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
_____________________________________________________________________
SOCIAL SECURITY (FAMILY ALLOWANCE AND RELATED MATTERS)
LEGISLATION AMENDMENT BILL
1999
_____________________________________________________________________
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Family and
Community Services,
Senator the Hon Jocelyn Newman)
ISBN: 0642 403856
SOCIAL SECURITY (FAMILY ALLOWANCE AND RELATED MATTERS) LEGISLATION AMENDMENT BILL 1999
OUTLINE AND FINANCIAL IMPACT STATEMENT
This Bill deals with:
a) an extension of qualification for
family allowance so that it covers both job seekers and students
who have turned 16, and continues until age 21 for job seekers, and until age 25
for full-time students;
b) an increase in the fortnightly rate of
family allowance to $50, payable to a young person who is aged 18
to under-21, or who is undertaking full-time study and is aged 21 to under-25;
and
c) a technical amendment to the Health Insurance Act 1973 to
ensure that certain young persons are not inadvertently deprived of a health
care card by force of these amendments.
These amendments will commence
with effect from 1 October 1999. Complementary amendments to the A New
Tax System (Family Assistance) Bill 1999 will take effect from the
commencement of that Act, that is 1 July 2000, to ensure the continuance of
these changes under the Government’s tax reform package.
The
legislation is drafted to ensure that a young person who would attract a higher
rate under the family allowance provisions rather than the youth allowance
provisions will have the option to forgo his or her youth allowance entitlement
to enable qualification for family allowance by an adult.
The
financial impact of these measures are:
1999-2000 $ 42.5m
(expenditure)
SOCIAL SECURITY (FAMILY ALLOWANCE AND RELATED MATTERS) LEGISLATION AMENDMENT BILL 1999
NOTES ON CLAUSES
Clause 1 of the Social Security (Family Allowance and
Related Matters) Legislation Amendment Bill sets out how the Act is to be
cited.
Clause 2 provides for the commencement of the Act on 1
October 1999.
Clause 3 provides that the Social Security Act
1991 and the Health Insurance Act 1973 are amended as set out in
Schedule 1.
Schedule 1 – Amendments relating to family allowance for over-16 dependants
Health Insurance Act 1973
Clause 1 of the
Schedule amends section 5J of the Health Insurance Act 1973. This is a
technical amendment to ensure that certain young persons are not inadvertently
deprived of a health care card by force of these amendments.
• In
providing for increased family allowance of $50 per fortnight to certain young
persons over 18 and under 25, the legislation necessarily affects the
“dependent” status of young persons for the purpose of granting
qualification for that payment; this “dependent” status would have
the unintended effect of precluding access to a health care card, were it not
for the effect of this clause.
• This provision will ensure that a
person will continue to be eligible to hold a health card in their own right if
the person is
a) under 18 and not receiving a social security benefit or
allowance;
b) aged 18, (but not if the person is undertaking secondary
studies);
c) aged 19 and over.
Social Security Act
1991
Clauses 2–21 (inclusive) of Schedule 1
amend the Social Security Act 1991 to provide for:
a) an extension
of qualification for family allowance so that it covers both job
seekers and students who have turned 16, and continues until age 21 for job
seekers, and until age 25 for full-time students; and
b) an increase in the
fortnightly rate of family allowance to $50, payable to a young
person who is aged 18 to under-21, or who is undertaking full-time study and is
aged 21 to under-25.
• These amendments will take effect from 1
October 1999. In order that these measures continue beyond 1 July 2000 with
the introduction of the Government’s tax initiative, complementary
amendments will be moved on behalf of the Government to the A New Tax System
(Family Assistance) Bill 1999.
Key provisions:
In
particular, the following Items are key elements in giving effect to these
proposals:
Clause 8 defines an over-16 dependant for
the purpose of these provisions, as being (among other things) a person who is
over 16 but under 25 years of age.
Clause 16 provides the new
rates of family allowance contained in a Table; item 4 in that Table sets the
family allowance rate at $50 for a person aged 18 to under-25.
Clause
19 adjusts upwards the minimum standard family allowance rate, to take
account of the new $50 rate applicable to young persons who have reached 18
years of age.
Where is the ability to choose between youth
allowance and family allowance?
An individual in receipt
of youth allowance is receiving a social security benefit. An
individual who wishes to enable qualification for family allowance
by an adult in respect of the individual, rather than receiving youth
allowance, may choose to do so simply by not applying for youth allowance, or,
if the individual is already receiving youth allowance, by relinquishing that
benefit.