SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (CORONAVIRUS AND OTHER MEASURES) BILL 2020 Explanatory Memorandum

Commonwealth of Australia Explanatory Memoranda

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SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (CORONAVIRUS AND OTHER MEASURES) BILL 2020

2019-2020 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (CORONAVIRUS AND OTHER MEASURES) BILL 2020 EXPLANATORY MEMORANDUM (Circulated by the authority of the Minister for Families and Social Services, Senator the Hon Anne Ruston)

SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (CORONAVIRUS AND OTHER MEASURES) BILL 2020 OUTLINE This Bill will:  provide for the payment of two Further Economic Support Payments of $250 to around five million social security and veterans' payment recipients and concession cardholders in the lead up to Christmas and in the new year as part of the Australian Government's economic response to COVID-19 (Schedule 1);  temporarily amend the circumstances in which a person may be regarded as independent for youth allowance purposes, to assist young people to qualify for youth allowance who would have qualified if they had not lost, or been unable to attain, employment because of the economic effect of the COVID- 19 pandemic (Schedule 2);  create a temporary pathway for young people who are seeking to qualify as independent for the purposes of assessing Youth Allowance (student) to encourage young Australians to undertake seasonal agricultural work to help address concerns across the agriculture sector about immediate workforce availability for the upcoming harvest season (Schedule 3);  introduce a revised Paid Parental Leave work test period for a limited time, to enable people to access parental leave pay and dad and partner pay who do not meet the current work test provisions because their employment has been affected by the COVID-19 pandemic (Schedule 4);  improve assistance for families affected by stillbirth and infant death in respect of payments for newborn children, by increasing the maximum amount that eligible families are able to access after a stillbirth or a child's death up to the child's first birthday. The proposal will also remove discrepancies within the payments system in respect of multiple instances of stillbirth or infant death within the same family (Schedule 5); and  allow the Minister to determine average weekly earnings trend figures ordinarily published by the Australian Statistician, for child support assessment purposes, where publication of trend estimates for the Average Weekly Earnings series has been suspended, for example due to the impact of the COVID-19 pandemic on the labour market (Schedule 6). Financial impact statement MEASURE FINANCIAL IMPACT OVER THE FORWARD ESTIMATES Schedule 1 $2.6 billion Schedule 2 $25 million 1

MEASURE FINANCIAL IMPACT OVER THE FORWARD ESTIMATES Schedule 3 $16.3 million Schedule 4 $130.4 million for the Paid Parental Leave Program ($90.3 million whole-of-government financial impact over the forward estimates) Schedule 5 $7.6 million Schedule 6 NIL STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS The statement of compatibility with human rights appears at the end of this explanatory memorandum. 2

SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (CORONAVIRUS AND OTHER MEASURES) BILL 2020 NOTES ON CLAUSES Abbreviations and Acronyms used in this explanatory memorandum  Child Support Assessment Act means the Child Support (Assessment) Act 1989;  DRCA means the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988;  Family Assistance Act means the A New Tax System (Family Assistance) Act 1999;  Family Assistance Administration Act means the A New Tax System (Family Assistance) (Administration) Act 1999;  FTB means Family Tax Benefit;  MRCA means the Military Rehabilitation and Compensation Act 2004;  Paid Parental Leave Act means the Paid Parental Leave Act 2010;  Social Security Act means the Social Security Act 1991;  Social Security Administration Act means the Social Security (Administration) Act 1999;  Veterans' Entitlements Act means the Veterans' Entitlements Act 1986. Clause 1 sets out how the new Act is to be cited - the Social Services and Other Legislation Amendment (Coronavirus and Other Measures) Act 2020. Clause 2 provides a table setting out the commencement dates of the various sections in, and Schedules to, the Act. Clause 3 provides that each Act that is specified in a Schedule is amended or repealed as set out in that Schedule, and any other item in a Schedule has effect according to its terms. 3

Schedule 1 - Additional economic support payments Summary Schedule 1 provides for the payment of two further Economic Support Payments of $250 to around five million social security and veterans' payment recipients and concession cardholders in the lead up to Christmas and in the new year as part of the Australian Government's economic response to COVID-19. To be eligible, recipients must be residing in Australia and receive or hold one of the following payments or concession cards on 27 November 2020 and/or 26 February 2021:  Age Pension, Disability Support Pension or Carer Payment  Carer Allowance, Double Orphan Pension or Family Tax Benefit Part A and/or Part B (if not in receipt of a primary income support payment)  Commonwealth Seniors Health Card;  Pensioner Concession Card (if not in receipt of a primary income support payment  certain Department of Veterans' Affairs payments and cards. The payments will be made progressively from 30 November 2020 and 1 March 2021. People will only be able to receive one $250 payment in each round of payments, even if they qualify in multiple ways. Each member of a couple will receive payments if both are on eligible payments or hold eligible concession cards. Schedule 1 commences the day after the Act receives Royal Assent. Explanation of the changes Part 1 - Family assistance amendments Family Assistance Act Item 1 amends subsection 3(1) to add definitions of the new additional economic support payments 2020 and 2021 for family assistance recipients. Those new payments are introduced by new Part 10 of the Act (inserted by item 2). 4

Item 2 inserts new Part 10 into the Act. New Part 10 - Additional economic support payments New Division 1 - Additional economic support payment 2020 New section 117 - When is an individual entitled to an additional economic support payment 2020? New section 117 sets out when a person is eligible for the additional economic support payment 2020 under the Family Assistance Act. The person must:  meet one of the eligibility requirements in new section 123;  not be receiving any social security income support payment on 27 November 2020;  not be receiving a payment under a prescribed educational scheme on that date; and  be residing in Australia on that date. The definition of income support payment in subsection 23(1) of the Social Security Act includes all social security pensions (as defined in subsection 23(1) of the Social Security Act) and social security benefits (as defined in subsection 23(1) of the Social Security Act), service pension under the Veterans' Entitlements Act, income support supplement under the Veterans' Entitlements Act and veteran payment under the Veterans' Entitlements Act. If the income support payment the person receives on 27 November 2020 or 26 February 2021 is an age pension, disability support pension or carer payment the person can still receive their additional economic support payment 2020 or 2021 under the Social Security Act. If the income support payment the person receives on 27 November 2020 or 26 February 2021 is service pension, income support supplement or veteran payment the person can still receive an additional economic support payment 2020 or 2021 under the Veterans' Entitlements Act. The Family Assistance Act adopts the definition of prescribed educational scheme in subsection 5(1) of the Social Security Act. This definition includes five schemes and two of these are no longer in operation. The three schemes that are in operation are the ABSTUDY Scheme, Veterans' Children Education Scheme and the scheme to provide education and training under section 258 of the MRCA. New section 118 - What is the amount of the payment? The additional economic support payment 2020 is $250. 5

New section 119 - More than one entitlement New section 119 ensures that a person can only receive one additional economic support payment 2020, even if they are entitled under more than one provision of new section 123, or under the Social Security Act or the Veterans' Entitlements Act. New Division 2 - Additional economic support payment 2021 New section 120 - When is an individual entitled to an additional economic support payment 2021? New section 120 sets out when a person is eligible for the additional economic support payment 2021 under the Family Assistance Act. It adopts the same criteria as new section 117 (discussed above) but has a test date of 26 February 2021. New section 121 - What is the amount of the payment? The additional economic support payment 2021 is also $250. New section 122 - More than one entitlement New section 122 ensures that a person can only receive one additional economic support payment 2021, even if they are entitled under more than one provision of new section 123, or under the Social Security Act or the Veterans' Entitlements Act. New Division 3 - Eligibility New section 123 - Eligibility New section 123 sets eligibility requirements for both additional economic support payments 2020 and 2021. A person must be eligible for a family tax benefit (Part A or B) payment on 27 November 2020 (for the additional economic support payment 2020) or 26 February 2021 (for the additional economic support payment 2021). A person may be eligible for family tax benefit because of a determination under section 16 (FTB by instalment), 17 (FTB for a past period claim) or 18 (FTB for a bereavement claim) of the Family Assistance Administration Act. New subsections 123(2), (3) and (4) are separate eligibility provisions for people who receive family tax benefit under section 16, 17 or 18 of the Family Assistance Administration Act respectively. 6

