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2008
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Employment and Workplace Relations Amendment bill 2008
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Employment and Workplace
Relations and Minister for Education the Honourable Julia Gillard MP)
Employment and Workplace Relations Amendment bill 2008
OUTLINE
The purpose of the amendments to the Safety, Rehabilitation and
Compensation Act 1988 is to increase benefits payable to an employee's
dependants in the event of a work-related death.
The amendments will increase the lump sum compensation to $400,000 and to
$110 a week for benefits paid to each prescribed child.
The benefits will be increased annually based on the Wage Price Index (WPI)
or as prescribed.
The WPI uses total hourly rates of pay, excluding bonuses, to measure
changes in employee wages paid by businesses in Australia. It is an
appropriate index because the benefits provide compensation having regard
to losses suffered by dependants as a result of the cessation of the
employee's earnings.
By allowing for the index to be as prescribed, the index can be amended if
the WPI has a change of name or a new or more appropriate index is
developed.
The bill makes various changes to the social security law to amend
incorrect references and clarify the operation of certain provisions in the
Social Security Act 1991. The bill clarifies the method of calculating the
amount of youth disability supplement that is to be added to a person's
rate of youth allowance and the definition of a partner with a rent
increased benefit.
The Bill will amend the Social Security Act 1991 to extend to Sickness
Allowance and Parenting Payment (single) the provisions which prevent a
person from receiving payment while there is an Assurance of Support in
force. This will mean that a person who is subject to an Assurance of
Support will not be qualified for Sickness Allowance or Parenting Payment
(single) where their assurer is willing and able to provide them with an
adequate level of support and it would be reasonable for them to accept
that support. In a small number of circumstances, migrants may qualify for
Sickness Allowance or Parenting Payment (single) if their assurer is
unwilling or unable to provide them with support or it would be
unreasonable for them to accept that support.
FINANCIAL IMPACT
Nil.
Note: In relation to the measure to increase death benefits under the
Safety, Rehabilitation and Compensation Act 1988, the additional cost of
premiums will be $6.1 million over 4 years. There is no resourcing, fiscal
or underlying cash impact on the Budget because the additional cost will be
met through the premiums paid by Commonwealth authorities under the Comcare
scheme.
Employment and Workplace relations amendment bill 2008
NOTES ON CLAUSES
Clause 1 - Short title
Provides for the Act to be cited as the Employment and Workplace Relations
Amendment Act 2008.
Clause 2 - Commencement
Subclause 2(1) inserts a three column table setting out commencement
information for various provisions in the Act. Each provision of the Act
specified in column 1 of the table commences (or is taken to have
commenced) in accordance with column 2 of the table and any other statement
in column 2 has effect according to its terms.
The table has the effect of providing for sections 1-3, Schedules 1 and 4
and any provision not covered elsewhere in the table, to commence on Royal
Assent; for Schedule 1 and items 1 to 25, 33 to 41 and items 43 and 44 to
commence on the day after Royal Assent; for items 26 to 32 of Schedule 2 to
commence on 1 January 2008; for item 42 of Schedule 2 to commence
immediately after the commencement of item 18 of Schedule 2 to the Social
Security Legislation Amendment (2007 Budget Measures for Students) Act 2007
(i.e. 28 September 2007); and for items 45 and 46 of Schedule 2 to commence
on 1 July 2009. However, if the Social Security Legislation Amendment
(Employment Services Reform) Act 2008 does not receive the Royal Assent
before 1 July 2009, items 45 and 46 of Schedule 2 do not commence at all.
This is because the provisions of the Social Security Act that are being
amended by items 45 and 46 are also being amended by the Social Security
Legislation Amendment (Employment Services Reform) Act 2008 with effect
from 1 July 2009.
Subclause 2(2) provides that column 3 of the table is for additional
information which may be added to or edited in any published version of the
Act but that information in this column is not part of the Act.
Clause 3 - Schedule(s)
Provides that each Act that is specified in a Schedule is amended or
repealed as set out in the applicable items in the Schedule and that any
other item in a Schedule has effect according to its terms.
