House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon. Josh Frydenberg MP)

Chapter 6 Additional support for veterans

Outline of chapter

6.1 Schedule 6 to this Bill allows the Veterans' Minister to:

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Increase, by legislative instrument, the amount paid to persons receiving a payment under a provision of the Veterans' Law by the amount of the COVID-19 supplement; and

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vary the qualifications and eligibility for payments under the Veterans' Law by legislative instrument.

6.2 These instruments may only be made after consultation with the Social Services Minister. Both the powers and any instruments made using them will end on 31 December 2020.

Context of amendments

6.3 Any additional payments would form part of the Government's commitment to provide financial assistance to those who are financially impacted by the Coronavirus.

Summary of new law

6.4 Schedule 6 to this Bill provides powers to the Veterans' Minister to increase, by legislative instrument, the amount paid to a person receiving a payment under a provision of the Veterans' Law by the amount of the COVID-19 supplement specified in the legislative instrument.

6.5 It also provides the Veterans' Minister with the power to vary the qualifications and payments under the Veterans' Law by legislative instrument. These determinations may only be made after consultation with the Social Services Minister.

6.6 The powers and any determinations made using them will end on 31 December 2020.

Comparison of key features of new law and current law

Detailed explanation of new law

6.7 Item 1 of Schedule 6 to this Bill sets out definitions used within Schedule 6. The defined terms are: Social Services Minister, veterans' law and Veterans' Minister. The definition of veterans' law is intended to encompass all primary legislation under which benefits or assistance are paid to veterans and their dependents. [Schedule 6, item 1]

6.8 Payments to certain veterans and their dependents may be increased by the amount of the COVID-19 supplement. The payment of the COVID-19 supplement (currently $550 per fortnight) is extended to social services recipients receiving:

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JobSeeker Payment (formerly known as Newstart Allowance);

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Youth Allowance;

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Sickness Allowance;

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ABSTUDY (Living Allowance);

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Austudy;

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Parenting Payment;

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Partner Allowance;

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Widow Allowance;

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Farm Household Allowance; or

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Special Benefit.

[Schedule 6, item 2]

6.9 These people receive this additional payment either through amendments contained in Part 1 of Schedule 11 to the Coronavirus Omnibus Act or through one of the determinations made by the Social Services Minister made under section 1210B of the Social Security Act. These Determinations include:

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the Social Security (Coronavirus Economic Response - 2020 Measures No. 1) Determination 2020; and

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the Social Security (Coronavirus Economic Response - 2020 Measures No. 2) Determination 2020.

6.10 The Veterans' Minister receives powers similar to those of the Social Services Minister under section 1210B of the Social Security Act. The principal difference is the requirement for the Veterans' Minister to consult with the Social Services Minister prior to increasing payments. [Schedule 6, subitem 2(3)]

6.11 If a veteran or dependent is receiving a pension, an income support supplement, a payment, compensation, an allowance, or any other pecuniary benefit under the Veterans' Law that person's payment will be increased by the rate of the COVID-19 supplement determined in an instrument for the period specified in the instrument. [Schedule 6, subitem 2(1)]

6.12 In making a legislative instrument determining the kind of payment, the rate of the COVID-19 supplement and the period for which the payment will be increased, the Veterans' Minister (like the Social Services Minister under subsection 1210B(2) of the Social Security Act) must be satisfied that the determination is in response to the circumstances relating to the Coronavirus. [Schedule 6, subitem 2(2)]

6.13 It is intended that these powers would only be exercised by the Veterans' Minister where the Social Services Minister had extended, or was intending to extend, payments of the COVID-19 supplement to an equivalent group of social security recipients. For this reason, the Veterans' Minister must consult with the Social Services Minister prior to exercising these powers. [Schedule 6, subitem 2(3)]

6.14 Item 2 of Schedule 6 to this Bill ceases to apply at the end of the period covered by subsection 646(2) of the Social Security Act. This period is six months from 25 March 2020, unless the period is extended. [Schedule 6, subitem 2(4)]

6.15 Item 3 of Schedule 6 to this Bill provides the Veterans' Minister with the flexibility and legislative instrument-making power to deal with necessary amendments to the qualifications and payments under the Veterans' Law. [Schedule 6, item 3]

6.16 The Veterans' Minister receives powers similar to those of the Social Services Minister under Item 40A of Schedule 11 to the Coronavirus Omnibus Act. The principal difference is the requirement for the Veterans' Minister to consult with the Social Services Minister prior to modifying a qualification or payment. [Schedule 6, item 3]

6.17 This will ensure that payments and assistance for veterans and their dependents can be changed in line with future changes to payments and assistance for equivalent social security recipients. It means the Government can undertake comprehensive measures to address the effects of the Coronavirus without distinction between whether a person receives social security benefits or benefits in recognition of their (or a member of their family's) military service.

6.18 The amendments allow the Veterans' Minister to provide, if necessary, additional economic support payments to persons receiving payments or benefits under Veterans' Law in line with any additional economic support payments to persons receiving payments or benefits under social security legislation.

6.19 The Veterans' Minister may vary, suspend, or impose provisions of Veterans' Law relating to the qualification or eligibility for a pension, an income support supplement, a payment, compensation, an allowance, or any other pecuniary benefit under the Veterans' Law. The Veterans' Minister may also vary provisions applying to the rate of these payments or specify different payment rates. [Schedule 6, subitem 3(1)]

6.20 The Veterans' Minister must be satisfied that the use of these powers is in response to the circumstances relating to the Coronavirus. This is the same requirement which applies to the Social Services Minister under subitem 40A(2) of Schedule 11 to the Coronavirus Omnibus Act. [Schedule 6, subitem 3(2)]

6.21 Instruments made under this item have no operation after 31 December 2020. [Schedule 6, subitem 3(5)]

6.22 The power given to the Veterans' Minister will end when Item 3 of Schedule 6 to this Bill is repealed at the end of 31 December 2020. [Schedule 6, subitem 3(6)]

Application and transitional provisions

6.23 Schedule 6 to this Bill will commence on the day after the day on which this Bill receives Royal Assent.