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2013-2014
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SOCIAL SECURITY LEGISLATION AMENDMENT (GREEN ARMY
PROGRAMME) BILL 2014
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for the Environment, the Honourable Greg Hunt MP)
EXPLANATORY MEMORANDUM
SOCIAL SECURITY LEGISLATION AMENDMENT (GREEN
ARMY PROGRAMME) BILL 2014
GENERAL OUTLINE
Purpose
The Social Security Legislation (Green Army Programme) Amendment Bill 2014 amends
the Social Security Act 1991 and the Social Security (Administration) Act 1999 to clarify
social security arrangements for participants receiving the green army allowance paid under
the Green Army Programme.
Background
The Green Army is a key Coalition Government election commitment and will commence
from July 2014. This voluntary initiative will recruit young people aged 17-24 years who
are interested in protecting their local environment while gaining hands-on, practical skills,
training and experience.
The Green Army will become Australia's largest-ever environmental workforce, building to
15,000 participants by 2018, capable of delivering on-ground environmental projects.
The Green Army will make a real difference to the environment and local communities
through projects such as restoring and protecting habitat, weeding, planting, cleaning up
creeks and rivers and restoring cultural heritage places.
Fostering teamwork, local ownership and community spirit, the Green Army will deliver
tangible benefits for the environment and skills development for thousands of young
Australians.
The Programme will be delivered by an external Service Provider(s) who will be responsible
for recruiting, establishing and managing Green Army Teams across Australia to engage in
approved projects, alongside communities, to support local environment and heritage
protection and restoration activities, consistent with regional, national and international
priorities of the Government.
Participation in the Programme will be available to a diverse spectrum of young people,
including Indigenous Australians, school leavers, gap year students, graduates and
unemployed job seekers. Up to nine eligible participants and at least one Team Supervisor
will constitute a Green Army Team. Participants will be eligible to receive a green army
allowance while participating in the Programme, and will also have the opportunity to
undertake training. The Service Provider(s) will be responsible for the disbursement of green
army allowances and the provision of training. The Team Supervisor will be employed by
the Service Provider and paid a wage.
Project proposals will be submitted to the Department of the Environment by individuals
and organisations, such as local groups, councils and natural resource management bodies.
A Green Army Project involves environmental and/or heritage activities that can be
undertaken by a Green Army Team for 20-26 weeks.
The Programme will commence in 2014-15 with the rollout of 250 Green Army Projects
and approximately 2,500 people undertaking on-the-ground environmental activities in the
first financial year. By 30 June 2017, the Programme will have had 1,500 Green Army
Projects and 15,000 placements undertaken. The Programme will scale up to 15,000
placements and 1,500 Projects per annum from 2018-19.
The Bill amends the Social Security Act 1991 and the Social Security (Administration) Act 1999
to specify that persons receiving a green army allowance under the Green Army Programme
cannot also receive a social security benefit or social security pension and that a determination
made in this regard may be backdated. The Bill does not impact entitlement to family
assistance and child care payments which will remain payable to Green Army participants
where eligible.
The Bill also specifies that participants of the Green Army Programme will not be considered
workers or employees for the purposes of various Commonwealth laws.
The Bill also amends the Social Security Act 1991 to specify the income testing arrangements
that will apply to a person receiving a social security pension if their partner is receiving a
green army allowance. These arrangements will be similar to comparable schemes under the
Social Security Act 1991.
FINANCIAL IMPACT STATEMENT
The Bill by itself has no financial implications.
REGULATORY IMPACT STATEMENT
The Office of Best Practice Regulation advised that a formal Regulatory Impact Statement is
not required for this Bill.
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NOTES ON CLAUSES
Part 1Preliminary
Clause 1: Short Title
1. This Item establishes the short title of the Act as the Social Security Legislation
Amendment (Green Army Programme) Act 2014.
Clause 2: Commencement
2. This Item provides the commencement date for this Act is on 1 July 2014.
Clause 3: Schedules
3. This Item specifies that each Act that is specified in a schedule to this Act is amended or
repealed as set out in the applicable items in the schedule.
Schedule 1 Amendments
Social Security Act 1991
Item 1: Subsection 23(1)
4. This Item amends subsection 23(1) of the Social Security Act 1991 to provide definitions
of `green army allowance' and `Green Army Programme' when used in the Act.
5. The definition of `green army allowance' means green army allowance paid to
participants under the Green Army programme.
6. The `Green Army Programme' is the programme administered by the Commonwealth
and known as the Green Army Programme.
Item 2: After Part 1.3 of Chapter 1
38G Simplified outline of this Part
7. The simplified outline of this Part summarises that participants receiving a green army
allowance under the Green Army Programme cannot receive a social security benefit or
social security pension; that persons participating in the Green Army Programme will not
be considered workers or employees for the purposes of various Commonwealth laws;
that there are income testing arrangements for partners of Green Army participants.
8. While simplified outlines are included to assist readers to understand the substantive
provisions, the outlines are not intended to be comprehensive. It is intended that readers
should rely on the substantive provisions.
38H Non-payment of security benefit or social security pension if person receiving green
army allowance
9. Section 38H is inserted into the Social Security Act 1991 to state that, despite any other
provision of the social security law, a social security benefit or social security pension is
not payable to a person if the person is receiving green army allowance. This means that a
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green army participant cannot receive the green army allowance and a social security
benefit or social security pension simultaneously. In general, participants of the Green
Army Programme will receive the green army allowance; however, in some
circumstances, part-time participants may be able to choose to continue to receive their
social security pension or benefit instead.
10. Section 38H also includes a note referring to subsection 23(1) for a definition of `green
army allowance'.