For ease of description, this explanatory memorandum uses the following
abbreviations:
'SRC Act' means the Safety, Rehabilitation and Compensation Act 1988;
'Social Security Act' means the Social Security Act 1991;
'Administration Act' means the Social Security (Administration) Act 1999;
'International Agreements Act' means the Social Security (International
Agreements) Act 1999.
Schedule 1-Amendments relating to compensation
Safety, Rehabilitation and Compensation Act 1988
Item 1 - Subsection 13(1) (definition of 'relevant amount')
Amends the definition of 'relevant amount' in subsection 13(1) to remove
all references to the death benefit provisions of the SRC Act to reflect
that compensation for injuries resulting in death is to be indexed by the
Wage Price Index in accordance with proposed section 13AA inserted by item
2, rather than by the Consumer Price Index. The Consumer Price Index will
still be used to index compensation in respect of funeral expenses under
section 18.
The heading to section 13 is altered to reflect this change.
Item 2 - After section 13
Inserts a new section 13AA to provide for the automatic indexation of death
benefits set out in subsections 17(3), (4) and (5) by the Wage Price Index
rather than by the Consumer Price Index under section 13.
The new section is similarly structured to the current section 13 except
that paragraph 13AA(1)(b) provides some additional flexibility by allowing
for a new index number to be prescribed by regulation, if the Wage Price
Index ceases to be published by the Australian Statistician, or in some
other way is no longer appropriate to use.
Subsection 13AA(1) provides for the definitions of 'index number',
'relevant amount' and 'relevant year' for section 13AA. 'Index number'
means the Wage Price Index number, or another prescribed index number,
published by the Australian Statistician. The 'relevant amount' means the
amounts referred to in the death benefit provisions (subsections 17(3), (4)
and (5)) and the 'relevant year' means the financial year starting on 1
July 2009 or a later financial year.
Subsection 13AA(2) provides for the increasing of the relevant amount, by
multiplying it by the indexation factor for a relevant year, where the
indexation factor for that year is greater than one. In circumstances
where this section has already been used to substitute another amount for
the relevant amount, the substituted amount will be used.
Subsections 13AA(3)-(6) set out the method for calculating the indexation
factor, including dealing with decimal places and specifying the index
number to be used.
Prescribing the Index
The Australian Statistician on occasion may vary an indexation series,
including by renaming it. For example, the Wage Price Index was previously
the Wage Cost Index. In order to allow some flexibility, paragraph
13AA(1)(b) allows for the index number to be prescribed by regulation.
This will still allow for Parliamentary scrutiny of the index, as the
regulation would be subject to disallowance by Parliament under the
Legislative Instruments Act 2003.
It would be expected that if at some future time an index was prescribed,
it would be the one that most closely reflected the Wage Price Index.
Items 3 to 5 - Subsection 17(3), paragraph 17(4)(a) and subsection 17(5)
These items increase the amounts payable as death benefits to dependents of
an employee. The lump sum benefit increases to $400,000 and the weekly
benefit for dependent children increases to $110 a week. Both these
amounts will be subject to annual indexation increases under the provisions
of new section 13AA.
Note: The amounts of $120,000 and $40 referred to in items 3, 4, and 5 are
the base rates that applied when the sections were proclaimed in 1988.
These base amounts are subject to CPI indexation increases and currently
are $225,594.33 and $75.10.
Item 6 - Application - compensation for the benefit of dependants
An application provision that has the effect of providing that the
amendments made by items 1 and 2 (to the extent that they relate to
subsections 17(3) and (4) of the SRC Act) and items 3 and 4 apply in
relation to the death of an employee that occurs at or after the
commencement of this item. In other words the increased lump sum payments
are payable in relation to the death of an employee that occurs at or after
that commencement (which will be the day after the Act receives the Royal
Assent).
Item 7 - Application - compensation for the benefit of children
An application provision that has the effect of providing that the
amendments made by items 1 and 2 (to the extent that they relate to
subsection 17(5) of the SRC Act) and item 5 apply in relation to a payment
for a week that begins at or after the commencement of this item. In other
words the increase in the weekly payment for a prescribed child is payable
from the start of the pay week that begins at or after that commencement
(which will be the day after the Act receives the Royal Assent). This item
also applies to the prescribed children of an employee, where the employee
has died before the commencement of this item, and those children are in
receipt of weekly payments.
