021 under the Social Security Act. The person must:

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meet one of the eligibility requirements in new section 313; and

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be residing in Australia on 26 February 2021.

New section 311 also ensures that a person can only receive one additional economic support payment 2021, even if they are entitled under more than one provision of new section 313, or under the Family Assistance Act or the Veterans' Entitlements Act.

New section 312 - Amount of economic support payment 2021

The additional economic support payment 2021 is also $250.

New Division 3 - Eligibility

New section 313 - Eligibility

New section 313 sets out the qualification requirements for both additional economic support payments 2020 and 2021. To be qualified, a person must on 27 November 2020 (for the additional economic support payment 2020) or 26 February 2021 (for the additional economic support payment 2021) receive:

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age pension, disability support pension or carer payment (and not receive a payment under a prescribed educational scheme); or

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carer allowance or double orphan pension (and not receive an income support payment or payment under a prescribed educational scheme).

A person may also qualify for the additional economic support payment 2020 and/or the additional economic support payment 2021 if they hold a seniors health card or pensioner concession card on the relevant test date.

People who claim a seniors health card on or before 27 November 2020 and have a claim pending on that day can receive the additional economic support payment 2020 if they are qualified for a seniors health card on that day and do not receive a payment under a prescribed educational scheme on that day. The same applies for a person who claims a seniors health card on or before 26 February 2021 and has a claim pending on that day. Such a person can receive the additional economic support payment 2021 if they are qualified for a seniors health card on 26 February 2021 and do not receive a payment under a prescribed educational scheme on that day.

Holders of a pensioner concession card cannot receive the additional economic support payment 2020 if they receive an income support payment or receive a payment under a prescribed educational scheme on 27 November 2020. Likewise, they cannot receive the additional economic support payment 2021 if they receive an income support payment or receive a payment under a prescribed educational scheme on 26 February 2021.

The definition of income support payment in subsection 23(1) of the Social Security Act includes:

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all social security pensions (as defined in subsection 23(1) of the Social Security Act);

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social security benefits (as defined in subsection 23(1) of the Social Security Act);

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service pension under the Veterans' Entitlements Act;

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income support supplement under the Veterans' Entitlements Act; and

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veteran payment under the Veterans' Entitlements Act.

If the income support payment the person receives on 27 November 2020 or 26 February 2021 is an age pension, disability support pension or carer payment the person can still receive their additional economic support payment 2020 or 2021 with that income support payment.

If the income support payment the person receives on 27 November 2020 or 26 February 2021 is service pension, income support supplement or veteran payment the person can still receive an additional economic support payment 2020 or 2021 under the Veterans' Entitlements Act.

Prescribed educational scheme is defined in subsection 5(1) of the Social Security Act. This definition includes five schemes and two of these are no longer in operation. The three schemes that are in operation are the ABSTUDY Scheme, Veterans' Children Education Scheme and the scheme to provide education and training under section 258 of the MRCA.

Item 16 amends subsection 1222(2) to add debts in respect of additional economic support payment 2020 and 2021 to the table of debt recovery methods. Those debts will be recoverable in any of the usual ways, i.e. deductions from social security payment, legal proceedings, garnishee notice, or repayment by instalments.

Item 17 inserts new sections 1223ABK and 1223ABL.

New section 1223ABK - Debts in respect of additional economic support payment 2020

New section 1223ABK ensures that additional economic support payment 2020 can be recovered as a debt if a person's underlying social security payment or concession card eligibility for 27 November 2020 is later revoked because the person knowingly made a false or misleading statement, or knowingly provided false information.

New section 1223ABL - Debts in respect of additional economic support payment 2021

New section 1223ABL is the equivalent provision to new section 1223ABK, for additional economic support payment 2021.

Social Security Administration Act

Item 18 inserts new section 12AF.

New section 12AF ensures that a person does not need to make a claim for additional economic support payment 2020 or 2021.

Item 19 amends subsection 47(1) so that additional economic support payment 2020 and 2021 are payable as lump sum benefits.

Item 20 inserts new sections 47AG and 47AH.

New section 47AG - Payment of additional economic support payment 2020

New section 47AG provides for additional economic support payment 2020 to be paid as a lump sum as soon as practicable after 27 November 2020, but by 30 June 2023.