Family Assistance Administration Act Item 3 inserts new Division 4DB into Part 3. New Division 4DB - Additional economic support payments New section 65JC - Payment of additional economic support payment 2020 New section 65JC provides for the additional economic support payment 2020 to be paid as a lump sum as soon as practicable after 27 November 2020. New subsection 65JC(2) provides that the Secretary must not pay the additional economic support payment 2020 on or after 1 July 2023 if the individual is entitled to the payment because subsection 123(2) or (4) of the Family Assistance Act applies to the individual on 27 November 2020. New section 65JD - Payment of additional economic support payment 2021 New section 65JD provides for the additional economic support payment 2021 to be paid as a lump sum as soon as practicable after 26 February 2021. New subsection 65JD(2) provides that the Secretary must not pay the additional economic support payment 2021 on or after 1 July 2023 if the individual is entitled to the payment because subsection 123(2) or (4) of the Family Assistance Act applies to the individual on 26 February 2021. Item 4 amends subsection 66(1) so that additional economic support payments 2020 and 2021 are inalienable in the same way as other payments under the family assistance law. Item 5 amends section 70 so that an overpayment of additional economic support payments 2020 or 2021 can also be a debt under the Act. Item 6 inserts new section 72A. New section 72A - Debts arising in respect of additional economic support payment New section 72A ensures that the additional economic support payment 2020 or 2021 can be recovered as a debt if a person's underlying family tax benefit eligibility for the relevant date (27 November 2020 or 26 February 2021) is later revoked because the person knowingly made a false or misleading statement, or knowingly provided false information. Item 7 amends paragraph 74(a) so that if the additional economic support payment 2020 or 2021 is paid by cheque, if another person improperly cashes it, that other person owes a debt to the Commonwealth for the amount of the payment. This ensures that additional economic support payments 2020 or 2021 are treated in the same way as other payments under the family assistance law. 7

Item 8 amends subsection 93A(6) so that a payment of the additional economic support payment 2020 or 2021 may also be recovered from a financial institution if the Secretary is satisfied that the payment was intended to be paid to someone other than the account-holder. Recovery will be available in the same way as other payments under the family assistance law. Items 9 and 10 amend sections 106 and 109D so that review provisions apply to decisions relating to the additional economic support payment 2020 and 2021 in the same way as they apply to other payments under the family assistance law. The amendment to subsection 106(3) ensures that a person affected by a review decision, initiated by the Secretary, of a decision relating to the additional economic support payment 2020 or 2021 is given notice of the review decision. The amendments to subsection 109D(4) and paragraph 109D(5)(a) ensure that where an application for review of a decision relating to the additional economic support payment 2020 or 2021 is made because the Commissioner of Taxation reviewed a previous decision about a person's taxable income, the review application can be made within 13 weeks after the Commissioner notifies the person of the outcome of the income review. Item 11 amends section 219TA so that the nominee provisions in Part 8B of the Act are also available to recipients of the additional economic support payment 2020 and 2021. 8

Part 2 - Social security amendments Social Security Act Item 12 amends paragraph 8(8)(jaa) so that the additional economic support payment 2020 and 2021 under the Family Assistance Act is not income for the purposes of the Social Security Act. Item 13 inserts new paragraphs 8(8)(yo) and (yp) so that the additional economic support payment 2020 and 2021 under the Veterans' Entitlements Act (added by Part 3 of this Schedule) is not income for the purposes of the Social Security Act. Item 14 inserts new paragraph 23(4AA)(ad). The effect of this amendment is that a person will qualify for the additional economic support payment 2020 under new section 309 of the Social Security Act if on 27 November 2020 they are taken to be receiving age pension, disability support pension, or carer payment under subsection 23(4A) of the Social Security Act. Also, the effect of this amendment is that a person qualifies for the additional economic support payment 2021 under section 311 of the Social Security Act if, on 26 February 2021, the person is taken to be receiving age pension, disability support pension, or carer payment under subsection 23(4A) of the Social Security Act. Subsection 23(4A) of the Social Security Act treats a person as though they are still 'receiving' a social security pension (which includes age pension, disability support pension, and carer payment) for the purposes of receiving certain supplementary payments and benefits listed in subsection 23(4AA) of the Social Security Act. The person will be deemed to be receiving the pension for an additional 12 week period if they ceased to be eligible for their pension because either their own or their partner's employment income reduced the rate of their pension to nil. Item 15 inserts new Part 2.6C. New Part 2.6C - Additional economic support payments New Division 1 - Additional economic support payment 2020 New section 309 - Additional economic support payment 2020 New section 309 sets out when a person is eligible for the additional economic support payment 2020 under the Social Security Act. The person must:  meet one of the eligibility requirements in new section 313; and  be residing in Australia on 27 November 2020. New section 309 also ensures that a person can only receive one additional economic support payment 2020, even if they are entitled under more than one provision of new section 313, or under the Family Assistance Act or the Veterans' Entitlements Act. 9

New section 310 - Amount of economic support payment 2020 The additional economic support payment 2020 is $250. New Division 2 - Additional economic support payment 2021 New section 311 - Additional economic support payment 2021 New section 311 sets out when a person is eligible for the additional economic support payment 2021 under the Social Security Act. The person must:  meet one of the eligibility requirements in new section 313; and  be residing in Australia on 26 February 2021. New section 311 also ensures that a person can only receive one additional economic support payment 2021, even if they are entitled under more than one provision of new section 313, or under the Family Assistance Act or the Veterans' Entitlements Act. New section 312 - Amount of economic support payment 2021 The additional economic support payment 2021 is also $250. New Division 3 - Eligibility New section 313 - Eligibility New section 313 sets out the qualification requirements for both additional economic support payments 2020 and 2021. To be qualified, a person must on 27 November 2020 (for the additional economic support payment 2020) or 26 February 2021 (for the additional economic support payment 2021) receive:  age pension, disability support pension or carer payment (and not receive a payment under a prescribed educational scheme); or  carer allowance or double orphan pension (and not receive an income support payment or payment under a prescribed educational scheme). A person may also qualify for the additional economic support payment 2020 and/or the additional economic support payment 2021 if they hold a seniors health card or pensioner concession card on the relevant test date. People who claim a seniors health card on or before 27 November 2020 and have a claim pending on that day can receive the additional economic support payment 2020 if they are qualified for a seniors health card on that day and do not receive a payment under a prescribed educational scheme on that day. The same applies for a person who claims a seniors health card on or before 26 February 2021 and has a claim pending on that day. Such a person can receive the additional economic support payment 2021 if they are qualified for a seniors health card on 26 February 2021 and do not receive a payment under a prescribed educational scheme on that day. 10

Holders of a pensioner concession card cannot receive the additional economic support payment 2020 if they receive an income support payment or receive a payment under a prescribed educational scheme on 27 November 2020. Likewise, they cannot receive the additional economic support payment 2021 if they receive an income support payment or receive a payment under a prescribed educational scheme on 26 February 2021. The definition of income support payment in subsection 23(1) of the Social Security Act includes:  all social security pensions (as defined in subsection 23(1) of the Social Security Act);  social security benefits (as defined in subsection 23(1) of the Social Security Act);  service pension under the Veterans' Entitlements Act;  income support supplement under the Veterans' Entitlements Act; and  veteran payment under the Veterans' Entitlements Act. If the income support payment the person receives on 27 November 2020 or 26 February 2021 is an age pension, disability support pension or carer payment the person can still receive their additional economic support payment 2020 or 2021 with that income support payment. If the income support payment the person receives on 27 November 2020 or 26 February 2021 is service pension, income support supplement or veteran payment the person can still receive an additional economic support payment 2020 or 2021 under the Veterans' Entitlements Act. Prescribed educational scheme is defined in subsection 5(1) of the Social Security Act. This definition includes five schemes and two of these are no longer in operation. The three schemes that are in operation are the ABSTUDY Scheme, Veterans' Children Education Scheme and the scheme to provide education and training under section 258 of the MRCA. Item 16 amends subsection 1222(2) to add debts in respect of additional economic support payment 2020 and 2021 to the table of debt recovery methods. Those debts will be recoverable in any of the usual ways, i.e. deductions from social security payment, legal proceedings, garnishee notice, or repayment by instalments. 11

