Paul Fletcher (Bradfield, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

I present a supplementary explanatory memorandum to the bill. I ask leave of the House to move government amendments (1) to (38) on sheet EF123 and government amendments (1) and (2) on sheet LP104, as circulated, together.

Leave granted.

I move government amendments (1) to (38) on sheet EF123 and government amendments (1) and (2) on sheet LP104, as circulated, together:

(1) Clause 2, page 2 (table items 2 to 7), omit the table items, substitute:

(2) Schedule 1, item 8, page 4 (lines 15 to 22), omit:

A social housing lessor may request the Secretary to make a deduction:

(a) to satisfy an ongoing or outstanding obligation of the social housing tenant for rent, household utilities or both; or

(b) to compensate for loss of, or damage to, property, arising as a result of the tenant's occupancy of premises let by the lessor.

substitute:

A social housing lessor may request the Secretary to make a deduction to satisfy an ongoing or outstanding obligation of the social housing tenant for rent, household utilities or both.

(3) Schedule 1, item 8, page 4 (line 28) to page 5 (line 1), omit ", or loss of or damage to property arising as a result of occupancy of premises,".

(4) Schedule 1, item 8, page 5 (line 24) to page 6 (line 7), omit subsection 124QC(1), substitute:

(1) For the purposes of this Part, an authority of a State or Territory is a social housing lessor if:

(a) the authority provides social housing in the State or Territory; and

(b) the authority has a written agreement with the Human Services Department relating to the authority's ability to request deductions under this Part; and

(c) a Minister of the relevant State or Territory has provided a letter or document to the Commonwealth Minister setting out the social housing policies of the State or Territory;

unless a determination made under subsection (2) applies in relation to the authority.

(1A) For the purposes of this Part, a body is a social housing lessor if:

(a) the body provides social housing in a State or Territory; and

(b) the body:

  (i) is approved to provide social housing by the State or Territory and the approval has been notified, in writing, to the Secretary; or

  (ii) is registered as a community housing provider under a law of the State or Territory, and the registration has been notified, in writing, to the Secretary; and

(c) the body has a written agreement with the Human Services Department relating to the body's ability to request deductions under this Part; and

(d) a Minister of the relevant State or Territory has provided a letter or document to the Commonwealth Minister setting out the social housing policies of the State or Territory;

unless a determination made under subsection (2) applies in relation to the body.

(5) Schedule 1, item 8, page 6 (after line 11), at the end of section 124QC, add:

(4) The Commonwealth Minister may publish a letter or document provided by a Minister of a State or Territory setting out the social housing policies of the State or Territory on the Department's website.

(5) In this section:

Commonwealth Minister means the Minister responsible for administering this Part.

(6) Schedule 1, item 8, page 6 (line 24) to page 7 (line 17), omit subsection 124QF(1), substitute:

(1) A social housing lessor may request the Secretary to make a deduction from a divertible welfare payment payable to a social housing tenant if both of the following apply:

(a) the tenant has an ongoing or outstanding obligation to pay an amount for rent, household utilities, or both, in relation to the tenant's occupancy of premises let by the lessor;

(b) the tenant's agreement with the lessor for occupancy of the premises, or another agreement with the lessor, authorises the lessor to make requests under this Part for deductions from divertible welfare payments payable to the tenant.

(7) Schedule 1, item 8, page 7 (line 19), omit ", or the order was made,".

(8) Schedule 1, item 8, page 7 (lines 30 and 31), omit subparagraphs 124QF(3)(a)(iii) and (iv).

(9) Schedule 1, item 8, page 8 (line 25), at the end of paragraph 124QG(2)(b), add "; or".

(10) Schedule 1, item 8, page 8 (after line 25), at the end of subsection 124QG(2), add:

(c) if:

  (i) the social housing tenant is subject to the income management regime (within the meaning of Part 3B); and

  (ii) all or part of the divertible welfare payment is a category E welfare payment, category H welfare payment, category I welfare payment, category P welfare payment, category Q welfare payment, category R welfare payment or category S welfare payment (all within the meaning of that Part); and

  (iii) the deductible portion under Division 5 of that Part is nil; or

(d) if:

  (i) the social housing tenant is a trial participant or voluntary participant (within the meaning of Part 3D); and

  (ii) all or part of the divertible welfare payment is a restrictable payment (within the meaning of that Part); and

  (iii) the tenant's percentage of the payment that is the restricted portion under paragraph 124PJ(1)(a) or subsection 124PJ(2) is 0%.

