Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2013-2014-2015
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SOCIAL SERVICES LEGISLATION AMENDMENT
(COST OF LIVING CONCESSION) BILL 2015
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Social Services, the Hon Scott Morrison MP)
SOCIAL SERVICES LEGISLATION AMENDMENT
(COST OF LIVING CONCESSION) BILL 2015
OUTLINE
This Bill introduces a beneficial new measure, to exclude the Cost of Living
Concession Payment made by the South Australian Government from being
assessed as income under the social security and veterans' affairs income tests.
From September 2015, the South Australian Government is introducing a new Cost
of Living Concession Payment, which will replace the South Australian Council Rates
Concession (a discount on rates bills).
The exclusion of the new payment from the definition of income ensures people's
social security and veterans' affairs income support payments are not affected by
receipt of the new payment, and therefore that they receive the full benefit of the
Cost of Living Concession Payment.
Financial impact statement
This measure has no financial impact.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
The statement of compatibility with human rights appears at the end of this
explanatory memorandum.
SOCIAL SERVICES LEGISLATION AMENDMENT
(COST OF LIVING CONCESSION) BILL 2015
NOTES ON CLAUSES
Clause 1 sets out how the new Act is to be cited - that is, as the Social Services
Legislation Amendment (Cost of Living Concession) Act 2015.
Clause 2 provides a table specifying that the whole of the new Act commences on
the day of Royal Assent.
Clause 3 provides that legislation specified in a Schedule is amended or repealed as
set out in that Schedule.
1
Schedule 1 - Amendments
Summary
This Schedule excludes the Cost of Living Concession Payment made by the South
Australian Government from being assessed as income under the social security and
veterans' affairs income tests.
Background
From September 2015, the South Australian Government is introducing a new Cost
of Living Concession Payment, which will replace the South Australian Council Rates
Concession (a discount on rates bills). The new payment will be paid to certain
eligible homeowners who previously benefited from the South Australian Council
Rates Concession. In addition, the new payment will, for the first time, provide
support to certain eligible low income tenants. The new payment will be a direct
annual payment of either $100 or $200 to eligible people (depending on their
circumstances).
Amendments are made by this Schedule to exclude the Cost of Living Concession
Payment from income for social security and veterans' entitlements purposes.
The amendments commence on the day of Royal Assent.
Explanation of the changes
Amendment to the Social Security Act 1991
Section 8 of the Social Security Act 1991 (Social Security Act) provides a broad
definition of income for social security purposes. Subsection 8(8) excludes specified
amounts from the definition of income.
Item 1 inserts a new paragraph 8(8)(zac) into the Social Security Act. This new
provision excludes from the definition of income a payment known as the Cost of
Living Concession, which is made by the Government of South Australia.
Amendment to the Veterans' Entitlements Act 1986
Item 2 makes a similar amendment by inserting into the Veterans' Entitlements
Act 1986 a new paragraph 5H(8)(zec), which excludes the Cost of Living Concession
Payment from the definition of income for veterans' entitlements purposes.
Application provision
Item 3 is an application provision, which ensures the exclusion applies in relation to
Cost of Living Concession payments, whether made before, on or after
commencement (Royal Assent).
2
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
SOCIAL SERVICES LEGISLATION AMENDMENT
(COST OF LIVING CONCESSION) BILL 2015
Schedule 1 - Amendments
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
From September 2015, the South Australian Government is introducing a new Cost
of Living Concession Payment, which will replace the South Australian Council Rates
Concession (a discount on rates bills). The new payment will be paid to certain
eligible homeowners who previously benefited from the South Australian Council
Rates Concession. In addition, the new payment will, for the first time, provide
support to certain eligible low income tenants. The new payment will be a direct
annual payment of either $100 or $200 to eligible people (depending on their
circumstances).
Amendments are made by this Schedule to exclude the Cost of Living Concession
from being assessed as income under the social security and veterans' affairs
income tests.
Human rights implications
The Schedule engages the following human rights:
The right to social security
Article 9 of the International Covenant on Economic, Social and Cultural Rights
(ICESCR) recognizes the right of everyone to social security.
The income test exemption for the Cost of Living Concession ensures that eligible
people receiving these payments will not have these payments assessed as income
for social security and veterans' entitlements purposes. The income test exemption
is beneficial to people who receive social security or veterans' income support
payments.
Conclusion
This Schedule ensures that individuals receiving the Cost of Living Concession do
not have the Cost of Living Concession assessed as income for social security and
veterans' entitlements purposes. The income test exemption of the Cost of Living
Concession payment supports their human right to social security and is therefore
compatible with human rights.