New section 47AH - Payment of additional economic support payment 2021

New section 47AH provides for additional economic support payment 2021 to be paid as a lump sum as soon as practicable after 26 February 2021, but by 30 June 2023.

Item 21 amends section 123TC to insert a new definition of additional economic support payment . It covers the additional economic support payments 2020 and 2021 under the Social Security Act and the Family Assistance Act. This amendment is a consequential amendment resulting from the insertion of new section 123XPBB (discussed below in item 23 ).

Item 22 substitutes the heading of Subdivision DB of Division 5 of Part 3B. This amendment is a consequential amendment resulting from the insertion of new section 123XPBB (discussed below in item 23 ).

Item 23 inserts new section 123XPBB.

New section 123XPBB - Deductions from additional economic support payments

New section 123XPBB means that, for a person subject to the income management regime, the additional economic support payment 2020 or 2021 under the Social Security Act or the Family Assistance Act will be credited to the person's income management account. The full amount of the additional economic support payment 2020 or 2021 will be subject to income management.

Item 24 amends the definition of restrictable payment in subsection 124PD(1) so that it includes the additional economic support payments 2020 and 2021 under the Social Security Act and the Family Assistance Act. The insertion of a reference to these payments in the definition of restrictable payment will, in conjunction with existing subsection 124PJ(2) of the Social Security Administration Act, mean that the full amount of the additional economic support payment 2020 and the additional economic support payment 2021 will be subject to the cashless welfare card trial (in Part 3D of the Social Security Administration Act) if a recipient of these payments is a participant in the trial.

Part 3 - Veterans' amendments

Veterans' Entitlements Act

Items 25 and 26 amend section 5H(8) of the Veterans' Entitlements Act to specify the additional economic support payments 2020 and 2021 in the list of excluded amounts for the purposes of that Act. This amendment in effect ensures that the additional economic support payments do not count as income for income testing purposes but instead are a type of 'Excluded amount - general'.

Item 25 amends paragraph 5H(8)(paa) of the Veterans' Entitlements Act to ensure the additional economic support payments 2020 and 2021 payable under the Family Assistance Act are not counted as income.

Item 26 amends section 5H(8) to add reference to the additional economic support payments 2020 and 2021 at paragraphs 5H(8)(zzan) and 5H(8)(zzao) to ensure the economic support payments payable under new Part IIIJ are not counted as income.

Item 27 inserts new Part IIIJ (Additional economic support payments) into the Veterans' Entitlements Act after Part IIIH (First and second economic support payments). New Part IIIJ provides for the payment of two additional economic support payments to eligible persons. The eligibility criteria are set out in Division 3.

New Part IIIJ - Additional economic support payments

New Division 1 - Additional economic support payment 2020

New section 67ZC - Additional economic support payment 2020

New section 67ZC provides that a person is eligible for the additional economic support payment 2020 if the person is eligible to receive a payment listed in Division 3 or hold an appropriate card listed under Division 3 on 27 November 2020 and the person does not receive a social security benefit; a social security pension; or a payment under a prescribed educational scheme within the meaning of the Social Security Act on 27 November 2020.

The terms social security benefit and social security pension , as defined under section 5Q of the Veterans' Entitlements Act, have the same meaning as in the Social Security Act.

The effect of new section 67ZC is that a person who is eligible to receive a payment or hold a card listed in Division 3 cannot receive the additional economic support payment 2020 if they are also in receipt of a payment such as JobSeeker Payment or Youth Allowance.

New section 67ZC also provides that a person is also not eligible for the additional support payment if they are receiving a payment under a prescribed educational scheme within the meaning of the Social Security Act. Subsection 5(1) of that Act includes three schemes that are still in operation, the Veterans' Children's Education Scheme; the Military Rehabilitation and Compensation Education and Training Scheme; and the ABSTUDY scheme.

A person must also be residing in Australia on 27 November 2020 to be eligible for the additional support payment 2020.

New subsection 67ZC(2) provides that the additional support payment 2020 will be $250.

New section 67ZD - More than one entitlement

New section 67ZD ensures that a person receives only one payment of the additional economic support payment 2020 despite that person being eligible for more than one payment under new Division 1 of Part IIIJ.