Item 17 inserts new sections 1223ABK and 1223ABL. New section 1223ABK - Debts in respect of additional economic support payment 2020 New section 1223ABK ensures that additional economic support payment 2020 can be recovered as a debt if a person's underlying social security payment or concession card eligibility for 27 November 2020 is later revoked because the person knowingly made a false or misleading statement, or knowingly provided false information. New section 1223ABL - Debts in respect of additional economic support payment 2021 New section 1223ABL is the equivalent provision to new section 1223ABK, for additional economic support payment 2021. Social Security Administration Act Item 18 inserts new section 12AF. New section 12AF ensures that a person does not need to make a claim for additional economic support payment 2020 or 2021. Item 19 amends subsection 47(1) so that additional economic support payment 2020 and 2021 are payable as lump sum benefits. Item 20 inserts new sections 47AG and 47AH. New section 47AG - Payment of additional economic support payment 2020 New section 47AG provides for additional economic support payment 2020 to be paid as a lump sum as soon as practicable after 27 November 2020, but by 30 June 2023. New section 47AH - Payment of additional economic support payment 2021 New section 47AH provides for additional economic support payment 2021 to be paid as a lump sum as soon as practicable after 26 February 2021, but by 30 June 2023. Item 21 amends section 123TC to insert a new definition of additional economic support payment. It covers the additional economic support payments 2020 and 2021 under the Social Security Act and the Family Assistance Act. This amendment is a consequential amendment resulting from the insertion of new section 123XPBB (discussed below in item 23). Item 22 substitutes the heading of Subdivision DB of Division 5 of Part 3B. This amendment is a consequential amendment resulting from the insertion of new section 123XPBB (discussed below in item 23). 12

Item 23 inserts new section 123XPBB. New section 123XPBB - Deductions from additional economic support payments New section 123XPBB means that, for a person subject to the income management regime, the additional economic support payment 2020 or 2021 under the Social Security Act or the Family Assistance Act will be credited to the person's income management account. The full amount of the additional economic support payment 2020 or 2021 will be subject to income management. Item 24 amends the definition of restrictable payment in subsection 124PD(1) so that it includes the additional economic support payments 2020 and 2021 under the Social Security Act and the Family Assistance Act. The insertion of a reference to these payments in the definition of restrictable payment will, in conjunction with existing subsection 124PJ(2) of the Social Security Administration Act, mean that the full amount of the additional economic support payment 2020 and the additional economic support payment 2021 will be subject to the cashless welfare card trial (in Part 3D of the Social Security Administration Act) if a recipient of these payments is a participant in the trial. 13

Part 3 - Veterans' amendments Veterans' Entitlements Act Items 25 and 26 amend section 5H(8) of the Veterans' Entitlements Act to specify the additional economic support payments 2020 and 2021 in the list of excluded amounts for the purposes of that Act. This amendment in effect ensures that the additional economic support payments do not count as income for income testing purposes but instead are a type of 'Excluded amount - general'. Item 25 amends paragraph 5H(8)(paa) of the Veterans' Entitlements Act to ensure the additional economic support payments 2020 and 2021 payable under the Family Assistance Act are not counted as income. Item 26 amends section 5H(8) to add reference to the additional economic support payments 2020 and 2021 at paragraphs 5H(8)(zzan) and 5H(8)(zzao) to ensure the economic support payments payable under new Part IIIJ are not counted as income. Item 27 inserts new Part IIIJ (Additional economic support payments) into the Veterans' Entitlements Act after Part IIIH (First and second economic support payments). New Part IIIJ provides for the payment of two additional economic support payments to eligible persons. The eligibility criteria are set out in Division 3. New Part IIIJ - Additional economic support payments New Division 1 - Additional economic support payment 2020 New section 67ZC - Additional economic support payment 2020 New section 67ZC provides that a person is eligible for the additional economic support payment 2020 if the person is eligible to receive a payment listed in Division 3 or hold an appropriate card listed under Division 3 on 27 November 2020 and the person does not receive a social security benefit; a social security pension; or a payment under a prescribed educational scheme within the meaning of the Social Security Act on 27 November 2020. The terms social security benefit and social security pension, as defined under section 5Q of the Veterans' Entitlements Act, have the same meaning as in the Social Security Act. The effect of new section 67ZC is that a person who is eligible to receive a payment or hold a card listed in Division 3 cannot receive the additional economic support payment 2020 if they are also in receipt of a payment such as JobSeeker Payment or Youth Allowance. New section 67ZC also provides that a person is also not eligible for the additional support payment if they are receiving a payment under a prescribed educational scheme within the meaning of the Social Security Act. Subsection 5(1) of that Act includes three schemes that are still in operation, the Veterans' Children's Education Scheme; the Military Rehabilitation and Compensation Education and Training Scheme; and the ABSTUDY scheme. 14

A person must also be residing in Australia on 27 November 2020 to be eligible for the additional support payment 2020. New subsection 67ZC(2) provides that the additional support payment 2020 will be $250. New section 67ZD - More than one entitlement New section 67ZD ensures that a person receives only one payment of the additional economic support payment 2020 despite that person being eligible for more than one payment under new Division 1 of Part IIIJ. New subsection 67ZD(2) provides that if a person receives an additional economic support payment 2020 under Division 1 of Part 10 of the Family Assistance Act, or Division 1 of Part 2.6C of the Social Security Act, the person will not receive a payment under the Veterans' Entitlements Act. New section 67ZE - Claim not required for additional economic support payment New section 67ZE provides that a person does not have to make a claim to receive the additional economic support payment 2020. New section 67ZF - Payment of additional economic support payment 2020 New section 67ZF provides that if a person is eligible for an additional economic support payment 2020 under the Act, the Repatriation Commission must pay the payment in a single lump sum of $250 on the earliest date that is reasonably practicable for the payment to be made after 27 November 2020 and in the manner the Repatriation Commission considers to be appropriate New subsection 67ZF(2) provides that the Repatriation Commission must not pay the additional economic support payment 2020 on or after 1 July 2023. New Division 2 - Additional economic support payment 2021 New section 67ZG - Additional economic support payment 2021 New section 67ZG provides that a person is eligible for the additional economic support payment 2021 if the person is eligible to receive a payment listed in Division 3 or hold an appropriate card listed under Division 3 on 26 February 2021. A person must not also be receiving social security benefit; a social security pension; or a payment under a prescribed educational scheme within the meaning of the Social Security Act on 26 February 2021. The terms social security benefit and social security pension, as defined under section 5Q of the Veterans' Entitlements Act, have the same meaning as in the Social Security Act. The effect of 67ZG is that a person who is eligible to receive a payment or hold a card listed in Division 3 cannot receive the additional economic support payment 2021 if they are also in receipt of a payment such as JobSeeker Payment or Youth Allowance. 15

New section 67ZG also provides that a person is also not eligible for the additional support payment if they are receiving a payment under a prescribed educational scheme within the meaning of the Social Security Act. Subsection 5(1) of that Act includes three schemes that are still in operation, the Veterans' Children's Education Scheme; the Military Rehabilitation and Compensation Education and Training Scheme; and the ABSTUDY scheme. A person must also be residing in Australia on 26 February 2021 to be eligible for the additional support payment. New subsection 67ZG(2) provides that the additional support payment 2021 will be $250. New section 67ZH - more than one entitlement New subsection 67ZH(1) ensures that a person receives only one payment of the additional economic support payment 2021 despite that person being eligible for more than one payment under new Division 2 of Part IIIJ. New subsection 67ZH(2) ensures that if a person receives an additional economic support payment 2021 under Division 1 of Part 10 of the Family Assistance Act or Division 1 of Part 2.6C of the Social Security Act, the person will not receive a payment under the Veterans' Entitlements Act. New section 67ZI - Claim not required for additional economic support payment 2021 New section 67ZI provides that a person does not have to make a claim to receive the additional economic support payment 2021. New section 67ZJ - Payment of additional economic support payment 2021 New section 67ZJ provides where a person is eligible for the additional economic support payment 2021, the Repatriation Commission must pay the payment in a single lump sum of $250 on the earliest date that is reasonably practicable for the payment to be made and in the manner the Repatriation Commission considers to be appropriate. New subsection 67ZJ(2) provides that the Repatriation Commission must not pay the additional economic support payment 2021 on or after 1 July 2023. New Division 3 - Eligibility New Division 3 sets out eligibility criteria a person has to meet to receive the additional economic support payments 2020 and 2021. The amendments to the Veterans' Entitlements Act will allow the economic support payments to be paid to persons receiving the following payments or who hold the appropriate card:  service pension;  income support supplement; 16

