Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Act 2022 (39 of 2022)

Schedule 1   Amendments

Part 1   Stage 1 amendments

Social Security (Administration) Act 1999

1R   After Part 3A

Insert:

Part 3AA - Enhanced income management regime

Division 1 - Introduction

123SA Simplified outline of this Part

• There is an enhanced income management regime for recipients of certain welfare payments.

• A person may become subject to the enhanced income management regime because the Queensland Commission requires the person to be subject to the enhanced income management regime or if the person was a program participant under the Cape York provision in Part 3D immediately before 6 March 2023.

• Certain welfare payments are divided into qualified and unqualified portions, with the qualified portions being credited to a BasicsCard bank account. The amount of each portion may be varied by the Secretary. Recipients are unable to spend the qualified portions of such payments on certain goods or services such as alcohol, tobacco products or gambling.

123SB Definitions

In this Part:

balance of the qualified portion , of acategory B welfare payment, means:

(a) if a deduction is to be made from, or an amount is to be set off against, the payment under:

(i) section 61, 61A or 238 of this Act; or

(ii) section 1231 of the 1991 Act; or

(iii) section 84, 84A, 92, 92A, 225, 226, 227 or 228A of the Family Assistance Administration Act;

the amount of the qualified portion of the payment less the amount of the deduction or the amount of the set-off; or

(b) in any other case - the amount of the qualified portion of the payment.

BasicsCard bank account means a bank account of a kind determined by a legislative instrument made under section 123SU.

cash-like product includes the following:

(a) a gift card, store card, voucher or similar article (whether in a physical or electronic form);

(b) a money order, postal order or similar order (whether in a physical or electronic form);

(c) digital currency.

category A welfare payment means:

(a) a social security benefit; or

(b) a social security pension; or

(c) a payment under the scheme known as the ABSTUDY scheme that includes an amount identified as living allowance.

category B welfare payment means:

(a) a category A welfare payment; or

(b) double orphan pension; or

(c) family tax benefit under the Family Assistance Act; or

(d) family tax benefit advance under the Family Assistance Administration Act; or

(e) stillborn baby payment under the Family Assistance Act; or

(f) carer allowance; or

(g) child disability assistance; or

(h) carer supplement; or

(i) mobility allowance; or

(j) pensioner education supplement; or

(k) telephone allowance under Part 2.25 of the 1991 Act; or

(l) utilities allowance under Part 2.25A of the 1991 Act; or

(m) a distance education payment under the scheme known as the Assistance for Isolated Children Scheme, where the payment relates to a child or children at a Homelands Learning Centre; or

(n) a payment under the scheme known as the ABSTUDY scheme that includes an amount identified as pensioner education supplement; or

(o) a social security bereavement payment; or

(p) an advance payment under Part 2.22 of the 1991 Act; or

(q) an advance pharmaceutical allowance under Part 2.23 of the 1991 Act; or

(r) a mobility allowance advance under section 1045 of the 1991 Act.

eligible recipient has the same meaning as in Part 3B.

excluded goods has the same meaning as in Part 3B.

excluded service has the same meaning as in Part 3B.

Part 3B payment nominee has the same meaning as in Part 3B.

qualified portion , of a category B welfare payment, has the meaning given by section 123SJ.

Queensland Commission has the same meaning as in Part 3B.

subject to the enhanced income management regime has the meaning given by Division 2.

unqualified portion , of a category B welfare payment, has the meaning given by section 123SJ.

Division 2 - Persons subject to the enhanced income management regime

123SC Persons subject to the enhanced income management regime - Queensland Commission

(1) For the purposes of this Part, a person is subject to the enhanced income management regime at a particular time (the test time ) on or after 6 March 2023 if:

(a) at the test time, the person, or the person's partner, is an eligible recipient of a category A welfare payment; and

(b) on or after 6 March 2023, the Queensland Commission gave the Secretary a written notice requiring that the person be subject to the income management regime under Part 3B; and

(c) the notice was given under a law of Queensland; and

(d) at the test time, the notice had not been withdrawn or revoked and had not expired; and

(e) if, at the test time, the person has a Part 3B payment nominee - that nominee is subject to the enhanced income management regime or is subject to the income management regime (within the meaning of Part 3B).