Schedule 2-Amendments relating to social security
Part 1-General amendments
Social Security Act 1991
Item 1 Subsection 5(8A)
Amends subsection 5(8A) to reflect the technical change made in item 9.
Subsection 5(8A) referred to subsection 37(3). Following the amendment in
item 9, section 37 will no longer contain subsections. Therefore the
reference to subsection 37(3) is to be replaced with a reference to section
37.
Item 2 Subsection 5(9)
Repeals subsection 5(9). Subsection 5(9) refers to determinations made
under subsection 37(1) of the Social Security Act. Subsection 37(1) was
repealed by A New Tax System (Family Assistance) (Consequential and Related
Measures) Act (No. 2) 1999.
Item 3 Section 15
Repeals section 15. Section 15 of the Social Security Act contains 'NS
activity test definitions'. Section 15 contains two definitions namely,
'average male full-time weekly earnings' and 'qualified beneficiary'. This
is a technical amendment to remove definitions of terms no longer used in
the social security law.
Prior to 1 July 2006 persons over 50 were able to satisfy the newstart
allowance activity test by undertaking work earning at least 35 per cent of
average male full-time weekly earnings under section 602. Section 602 of
the Social Security Act was repealed by the Employment and Workplace
Relations Legislation Amendment (Welfare to Work and Other Measures) Act
2005. There is no other reference to average male full-time earnings in
the social security law.
The reference to qualified beneficiary was removed when section 603AA of
the Social Security Act was repealed and substituted in the Social Security
Legislation Amendment (Budget and Other Measures) Act 1996. The new
section 603AA does not contain reference to qualified beneficiary and there
is no longer any reference in the social security law to qualified
beneficiaries.
Item 4 Subsection 17(1) (definition of payment for a period)
Repeals the definition of 'payment for a period' in subsection 17(1).
Subsection 17(1) of the Social Security Act provides that payment for a
period has the meaning given by subsection 7. Subsection 17(7) of the
Social Security Act was repealed by the Family and Community Services
Legislation (Simplification and Other Measures) Act 2001. This is a
technical amendment to remove reference to a definition which is no longer
contained in the Social Security Act.
Item 5 Subsection 17(3A)
Repeals subsection 17(3A). Subsection 17(3A) of the Social Security Act
refers to paragraph 17(3)(d) which does not exist in the Social Security
Act. Subsection 17(3A) should instead refer to paragraph 17(2)(d).
Amending the reference in subsection 17(3A) to refer to paragraph 17(2)(d)
would replicate subsection 17(2A), therefore subsection 17(3A) has been
repealed.
Item 6 Subsection 23(1) (definition of receive)
Omits '(3)' from the definition of 'receive' in subsection 23(1).
Subsection 23(3) of the Social Security Act was repealed by the Payment
Processing Legislation Amendment (Social Security and Veterans'
Entitlements) Act 1998. This is a technical amendment to the definition of
'receive' in subsection 23(1) of the Social Security Act to remove
reference to a subsection that is no longer contained in the Social
Security Act.
Item 7 Subsection 23(1) (definition of receive)
Inserts '(4A) and' in the definition of 'receive' in subsection 23(1).
Subsection 23 (4A) of the Social Security Act was inserted by the Family
and Community Services Legislation Amendment (Australians Working Together
and other 2001 Budget Measures) Act 2003. Subsection 23(4A) provides that
despite subsection 23(4), the period for which a person is taken to be
receiving a social security payment will be dependent on the matters
contained in that subsection. Subsection 23(4A) is also supported by
subsection 23(4AA) which identifies the provisions to which subsection
23(4A) applies. This is a technical amendment to include reference to
subsection 23(4A) in the definition of 'receive' in subsection 23(1).
Item 8 Subsection 23(1) (definition of receive)
Omits 'and (4AB)' from the definition of 'receive' in subsection 23 (1).