New subsection 67ZD(2) provides that if a person receives an additional economic support payment 2020 under Division 1 of Part 10 of the Family Assistance Act, or Division 1 of Part 2.6C of the Social Security Act, the person will not receive a payment under the Veterans' Entitlements Act.

New section 67ZE - Claim not required for additional economic support payment

New section 67ZE provides that a person does not have to make a claim to receive the additional economic support payment 2020.

New section 67ZF - Payment of additional economic support payment 2020

New section 67ZF provides that if a person is eligible for an additional economic support payment 2020 under the Act, the Repatriation Commission must pay the payment in a single lump sum of $250 on the earliest date that is reasonably practicable for the payment to be made after 27 November 2020 and in the manner the Repatriation Commission considers to be appropriate

New subsection 67ZF(2) provides that the Repatriation Commission must not pay the additional economic support payment 2020 on or after 1 July 2023.

New Division 2 - Additional economic support payment 2021

New section 67ZG - Additional economic support payment 2021

New section 67ZG provides that a person is eligible for the additional economic support payment 2021 if the person is eligible to receive a payment listed in Division 3 or hold an appropriate card listed under Division 3 on 26 February 2021. A person must not also be receiving social security benefit; a social security pension; or a payment under a prescribed educational scheme within the meaning of the Social Security Act on 26 February 2021.

The terms social security benefit and social security pension , as defined under section 5Q of the Veterans' Entitlements Act, have the same meaning as in the Social Security Act.

The effect of 67ZG is that a person who is eligible to receive a payment or hold a card listed in Division 3 cannot receive the additional economic support payment 2021 if they are also in receipt of a payment such as JobSeeker Payment or Youth Allowance.

New section 67ZG also provides that a person is also not eligible for the additional support payment if they are receiving a payment under a prescribed educational scheme within the meaning of the Social Security Act. Subsection 5(1) of that Act includes three schemes that are still in operation, the Veterans' Children's Education Scheme; the Military Rehabilitation and Compensation Education and Training Scheme; and the ABSTUDY scheme.

A person must also be residing in Australia on 26 February 2021 to be eligible for the additional support payment.

New subsection 67ZG(2) provides that the additional support payment 2021 will be $250.

New section 67ZH - more than one entitlement

New subsection 67ZH(1) ensures that a person receives only one payment of the additional economic support payment 2021 despite that person being eligible for more than one payment under new Division 2 of Part IIIJ.

New subsection 67ZH(2) ensures that if a person receives an additional economic support payment 2021 under Division 1 of Part 10 of the Family Assistance Act or Division 1 of Part 2.6C of the Social Security Act, the person will not receive a payment under the Veterans' Entitlements Act.

New section 67ZI - Claim not required for additional economic support payment 2021

New section 67ZI provides that a person does not have to make a claim to receive the additional economic support payment 2021.

New section 67ZJ - Payment of additional economic support payment 2021

New section 67ZJ provides where a person is eligible for the additional economic support payment 2021, the Repatriation Commission must pay the payment in a single lump sum of $250 on the earliest date that is reasonably practicable for the payment to be made and in the manner the Repatriation Commission considers to be appropriate.

New subsection 67ZJ(2) provides that the Repatriation Commission must not pay the additional economic support payment 2021 on or after 1 July 2023.

New Division 3 - Eligibility

New Division 3 sets out eligibility criteria a person has to meet to receive the additional economic support payments 2020 and 2021.

The amendments to the Veterans' Entitlements Act will allow the economic support payments to be paid to persons receiving the following payments or who hold the appropriate card:

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service pension;

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income support supplement;

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disability pension under the Veterans' Entitlements Act;

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war widow(er)s pension under the Veterans' Entitlements Act;

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special rate disability pension under the MRCA;

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wholly Dependent Partner payments under the MRCA;

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permanent impairment compensation under the DRCA;

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permanent impairment compensation under the MRCA;

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those who converted their weekly Permanent Impairment Compensation, or Wholly Dependent Partner Payments under the MRCA to a lump sum prior to the date their eligibility for an additional economic support payment is assessed;

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veteran payment;

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all Repatriation Health Card - For All Conditions (Gold Card) holders;

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persons who receive fringe benefits (where a Pensioner Concession Card is issued); and

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all Commonwealth Seniors Health Card holders under the Veterans' Entitlements Act.

