Commonwealth of Australia Explanatory Memoranda

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SOCIAL SECURITY AMENDMENT (NATIONAL GREEN JOBS CORPS SUPPLEMENT) BILL 2009




                                  2008-2009




               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA








                          HOUSE OF REPRESENTATIVES








 SOCIAL SECURITY AMENDMENT (National Green Jobs Corps Supplement) BILL 2009








                           EXPLANATORY MEMORANDUM










 (Circulated by authority of the Parliamentary Secretary for Employment, the
                         Honourable Jason Clare MP)
 SOCIAL SECURITY AMENDMENT (National Green Jobs Corps Supplement) BILL 2009


                                   OUTLINE

This bill will amend the social security law  to  provide  for  a  temporary
National Green Jobs Corps  supplement  for  recipients  of  youth  allowance
(other), newstart allowance and parenting payment  who  participate  in  the
National Green Jobs Corps.

The National Green Jobs Corps is a 26  week  environmental  work  experience
and training program which is targeted at low skilled 17-24 year olds.

Additional financial assistance will be provided to  these  participants  in
the  form  of  a  supplement  of  $41.60  per  fortnight  while   they   are
participating in the National Green Jobs Corps.  This  payment  will  be  on
top of  their  existing  youth  allowance  (other),  newstart  allowance  or
parenting payment.

The supplement will be payable to those who commence in the  National  Green
Jobs Corps between 1 January 2010 and 31 December 2011.


                              FINANCIAL IMPACT

|                         |2009-10   |2010-11  |2011-12  |Total    |
|National Green Jobs Corps|0.9       |1.7      |0.9      |3.4      |
|Supplement               |          |         |         |         |

Please note that costs to Centrelink are yet to be agreed.

 SOCIAL SECURITY AMENDMENT (National Green Jobs Corps Supplement) BILL 2009


                              NOTES ON CLAUSES

Clause 1 - Short title

Provides for the Act to be cited as the Social Security Amendment (National
Green Jobs Corps Supplement) Act 2009.


Clause 2 - Commencement

Provides that the Act commences on the day it receives Royal Assent.


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repealed as set out in the applicable items in the Schedule, and that any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
abbreviation:

'Social Security Act' means the Social Security Act 1991



Schedule 1- Amendments

Social Security Act 1991

Item 1 - Subsection 23(1)

Inserts a definition of National Green Jobs Corps program into subsection
23(1). This is defined as the program administered by the Commonwealth
known as the National Green Jobs Corps Program.


Item 2 - Subsection 23(1)


Inserts a definition of National Green Jobs Corps supplement into
subsection 23(1). The National Green Jobs Corps supplement is defined as
meaning an amount payable under new subsection 503C(2) to a person
receiving a parenting payment; or an amount payable under new subsection
556B(2) to a person receiving youth allowance; or an amount payable under
new subsection 644AAD(2) to a person receiving newstart allowance.



Item 3 - After paragraph 23(4AA)(aa)

Inserts new paragraph 23(4AA)(ab). This amendment has the effect that, for
the purposes of determining whether National Green Jobs Corps supplement
remains payable to a person, a person will be taken to receive parenting
payment, youth allowance or newstart allowance for a certain period after
that payment or allowance stops due to the person's or their partner's
employment income.  This is consistent with the treatment of other
supplements, for example, the language, literacy and numeracy supplement
and the training supplement.


Item 4 - At the end of Subdivision A of Division 4 of Part 2.10

Inserts new section 503C.  This new section provides for the National Green
Jobs Corps supplement for a person receiving parenting payment. The effect
of this new section is that a person's parenting payment will be increased
by the National Green Jobs Corps supplement of $41.60 per fortnight for
each fortnight where the person:
   -  is receiving a parenting payment; and
   -  has reached 17, but is under 25, years of age; and
   -  is participating in the National Green Jobs Corps program; and
   -  started participating in that program before 2012.

Under new subsection 503C(2) a person will be paid the National Green Jobs
Corps supplement for each fortnight that contains a day on which the person
has participated in the Program in the previous fortnight.

However, new subsection 503C(3) sets out circumstances under which a person
will not be paid a supplement during a fortnight in which the person has
participated in the Program.

Paragraph 503C(3)(a)  provides that a person will not be paid the
supplement during a fortnight in which the person participates in the
Program if: a Parenting Payment Employment Pathway Plan is in force in
relation to the person; and the person ceases to participate in the Program
in circumstances that constitute a failure to comply with the Plan during
the previous fortnight.  Thus, for example, if a person is required by
their Parenting Payment Employment Pathway Plan to participate in the
National Green Jobs Corps and they fully participate in the program in the
first week in a fortnight but are exited from the program for inappropriate
behaviour in the second week, the National Green Jobs Corps supplement will
not be payable to them at all for that fortnight.

Paragraph 503C(3)(b) ensures that where a National Green Jobs Corps
supplement and a training supplement are both payable to a person in
respect of the same fortnight, only the training supplement is payable to
the person.


Item 5 - After subsection 541(1B)

Inserts new subsection 541(1C).  Section 541 provides for when a person
will satisfy the youth allowance activity test.