Subsection 23 (4AB) was omitted by the Social Security (Home Child Care and
Partner Allowances) Legislation Amendment Act 1994. This is a technical
amendment to the definition of 'receive' in subsection 23 (1) of the Social
Security Act to remove reference to a subsection that is no longer
contained in the Social Security Act.
Item 9 Subsection 37(3)
Omits '(3)' from subsection 37(3). The Social Security Act as introduced
in 1991 contained three subsections to section 37. Subsections 37(1) and
37(2) were repealed by the A New Tax System (Family Assistance)
(Consequential and Related Measures) Act (No. 2) 1999. This is a technical
amendment to reflect that there are no longer three subsections to section
37 of the Social Security Act.
Item 10 Paragraph 38B(6)(b)
Repeals and substitutes paragraph 38B(6)(b). Paragraph 38B(6)(b) of the
Social Security Act currently refers to sections which are no longer
contained in the Social Security Act. Section 38B of the Social Security
Act provides for situations in which a person will be treated as having
been in receipt of an income support payment for a continuous period even
though that person was not actually receiving an income support payment
during a part or parts of that period. Paragraph 38B(6)(b) provides for
continuous receipt of an income support payment even though a period of non-
payment occurred during the operation of specific provisions. Item 10
repeals and substitutes paragraph 38B(6)(b) to remove references to
repealed sections and subsections relevant to non-payment periods. The
amended paragraph 38B(6)(b) refers to a compliance penalty period which is
defined in subsection 23(1) of the Social Security Act. New paragraph
38B(6)(c) also provides that a person will be deemed to have continued
receipt if the following subsections apply:
. subsection 547AA(1) which provides that youth allowance is not payable
in the circumstance prescribed by paragraphs 547AA(1)(a) to (d); or
. subsection 615(1) which provides that newstart allowance is not
payable in the circumstance prescribed by paragraphs 615(1)(a) to (c);
or
. subsection 771HF(1) which provides that partner allowance is not
payable to a person if the value of the person's assets exceeds the
person's assets value limit.
Item 11 Subparagraph 408BA(2)(e)(ii)
Omits the phrase 'throughout the period, she' from subparagraph
408BA(2)(e)(ii) of the Social Security Act. This amendment removes words
that are used at the start of paragraph 408BA(2)(e) and then repeated in
subparagraph 408BA(2)(e)(ii).
Item 12 Subsection 500(1) (note 2)
Omits 'section 1208A' and substitutes 'section 10 of the Social Security
(International Agreements) Act 1999' to note 2 of subsection 500(1) of the
Social Security Act. This amendment reflects the movement of provisions
relating to international agreements into the International Agreements Act.
Section 10 of the International Agreements Act replaced section 1208A of
the Social Security Act, and this amendment corrects the relevant
legislative reference in note 2 to subsection 500(1) of the Social Security
Act.
Item 13 Section 500B
Omits 'who is a member of a couple' from section 500B. The effect of the
amendment is to disqualify all people who have assurances of support from
parenting payment, not just people who are members of couples. The
amendment brings parenting payment (single) into line with parenting
payment (partnered) and other income support payments such as widow
allowance, youth allowance, Austudy and newstart allowance.
Item 14 At the end of Subdivision A of Division 1 of Part 2.14
Inserts new section 676A. New section 676A provides that a person is not
qualified for sickness allowance where an assurance of support is in force
in respect of that person. This allowance brings sickness allowance in
line with other payments such as widow allowance, youth allowance, Austudy,
newstart allowance and parenting payment (partnered), for which a person is
not qualified if they have an assurance of support in force.
Item 15 Paragraph 685(2)(a)
Amends paragraph 685(2)(a) to omit the words 'that the Secretary has
required the person to undertake under section 697' and to substitute the
words 'that the person is undertaking as mentioned in paragraph 667(3)(b).'
Item 15 amends paragraph 685(2)(a) which was intended to refer to section
697 as it read before its repeal in 1999. In its previous form, section
697 provided that the Secretary may request a person who is receiving
sickness allowance to undertake a rehabilitation program. Therefore, the
correct reference in paragraph 685(2)(a) should be to paragraph 667(3)(b)
which enables a person to qualify for sickness allowance by undertaking a
rehabilitation program. As the ability for the Secretary to require or
request a person to undertake a rehabilitation program no longer exists,
the words of paragraph 685(2)(a) were also amended to reflect this change.