(2) For the purposes of this Part, a person is subject to the enhanced income management regime at a particular time (the test time ) on or after 6 March 2023 if:

(a) at the test time, the person, or the person's partner, is an eligible recipient of a category A welfare payment; and

(b) subsection (3) applies in relation to the person; and

(c) if, at the test time, the person has a Part 3B payment nominee - that nominee is subject to the enhanced income management regime or is subject to the income management regime (within the meaning of Part 3B).

(3) This subsection applies in relation to a person if:

(a) immediately before 6 March 2023, subitem 97(2) or (4) of Schedule 1 to the Social Security (Administration) Amendment (Continuation of Cashless Welfare) Act 2020 applies in relation to the person and a notice; and

(b) immediately before 6 March 2023, the person was a program participant under section 124PGD.

(4) Subsection (3) ceases to apply in relation to the person if on or after 6 March 2023 the notice referred to in paragraph (3)(a) is withdrawn or revoked by the Queensland Commission or expires.

(5) This section applies on and after 6 March 2023 despite item 97 of Schedule 1 to the Social Security (Administration) Amendment (Continuation of Cashless Welfare) Act 2020.

123SI Relationship with other provisions

If a person is subject to the enhanced income management regime at a particular time, then the person cannot be subject to the income management regime under Part 3B at that time and cannot be a program participant or a voluntary participant under Part 3D at that time.

Division 3 - Deductions from welfare payments

Subdivision A - Persons subject to the enhanced income management regime - Queensland Commission

123SJ Category B welfare payment to be split into qualified and unqualified portions

Payments by instalments

(1) If an instalment of a category B welfare payment is payable to a person who is subject to the enhanced income management regime under section 123SC:

(a) the percentage of the gross amount of the payment that is qualified (the qualified portion ) is the percentage determined by the Secretary under subsection (2) of this section, after consultation with the Queensland Commission; and

(b) the percentage of the gross amount of the payment that is unqualified (the unqualified portion ) is the percentage that is equal to 100% minus the percentage applicable under paragraph (a).

Note: The percentage may be varied under subsection (4).

(2) The Secretary may determine a percentage in relation to a person for the purposes of paragraph (1)(a).

Payments otherwise than by instalments

(3) If a category B welfare payment is payable, otherwise than by instalments, to a person who is subject to the enhanced income management regime under section 123SC, 100% of the gross amount of the payment is qualified (the qualified portion ).

Note: The percentage may be varied under subsection (4).

Variation by Secretary

(4) For a person who is subject to the enhanced income management regime under section 123SC, the Secretary may make a determination that:

(a) varies the percentage applicable under paragraph (1)(a) to 0%; and

(b) varies the percentage applicable under paragraph (1)(b) to 100%; and

(c) varies the percentage applicable under subsection (3) to 0%.

(5) The Secretary may make a determination under subsection (4) only if:

(a) the Secretary is satisfied that the person is unable to use the person's debit card that was issued to the person and that is attached to the person's BasicsCard bank account, or is unable to access that account, as a direct result of:

(i) a technological fault or malfunction with that card or account; or

(ii) a natural disaster; or

(iii) if a national emergency declaration (within the meaning of the National Emergency Declaration Act 2020) is in force - an emergency to which the declaration relates; or

(b) the person's category B welfare payment is payable in instalments and the Secretary is satisfied that any part of the payment is payable:

(i) at a time determined under subsection 43(2), where that determination is made because the person is in severe financial hardship as a result of exceptional and unforeseen circumstances; or

(ii) under a determination under subsection 51(1).

When determinations take effect

(6) A determination under subsection (2) or (4) takes effect on the day specified in the determination (which must not be earlier than the day on which the determination is made).

Determinations are not legislative instruments

(7) A determination under subsection (2) or (4) is not a legislative instrument.

