Commonwealth of Australia Explanatory Memoranda

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SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (2014 BUDGET MEASURES NO. 2) BILL 2014

                        2013-2014




THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                         SENATE




SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT
       (2014 BUDGET MEASURES No. 2) BILL 2014




   ADDENDUM TO THE EXPLANATORY MEMORANDUM




              (Circulated by the authority of the
  Minister for Social Services, the Hon Kevin Andrews MP)
         SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT
                (2014 BUDGET MEASURES No. 2) BILL 2014


This addendum adds information to the explanatory memorandum, as requested by
the Senate Standing Committee for the Scrutiny of Bills in its Tenth Report of 2014,
dated 27 August 2014 - pages 478 to 480 of the report refer.

Schedule 9 - Exclusion periods
Item 1 - New section 1157AB - Part 3.12B waiting period (page 37)

After the paragraph on page 37 that reads -

      A person will not be subject to a Part 3.12B exclusion period if they are
      transferring from a social security pension or a social security benefit of a kind
      determined by the Minister in a legislative instrument to any of the payments
      to which new Part 3.12B applies where the conditions determined by the
      Minister in a legislative instrument are met.

Insert the following paragraphs -

      Subsection 1157AB(3) provides flexibility for the Minister to determine,
      by legislative instrument, the conditions when a person transferring from
      another pension or benefit will not be subject to a Part 3.12B waiting period.

      This provision will enable the Minister to determine that people who transfer
      from certain payments, under certain circumstances, are not subject to a
      Part 3.12B waiting period. Giving the Minister the flexibility to determine these
      payments and circumstances in a legislative instrument will reduce the risk of
      the legislation unintentionally applying a Part 3.12B waiting period to people
      whose circumstances fall within the Government's exemptions policy. This
      power could only be used in circumstances that are beneficial to a person,
      and any instrument made by the Minister would be subject to Parliamentary
      scrutiny and disallowance.

Schedule 9 - Exclusion periods
Item 1 - New section 1157AC - Duration of the waiting period (page 38)

After the last dot point on page 38, insert the following paragraphs -

      The capacity to make a legislative instrument under subsection 1157AC(3)
      will allow the Minister to prescribe the specific formula for taking periods of
      gainful work into account, and also to ensure that certain activities, such as
      criminal activities, are not taken to be gainful work. Using an instrument will
      allow the Minister to refine the policy to ensure that it is operating efficiently
      and fairly without having to amend the primary legislation.

      Taking into account that any instrument made will be subject to the scrutiny of
      the Parliament, subsection 1157AC(3) is not considered to be an
      inappropriate delegation of power.


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Schedule 9 - Exclusion periods
Item 1 - New section 1157AE - Extending Part 3.12B exclusion periods [etc.]
(pages 40 and 41)

After the paragraph on page 41 that reads -

      Subsection 1157AE(6) provides that the Minister may, by legislative
      instrument, determine a method for working out the number of weeks by
      which a person's Part 3.12B waiting period may be extended and the number
      of weeks and commencement day of a Part 3.12B penalty period. As an
      example, the Minister could determine that the extension of the Part 3.12B
      waiting period/penalty period is the period of weeks equal to the period of time
      by which the Part 3.12B waiting period was reduced under
      subsection 1157AC(3). The Minister could also determine an additional
      period by which the person should be sanctioned for providing false or
      misleading information.

Insert the following paragraphs -

      The capacity to make a legislative instrument under subsection 1157AE(4) will
      allow the Employment Minister to determine, by legislative instrument,
      the extension periods applying for failures to enter into employment pathway
      plans, and failures to comply with particular requirements in employment
      pathway plans.

      The capacity to make a legislative instrument under subsection 1157AE(6) will
      allow the Minister to determine, by legislative instrument, a method for
      working out the number of weeks to extend a Part 3.12B waiting period, and a
      method for working out the duration and commencement day for a Part 3.12B
      penalty period, both imposed as consequences for the provision of false or
      misleading information.

      Taking into account that any instrument made under either of these provisions
      will be subject to the scrutiny of Parliament, subsections 1157AE(4) and (6)
      are not considered to be an inappropriate delegation of power.




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