38J Certain participants in Green Army Programme are not workers or employees
under Commonwealth laws
11. The Green Army Programme will be a voluntary `opt-in' programme that will involve
short-term placements in a Green Army Team. Where applicable, Participants in the
Green Army Programme will generally receive a green army allowance as an alternative
to receiving income support. The Green Army Programme will provide work-like
experience and activities and training opportunities to young Australians. The Green
Army Programme does not guarantee long-term employment following a participant's
participation in the Programme.
12. Section 38J is inserted into the Social Security Act 1991 to specify that people
participating in the Green Army Programme are not taken to be workers or employees
under certain Commonwealth laws, including the Work Health and Safety Act 2011, the
Safety Rehabilitation and Compensation Act 1988, and the Fair Work Act 2009, merely
because of their participation in the Green Army Programme. This includes a person who
participates in the Green Army Programme either on a full-time or part-time basis and
who is receiving a green army allowance or a part-time participant who is not receiving
green army allowance.
13. There may be occasions when Green Army Team supervisors who are not receiving the
green army allowance (as they will be paid a wage by their Service Provider employer)
may be employed on a part-time basis. It is not the intention that section 38J apply in
these situations. For this reason, subsection 38J(2) and subsection 38J(3) allows the
Secretary to prescribe in a legislative instrument that subsection 38J(1) does not apply to
a class of persons.
14. Section 38J also includes a note referring to subsection 23(1) for a definition of `Green
Army Programme' and `green army allowance'.
38K Income test for person's social security pension if green army allowance payable to
person's partner
15. Section 38K is inserted into the Social Security Act 1991 to outline income test
arrangements for a person's social security pension if a green army allowance is payable
to the person's partner during the same instalment period.
16. Section 38K specifies that if the amount of the green army allowance paid during an
instalment period does not exceed the threshold applicable under subsection 38K(2), then
the green army allowance is not ordinary income of the person's partner. Section 38K
continues that if the amount of the green army allowance exceeds the threshold applicable
under subsection 38K(2) then the part of the green army allowance that does not exceed
that threshold is not ordinary income of the person's partner; and the part of the green
army allowance that exceeds that threshold is ordinary income of the person's partner.
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17. Subsection 38K(2) outlines the thresholds applicable. If the person's partner is aged
under 22 and has a dependent child the threshold is the amount under column 3 of item 7
of Table BB in point 1067G-B3. Otherwise the threshold is the amount under column 3
of item 8 of Table BB in point 1067G-B3. If the person's partner is aged 22 or over the
threshold is the amount under column 3B of item 7 of Table B in point 1068-B1.
18. The partner income treatment outlined in this section is similar to that applied to
payments under the Community Development Employment Projects (CDEP)
Programme, a comparable Government programme paying an alternative to income
support for people undertaking certain projects or activities.
19. Section 38K also includes a note referring to subsection 23(1) for a definition of `green
army allowance'. A second note clarifies that any part of a green army allowance that is
ordinary income of the person's partner will be taken into account in applying the
ordinary income test in working out the person's rate of social security pension.
20. Section 38K applies only to people receiving a social security pension. Where a person is
receiving a social security benefit and has partner receiving green army allowance, the
full amount of that green army allowance will be ordinary income of the person's partner
as per existing provisions within section 8 of the Social Security Act 1991.
Item 3: Application provision
21. This item specifies that the application of paragraph 38K(1)(a) applies in relation to
instalment periods ending on or after the commencement of this item.
Social Security (Administration) Act 1999
Item 4: Subsection 118(2)
22. Item 4 is consequential to item 5, which inserts new subsection 118(2C) into the Social
Security (Administration) Act 1991.
Item 5: After subsection 118(2B)
23. Section 118 of the Social Security (Administration) Act 1991 sets out the day of effect of
an adverse determination in relation to a social security payment. Section 117 provides
that an adverse determination includes a determination to suspend or cancel a social
security payment under section 80. Under current section 118, if a determination is made
to suspend or cancel a social security payment because the person is receiving a green
army allowance, that determination could only take effect from the day the determination
is made or a later date.
24. Subsection 118(2C) is inserted to specify that where an adverse determination is made to
give effect to section 38H of the Social Security Act 1991, as inserted by item 2 and
relating to the non-payment of a social security benefit or social security pension if a
person is receiving a green army allowance, the determination may be backdated to take
effect on the day specified in the determination.
25. It is intended that the date specified in the determination will align with the date that the
person commences participation in the Green Army Programme and receipt of the green
army allowance. This is to ensure that participants in the Green Army Programme do not
receive Government support from two sources for the same period.
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Statement of Compatibility with Human Rights
Prepared in Accordance of Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Social Security Legislation Amendment (Green Army Programme) Bill 2014
This 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 amends the Social Security Act 1991 and the Social Security (Administration) Act 1999
to clarify social security arrangements for participants receiving the green army allowance paid
under the Green Army Programme.
In particular, the Bill specifies:
that participants receiving a green army allowance under the Green Army Programme
cannot receive a social security benefit or social security pension simultaneously;
that certain persons participating in the Green Army Programme will not be considered
workers or employees for the purposes of various Commonwealth laws;
the income testing arrangements that will apply to a social security pensioner whose partner
is receiving green army allowance, which are similar to comparable schemes under the
Social Security Act 1991; and
that a determination relating to non-payment of a social security benefit or social security
pension to a person receiving a green army allowance may be backdated.
Human Rights implications
This Bill has been assessed against the human rights and freedoms recognised or declared in
the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.
The Hon Greg Hunt MP
Minister for the Environment
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