Items 16 and 17 Subsection 1061EE(6)
Amend subsection 1061EE(6) of the Social Security Act. Section 1061EE of
the Social Security Act outlines the method of calculating the amount of
advance payment for widow allowance, benefit PP (partnered), youth
allowance, Austudy, mature age allowance and newstart allowance. The
maximum amount payable under section 1601EE is a percentage of the
'fortnightly payment rate' which is defined in subsection 1061EE (6). The
original advance payment provisions introduced by the Social Security
Amendment (Carer Pension and Other Measures) Act 1995 applied to various
payments with the fortnightly payment rate calculated by reference to the
'relevant rate calculator'. For example, at that time for a person on
newstart under 18 years of age, the relevant calculator was Benefit Rate
Calculator A and for people over the age of 18, the rate calculator was
Benefit Rate Calculator B.
The references to youth allowance and austudy payment were first inserted
into subsection 1061EE(1) by the Social Security Legislation Amendment
(Youth Allowance and Related Measures) Act 1998 as a consequence of the
creation of youth allowance and austudy payment in the Social Security Act.
In the same 1998 amending Act, the reference to 'relevant rate calculator'
was replaced with 'Benefit Rate Calculator B' in subsection 1061EE(6).
However, youth allowance and austudy were calculated by new rate
calculators and a reference to these was not included.
Item 16 amends paragraph 1061EE(6)(b) to omit 'youth allowance, Austudy,'.
Item 17 amends subsection 1061EE(6) to include reference to the Youth
Allowance Rate Calculator in relation to the youth allowance fortnightly
rate and the Austudy Payment Rate Calculator in relation to the Austudy
payment fortnight rate.
Item 18 Subsection 1067G(3)
Repeals subsection 1067G(3). Subsection 1067G(3) was inserted in 2005 as
part of the introduction of the youth disability supplement. The insertion
of subsection 1067G(3) was to ensure parity between people who receive
disability support pension and those who receive youth allowance and the
youth disability supplement. However, the introduction of subsection
1067G(3) actually had the effect of reducing the payment rate for all
people on youth allowance. That is, in situations where a calculation
under Benefit Rate Calculator B would result in the rate of benefit being
less than the rate of allowance under the Youth Allowance Rate Calculator,
the person would receive the amount as determined under Benefit Rate
Calculator B (i.e. the rate of benefit).
A key difference between the two rate calculators is found in the
application of the income tests (step 12 in the Youth Allowance Rate
Calculator and step 5 in the Benefit Rate Calculator B). For example, if a
person's ordinary income was $100 per fortnight, under the Youth Allowance
Rate Calculator, there would be no reduction of the maximum basic rate.
Whereas, under the Benefit Rate Calculator B, the person's maximum basic
rate would be reduced by $38 (i.e. the provisional payment rate would be
the maximum basic rate minus $38). As the maximum basic rate under Benefit
Rate Calculator B is higher than the maximum basic rate under the Youth
Allowance Rate Calculator, the provisional fortnightly payment rate under
Benefit Rate Calculator B will still remain higher than the provisional
fortnightly payment rate under the Youth Allowance Rate Calculator.
Accordingly, subsection 1067G(3) will not be relevant. Therefore,
subsection 1067G(3) has been repealed and a new point has been inserted to
point 1067G-D1 by item 19.
Item 19 After point 1067G-D1
Inserts new point 1067G-D2 which provides that if an amount of youth
disability supplement is to be added to a recipient's rate of youth
allowance under point 1067G-D1 and the sum of the person's maximum basic
rate of youth allowance and the amount of youth disability supplement
exceeds the maximum basic rate of newstart allowance for that person with
partial capacity to work, the rate of the youth disability supplement is to
be reduced by the amount that it exceeds the basic rate of new start
allowance. The amount of youth disability supplement cannot be reduced
below zero.
Item 20 Point 1068-A1 (note 1)
Amends note 1 to point 1068-A1 so that it refers to the appropriate step in
the method statement and refers to section 1210 which deals with reductions
required by the income test module.
