Explanatory Memorandum
(Circulated by the authority of the Minister for Families, Community Services and Indigenous Affairs, the Hon Mal Brough MP)Schedule 3 - Extension of eligibility for utilities allowance
Summary
This Schedule provides for the extension of eligibility for utilities allowance to persons who are under pension age and receiving mature age allowance, widow allowance or partner allowance. This amendment commences on 1 July 2006.
Background
Currently, a person must be of pension age in order to qualify for utilities allowance. Mature age, widow and partner allowees are required to meet a 'no recent work experience' qualification criteria to be eligible for payment. They have significant long term barriers to employment. Utilities allowance is aimed at assisting these people with meeting the costs of regular bills, such as gas, electricity and water.
Explanation of the changes
Section 1061T of the Social Security Act deals with qualification for utilities allowance. In part, it provides that a person must have reached pension age and be receiving an income support payment in order to qualify for the allowance. The amendment made by item 1 extends qualification for utilities allowance to people who are not of pension age and who are receiving mature age allowance, widow allowance or partner allowance.
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