New section 67ZL - Payments under this Act

New section 67ZL sets out the types of payments which will attract the additional economic support payments.

New subsection 67ZL(1) provides that Division 3 applies to those persons to whom service pension or income support supplement is payable on that day.

New subsection 67ZL(2) lists circumstances where a person may not be receiving a service pension or income support supplement due to a temporary increase in the person's, or the person's partner's, employment income.

New subsection 67ZL(2) provides that those who have personal and/or partner employment income that reduces their rate to nil during the 12 week period prior to their service pension or income support supplement ceasing (the cessation day ) are still taken to be receiving a payment on the test day and qualify for the economic support payment.

New subsection 67ZL(3) provides that a veteran is eligible for an economic support payment if an amount of disability pension at the general rate of pension and extreme disablement adjustment, intermediate rate, special rate of pension, temporary special rate or an increased rate of pension due to a kind of incapacity set out in section 27 of the Veterans' Entitlements Act, is payable to the veteran on the day that their eligibility is determined.

New subsection 67ZL(4) provides that a person who is the widow or widower of a deceased veteran, or a reinstated pensioner in relation to the veteran, is eligible for the economic support payment if an amount of pension is payable to the person under subsection 30(1) of Part II or Part IV of the Veterans' Entitlements Act on the day their eligibility is determined.

New subsection 67ZL(5) provides that, a pension is payable to a person even if the rate of pension is nil because the pension has been fully offset under provisions located in Divisions 4, 5 and 5A of Part II or under section 74 of that Act.

Divisions 4, 5 and 5A of Part II and section 74 of the Veterans' Entitlements Act provide that payments of disability and war widow / widower pensions under Part II or lump sum and periodic payments of compensation that have been paid to the person under the DRCA, are offset against payments by State and foreign governments and by another person or organisation.

New subsection 67ZL(6) provides that a person is eligible for the economic support payment if veteran payment is payable or will be payable to the person on the day their eligibility is determined.

New section 67ZM - Senior's health card, gold card, etc

New section 67ZM of the Veterans' Entitlements Act provides for the payment of the economic support payment to certain people holding seniors health cards or gold cards or who are eligible for fringe benefits (where a Pensioner Concession Card is issued) under the Veterans' Entitlements Act.

If a person has made a successful claim for a seniors health card on or before the day their eligibility is determined, then they will receive the additional economic support payment. However, if they have withdrawn their claim on or before the day their eligibility for an additional economic support payment is determined or have ceased to be eligible for the seniors health card on that day, they will not receive the additional economic support payment. People who hold a seniors health card under the Social Security Act cannot hold a seniors health card under the Veterans' Entitlements Act.

A person who holds a Repatriation Health Card - For All Conditions, may be eligible for the additional economic support payment. The Repatriation Health Card - For All Conditions is also known as the Gold Card and is issued to people who are eligible to be provided with treatment for all injuries or diseases under the Veterans' Entitlements Act, the MRCA, the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 or the Treatment Benefits (Special Access) Act 2019.

New subsection 67ZM(3) provides that a person who holds and is eligible for the Repatriation Health Card - For All Conditions (Gold Card) under the Veterans' Entitlements Act or MRCA is eligible on that day for the economic support payment.

New subsection 67ZM(4) deals with the circumstances where a person either receives treatment or has made a claim under the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act or the Treatment Benefits (Special Access) Act for eligibility to be provided for treatment. In essence, if a person has made a successful claim for the Repatriation Health Card - For All Conditions under either of these Acts on or before the day their eligibility is determined, then the person will receive the additional economic support payment. However, if the person has withdrawn their claim on or before the day their eligibility is determined or ceased to be eligible for Repatriation Health Card - For All Conditions, the person will not receive the additional economic support payment.

