House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Minister for Social Services, the Hon Scott Morrison MP)

Statement of compatibility with human rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Social Services Legislation Amendment (Low Income Supplement) Bill 2015

This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Bill

The low income supplement inclusive of the low income family supplement is a $300 annual lump sum supplement claimed by independent adults in low-income households who were not adequately assisted through the tax systems or other Household Assistance Package measures for the cost of living impact of the carbon tax.

This supplement will cease from 1 July 2017.

Human rights implications

Individuals eligible for the supplement are now better off following the abolition of the carbon tax. The abolition of the carbon tax has delivered cost of living benefits to low income households that are greater than the value of the supplement they receive.

Individuals eligible for the low income family supplement will continue to receive the energy supplement with their Family Tax Benefit payment.

Individuals receiving an income support or Family Tax Benefit payment automatically receive an energy supplement payment. There is also a range of assistance that individuals and families can access through the social security system to ensure they can maintain a minimum standard of living.

Conclusion

There are no human rights impacts as all low income households are better off because there are no longer price pressures from the carbon tax.

Circulated by the authority of the Minister for Social Services, the Hon Scott Morrison MP