 disability pension under the Veterans' Entitlements Act;  war widow(er)s pension under the Veterans' Entitlements Act;  special rate disability pension under the MRCA;  wholly Dependent Partner payments under the MRCA;  permanent impairment compensation under the DRCA;  permanent impairment compensation under the MRCA;  those who converted their weekly Permanent Impairment Compensation, or Wholly Dependent Partner Payments under the MRCA to a lump sum prior to the date their eligibility for an additional economic support payment is assessed;  veteran payment;  all Repatriation Health Card - For All Conditions (Gold Card) holders;  persons who receive fringe benefits (where a Pensioner Concession Card is issued); and  all Commonwealth Seniors Health Card holders under the Veterans' Entitlements Act. New section 67ZL - Payments under this Act New section 67ZL sets out the types of payments which will attract the additional economic support payments. New subsection 67ZL(1) provides that Division 3 applies to those persons to whom service pension or income support supplement is payable on that day. New subsection 67ZL(2) lists circumstances where a person may not be receiving a service pension or income support supplement due to a temporary increase in the person's, or the person's partner's, employment income. New subsection 67ZL(2) provides that those who have personal and/or partner employment income that reduces their rate to nil during the 12 week period prior to their service pension or income support supplement ceasing (the cessation day) are still taken to be receiving a payment on the test day and qualify for the economic support payment. New subsection 67ZL(3) provides that a veteran is eligible for an economic support payment if an amount of disability pension at the general rate of pension and extreme disablement adjustment, intermediate rate, special rate of pension, temporary special rate or an increased rate of pension due to a kind of incapacity set out in section 27 of the Veterans' Entitlements Act, is payable to the veteran on the day that their eligibility is determined. 17

New subsection 67ZL(4) provides that a person who is the widow or widower of a deceased veteran, or a reinstated pensioner in relation to the veteran, is eligible for the economic support payment if an amount of pension is payable to the person under subsection 30(1) of Part II or Part IV of the Veterans' Entitlements Act on the day their eligibility is determined. New subsection 67ZL(5) provides that, a pension is payable to a person even if the rate of pension is nil because the pension has been fully offset under provisions located in Divisions 4, 5 and 5A of Part II or under section 74 of that Act. Divisions 4, 5 and 5A of Part II and section 74 of the Veterans' Entitlements Act provide that payments of disability and war widow / widower pensions under Part II or lump sum and periodic payments of compensation that have been paid to the person under the DRCA, are offset against payments by State and foreign governments and by another person or organisation. New subsection 67ZL(6) provides that a person is eligible for the economic support payment if veteran payment is payable or will be payable to the person on the day their eligibility is determined. New section 67ZM - Senior's health card, gold card, etc New section 67ZM of the Veterans' Entitlements Act provides for the payment of the economic support payment to certain people holding seniors health cards or gold cards or who are eligible for fringe benefits (where a Pensioner Concession Card is issued) under the Veterans' Entitlements Act. If a person has made a successful claim for a seniors health card on or before the day their eligibility is determined, then they will receive the additional economic support payment. However, if they have withdrawn their claim on or before the day their eligibility for an additional economic support payment is determined or have ceased to be eligible for the seniors health card on that day, they will not receive the additional economic support payment. People who hold a seniors health card under the Social Security Act cannot hold a seniors health card under the Veterans' Entitlements Act. A person who holds a Repatriation Health Card - For All Conditions, may be eligible for the additional economic support payment. The Repatriation Health Card - For All Conditions is also known as the Gold Card and is issued to people who are eligible to be provided with treatment for all injuries or diseases under the Veterans' Entitlements Act, the MRCA, the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 or the Treatment Benefits (Special Access) Act 2019. New subsection 67ZM(3) provides that a person who holds and is eligible for the Repatriation Health Card - For All Conditions (Gold Card) under the Veterans' Entitlements Act or MRCA is eligible on that day for the economic support payment. 18

New subsection 67ZM(4) deals with the circumstances where a person either receives treatment or has made a claim under the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act or the Treatment Benefits (Special Access) Act for eligibility to be provided for treatment. In essence, if a person has made a successful claim for the Repatriation Health Card - For All Conditions under either of these Acts on or before the day their eligibility is determined, then the person will receive the additional economic support payment. However, if the person has withdrawn their claim on or before the day their eligibility is determined or ceased to be eligible for Repatriation Health Card - For All Conditions, the person will not receive the additional economic support payment. New subsection 67M(5) of the Veterans' Entitlements Act provides that a person qualified for an economic support payment if the person qualified for fringe benefits under subsection 53A(1A) of the that Act. A person is eligible for fringe benefits (in effect, a veterans' entitlements pensioner concession card) if:  immediately before 1 January 2017, a person was receiving a service pension or income support supplement; and  the rate of that pension was nil on 1 January 2017 because of the operation of the amendments made by Part 1 of Schedule 3 to the Social Services Legislation Amendment (Fair and Sustainable Pensions) Act 2015. A person is not eligible for the economic support payment if they are eligible for fringe benefits under other subsections in section 53A of the Veterans' Entitlements Act. People who on 1 January 2017 ceased to be paid a service pension or income support supplement because of the amendments by the Social Services Legislation Amendment (Fair and Sustainable Pensions) Act receive fringe benefits despite not being in receipt of an income support payment. Subsection 67M(5) ensures that this group of people receive the additional economic support payment, in line with people who hold a Pensioner Concession Card under subsection 1061ZA(1B) of the Social Security Act. New section 67ZN - MRCA New section 67ZN sets out the criteria for persons who are eligible for additional economic support payments 2020 and 2021 because they are in receipt of a payment under the MRCA. Under new subsection 67ZN(1) a person is eligible for the additional 2020 and 2021 economic support payment if one or both of the following conditions is met on the day their eligibility for the economic support payment is determined:  weekly compensation for permanent impairment is payable to the person under Part 2 of Chapter 4 of the MRCA on that day or weekly compensation for permanent impairment would have been payable under Part 2 of Chapter 4 for that day if it had not been offset under paragraph 398(3)(b) of the MRCA or subsection 13(4) of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004; or 19

 on or prior to that day, the person had received lump sum compensation for permanent impairment under Part 2 of Chapter 4 of the MRCA. Under new subsection 67ZN(2) a person is eligible for the additional economic support payments 2020 and 2021 if Special Rate Disability Pension is payable to the person under the MRCA if they are determined to be eligible for additional economic support payments on 27 November 2020 and 26 February 2021. The additional economic support payments are also payable if the Special Rate Disability Pension would have been payable for that day if it had not been offset under section 204 or paragraph 398(3)(b) of the MRCA. Under new subsection 67ZN(3) a wholly dependent partner is eligible for the economic support payment if one or both of the following conditions are met on the day the person's eligibility for the economic support payment is determined:  weekly compensation as a wholly dependent partner is payable to the person under Division 2 of Part 2 of Chapter 5 of the MRCA on that day, or weekly compensation as a wholly dependent partner would have been payable to the person under Division 2 of Part 2 of Chapter 5 or would have been payable to the person for that day if it had not been offset under paragraph 398(3)(b) of the MRCA; or  on or before that day, the person had received lump sum compensation as a wholly dependent partner under Division 2 of Part 2 of Chapter 5 of the MRCA and before that date the person had not been precluded under subsection 388(6) of the MRCA from being eligible for any further compensation under the MRCA following the recovery of damages for the death of the person's partner from the Commonwealth. New subsection 67ZN(3) refers to the circumstances where compensation payable under the MRCA is to be regarded as being payable to the person even though the payment rate is nil due to the operation of one of the offsetting provisions in the MRCA. New section 67ZO - Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 New section 67ZO provides that a person receiving a payment of compensation under the DRCA is eligible for the additional economic support payments 2020 and 2021 if the compensation was paid because of a claim the person made on or before 27 November 2020 and 26 February 2021. 20