(11) Schedule 1, item 8, page 9 (lines 6 to 11), omit subsection 124QG(5), substitute:

(5) If a divertible welfare payment payable to a social housing tenant is suspended under this Act but such payments subsequently resume, the Secretary:

(a) may deduct any amounts that would otherwise have been deducted under this Part during the period of suspension from payments paid to the tenant after the suspension ends; and

(b) must make any deduction from more than one payment paid to the tenant after the suspension ends.

(12) Schedule 1, item 8, page 9 (line 18), omit "either", substitute "any".

(13) Schedule 1, item 8, page 9 (line 23), at the end of paragraph 124QH(2)(b), add ";".

(14) Schedule 1, item 8, page 9 (after line 23), at the end of subsection 124QH(2), add:

(c) the amount worked out under subsection (3) or (4).

(15) Schedule 1, item 8, page 9 (after line 23), at the end of section 124QH, add:

Income management regime

(3) If:

(a) the social housing tenant is subject to the income management regime (within the meaning of Part 3B); and

(b) all or part of the divertible welfare payment is a category E welfare payment, category H welfare payment, category I welfare payment, category P welfare payment, category Q welfare payment, category R welfare payment or category S welfare payment (all within the meaning of that Part);

the amount is the amount that would be the deductible portion, under Division 5 of that Part, of the divertible welfare payment or part (as the case requires) if no deduction was made under section 124QG from the divertible welfare payment or part (as the case requires).

Cashless welfare arrangements

(4) If:

(a) the social housing tenant is a trial participant or voluntary participant (within the meaning of Part 3D); and

(b) all or part of the divertible welfare payment is a restrictable payment (within the meaning of that Part);

the amount is the amount equal to the tenant's percentage under paragraph 124PJ(1)(a) or subsection 124PJ(2) of the divertible welfare payment or part (as the case requires).

(16) Schedule 2, item 5, page 18 (lines 8 to 15), omit:

A social housing lessor may request the Secretary to make a deduction:

(a) to satisfy an ongoing or outstanding obligation of the social housing tenant for rent, household utilities or both; or

(b) to compensate for loss of, or damage to, property, arising as a result of the tenant's occupancy of premises let by the lessor.

substitute:

A social housing lessor may request the Secretary to make a deduction to satisfy an ongoing or outstanding obligation of the social housing tenant for rent, household utilities or both.

(17) Schedule 2, item 5, page 18 (lines 21 and 22), omit ", or loss of or damage to property arising as a result of occupancy of premises,".

(18) Schedule 2, item 5, page 19 (lines 3 to 28), omit subsection 67D(1), substitute:

(1) A social housing lessor may request the Secretary to make a deduction from family tax benefit (other than family tax benefit advance), whether an instalment or other payment, payable to a social housing tenant if both of the following apply:

(a) the tenant has an ongoing or outstanding obligation to pay an amount for rent, household utilities, or both, in relation to the tenant's occupancy of premises let by the lessor;

(b) the tenant's agreement with the lessor for occupancy of the premises, or another agreement with the lessor, authorises the lessor to make requests under this Part for deductions from family tax benefit payable to the tenant.

(19) Schedule 2, item 5, page 19 (line 30), omit ", or the order was made,".

(20) Schedule 2, item 5, page 20 (lines 8 and 9), omit subparagraphs 67D(3)(a)(iii) and (iv).

(21) Schedule 2, item 5, page 21 (line 5), at the end of paragraph 67E(2)(b), add "; or".

