Commonwealth of Australia Explanatory Memoranda

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SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT BILL 2013

                           2013-2014




   THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                            SENATE




SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT BILL 2013




   ADDENDUM TO THE REVISED EXPLANATORY MEMORANDUM




                 (Circulated by the authority of the
     Minister for Social Services, the Hon Kevin Andrews MP)
   SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT BILL 2013


This addendum adds information to the revised explanatory memorandum,
as requested by the Senate Standing Committee for the Scrutiny of Bills in its First
Report of 2014, dated 12 February 2014 - page 30 of the report refers.

Schedule 5 - Interest charge
Item 6 - new section 1229D (pages 19 and 20)

After the paragraph on page 20 that reads -

      New subsections 1229D(2) and (3) provide that the Minister may make the
      above mentioned legislative instruments.

Insert the following paragraphs -

      It is relevant that provisions within the social security law (see sections 1229A
      and 1229B of the Social Security Act 1991) already provide the Minister with
      the power to apply, via a legislative instrument, a penalty interest charge on
      any income support payment debt. This power is greater than that set out in
      Schedule 5 because the Schedule carefully prescribes a formula for the rate
      of the new interest charge, whereas the existing provisions give the Minister
      unfettered discretion in setting the rate of the interest charge.

      Taking into account that any instrument seeking to extend application of the
      interest charge will be subject to the scrutiny of Parliament, and that the
      power given to the Minister under the new interest charge scheme is more
      restrained than that available under the existing scheme, the new provision in
      item 6 is not considered to be an inappropriate delegation of power.