Second Reading Speech
Hon Kevin Andrews MP (Minister for Social Services)This Bill will reintroduce a number of measures that were previously introduced in the Social Services and Other Legislation Amendment (2014 Budget Measures No. 1) Bill 2014 and the Social Services and Other Legislation Amendment (2014 Budget Measures No.2) Bill 2014.
Most of the reintroduced measures are from the 2014 Budget. The first will, from 20 September 2014, rename the Clean Energy Supplement as the Energy Supplement, and permanently cease indexation of the payment.
The second Budget measure will implement two changes to Australian Government payments - pausing indexation for two years from 1 July 2015 of the assets value limits for all working age allowances, student payments and Parenting Payment Single, and pausing indexation for three years from 1 July 2017 of the assets test free areas for all pensions (other than Parenting Payment Single).
From Royal Assent, Disability Support Pension recipients under age 35 will be reviewed against revised impairment tables and the Program of Support requirements applied.
From 1 January 2015, the Bill will limit the six-week overseas portability period for student payments.
The Bill will also include amendments that generally limit the overseas portability period for Disability Support Pension to 28 days in a 12-month period from 1 January 2015.
Amendments will exclude from the social security and veterans' entitlements income test any payments made under the new Young Carer Bursary Programme from 1 January 2015.
Untaxed superannuation income will be included in the assessment for the Commonwealth Seniors Health Card (with products purchased before 1 January 2015 by existing cardholders exempt from the new arrangements), and the portability period for cardholders will be extended from six to 19 weeks.
From 1 January 2015, relocation scholarship assistance for students relocating within and between major cities will be removed.
In the last of the Budget measures, three family payment reforms will be implemented from 1 July 2015. The first of these will limit the Family Tax Benefit Part A Large Family Supplement to families with four or more children. Amendments will remove the Family Tax Benefit Part A per-child add-on to the higher income free area for each additional child after the first.
The Bill will 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.
Lastly, in a non-Budget amendment, the Bill will add the Western Australian Industrial Relations Commission decision of 29 August 2013 as a pay equity decision under the Social and Community Services Pay Equity Special Account Act 2012, allowing payment of Commonwealth supplementation to service providers affected by the decision.