Part 4 - Taxation amendments Income Tax Assessment Act 1997 Items 28 and 29 amend section 11-15. Section 11-15 is a guide to the types of income that are exempt from income tax. These items amend section 11-15 to reflect the amendments made by later items, which make additional economic support payments 2020 and 2021 under the Social Security Act, the Family Assistance Act and the Veterans' Entitlements Act exempt from income tax. Items 30 to 32 amend sections 52-10 and 52-40 so that additional economic support payments 2020 and 2021 under the Social Security Act are exempt from income tax. Items 33 to 35 amend sections 52-65 and 52-75 so that additional economic support payments 2020 and 2021 under the Veterans' Entitlements Act are exempt from income tax. Item 36 amends section 52-150 so that additional economic support payments 2020 and 2021 under the Family Assistance Act are exempt from income tax. 21

Schedule 2 - Youth allowance independence and paid work concession Summary The amendments made by Schedule 2 support young people whose path toward demonstrating independence through work has been disrupted by the economic impacts of COVID-19. From 1 January 2021 (or the day after Royal Assent if that is later), the six-month period between 25 March 2020 and 24 September 2020 (the COVID-19 concession period) will automatically be recognised as contributing to existing workforce independence criteria for Youth Allowance. Under the amended definition of independence, a person applying for, or currently receiving, Youth Allowance will be considered to have worked 30 hours per week for the COVID-19 concession period regardless of hours worked. Young people from regional and remote areas applying for Youth Allowance under the Concessional Workforce Independence Criteria (CWIC) will be considered to have:  earned 75 per cent of the National Training Wage Schedule weekly rate during the COVID-19 concession period (unless in receipt of a higher income); or  worked 15 hours per week for the COVID-19 concession period. This Schedule implements the measure for Youth Allowance. Changes to the ABSTUDY Policy Manual will implement the measure for ABSTUDY. Schedule 2 commences on 1 January 2021, or the day after Royal Assent if that is later. Explanation of the changes Social Security Act Item 1 inserts new subsections 1067A(10M) and 1067A(10N). New subsection 1067A(10M) creates a concessional variation to the existing workforce independence criteria for people who are self-supporting in subsection 1067(10) for the purposes of youth allowance. New subsection 1067A(10M) means that the workforce independence criteria in paragraphs 1067A(10)(a), (b) and (d) (where they relevantly apply in relation to a person) are deemed to be met for all weeks within the COVID-19 concessional period, where the person does not otherwise meet the criteria. This means that a person claiming youth allowance is taken to satisfy the independence criterion, for a particular week in that period, that they were:  in paid work consisting of full-time employment of 30 hours; or  in paid work consisting of part-time employment of 15 hours; or 22

 in paid work consisting of employment that earnt the person at least the equivalent of 75% of the maximum weekly rate applicable for that week. New subsection 1067A(10N) provides that for the purposes of new subsection 1067A(10M), the COVID-19 concession period is the period beginning on 25 March 2020 and ending at the end of 24 September 2020. Item 2 sets out application and transitional provisions. Subitem 2(1) provides that the independence concession in new subsection 1067A(10M) will apply in relation to people who:  are in receipt of youth allowance immediately before the commencement of this item;  claim youth allowance after commencement of this item and before the end of 24 September 2022; and  claim youth allowance before the commencement of this item, where the claim is not determined immediately before the item commences (that is, the claim is pending when the item commences). Subitem 2(2) ensures that after the end of 24 September 2022 both existing payment recipients and new claimants cannot rely on the new subsection 1067A(10M) to be assessed as independent. Those who have been determined as independent under the new subsection prior to the end of 24 September 2022 will retain their independence status after this date. 23

Schedule 3 - Youth allowance independence and agricultural work Summary This measure will create temporary incentives in the income support system to encourage young Australians to undertake seasonal agricultural work to address concerns across the agriculture sector about immediate workforce availability for the upcoming harvest season. A young person claiming Youth Allowance student (YA student) who demonstrates participation in agricultural work throughout the forthcoming harvest season would have access to the new independence criteria. Under the new criteria, a person who earns $15,000 through employment in the agricultural industry between 30 November 2020 and 31 December 2021, would be considered as independent for the purpose of YA student. This change will shorten the period of time a young person engaging in agricultural work would need to work to demonstrate their financial independence from their parents. If a young person does not reach the $15,000 threshold, their workforce participation will be assessed as part of the relevant independence criteria, but with no concessional treatment. This Schedule implements the measure for Youth Allowance. Changes to the ABSTUDY Policy Manual will implement the measure for ABSTUDY. Schedule 3 commences the day after Royal Assent. Explanation of the changes Social Security Act Item 1 amends paragraph 1061ZAAA(5)(b) so that individuals who have become independent due to the temporary agricultural work concession (inserted by item 3 below) remain qualified for fares allowance under subsection 1061ZAAA(1). This ensures that those who become independent under the new agricultural work concession are treated similarly to those who become independent under existing workforce independence criteria, or by turning 22 years of age. Item 2 amends subsection 1067A(10K) so that the parental income thresholds in that subsection also apply to the temporary agricultural work concession in new subsections 1067A(14) to (16) (inserted by item 3 below). Item 3 adds new subsections 1067A(14) to (16) to add an additional way that a person claiming youth allowance can qualify as independent. A person will qualify as independent for youth allowance if they:  are studying full time;  undertake qualifying agricultural work during the period 30 November 2020 and 31 December 2021; 24

 earn at least $15,000 (gross, that is, before tax) for that work; and  meet the parental income threshold in subsection 1067A(10K) for the 2019- 2020 tax year or 2018-2019 tax year. What constitutes qualifying agricultural work for the purposes of this subsection will be determined in a legislative instrument made by the Secretary under new subsection 1067A(16). Item 4 sets out application and transitional provisions. Subitem 4(1) provides that the agricultural work concession will apply in relation to people who:  are in receipt of youth allowance immediately before 1 March 2021; and  claim youth allowance on or after 1 March 2021 and before the end of 1 March 2023. Subitem 4(2) makes it clear that if a person did not become independent under new subsection 1067A(14) before the end of 1 March 2023, then new subsection 1067A(14) does not apply to that person after 1 March 2023. 25

Schedule 4 - Paid parental leave work test period Summary The amendments made by Schedule 4 introduce a revised Paid Parental Leave work test period for a limited time, to enable people to access parental leave pay and dad and partner pay who do not meet the current work test provisions because their employment has been interrupted by the COVID-19 pandemic. This would enable most individuals with a genuine work history pre-COVID-19 to qualify for payments under the Paid Parental Leave scheme. The objectives of the Paid Parental Leave scheme are to signal that taking time out of the paid workforce to care for a child is part of the usual course of life and work for both parents, to promote equality between men and women and to help achieve balance between work and family life. Amendments to the Paid Parental Leave Act, made by the Coronavirus Economic Response Package Omnibus (Measures No. 2) Act 2020, allow for time spent on the JobKeeper Payment to count towards the Paid Parental Leave work test. This is consistent with the objectives of the Paid Parental Leave scheme. Beyond parents receiving JobKeeper Payment, some parents may have been on a pathway to maintaining a consistent work history that would have enabled them to be eligible for parental leave pay, but have not achieved a continuing work history due to the impacts of COVID-19. As a result, this cohort will have less income in the pre- birth period than originally planned, and may be relying on income support, such as the JobSeeker Payment. In order to be eligible for payment, people claiming paid parental leave must meet the current work test requirements, in which individuals must have worked:  at least 10 months in their work test period, and  for at least 330 hours in that 10-month period (just over one day a week), with no more than a 12-week gap between any two consecutive working days. Many parents who have lost employment and not met the Paid Parental Leave work test because of COVID-19 will likely still identify as working Australians, even though they may currently be unemployed. Currently to meet the Paid Parental Leave work test, individuals must meet the work test requirements in the 13 months (392 days) prior to the birth or adoption of their child for parental leave pay, or prior to their period for dad and partner pay. This measure will temporarily extend the Paid Parental Leave work test period from 13 months prior to the birth or adoption of a child, to 20 months (600 days) for parents who have had their employment impacted by COVID-19. This change will apply to births and adoptions that occur between 22 March 2020 and 31 March 2021. 26