123SK Payment of balance of qualified portion of category B welfare payment

If a category B welfare payment is payable to a person who is subject to the enhanced income management regime under section 123SC, the Secretary must pay the balance of the qualified portion of the payment to the credit of a BasicsCard bank account maintained by the person.

123SL Recipient's use of funds from category B welfare payments

A person who receives a category B welfare payment:

(a) may use the balance of the qualified portion of the payment, as paid under section 123SK, to obtain goods or services, other than:

(i) excluded goods or excluded services; or

(ii) a cash-like product that could be used to obtain excluded goods or excluded services; and

(b) may use the unqualified portion of the payment, as paid to the person, at the person's discretion.

Division 4 - Information

123SS Disclosure of information to the Secretary - financial institution

(1) Despite any law (whether written or unwritten) in force in a State or Territory, an officer or employee of a financial institution may give the Secretary information about a person if:

(a) the person is subject to the enhanced income management regime; and

(b) the disclosed information is relevant to the operation of this Part.

Note: Subsection 202(8A) allows a person to disclose information about a BasicsCard bank account to a financial institution.

(2) If information about a person is disclosed as mentioned in subsection (1), the Secretary may disclose information about the person to an officer or employee of the financial institution for the purposes of the performance of the duties, or the exercise of the powers, of the officer or employee.

123ST Disclosure of information - Queensland Commission

(1) Despite any law (whether written or unwritten) in force in Queensland, the Queensland Commission may give the Secretary information about a person if:

(a) either:

(i) the person is subject to the enhanced income management regime under section 123SC; or

(ii) the Queensland Commission is considering whether to give a notice of the kind referred to in paragraph 123SC(1)(b) in relation to the person; and

(b) the disclosed information is relevant to the operation of this Part.

(2) If information about a person is disclosed by the Queensland Commission as mentioned in subsection (1), the Secretary may disclose information about the person to the Queensland Commission for the purposes of the performance of the functions, or the exercise of the powers, of the Queensland Commission.

(3) If:

(a) a person ceases to be subject to the enhanced income management regime under section 123SC because of the cancellation of a category A welfare payment of the person or the person's partner; and

(b) immediately before the cancellation, the relevant notice referred to in paragraph 123SC(1)(b) or (3)(a) had not been withdrawn or revoked and had not expired;

then, as soon as practicable after the cancellation, the Secretary must give the Queensland Commission written notice of the cancellation.

Division 5 - Other matters

123SU BasicsCard bank accounts

(1) For the purposes of this Part, the Secretary may, by legislative instrument, determine a kind of bank account to be maintained by a person who is subject to the enhanced income management regime for the receipt of payments under this Part.

(2) A legislative instrument determining a kind of bank account may also prescribe terms and conditions relating to the establishment, ongoing maintenance and closure of the bank account so determined.

123SV Exceptions to Part IV of the Competition and Consumer Act 2010

(1) For the purposes of subsection 51(1) of the Competition and Consumer Act 2010, the declining of a transaction by a financial institution is specified and specifically authorised if the transaction would involve:

(a) money in a BasicsCard bank account; and

(b) a business of a kind specified in a legislative instrument made under subsection (2).

(2) The Secretary may, by legislative instrument, declare a kind of business, whether by reference to merchant category codes, terminal identification codes, card accepted identification codes or otherwise, in relation to which transactions involving money in a BasicsCard bank account may be declined by a financial institution.

(3) For the purposes of subsection 51(1) of the Competition and Consumer Act 2010, the declining of a transaction by a supplier of goods or services is specified and specifically authorised if the transaction would involve:

(a) money in a BasicsCard bank account; and

(b) the obtaining of:

(i) excluded goods or excluded services; or

(ii) a cash-like product that could be used to obtain excluded goods or excluded services.

(4) To avoid doubt, for the purposes of this section, it does not matter whether money in a BasicsCard bank account represents the qualified portion or unqualified portion of a payment.

123SW This Part has effect despite other provisions etc.

This Part has effect despite anything in:

(a) any other provision of this Act; or

(b) the 1991 Act; or

(c) the Family Assistance Act; or

(d) the Family Assistance Administration Act.