New subsection 67M(5) of the Veterans' Entitlements Act provides that a person qualified for an economic support payment if the person qualified for fringe benefits under subsection 53A(1A) of the that Act. A person is eligible for fringe benefits (in effect, a veterans' entitlements pensioner concession card) if:

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immediately before 1 January 2017, a person was receiving a service pension or income support supplement; and

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the rate of that pension was nil on 1 January 2017 because of the operation of the amendments made by Part 1 of Schedule 3 to the Social Services Legislation Amendment (Fair and Sustainable Pensions) Act 2015.

A person is not eligible for the economic support payment if they are eligible for fringe benefits under other subsections in section 53A of the Veterans' Entitlements Act.

People who on 1 January 2017 ceased to be paid a service pension or income support supplement because of the amendments by the Social Services Legislation Amendment (Fair and Sustainable Pensions) Act receive fringe benefits despite not being in receipt of an income support payment. Subsection 67M(5) ensures that this group of people receive the additional economic support payment, in line with people who hold a Pensioner Concession Card under subsection 1061ZA(1B) of the Social Security Act.

New section 67ZN - MRCA

New section 67ZN sets out the criteria for persons who are eligible for additional economic support payments 2020 and 2021 because they are in receipt of a payment under the MRCA.

Under new subsection 67ZN(1) a person is eligible for the additional 2020 and 2021 economic support payment if one or both of the following conditions is met on the day their eligibility for the economic support payment is determined:

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weekly compensation for permanent impairment is payable to the person under Part 2 of Chapter 4 of the MRCA on that day or weekly compensation for permanent impairment would have been payable under Part 2 of Chapter 4 for that day if it had not been offset under paragraph 398(3)(b) of the MRCA or subsection 13(4) of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004; or

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on or prior to that day, the person had received lump sum compensation for permanent impairment under Part 2 of Chapter 4 of the MRCA.

Under new subsection 67ZN(2) a person is eligible for the additional economic support payments 2020 and 2021 if Special Rate Disability Pension is payable to the person under the MRCA if they are determined to be eligible for additional economic support payments on 27 November 2020 and 26 February 2021. The additional economic support payments are also payable if the Special Rate Disability Pension would have been payable for that day if it had not been offset under section 204 or paragraph 398(3)(b) of the MRCA.

Under new subsection 67ZN(3) a wholly dependent partner is eligible for the economic support payment if one or both of the following conditions are met on the day the person's eligibility for the economic support payment is determined:

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weekly compensation as a wholly dependent partner is payable to the person under Division 2 of Part 2 of Chapter 5 of the MRCA on that day, or weekly compensation as a wholly dependent partner would have been payable to the person under Division 2 of Part 2 of Chapter 5 or would have been payable to the person for that day if it had not been offset under paragraph 398(3)(b) of the MRCA; or

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on or before that day, the person had received lump sum compensation as a wholly dependent partner under Division 2 of Part 2 of Chapter 5 of the MRCA and before that date the person had not been precluded under subsection 388(6) of the MRCA from being eligible for any further compensation under the MRCA following the recovery of damages for the death of the person's partner from the Commonwealth.

New subsection 67ZN(3) refers to the circumstances where compensation payable under the MRCA is to be regarded as being payable to the person even though the payment rate is nil due to the operation of one of the offsetting provisions in the MRCA.

New section 67ZO - Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988

New section 67ZO provides that a person receiving a payment of compensation under the DRCA is eligible for the additional economic support payments 2020 and 2021 if the compensation was paid because of a claim the person made on or before 27 November 2020 and 26 February 2021.

Part 4 - Taxation amendments

Income Tax Assessment Act 1997

Items 28 and 29 amend section 11-15. Section 11-15 is a guide to the types of income that are exempt from income tax. These items amend section 11-15 to reflect the amendments made by later items, which make additional economic support payments 2020 and 2021 under the Social Security Act, the Family Assistance Act and the Veterans' Entitlements Act exempt from income tax.

Items 30 to 32 amend sections 52-10 and 52-40 so that additional economic support payments 2020 and 2021 under the Social Security Act are exempt from income tax.

Items 33 to 35 amend sections 52-65 and 52-75 so that additional economic support payments 2020 and 2021 under the Veterans' Entitlements Act are exempt from income tax.

Item 36 amends section 52-150 so that additional economic support payments 2020 and 2021 under the Family Assistance Act are exempt from income tax.