Changes will allow people who meet the concessional work test to backdate the start date of their PPL period to the date of birth of their child. This backdating is currently not available to people who make their claim more than 28 days after the birth of their child. The retrospective nature of the proposal may create overpayments where the individual or their partner have been receiving income support, Newborn Upfront Payment or Newborn Supplement for that child or FTB Part B for the backdated period. Existing arrangements for raising and recovery of any associated debts will continue to apply as normal. Services Australia will work with families to ensure paid parental leave eligible parents receive their payments in a way that is least likely to affect previous period payments, and will inform parents of any future debts that may arise and how these debts can be repaid. Schedule 4 commences the day after Royal Assent. Explanation of the changes Paid Parental Leave Act Item 1 amends section 6 to insert a new definition of COVID-19 affected claimant. A COVID-19 affected claimant may be able to satisfy the work test applying the new temporary extended Paid Parental Leave work test period (see new sections 33A and 115CD, inserted by items 9 and 11) for parental leave pay or dad and partner pay, if they would not otherwise meet the work test. A person is a COVID-19 affected claimant if:  the relevant child was born, or was due to be born, between 22 March 2020 and 31 March 2021;  the person must satisfy the work test to be eligible for parental leave pay or dad and partner pay;  the person was affected by the adverse effects of COVID-19 in one of the following ways: o they became unemployed; o their working hours were reduced (including to zero); or o their business for which they work was suspended or suffered reduced turnover; and  as a result of those effects, the person would not satisfy the ordinary work test. Item 2 amends the definition of work test period in section 6 as a consequence of the new temporary Paid Parental Leave work test period. 27

Items 3 and 4 amend section 11 as a consequence of the new temporary Paid Parental Leave work test period to allow primary claimants who meet the concessional work test to backdate the start date of their PPL period to the later of the date of birth of their child or their nominated start day. Item 5 inserts new section 19B. New section 19B - Parental leave pay not payable to COVID-19 affected claimant if child born after 31 March 2021 New section 19B provides that parental leave pay is not payable to a COVID-19 affected claimant in relation to a child if the child is born after 31 March 2021. The change to the work test period is only intended to be available for a temporary time. Item 6 amends the method statement in section 32 (for working out whether a person satisfies the work test) as a consequence of the new temporary Paid Parental Leave work test period. Items 7 and 8 amend section 33 (relating to the work test period) so that it only applies to claimants who are not COVID-19 affected claimants. A note directs the reader to new section 33A for COVID-19 affected claimants. Item 9 inserts new section 33A. New section 33A - The work test period - COVID-19 affected claimants New section 33A introduces the temporary extended Paid Parental Leave work test period. For a COVID-19 affected claimant (see item 1 above), section 33A extends the work test period (for a primary or secondary parental leave pay claimant) from 392 days to 600 days. Item 10 inserts new subsection 57A(2A) so that a COVID-19 affected claimant may claim flexible paid parental leave days that are more than 42 days before the date of claim, provided those flexible paid parental leave days are still within the flexible PPL period for the child (which ends only once the child turns 2 years old - see subsection 11D(2)). Item 11 inserts new section 115BDA. New section 115BDA - Dad and partner pay not payable to COVID-19 affected claimant if child born after 31 March 2021 New section 115BDA provides that dad and partner pay is not payable to a COVID- 19 affected claimant in relation to a child if the child is born after 31 March 2021. The change to the work test period is only intended to be available for a temporary time. 28

Item 12 replaces section 115CD. New section 115CD - The work test period New section 115CD re-enacts the existing dad and partner pay ordinary work test period, and introduces the temporary extended dad and partner pay work test period. For a COVID-19 affected claimant (see item 1 above), new paragraph 115CD(a) extends the work test period from 392 days to 600 days. Item 13 is an application provision. The new temporary extended work test period is available to parental leave pay or dad and partner pay claims that are either:  made on or after commencement; or  effective claims (see sections 55 and 115DE) that are outstanding at commencement. 29

Schedule 5 - Stillborn baby payment and infant death payment Summary This measure addresses inconsistencies in payments available to families affected by stillbirth and infant death in respect of payments for newborn children, by increasing the maximum amount that eligible families are able to access after a stillbirth or a child's death shortly after birth, up to the child's first birthday. This measure also removes discrepancies within the payments system in respect of multiple instances of stillbirth or infant death within the same family. Currently, when a person has a stillborn child, they may receive parental leave pay for up to 18 weeks or, if not eligible, they may receive stillborn baby payment as a lump sum, subject to meeting an income test. Under existing arrangements stillborn baby payment is paid at a high rate for the first stillbirth and a low rate for a second or subsequent stillbirth. A person who has a stillborn child is ineligible for a Family Tax Benefit (FTB) Part A bereavement payment. From 1 January 2021, for families not eligible for parental leave pay, this measure will increase and align family assistance payable to families who lose their child through stillbirth or because their child dies before their first birthday by:  having one rate of stillborn baby payment equal to the current high rate plus an amount equivalent to the maximum FTB Part A bereavement payment for a child aged under 13; and  paying a top up amount (equivalent to the difference between the high and low rate of newborn supplement) to families for children who received the low rate of newborn supplement and who die before their first birthday. The income testing arrangements for stillborn baby payment and FTB, including Newborn Supplement, will not change. Under the measure, subject to income testing arrangements, parents will receive the payment of up to $3,606.81, irrespective of whether the child is stillborn or dies within its first year, and irrespective of whether this is their first or subsequent claim. Schedule 5 commences the later of 1 January 2021 and the day after Royal Assent. Explanation of the changes Family Assistance Act Items 1 and 2 give effect to paying a top up amount (equivalent to the difference between the high and low rate of newborn supplement) to families for children who received the low rate of Newborn Supplement and who die before their first birthday. 30

Clause 35A of Schedule 1 provides for eligibility for newborn supplement. Clause 35B provides for the rate of newborn supplement. The rate of newborn supplement for subsequent children is lower than that for the first child of the mother. In circumstances where the child in respect of whom a lower newborn supplement amount was paid dies before their first birthday, a single amount of FTB paid upon the death of the child, may be claimed under section 32. If so claimed, the single amount of FTB is worked out under subsection 65(1). Subsection 65(1) sets out a method statement, with various additional factors provided for in the subsequent subsections of section 65. Item 1 repeals and replaces step 3 of the method statement at subsection 65(1) to insert adding in the additional amount to be provided for by new subsection 65(4). Item 2 inserts new subsection 65(4). The subsection provides for the addition of an additional amount to the sum where the child who died was an FTB child (that is, a child for whom the person provides full-time or nearly full-time care), that child died before turning one, and an amount of newborn supplement at the lower rate for the child forms part of the individual's Part A rate of FTB for one or more days. The lower rate of newborn supplement is provided for at paragraph 35B(1)(d) of Schedule 1. New subsection 65(4) then sets out a method statement for calculation of the additional amount. Step 1 provides that for days where newborn supplement at the lower rate forms part of the individual's Part A rate of FTB, work out the total amount of that newborn supplement for those days. Step 2 provides, in relation to those days, to work out what would have been the total amount of newborn supplement for that child for those days if that newborn supplement had been worked out at the higher newborn supplement rate. (The higher rate is set out at paragraph 35B(1)(a) of Schedule 1.) Step 3 then provides that the additional amount is the step 2 amount less the step 1 amount. Item 3 gives effect to having a single higher rate of stillborn baby payment which includes an additional amount of bereavement payment. 31

