Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
1998—99
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
COMPENSATION FOR NON-ECONOMIC LOSS (SOCIAL SECURITY AND VETERANS’ ENTITLEMENTS LEGISLATION AMENDMENT) BILL 1999
SUPPLEMENTARY EXPLANATORY MEMORANDUM
(Circulated by authority of Senator the Hon Jocelyn
Newman,
Minister for Family and Community Services)
ISBN: 0642 408882
COMPENSATION FOR NON-ECONOMIC LOSS (SOCIAL SECURITY AND VETERANS’ ENTITLEMENTS LEGISLATION AMENDMENT) BILL 1999
OUTLINE AND FINANCIAL IMPACT STATEMENT
These amendments affect the Social Security Act 1991 (the
Social Security Act) and the Veterans’ Entitlements Act 1986
(the VEA).
The Compensation for Non-economic Loss (Social Security and
Veterans’ Entitlements Legislation Amendment) Bill 1999 (the Bill)
amends the treatment, under the Social Security Act and the VEA, of payments
made solely to compensate for non-economic loss. These amendments ensure that
compensation payments for criminal injuries continue to be treated beneficially,
by specifically excluding such payments from the operation of the Bill as well
as from the operation of the existing compensation provisions contained in the
Social Security Act. The amendments also create a discretion that will empower
the Secretary to disregard lump sum payments for the purposes of the Bill in
certain circumstances where it would be unreasonable to expect a person to
purchase an income stream product with all (or part) of their non-economic loss
lump sum payment.
The financial implications for these amendments are as
follows:
Schedules 1 and 2
2000-2001 $0.203m
(costs)
2001-2002 $0.173m (costs)
2002-2003 $0.153m
(costs)
2003-2004 $0.155m (costs)
2004-2005 $0.156m (costs)
COMPENSATION FOR NON-ECONOMIC LOSS (SOCIAL SECURITY AND VETERANS’ ENTITLEMENTS LEGISLATION AMENDMENT) BILL 1999
Amendments to be moved on behalf of the Government
NOTES ON AMENDMENTS
Schedule 1 amendments
(Amendments relating to criminal injuries compensation
payments)
Amendments 1 to 4 ensure that, where a payment is
made pursuant to a statutory criminal injuries compensation scheme, that payment
is not treated as compensation for the purposes of the existing compensation
provisions of the Social Security Act 1991 and is not treated as a
payment made solely to compensate for non-economic loss for the purposes of this
Bill.
(Amendments relating to the creation of Secretarial
discretion)
Amendments 5 to 8 create a Secretarial discretion
that will empower the Secretary to disregard lump sum payments for the purposes
of the Bill in circumstances where it would be unreasonable to expect a person
to purchase an income stream product with all (or part) of their lump sum
payment. The provisions provide for the Secretary to make a written
determination concerning the circumstances in which it would be unreasonable to
expect a person to purchase an income stream. Such a determination would be a
disallowable instrument. The effect of Item 8 is that, for people aged 80 or
over who receive a lump sum non-economic loss payment, the discretion to
disregard that lump sum will operate automatically.
Schedule 2 amendments
(Amendments relating to criminal injuries compensation
payments)
Amendments 9 to 11 and 13 ensure that, where a
payment is made pursuant to a statutory criminal injuries compensation scheme,
that payment is not treated as compensation for the purposes of the compensation
recovery provisions in Part IIIC of the VEA and is not treated as a payment made
solely to compensate for non-economic loss for the purposes of this
Bill.
(Amendments relating to the creation of Repatriation Commission
discretion)
Amendments 12 and 14 to 16 make amendments to the
VEA equivalent to amendments 5 to 8 affecting the Social Security Act.
They provide the same discretionary powers for the Repatriation Commission as
provided for the Secretary of the Department of Family and Community
Services.