House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Minister for Families, Housing, Community Services and Indigenous Affairs, the Hon Jenny Macklin MP)

Schedule 2 - Administrative schemes for 2008 one-off payments to older Australians

Summary

This Schedule contains provisions to enable administrative schemes to be established. In broad terms, the purpose of each administrative scheme will be to provide payments in circumstances where the statutory one-off payments regime provided for in Schedule 1 does not produce an appropriate result in relation to circumstances that occur in the 2007-08 income year. The relevant Minister will determine the details of the scheme by legislative instrument.

Background

This Schedule enables an administrative scheme to be established alongside the statutory regime providing for one-off payments to older Australians.

Explanation of the changes

Item 1 provides for the establishment of an administrative scheme by the relevant Minister administering the Social Security Act, under which one-off lump sum payments can be made to older Australians in specified circumstances. The purpose of the scheme is to provide payments in circumstances where the statutory one-off payments regime does not produce an appropriate result in relation to circumstances that occur in the 2007-08 income year.

The details of the administrative scheme (including such matters as eligibility, amount of the payment and administrative matters) would be set out in a legislative instrument.

Payments under the administrative scheme would be made out of the Consolidated Revenue Fund (in accordance with subitem 1(4)) .

The administrative scheme provisions in this bill are substantively the same as those used for one-off payments in previous years, including the legislative instrument basis, and the appropriation arrangements, for the scheme.

It is unlikely that the provisions in the other Acts, enabling a scheme to be made, will ever be used. This is consistent with the fact that the primary one-off payment provisions are intended to cover all the known situations in which payments should be made. A scheme would be made only to cover unusual and unforeseen situations that come within the spirit of the one-off payment measures but are not strictly covered by the primary legislation. It would be impractical to include such situations in primary legislation.

Similarly, and given the very slight use made of the scheme-enabling provisions in the past, and the fact that any future use is unlikely and would be small in scale, it is not considered necessary to provide for any funding limits and formal review of any decision to make a scheme. The special (standing) appropriation mechanism is appropriate to fund any such payments, consistent with the appropriation mechanism for one-off payments under the primary legislation and for payments generally under the family assistance law, social security law and Veterans' Entitlements Act.

The tabling and disallowance process for any schemes made give sufficient opportunity to address any issues arising.

Item 2 provides for the establishment of an administrative scheme by the Minister administering the Veterans' Entitlements Act, under which one-off lump sum payments can be made to older Australians (veterans) in specified circumstances. The purpose of the scheme is to provide payments in circumstances where the statutory one-off payments regime does not produce an appropriate result in relation to circumstances that occur in the 2007-08 income year.

The details of the administrative scheme (including such matters as eligibility, amount of the payment and administrative matters) would be set out in a legislative instrument.

Payments under the administrative scheme would be made out of the Consolidated Revenue Fund (in accordance with subitem 2(4)) .

Discussion regarding the legislative instrument and appropriation basis of the administrative scheme can be found under item 1 of Schedule 2.