Eligibility for stillborn baby payment is provided for by Division 2 of Part 3 of the Act. The payment is a component of an individual's family assistance payment, but is claimed separately (section 36). The amount of stillborn baby payment is provided for at section 66. Currently, the Act draws a distinction between the first stillborn child of a woman, and any later stillborn child not born of the same multiple birth, paying a higher amount for the first such child or children of a multiple birth. The higher amount consists of the higher newborn supplement amount, added to the newborn upfront amount. Higher newborn supplement amount refers to the dollar amount mentioned in the formula under paragraph 35B(1)(a) of Schedule 1. Newborn upfront amount means the amount (the dollar amount) mentioned in subsection 58AA(1). Paragraph 66(1)(b) currently provides for a lower rate of payment for a stillborn child who is not the first stillborn child of a woman (or not a stillborn child in a multiple birth). Item 3 repeals and replaces section 66. New section 66 provides that the amount of stillborn baby payment for an individual in respect of a child is the amount worked out using a formula. The formula requires adding the higher newborn supplement amount to the newborn upfront amount, and adding in an additional amount. All the elements of the formula are defined. The new element, the additional amount, is the FTB child rate for an FTB child under 13 years of age for FTB Part A calculation, meaning the dollar amount mentioned in item 1 of the table in subclause 7(1) of Schedule 1 applicable on the day of the child's delivery, including that amount as indexed. This additional amount figure is an annual dollar figure. Because the bereavement payment equivalent calculated under section 65 is calculated over a period of 14 weeks, only 14 weeks' worth of this annual figure is to be added. Accordingly, the formula in new section 66 divides the additional amount by 365 to generate a daily rate, and multiples this by 98 days, representing 14 weeks. Item 4 is an application provision. Subitem 4(1) provides that the amendments of section 65 of the Family Assistance Act apply in relation to deaths occurring on or after the commencement of this item. Subitem 4(2) provides that the repeal and substitution of section 66 applies in relation to working out the amount of stillborn baby payment on or after the commencement of this item for the delivery of a child that occurs on or after that commencement. 32

Schedule 6 - Child support Summary This Schedule will allow the Minister to determine average weekly earnings trend figures ordinarily published by the Australian Statistician, for child support assessment purposes, where publication of trend estimates for Average Weekly Earnings series has been suspended, for example due to the impact of the COVID- 19 pandemic on the labour market. Schedule 6 commences the day after Royal Assent. Explanation of the changes Child Support Assessment Act Item 2 adds new subsections 5A(6) and (7). If the Australian Statistician has not published the Average Weekly Earnings - Trend - Males - All Employees Total Earnings (MTAWE) figure referred to in subsection 5A(1) for a relevant June quarter by the end of the first 30 September after the end of that quarter, new subsection 5A(6) allows the Minister to make a legislative instrument determining a figure. New subsection 5A(7) deems the figure determined by the Minister to be the trend MTAWE figure for the relevant June quarter. This figure is annualised to be used to determine the costs of children which underpin administrative child support assessments for periods commencing in the subsequent calendar year. It is also used to generate various other elements used in child support formula assessment. The Australian Statistician has temporarily suspended publication of this trend figure from June 2020 as a result of the impact of the COVID-19 pandemic, although various other wage statistics, including seasonally adjusted figures, continue to be published. This is the first time in history that this figure has been suspended. In consultation with the Australian Statistician, an alternative figure will be selected to be used for the purpose of calculating child support assessments. The 30 September date balances allowing the Australian Statistician sufficient opportunity to publish the required figure against the need to have the figure set for the purposes of making new child support assessments from the following 1 January. The determination by legislative instrument must be tabled before Parliament, and is disallowable. The discretion given by this enabling power is necessary to give scope for an appropriate figure in extraordinary circumstances, and ensure children of separated parents continue to share appropriately in the standards of living of their parents. Should a parent disagree with the assessment of their capacity to provide financial support based upon the costs of children determined in this way, they remain able to seek a departure from administrative assessment under Part 6A of the Child Support Assessment Act, which will enable a more individualised assessment of their obligations to their child or children to be made, if grounds are identified. Departure decisions, or refusal to make a departure decision, are subject to full merits review both internally (under the Child Support (Registration and Collection) Act 1988 Part VII) and externally by the Administrative Appeals Tribunal (Part VIIA). 33

Item 1 amends paragraph 5A(5)(b) as a consequence of the amendments made by item 2. Item 4 adds new subsections 58AA(4) and (5). If the Australian Statistician has not published the Average Weekly Earnings, Australia figure under the headings Average Weekly Earnings - Trend - Persons - All Employees Total Earnings (AWE amount) figure referred to in subsection 58AA(1) for a relevant December quarter before the end of the first 31 March after the end of that quarter, new subsection 58AA(4) will allow the Minister to make a legislative instrument determining a figure. New subsection 58AA(5) deems any figure determined by the Minister to be the trend AWE amount for the relevant December quarter, if the Australian Statistician has not published the Average Weekly Earnings. This figure is used to generate an ATI indexation factor to allow determination of an indexed adjusted taxable income for a parent where the Commissioner of Taxation has not assessed the parent's taxable income for the last relevant year of income for a child support period. Determination of a parent's adjusted taxable income by the Registrar is needed to allow an administrative child support assessment for a parent to be made where the adjusted taxable income for the last relevant year of income is not available. The Australian Statistician has temporarily suspended publication of various trend figures from June 2020 as a result of the impact of the COVID-19 pandemic, although various other wage statistics, including seasonally adjusted figures, continue to be published. There is a risk the December AWE amount will not be published. If needed, an alternative figure will be selected, in consultation with the Australian Statistician, to be used for the purpose of calculating child support assessments. The 31 March date balances allowing the Australian Statistician sufficient opportunity to publish the required figure against the need to have the figure set for the purposes of making new child support assessments using updated taxable income in the next financial year. The determination by legislative instrument must be tabled before Parliament, and is disallowable. The discretion given by this enabling power is necessary to give scope for an appropriate figure in extraordinary circumstances, and ensure children of separated parents continue to share appropriately in the standards of living of their parents. If a parent disagrees with the adjusted taxable income generated by the application of the ATI indexation factor, they may seek internal merits review of the particulars of their administrative child support assessment (under the Child Support (Registration and Collection) Act 1988 Part VII) and externally by the Administrative Appeals Tribunal (Part VIIA). Alternatively, if they do not think their assessment reflects their capacity to support their child, they can seek departure from administrative assessment of child support to allow a more appropriate income to be used, under Part 6A of the Child Support Assessment Act. Item 3 amends paragraph 58AA(3)(b) as a consequence of the amendments made by item 4. Item 5 is a technical amendment to subsection 155(2A) as a consequence of the amendments made by item 4. 34

Item 6 is an application provision:  the amendments of section 5A apply to the June 2020 quarter and later quarters (the trend MTAWE figure for the June 2020 quarter will be used in child support assessments made from 1 January 2021);  the amendments to section 58AA apply to December quarters ending after commencement (the December 2020 quarter trend AWE figure will be used in child support assessments made from 1 July 2021). 35

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 The Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. Overview of the Bill The Bill includes a number of beneficial measures that are primarily directed at supporting people who have been impacted by the economic consequences of COVID-19. The Bill provides additional assistance through two additional Economic Support Payments of $250 to around five million payment recipients and cardholders in the lead up to Christmas and in the new year as part of the Australian Government's response to COVID-19. From 1 January 2021, amendments are also made so that the six-month period between 25 March 2020 and 24 September 2020 will automatically be recognised as contributing to existing workforce independence criteria for Youth Allowance. This measure supports young people whose path toward demonstrating independence through work has been disrupted by the economic impacts of COVID-19. The Bill also makes creates temporary incentives in the income support system to encourage young Australians to undertake seasonal agricultural work to help address the expected critical workforce shortages across the industry for the upcoming harvest season. The new criteria will recognise a person who earns at least $15,000 through employment in the agricultural industry between 30 November 2020 and 31 December 2021 as independent for the purposes of the Youth Allowance student payment or ABSTUDY, subject to their combined parental income being under $160,000 annually, plus $10,000 for each additional child. The Bill will also introduce a revised Paid Parental Leave work test period for a limited time to enable people to access parental leave pay and dad and partner pay who do not meet the current work test provisions because their employment has been affected by COVID-19. This would enable most individuals with a genuine work history prior to the pandemic to qualify for payments under the PPL scheme. The Bill also makes amendments to address inconsistencies in payments available to families affected by stillbirth and infant death in respect of payments for newborn children, by increasing the maximum amount that eligible families are able to access after a stillbirth or a child's death shortly after birth, up to the child's first birthday. These amendments also remove discrepancies within the payments system in respect of multiple instances of stillbirth or infant death within the same family. 36

