Explanatory Memorandum
(Circulated by the authority of the Minister for Social Services, the Hon Kevin Andrews MP)Outline
Business Services Wage Assessment Tool Payment Scheme (Consequential Amendments) Bill 2014
This Bill will establish a payment scheme for supported employees with intellectual impairment in Australian Disability Enterprises who previously had their wages assessed under the Business Services Wage Assessment Tool.
Supported employees in Australian Disability Enterprises are paid a pro-rata wage, worked out in about half of all cases under the Business Services Wage Assessment Tool.
However, two supported employees were found through a recent court decision to have experienced indirect discrimination because their wages were assessed under the Business Services Wage Assessment Tool.
Following this decision, this Bill establishes a payment scheme to provide reassurance to supported employees, and their families and carers, by removing perceived liability that could impact the ability of Australian Disability Enterprises to deliver ongoing employment support.
The payment scheme will allow registration from 1 July 2014 for payments to former and current eligible employees in relation to work they have performed in the past.
To be eligible for the payment scheme, a person must have an intellectual impairment and have been employed by an Australian Disability Enterprise. Also, the person must have been paid a pro-rata wage determined under the Business Services Wage Assessment Tool, or a training wage paid while waiting for an assessment under the tool to be undertaken. Lastly, the person must have required daily support in the workplace from the Australian Disability Enterprise to maintain his or her employment.
The scheme will deliver payments to eligible workers as quickly as possible. While the scheme will open for registration on 1 July 2014, people planning to submit an application for the scheme have until 1 May 2015 to register. Applications to the scheme can be submitted up until 30 November 2015.
There are strict timeframes for the scheme. While these timeframes are generous, they do require that people wishing to access the scheme take certain actions before set dates. These timeframes will be made very clear in all scheme materials.
Once an application has been received, the applicant's eligibility for the scheme will be determined. Once eligibility is established, a payment amount will be calculated, based on half of the amount the worker would have been paid had the productivity element only of the Business Services Wage Assessment Tool been applied.
If the payment amount is greater than zero, the eligible applicant will receive a letter of offer, including a payment amount. During the acceptance period, the applicant must seek independent financial counselling and legal advice, funded through the scheme. Certificates must be provided, from both the financial counsellor and the legal adviser, along with acceptance of a payment offer. Once an offer has been formally accepted by an eligible applicant, payment will be made.
To ensure people with disability have the opportunity to provide further information or to raise any concerns, the scheme will have both internal and external review processes.
The scheme will not pay compensation, but will provide a payment to eligible people. People who take part in any representative or subsequent proceedings, which could potentially take years to resolve, cannot also access the payment scheme provided by this Bill, which will be available for registration from 1 July 2014.
Business Services Wage Assessment Tool Payment Scheme (Consequential Amendments) Bill 2014
This Bill provides the consequential amendments that need to be made to Commonwealth legislation in light of the new scheme. For example, amendments to the taxation law will ensure payments under the scheme are eligible income for the lump sum in arrears tax offset.
Amendments to the social security law and the Veterans' Entitlements Act 1986 will ensure the payments are not income tested, and so will not reduce the income support payments of supported employees who receive payments under the scheme.
Lastly, the confidentiality provisions in the social security law will be adjusted to make sure personal information can be obtained and disclosed for the purpose of administering the new scheme.
Financial impact statement
The financial impact of these Bills will depend on the number of individuals who apply for the payment scheme, and the payment amounts determined for eligible applicants.
Statements of Compatibility with Human Rights
The statements of compatibility with human rights appear at the end of this explanatory memorandum.
Notes on clauses
Abbreviations used in this explanatory memorandum
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- BSWAT means the Business Services Wage Assessment Tool
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- Disability Services Act means the Disability Services Act 1986