House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Minister for Industry, Science and Technology, Senator the Hon Peter Cook)

OUTLINE

This Bill complements the Student Assistance (Youth Training Allowance) Amendment Bill 1994 (YTA legislation) and enacts saving provisions and transitional provisions. The Bill also makes consequential amendments as a result of the enactment of the YTA legislation to the following Acts:

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Bankruptcy Act 1966;

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Childcare Rebate Act 1993;

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Data Matching (Assistance and Tax) Act 1986;

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Disability Services Act 1986;

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Employment Services Act 1994;

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Farm Household Support Act 1992;

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Health Insurance Act 1982;

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Income Tax Assessment Act 1936;

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National Health Act 1953;

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Registration of Deaths Abroad Act 1984;

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Veterans' Entitlements Act 1986.

PURPOSE OF THE BILL

The transitional provisions of the Bill provide for the treatment of claims for job search allowance made by people under the age of 18 years and which would have a date of commencement before the commencement of the YTA legislation.

Accordingly, the most important transitional provision provides for the situation where a person has lodged a claim for job search allowance before 1 January 1995. In this case the Bill will operate to deem such an application for job search allowance to be a claim for youth training allowance if the commencement day for payment of the person's allowance would be on or after 1 January 1995. Otherwise, if the commencement day for payment of the person's allowance would be pre 1 January 1995 the person's claim will be dealt with under the Social Security Act 1991.

Other transitional provisions provide that a person who is in receipt of job search allowance as at 1 January 1995 will remain on job search allowance. A person who makes an application for job search allowance after 1 January 1995 will be paid, if eligible, youth training allowance except where the date of commencement of payment of that person's claim is before 1 January 1995. In such a case, the person's claim will be dealt with under the Social Security Act 1991 and will remain a claim for job search allowance.

The Bill also provides for the continuing in force of some instruments made under the Social Security Act 1991 which may have continuing relevance in relation to youth training allowance.

The consequential amendments to the Acts listed above mirror provisions in those Acts relating to job search allowance or the Social Security Act 1991 where it is sensible for similar provision to be made in relation to youth training allowance.

A number of amendments are made to ensure youth training allowance recipients are treated in the same way as social security recipients under various pieces of beneficial legislation, eg, the Childcare Rebate Act 1993, Disability Services Act 1986, Farm Household Support Act 1992, Health Insurance Act 1973, National Health Act 1953, Registration of Deaths Abroad Act 1984, Social Security Act 1991, and the Veterans' Entitlements Act 1986.

Other amendments are made to ensure that information which is obtained from youth training allowance recipients and from other sources is handled in the same way as that gathered in relation to social security benefit recipients, eg, the Data- matching (Assistance and Tax) Act 1986.

The amendments to the Income Tax Assessment Act 1936 ensure that youth training allowance recipients are treated in the same manner as other social security benefit recipients in relation to tax concessions and exemptions, as well as to ensure they are under the same obligations.

FINANCIAL IMPACT

There would be negligible financial impact on the Commonwealth arising from these amendments.

In relation to the sickness allowance the financial impact would be minimal because few people would be affected.