Item 21 Point 1068-A1 (note 3)
Amends note 3 to point 1068-A1. The note is amended to omit 'Step 8 only
if the person's rate of benefit after Step 5 is greater than nil' and
substitute 'paragraph (c) of step 7 only if the conditions in point 1068-J1
are satisfied'.
Item 22 Point 1068-B1 (note 4)
Repeals note 4 to point 1068-B1. The note refers to items 1, 2, 6 and 8 in
Table B of point 1068-B1 which were repealed in 2000.
Item 23 Point 1068-B1 (note 5)
Amends note 5 to point 1068-B1 to omit 'the other rates' and substitute
'the rates in column 3'.
Item 24 Point 1068-B1 (note 6)
Repeals note 6 to point 1068-B1. The note is repealed as it refers to item
6 in Table B of point 1068-B1 which was repealed in 2000.
Item 25 Point 1068-B2
Amends point 1068-B2 to reflect changes made to Table B in point 1068-B1.
Items 26 to 32 Section 1070X
These items amend section 1070X. Part 3.7 of the Social Security Act
contains provisions relating to rent assistance. The Social Security
Legislation Amendment (2007 Budget Measures for Students) Act 2007
contained amendments to Part 3.7 of the Social Security Act to extend rent
assistance to Austudy recipients. Specifically, amendments were made to
sections 1070, 1070H and 1070Q to include references to the Austudy Payment
Rate Calculator. Subsection 1070Q(2) provides for the calculation of a
person's rate of rent assistance which is payable. Included in the table
in subsection 1070Q(2) is the calculation of rent assistance for a person
who has a partner with a rent increased benefit. Section 1070X defines,
for the purposes of Part 3.7, a partner with a rent increased benefit.
Following the 2007 amendments to include Austudy recipients, amendments to
section 1070X were overlooked. Item 32 inserts new subsection (4) to
identify when a person receiving a social security payment in accordance
with the Austudy Payment Rate Calculator has a partner with a rent
increased benefit.
Subsections 1070X (1), (2) and (3) have been amended in items 26 to 31 in
order to remove inconsistencies between these subsections. Prior to the
insertion of Part 3.7 in the Social Security Act, the rent assistance
provisions were contained in the individual rate calculators for each
payment. As a result, the provisions relating to a partner with a rent
increased benefit were drafted slightly differently but were intended to
have the same effect. New paragraph (b) in subsections 1070X(1), (2) and
(3) make it clear that a partner will have a rent increased benefit where
they are either receiving the social security payment or are taken to be
receiving the social security payment because of the operation of
subsection 23(4A) and 23(4AA).
Section 1070X has also been amended to clarify that a person will have a
partner with a rent increased benefit where that partner receives a
designated ABSTUDY payment. A designated ABSTUDY payment is a payment under
the scheme known as the ABSTUDY scheme which includes an amount identified
as living allowance and which has been increased to take into account of
rent.
Item 33 Subsection 1188F(7)
Amends subsection 1188F(7) to clarify that the relevant payment period does
not occur within the types of periods to which the subsection refers. That
is, the relevant payment period should not occur during a period in which a
person is not payable due to seasonal or intermittent work or assets.
Item 34 Section 1190 (table item 3)
Repeals item 3 of the table in section 1190. This item is being repealed
as it refers to items in Table B of point 1068-B1 which were repealed in
2000.
Social Security (Administration) Act 1999
Item 35 Subsection 18(2)
Amends subsection 18(2) of the Administration Act to correct an erroneous
reference to the 'special employment advance qualifying entitlement'. That
is because, pursuant to paragraph 1061EM(2)(a) of the Social Security Act,
it is not the effect of unreceived income on a special employment advance
that is relevant, but the effect of unreceived income on a special
employment advance qualifying entitlement. Subsection 18(2) has been
amended to omit 'for which special employment advance is not payable' and
substitute 'for which the entitlement is not payable'.
