Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2010-2011-2012-2013
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
THE SENATE
SOCIAL SECURITY LEGISLATION AMENDMENT
(CARING FOR PEOPLE ON NEWSTART) BILL 2013
EXPLANATORY MEMORANDUM
(Circulated by the authority of Senator Siewert)
SOCIAL SECURITY LEGISLATION AMENDMENT
(CARING FOR PEOPLE ON NEWSTART) BILL 2013
Outline
The purpose of the Social Security Legislation Amendment (Caring for People on
Newstart) Bill 2013 is to provide additional financial assistance to Newstart and
Youth Allowance recipients to assist in alleviating poverty and to help people to more
effectively access employment.
The Bill:
increases the single rates of Newstart by $50 a week;
increases the single independent rates of Youth Allowance by $50 a week; and
provides the same indexation arrangements for certain pensions and allowances,
being the higher of CPI, MTAWE or pensioner and beneficiary living cost index
amount.
NOTES ON CLAUSES
Clause 1 - Short title
This clause provides for the bill, when enacted, to be cited as the Social Security
Legislation Amendment (Caring for People on Newstart) Bill 2013.
Clause 2 - Commencement
This clause provides for clauses 1 to 3 of the Act to commence on the day it receives
Royal Assent and Schedule 1 of the Act to commence 28 days after it receives Royal
Assent.
Clause 3 - Schedule(s)
This clause provides that an Act that is specified in a Schedule is amended or repealed
as set out in that Schedule, and any other item in a Schedule operates according to its
terms.
Schedule 1 - Amendments to the Social Security Act 1991
Part 1 - Newstart Amendments
Item 1 is a consequential amendment to Item 2.
Item 2 inserts a new Module C into the Social Security Act 1991 after point 1068-
BA4 providing for a Newstart Supplement payment. The Newstart Supplement
payment is $100 a fortnight paid to a person who is qualified for the Newtart
Allowance and who is single, a member of an illness separated couple or a partnered
couple where one of the partners is in gaol.
Part 2 - Youth Allowance Amendments
Items 3 to 10 amend the table in point 1067G-B3 of the Social Security Act 1991 to
increase the amounts in column 3 items 1-6 and 8 by $100. These amendments
implement a $50 a week increase to the maximum basic rates for independent single
recipients of Youth Allowance.
Items 11 to 12 amends the table in point 1067G-B4 of the Social Security Act 1991 to
increase the amounts in column 3 items 3 and 4 by $100. These amendments
implement a $50 a week increase to the maximum basic rates for independent single
long term income support students recipients of Youth Allowance.
Part 3 - Indexation Amendments
Item 13 inserts a new row to the table in section 1190 to include reference to the
additional Newstart supplement being a payment that is indexed.
Item 14 inserts a new row to the table in subsection 1191(1) to include a reference to
the additional Newstart supplement being a payment that is indexed to CPI.
Item 15 inserts a new section 1195A providing certain pension and allowance
payments to be indexed the same, being the higher of CPI, MTAWE or pensioner and
beneficiary living cost index amount (PBLCI).
Subclause (1) lists the pension and allowance payments to be indexed by reference to
the payments listed in section 1191.
Subclause (2) provides the method statement for determining the indexation for the
payments listed in (1). The method is to determine the CPI indexed amount in
accordance with section 1192, and to determine the MTAWE indexed amount
applying the rules in 1195, and to determine the pensioner and beneficiary living cost
index amount in accordance with section 1196. The indexed amount is then the
highest of those three amounts.
Part 4 - Other amendments
Items 14 and 15 confirm that payments made as a result of this Bill cannot be made
until Parliament has made an appropriation for that purpose.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011
Social Security Legislation Amendment (Caring for People on Newstart)
Bill 2013
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:
increases the single rates of Newstart by $50 a week;
increases the single independent rates of Youth Allowance by $50 a week; and
provides the same indexation arrangements for all pensions and allowances,
being the higher of CPI, MTAWE or pensioner and beneficiary living cost index
amount.
Human rights implications
The Bill engages the following human rights:
Right to social security
Article 9 of the International Covenant on Economic, Social and Cultural Rights
(ICESCR) recognises the right of everyone to social security.
The Bill will promote the right to social security by increasing the amount of financial
support for certain recipients of Newstart and Youth Allowance and providing more
appropriate indexation for all other social security basic payment rates.
Conclusion
The Bill is compatible with human rights because it generally advances human rights.