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2016-2017-2018 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES SOCIAL SERVICES LEGISLATION AMENDMENT (HOUSING AFFORDABILITY) BILL 2017 SUPPLEMENTARY EXPLANATORY MEMORANDUM Amendments to be moved on behalf of the Government (Circulated by the authority of the Minister for Families and Social Services, the Hon Paul Fletcher MP)Index] [Search] [Download] [Bill] [Help]SOCIAL SERVICES LEGISLATION AMENDMENT (HOUSING AFFORDABILITY) BILL 2017 OUTLINE Amendments to be moved on behalf of the Government to Schedule 1 to the Social Services Legislation Amendment (Housing Affordability) Bill 2017 (the Bill). Schedule 1 to the Bill introduces a scheme for the automatic deduction of rent and other household payments in the social security law. These amendments make additional technical amendments to support Government amendments to the Bill contained in EF123. Amendments (9), (10) and (12) to (15) of EF123 amend the Bill to the effect that, for social housing tenants who are subject to the income management regime or the cashless debit card trial within the meaning of the Social Security (Administration) Act 1999 (the Administration Act), the amount of a deduction under the Automatic Rent Deduction Scheme must be no more than the income managed or restricted portion of their payments. The amendments to Schedule 1 to the Bill will make technical changes to Part 3B of the Administration Act, which contains the income management regime. In particular, the amendments will amend various provisions in Division 5 of Part 3B, which govern income management deductions from welfare payments, to reduce the deductible portion of the payment by the automatic rent deduction amount before the balance of that portion is income managed. FINANCIAL IMPACT STATEMENT The amendments in this Bill have no financial impact on Government revenue. STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS The statement of compatibility with human rights appears at the end of this Supplementary Explanatory Memorandum. 1
SOCIAL SERVICES LEGISLATION AMENDMENT (HOUSING AFFORDABILITY) BILL 2017 Amendments to be moved on behalf of the Government NOTES ON AMENDMENTS SCHEDULE 1 - SOCIAL SECURITY AMENDMENTS Summary The amendments to Schedule 1 to the Bill will make technical changes to Part 3B of the Administration Act, which contains the income management regime. In particular, the amendments will amend various provisions in Division 5 of Part 3B, which govern income management deductions from welfare payments, to reduce the deductible portion of the payment by the automatic rent deduction amount before the balance of that portion is income managed. Explanation of the changes Amendment (1) omits items 2 and 3 of the Schedule. These items resulted in the automatic rent deduction amount being deducted before the welfare payment was divided into the deductible portion to be income managed, and the balance paid to the person. Amendment (2) inserts new items 4A to 4W. Each item will amend a provision in Division 5 of Part 3B of the Administration Act which provides for a deduction to be made from a welfare payment, or instalment of a welfare payment, subject to the income management regime. This deduction is referred to in the Administration Act as the 'deductible portion'. New item 4A of the Bill will repeal paragraphs 123XI(2)(b) and (c) of the Administration Act and substitute new paragraphs 123XI(2)(b) and (c). New paragraph 123XI(2)(b) applies if Part 3E of the Administration Act or Part 3A of the A New Tax System (Family Assistance) (Administration) Act 1999 (the Family Assistance Administration Act) (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the instalment of category I welfare payment. If so, an amount equal to so much of the deductible portion of the instalment as remains after a deduction is made from that portion of the instalment under section 124QG of the Administration Act or section 67E of the Family Assistance Administration Act is credited to the Income Management Record and the person's income management account. 2
New paragraph 123XI(2)(c) states that, if paragraph (b) does not apply, an amount equal to the deductible portion of the instalment is credited to the Income Management Record and the person's income management account. The effect of new item 2 of the Bill is replicated in new items 4A to 4W amending equivalent sections 123XJ, 123XJA, 123XJB, 123XJC, 123XJD, 123XK, 123XL, 123XM, 123XN, 123XO, 123XP, 123XPAA, 123XPAB, 123XPA, 123XPB, 123XPC, 123XPD, 123XPG, 123XPJ, and 123XPK of the Administration Act. 3
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 SOCIAL SERVICES LEGISLATION AMENDMENT (HOUSING AFFORDABILITY) BILL 2017 Schedule 1 - Social Security Amendments The amendments are 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 amendments The amendments to Schedule 1 to the Bill will make technical changes to Part 3B of the Administration Act, which contains the income management regime. In particular, the amendments will amend various provisions in Division 5 of Part 3B, which govern income management deductions from welfare payments, to reduce the deductible portion of the payment by the automatic rent deduction amount before the balance of that portion is income managed. Human rights implications The amendments are compatible with human rights as they do not raise any human rights issues. 1
Statement[s] of compatibility with human rights Conclusion The amendments are compatible with human rights as they do not raise any human rights issues. [Circulated by the authority of the Minister for Families and Social Services, the Hon Paul Fletcher MP] 2