New subsection 541(1C) provides that a person satisfies the activity test
in respect of a period if, throughout that period, the person is
participating in the National Green Jobs Corps program.



Item 6 - After section 556A


Inserts new section 556B.  This new section provides for the National Green
Jobs Corps supplement for a person receiving youth allowance.  The effect
of this new section is that a person's youth allowance will be increased by
the National Green Jobs Corps supplement of $41.60 per fortnight for each
fortnight where the person:
   -  is receiving youth allowance; and
   -  is only qualified for youth allowance under section 540; and
   -  satisfies the Secretary that the person is not undertaking full-time
      study (see section 541B); and
   -  has reached 17; and
   -  is participating in the National Green Jobs Corps program; and
   -  started participating in that program before 2012.

Under new section 556B, a person will not be paid the supplement under this
section if the person has ceased to be of youth allowance age.  Section
543B of the Act provides that a person has attained the maximum age for
youth allowance if the person is 21 years.

Also, new subsection 556B requires a person to satisfy the Secretary that
the person is not undertaking full-time study for a fortnight in order to
be paid the supplement.   Section 541B of the Act sets out the requirements
a person must satisfy to be undertaking full-time study.

Under new subsection 556B(2) a person will be paid the supplement for each
fortnight that contains a day on which the person has participated in the
Program in the previous fortnight.

New subsection 556B(3) provides that a person will not be paid the
supplement during a fortnight in which the person participates in the
Program if: a Youth Allowance Employment Pathway Plan is in force in
relation to the person; and the person ceases to participate in the Program
in circumstances that constitute a failure to comply with the Plan during
the previous fortnight.  Thus, for example, if a person is required by
their Youth Allowance Employment Pathway Plan to participate in the
National Green Jobs Corps, and they fully participate in the Program in the
first week in a fortnight but are exited from the Program for inappropriate
behaviour in the second week, the National Green Jobs Corps supplement will
not be payable to them at all for that fortnight.


Item 7 - After subsection 601(4C)


Inserts new subsection 601(4D).  Section 601 provides for when a person
will satisfy the newstart activity test.

New subsection 601(4D) provides that a person satisfies the activity test
in respect of a period if, throughout that period, the person is
participating in the National Green Jobs Corps program.


Item 8 - Subsection 601(5)


Item 8 makes a technical amendment in relation to item 7.


Item 9 - After section 644AAA

Inserts new section 645.  This new section provides for the National Green
Jobs Corps supplement for a person receiving newstart allowance.  The
effect of this new section is that a person's newstart allowance is to be
increased by the National Green Jobs Corps supplement of $41.60 per
fortnight for each fortnight where the person:
   -  is receiving newstart allowance; and
   -  is under 25 years of age; and
   -  is participating in the National Green Jobs Corps program; and
   -  started participating in that program before 2012.

Under new section 645, a person will not be paid the supplement under this
section if the person has yet to reach 21 years of age.  Section 593 of the
Act provides that a person must be at least 21 years of age to qualify for
newstart allowance.

Under new subsection 645(2) a person will be paid the supplement for each
fortnight that contains a day on which the person has participated in the
Program in the previous fortnight.

New subsection 645(3) sets out circumstances under which a person will not
be paid a supplement during a fortnight in which the person has
participated in the Program.

Paragraph 645(3)(a) provides that a person will not be paid the supplement
during a fortnight in which the person participates in the Program if: a
Newstart Employment Pathway Plan is in force in relation to the person; and
the person ceases to participate in the Program in circumstances that
constitute a failure to comply with the Plan during the previous fortnight.
 Thus, for example, if a person is required by their Newstart Allowance
Employment Pathway Plan to participate in the National Green Jobs Corps,
and they fully participate in the Program in the first week in a fortnight
but are exited from the Program for inappropriate behaviour in the second
week, the National Green Jobs Corps supplement will not be payable to them
at all for that fortnight.

Paragraph 645(3)(b) ensures that where a National Green Jobs Corps
supplement and a training supplement are both payable to a person in
respect of the same fortnight, only the training supplement is payable to
the person.


Item 10 - Subsection 1049(2A)

Item 11 ensures that where a National Green Jobs Corps supplement (of
$41.60) and a language, literacy and numeracy supplement (of $20.80) are
both payable to a person in respect of the same fortnight, only the
National Green Jobs Corps supplement is payable to the person.


Item 11 - 1188KA

Item 11 ensures that where a National Green Jobs Corps supplement (of
$41.60) and a CDEP Scheme Participant Supplement (of $20.80) are both
payable to a person in respect of the same fortnight, only the National
Green Jobs Corps supplement is payable to the person.


Items 12 and 13 - Subparagraph 1223(7)(b)(iii)


This amendment provides that where a person was receiving a parenting
payment, youth allowance or newstart allowance which was incorrectly
increased by an amount of National Green Jobs Corps supplement to which
they were not entitled, the amount of the National Green Jobs Corps
supplement they received becomes a debt due to the Commonwealth.

This amendment will ensure that any over-payments of National Green Jobs
Corps supplement are able to be recovered by the Commonwealth.

 


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