The Bill makes technical amendments to child support law to allow for alternative figures to be used in place of the Male Total Average Weekly Earnings (MTAWE) trend figure and Average Weekly Earnings (AWE) trend figure for the purposes of child support assessment calculations. From May 2020, the Australian Bureau of Statistics has temporarily suspended publication of trend estimates for all Average Weekly Earnings series due to the impact of COVID-19 on the labour market. Child support law does not currently permit an alternative to the MTAWE or AWE trend figures to be used. Human rights implications Schedule 1: Additional Economic Support Payments This schedule of the Bill engages the following rights:  Right to an adequate standard of living, including food, water and housing - Article 11(1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR) and Article 28 of the Convention on the Rights of Persons with Disabilities (CRPD); and  Right to social security - Article 9 of the ICESCR and Article 26 of the CRC. Right to an adequate standard of living, including food, water and housing Article 11(1) of the ICESCR recognises the right to an adequate standard of living. Schedule 1 will engage and promote this right by providing further payments to assist in achieving an adequate standard of living, especially in recognition of the financial impacts of COVID-19. Further, Article 28 CRPD recognises the rights of persons with disability to an adequate standard of living, this Bill promotes this right as it will provide additional payments to individuals with disability who receive the disability support pension. Right to social security Article 9 of the ICESCR recognises the right of everyone to social security. Schedule 1 engages this right by providing additional support through further payments to individuals receiving certain payments or holding certain concession cards. Further, Article 26 of the CRC recognises that every child has the right to benefit from social security. These additional payments promotes Article 26 by enhancing the rights of the child to social security, as the payments will be made to recipient of Family Assistance. Schedule 2: Youth allowance independence and paid work concession This schedule of the Bill engages the following rights:  Right to education - Article 13 of the ICESCR;  Right to an adequate standard of living, including food, water and housing - Article 11(1) of the ICESCR; and  Right to social security - Article 9 of the ICESCR. 37

Right to education Article 13 of the ICESCR recognises the right of everyone to education and that with a view to achieving full realisation to this right that higher education should be made equally accessible to all. Schedule 2 engages and promotes this right as the arrangements are targeted to a cohort who may already have been working towards independence in order to receive financial assistance to support study, and the changes will prevent young people delaying the commencement or re- commencement of study in order to work to meet the independence criteria. Right to an adequate standard of living, including food, water and housing Article 11(1) of the ICESCR recognises the right to an adequate standard of living. Schedule 2 will engage and promote this right by providing more individuals access to payments that will assist in achieving an adequate standard of living, especially in recognition of the impacts of COVID-19. Right to social security Article 9 of the ICESCR recognises the right of everyone to social security. Schedule 2 engages and promotes this right by temporarily providing greater access to payments, acknowledging that COVID-19 may have impacted on individuals ability to meet requirements otherwise. Schedule 3: Youth allowance independence and agricultural work This schedule of the Bill engages the following rights:  Right to education - Article 13 of the ICESCR; and  Right to social security - Article 9 of the ICESCR Right to education Article 13 of the ICESCR recognises the right of everyone to education and that with a view to achieving full realisation to this right that higher education should be made equally accessible to all. Schedule 3 engages and promotes this right as the arrangements assist individuals to be considered independent, which will enable individuals to receive financial assistance to support their study. Right to social security Article 9 of the ICESCR recognises the right of everyone to social security. Schedule 3 provides an incentive that is intended to address the shortage of workers for the upcoming harvest season. The agricultural sector generally relies on migrant seasonal workers to undertake harvesting work and this workforce is not available because of the strict restrictions to travel for migrant workers that are in place because of COVID-19. This schedule acknowledges a need and offers incentive, by relaxing eligibility requirements for Youth Allowance student payment and ABSTUDY, for this need to be filled. Schedule 3 engages and promotes this right by providing individuals, who would otherwise not be eligible, access to payments. 38

Schedule 4: Paid Parental Leave work test period This schedule of the Bill engages the following rights:  Right to maternity leave - Article 10(2) of the ICESCR;  Right to social security - Article 9 of the ICESCR and Article 26 of the CRC; and  Right to health - Article 12 of the ICESCR. Right to maternity leave Schedule 4 engages the right to maternity leave under Article 10(2) of the ICESCR, that states that 'special protection should be accorded to mothers during a reasonable period before and after childbirth, during such period working mothers should be accorded paid leave with adequate social security benefits'. The amendments made by this Bill recognise that people may not meet the current work test provisions because their employment has been affected by circumstances relating to COVID-19. Right to Social Security Article 9 of the ICESCR recognises the right of everyone to social security, and Article 26 of the CRC recognises the right of every child to benefit from social security. Schedule 4 engages the right to Social Security by temporarily broadening the eligibility criteria for Paid Parental Leave. Right to health Article 12 of the ICESCR recognises the right to everyone to the enjoyment of the highest attainable standard of physical and mental health. Article 12 provides that the steps to be taken to achieve full realisation of this right, include 'provision for the reduction of the stillbirth rate or infant mortality and for healthy development of the child'. These amendments engage this right, as more individuals will be eligible for Paid Parental Leave, and therefore able to be away from the workforce to spend time with their child and support the child's development. Schedule 5: Stillborn baby and infant death payment This schedule of the Bill engages the following rights:  Right to maternity leave - Article 10(2) of the ICESCR;  Right to health - Article 12 of the ICESCR; and  Right to social security - Article 9 of the ICESCR. 39

Right to maternity leave Schedule 5 engages the right to maternity leave under Article 10(2) of the ICESCR, that states that 'special protection should be accorded to mothers during a reasonable period before and after childbirth, during such period working mothers should be accorded paid leave with adequate social security benefits'. The amendments made by this Bill engage this right by increasing payments available to families affected by stillbirth and infant death. Right to health Article 12 of the ICESCR recognises the right to everyone to the enjoyment of the highest attainable standard of physical and mental health. Schedule 5 engages this right by providing financial assistance to assist with additional costs at this difficult time. Right to social security Article 9 of the ICESCR recognises the right of everyone to social security. Schedule 5 engages and promotes this right by providing consistent and additional assistance to families in recognition of the costs associated with a stillborn child or a child's death shortly after birth. Schedule 6: Child Support This schedule of the Bill engages the rights:  Right to respect for family - Article 23(4) of the ICCPR, and  Right of every child to an adequate standard of living - Article 27 of the CRC. Right to respect for family Schedule 6 engages Article 23(4) of the ICCPR, which states that appropriate steps should be taken to ensure equality of rights and responsibilities of spouses as to marriage, during marriage and at its dissolution. Further the article states that 'in the case of dissolution [of marriage], provision shall be made for the necessary protection of any children'. The Child Support Scheme ensures that both parents take financial responsibility for their children. The Child Support formula takes into consideration the costs of raising a child and each parents capacity to contribute. These technical amendments engage this right, as it will provide a mechanism for child support assessments to continue to be determined while the publication of trend estimates for all Average Weekly Earnings series are suspended. 40

Right of every child to an adequate standard of living Schedule 6 engages Article 27 of the CRC, which states at Article 27(1) that every child has the right to a "standard of living adequate for the child's physical, mental, spiritual, moral and social development". Further, Article 27(2) states that "The parent(s) or others responsible for the child have the primary responsibility to secure, within their abilities and financial capacities, the condition of living necessary for the child's development". In relation to parents who are separated, whether or not they have ever been married or partnered, Article 27(4) is of particular relevance, and it states that "States parties shall take all appropriate measures to secure the recovery of maintenance for the child from the parents or other persons having financial responsibility for the child, both within the State Party and from abroad." By providing a mechanism for child support assessments to continue, the amendments allow for Australia to meet its obligations under the CRC. Conclusion The Bill is compatible with human rights because it promotes the protection of human rights. [Circulated by the authority of the Minister for Families and Social Services, Senator the Hon Anne Ruston] 41

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