(22) Schedule 2, item 5, page 21 (after line 5), at the end of subsection 67E(2), add:

(c) if:

  (i) the social housing tenant is subject to the income management regime (within the meaning of Part 3B of the Social Security (Administration) Act 1999); and

  (ii) the deductible portion under Division 5 of that Part is nil; or

(d) if:

  (i) the social housing tenant is a trial participant or voluntary participant (within the meaning of Part 3D of the Social Security (Administration) Act 1999); and

  (ii) the tenant's percentage of the restricted portion under paragraph 124PJ(1)(a) or subsection 124PJ(2) of that Act is 0%.

(23) Schedule 2, item 5, page 21 (line 21), omit "either", substitute "any".

(24) Schedule 2, item 5, page 21 (line 26), at the end of subsection 67F(2), add ";".

(25) Schedule 2, item 5, page 21 (after line 26), at the end of subsection 67F(2), add:

(c) the amount worked out under subsection (3) or (4).

(26) Schedule 2, item 5, page 21 (after line 26), at the end of section 67F, add:

Income management regime

(3) If the social housing tenant is subject to the income management regime (within the meaning of Part 3B of the Social Security (Administration) Act 1999), then the amount is the amount that would be the deductible portion, under Division 5 of that Part, of the family tax benefit if no deduction was made under section 67E of this Act from the family tax benefit.

Cashless welfare arrangements

(4) If the social housing tenant is a trial participant or voluntary participant (within the meaning of Part 3D of the Social Security (Administration) Act 1999), then the amount is the amount equal to the tenant's percentage under paragraph 124PJ(1)(a) or subsection 124PJ(2) of that Actof the family tax benefit.

(27) Schedule 3, page 27 (after line 4), before item 1, insert:

1A Section 3

Before "The", insert "(1)".

1B At the end of section 3

Add:

(2) The object of this Act is to be achieved in ways that include:

(a) protecting tenants of rental dwellings covered by allocations; and

(b) protecting investors; and

(c) providing rights to investors; and

(d) recognising the contributions, in cash or in kind, made by States and Territories to participants in the Scheme.

(28) Schedule 3, page 27 (after line 4), after proposed item 1B, insert:

1C After section 3

Insert:

3A Severability

Additional and severable operation of Act and tax law provisions

(1) Without limiting the effect of this Act or the tax law provisions apart from this section, this Act and the tax law provisions also have effect as provided by this section.

(2) To avoid doubt, none of the following subsections of this section limit the operation of any other subsection of this section.

External affairs

(3) This Act and the tax law provisions have the effect they would have if their operation were expressly confined to give effect to Australia's rights and obligations under paragraph 1 of Article 2 and Article 11 of the International Covenant on Economic, Social and Cultural Rights done at New York on 16 December 1966, as in force for Australia from time to time.

Note: The International Covenant on Economic, Social and Cultural Rights is in Australian Treaty Series 1976 No. 5 ([1976] ATS 5) and could in 2018 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

Corporations

(4) This Act and the tax law provisions have the effect they would have if their operation were expressly confined to the following:

(a) the regulation of activities, functions, relationships or business of an investor or approved participant that is a constitutional corporation;

(b) the creation of rights or privileges belonging to an investor or approved participant that is a constitutional corporation;

(c) the imposition of obligations on an investor or approved participant that is a constitutional corporation;

(d) in respect of the matters mentioned in paragraphs (a) to (c), the regulation of the conduct of persons or entities through which the constitutional corporation acts;

(e) the regulation of persons or entities whose conduct affects or is capable of affecting the activities, functions, relationships or business of an investor or an approved participant that is a constitutional corporation.

Taxation

(5) This Act and the tax law provisions have the effect they would have if their operation were expressly confined to determining the tax liability of a person.

Territories

(6) This Act and the tax law provisions have the effect they would have if their operation were expressly confined to apply in relation to the following:

(a) a rental dwelling that is located in a Territory;

(b) an approved participant or investor who is a resident of a Territory;

(c) an approved participant or investor that is:

  (i) a body corporate that is incorporated in a Territory; or

  (ii) a body corporate that is taken to be registered in a Territory under section 119A of the Corporations Act 2001; or

  (iii) a trust, if the proper law of the trust and the law of the trust's administration are the law of a Territory; or

  (iv) an entity, the core or routine activities of which are carried out in or in connection with a Territory.