Social Security (International Agreements) Act 1999
Items 36 to 41 Paragraphs 10(1)(d) and (e) and paragraphs 10(2)(c) and (d)
Amend section 10 of the International Agreements Act. In its previous
form, paragraph 10(1)(d) provided that a person would qualify for parenting
payment but for the operation of subparagraph 500(1)(d)(ii) of the Social
Security Act. However, subparagraph 500(1)(d)(ii) is not a requirement for
a person to qualify but instead is a provision which allows qualification.
Accordingly, item 36 amends paragraph 10(1)(d) to omit 'but for the
operation of' and substitute 'if the following provisions had not been
enacted'.
Item 38 amends subparagraph 10(1)(d)(ii) to omit 'to the extent that it
requires a person to have been in Australia for the period specified in the
subparagraph'. Item 38 amends paragraph 10(1)(e) by repealing the
paragraph and substituting a new paragraph (e). The amendment clarifies
that the effect of paragraph (e) is not that the provisions identified in
paragraph 10(1)(d) do not apply but in the circumstances prescribed in
subsection 10(1) assume the provisions identified in paragraph 10(1)(d) had
not been enacted.
Item 40 amends paragraph 10(2)(c) to omit 'but for the operation of
subparagraph 500(1)(d)(ii) of the Social Security Act 1991 to the extent it
requires a person to have been in Australia for the period specified in the
subparagraph' and substitute 'if subparagraph 500(1)(d)(ii) of the Social
Security Act 1991 had not been enacted'.
Item 41 repeals and substitutes paragraph 10(2)(d) to reflect the wording
of the new paragraph 10(1)(e).
Social Security Legislation Amendment (2007 Budget Measures for Students)
Act 2007
Item 42 Item 18 of Schedule 2
Amends item 18 of Schedule 2 to the Social Security Legislation Amendment
(2007 Budget Measures for Students) Act 2007. The amendment is to clarify
that the amendments made in the Social Security Legislation Amendment (2007
Budget Measures for Students) Act 2007 apply from 1 January 2008 in
relation to the calculation of the Austudy payment daily rate.
Part 2-Amendments relating to the requirement to apply for job
vacancies
Division 1-Amendments commencing on the day after Royal Assent
Social Security Act 1991
Item 43 Paragraph 541A(g)
Amends paragraph 541A(g). Section 541A provides circumstances where a
person cannot be taken to satisfy the activity test in respect of a period.
Paragraph 541A(g) identifies that a person cannot be taken to satisfy the
activity test where a person fails to comply with a notice given to the
person under the repealed subsection 541C(1). Item 43amends paragraph
541A(g) to refer to subsection 550A(1) rather than the repealed subsection
541C(1). Subsection 550A(1) contains the requirements which were
previously contained in subsection 541C(1).
Item 44 Paragraph 541A(h)
Amends paragraph 541A(h). Section 541A provides circumstances where a
person cannot be taken to satisfy the activity test in respect of a period.
Paragraph 541A(h) identifies that a person cannot be taken to satisfy the
activity test where a person contravenes subsection 541C(2). Item 44amends
paragraph 541A(h) to refer to subsection 550A(2) rather than the repealed
subsection 541C(2). Subsection 550A(2) contains the requirements which
were previously contained in subsection 541C(2).
Division 2-Amendments commencing on 1 July 2009
Social Security Act 1991
Item 45 Paragraph 541A(g)
Amends paragraph 541A(g). This amendment will commence on 1 July 2009
following the proposed commencement of the Social Security Legislation
Amendment (Employment Services Reform) Act 2008. That Act repeals section
550A of the Social Security Act and inserts section 42F into the
Administration Act, with effect from 1 July 2009. Section 42F of the
Administration Act contains the requirements previously contained in
section 550A. This item amends paragraph 541A(g) to refer to subsection
42F(1) of the Administration Act rather than the repealed subsection
550A(1).
Item 46 Paragraph 541A(h)
Amends paragraph 541A(h). This amendment will commence on 1 July 2009
following the proposed commencement of the Social Security Legislation
Amendment (Employment Services Reform) Act 2008. That Act repeals section
550A of the Social Security Act and inserts section 42F into the
Administration Act, with effect from 1 July 2009. Item 46 amends paragraph
541A(h) to refer to subsection 42F(2) of the Administration Act rather than
the repealed subsection 550A(2).