Senate

Supplementary Explanatory Memorandum

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

Outline

These Government amendments defer the commencement dates for two measures in the Bill in light of its delayed passage.

The current commencement date for most of the measure provided by Schedule 1 to the Bill (streamlining the current income management programme under a two-year continuation) is 1 July 2015. The Bill also currently provides for Schedule 2 (ceasing residential care subsidy for pre-entry leave) to commence on 1 July 2015. Both measures will now generally commence on the day after Royal Assent.

These Government amendments also clarify that the income management element of Cape York Welfare Reform, provided by the Social Security (Administration) Act 1999 , will continue for two additional years to 30 June 2017 in line with the rest of the income management streamlining measure in Schedule 1.

Financial impact statement

Streamlined income management

The financial impact stated in the explanatory memorandum for this measure is not affected by these amendments, assuming enactment by the end of 2015.

Cessation of residential care subsidy for pre-entry leave

The savings associated with this measure as stated in the explanatory memorandum have largely been realised through amendments to the Aged Care (Subsidy, Fees and Payments) Determination 2014 and the Aged Care (Transitional Provisions) (Subsidy and Other Measures) Determination 2014 . The amendments in the Bill formalise these changes in the principal Act and make a number of consequential amendments with limited financial impact. Accordingly, the financial impact of this amendment to the commencement date is negligible.