(29) Schedule 3, page 27 (after line 4), after proposed item 1C, insert:

1D Section 4 (definition of allocation )

Omit "an approved rental", substitute "a rental".

1E Section 4

Insert:

constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies.

investor, in relation to a rental dwelling covered by an allocation, means a person:

(a) who is the legal or beneficial owner of the rental dwelling; and

(b) who is not an approved participant in relation to the rental dwelling.

tax law provisions means the following provisions of the Income Tax Assessment Act 1997:

(a) item 23 of the table in section 67-23;

(b) Division 380.

(30) Schedule 3, page 27 (after line 4), after proposed item 1E, insert:

1F Paragraph 5(a)

Repeal the paragraph, substitute:

(a) the obligations of participants that have been approved by the Secretary (approved participants);

(31) Schedule 3, page 27 (after line 4), after proposed item 1F, insert:

1G After paragraph 6(c)

Insert:

(ca) the adjustment, in certain circumstances, of the amount of an incentive that:

  (i) is to be provided to an approved participant; or

  (ii) has previously been provided to an approved participant;

1H Paragraph 6(d)

After "dwelling", insert "covered by an allocation".

1J Before paragraph 6(d)

Insert:

(cb) the passing on of contributions made by States and Territories, or their monetary equivalent, by approved participants in certain circumstances;

1K At the end of section 6

Add:

; (e) the protection of tenants of rental dwellings covered by allocations;

(f) the protection of investors;

(g) the rights of investors.

(32) Schedule 3, page 27 (after line 4), after proposed item 1K, insert:

1L Before subsection 7(2)

Insert:

Conditions imposed by Secretary under the Scheme

(33) Schedule 3, item 3, page 27 (lines 16 to 24), omit the item, substitute:

3 At the end of section 7

Add:

(4) Regulations made for the purposes of subparagraph (2)(b)(i) may provide for the Secretary to make a legislative instrument prescribing matters relating to the income of a tenant or tenants.

Condition disapplied by Secretary under the Scheme

(5) The National Rental Affordability Scheme may provide that, in certain circumstances, the Secretary may decide that the condition mentioned in subparagraph (2)(b)(ii) does not apply if the Secretary is satisfied that the Secretary's decision will not result in an increase in rental costs for low and moderate income households.

Conditions varied or imposed directly by Scheme

(6) Without limiting paragraph 8(a), the National Rental Affordability Scheme may:

(a) vary a condition of an allocation (other than a condition mentioned in paragraph (2)(a) or subparagraph (2)(b)(ii)) or impose a condition of an allocation; and

(b) set out the circumstances (if any) in which the condition is varied or imposed.

The condition is varied or imposed accordingly by force of this subsection.

(7) Subsection (6) has effect despite anything in this Act or the National Rental Affordability Scheme.

(34) Schedule 3, item 4, page 27 (lines 25 to 28), omit the item, substitute:

4 After paragraph 8(b)

Insert:

(ba) the transfer of all allocations made to an approved participant to another approved participant or other approved participants in certain circumstances;

(bb) the transfer of an allocation to another rental dwelling in certain circumstances;

(35) Schedule 3, page 27 (after line 28), after item 4, insert:

4A After section 10

Insert:

10A Acceptance of undertakings

(1) The Secretary may accept a written undertaking given by an approved participant in relation to the National Rental Affordability Scheme.

(2) The undertaking must be expressed to be an undertaking under this section.

(3) The approved participant may withdraw or vary the undertaking at any time, but only with the written consent of the Secretary.

(4) The consent of the Secretary is not a legislative instrument.

(5) The Secretary may, by written notice given to the approved participant, cancel the undertaking.

10B Enforcement of undertakings

(1) The Secretary may apply to the Federal Court of Australia for an order under subsection (2) if:

(a) an approved participant has given an undertaking under section 10A; and

(b) the undertaking has not been withdrawn or cancelled; and

(c) the Secretary considers that the approved participant has breached the undertaking.

(2) If the Federal Court of Australia is satisfied that the approved participant has breached the undertaking, the Court may make any or all of the following orders:

(a) an order directing the approved participant to comply with the undertaking;

(b) an order directing the approved participant to pay to the Commonwealth an amount up to the amount of any financial benefit that the approved participant has obtained directly or indirectly and that is reasonably attributable to the breach;

(c) any order that the Court considers appropriate directing the approved participant to compensate any other person who has suffered loss or damage as a result of the breach;

(d) any other order that the Court considers appropriate.

(36) Schedule 3, page 27 (after line 28), after proposed item 4A, insert:

4B Subsection 11(1)

Repeal the subsection, substitute:

(1) The Secretary may, by written instrument, delegate the Secretary's power to approve a rental dwelling for the purposes of the National Rental Affordability Scheme to an SES employee in the Department.

(37) Schedule 3, item 5, page 28 (lines 1 to 4), omit the item, substitute:

5 Application

(1) Paragraph 5(a) of the National Rental Affordability Scheme Act 2008, as substituted by item 1F of this Schedule, applies to an obligation that arose before, or arises on or after, the day this item commences.

(2) Paragraph 6(ca) of the National Rental Affordability Scheme Act 2008, as inserted by item 1G of this Schedule, applies to an incentive provided before, on or after the day this item commences.

(3) Paragraph 6(cb) of the National Rental Affordability Scheme Act 2008, as inserted by item 1J of this Schedule, applies to a contribution made by a State or Territory before, on or after the day this item commences.

(4) Paragraphs 6(f) and (g) of the National Rental Affordability Scheme Act 2008, as inserted by item 1K of this Schedule, apply in relation to an investor, whether the person becomes an investor before, on or after the day this item commences.

(5) Subsections 7(4), (5), (6) and (7) of the National Rental Affordability Scheme Act 2008, as inserted by item 3 of this Schedule, apply in relation to an allocation that exists on the day this item commences.

(6) Paragraphs 8(ba) and (bb) of the National Rental Affordability Scheme Act 2008, as inserted by item 4 of this Schedule, apply in relation to an allocation that exists on the day this item commences.

(38) Schedule 3, page 28 (after line 10), at the end of the Schedule, add:

7 Transitional—variation of condition relating to charges of rent

(1) This item applies in relation to an allocation that exists on the day this item commences.

(2) Despite paragraph 7(6)(a) of the National Rental Affordability Scheme Act 2008, the National Rental Affordability Scheme may vary the condition of the allocation mentioned in subparagraph 7(2)(b)(ii) of that Act for the purposes of the amendment made by item 1 of this Schedule. The condition is varied accordingly by force of this item.

8 Transitional—delegation

An instrument made under subsection 11(1) of the National Rental Affordability Scheme Act 2008 that is in force immediately before the day this item commences, continues in force (and may be dealt with) as if it had been made under subsection 11(1) of that Act as amended by this Act.

(1) Schedule 1, items 2 and 3, page 3 (lines 6 to 11), omit the items.

(2) Schedule 1, page 3 (after line 14), after item 4, insert:

4A Paragraphs 123XI(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of 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—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:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the instalment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4B Paragraphs 123XJ(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the category I welfare payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4C Paragraphs 123XJA(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of 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—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:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the instalment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4D Paragraphs 123XJB(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the category I welfare payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4E Paragraphs 123XJC(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of 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—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:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the instalment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4F Paragraphs 123XJD(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the category I welfare payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4G Paragraphs 123XK(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of 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—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:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the instalment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4H Paragraphs 123XL(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the category I welfare payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4J Paragraphs 123XM(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of 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 Q welfare payment—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:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the instalment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4K Paragraphs 123XN(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the category Q welfare payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4L Paragraphs 123XO(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of 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 S welfare payment—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:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the instalment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4M Paragraphs 123XP(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the category S welfare payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4N Paragraphs 123XPAA(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of 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—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:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the instalment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4P Paragraphs 123XPAB(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the category I welfare payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4Q Paragraphs 123XPA(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of 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—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:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the instalment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4R Paragraphs 123XPB(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the category I welfare payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4S Paragraphs 123XPC(3 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the economic security strategy payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4T Paragraphs 123XPD(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the household stimulus payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4U Paragraphs 123XPG(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the relocation scholarship payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4V Paragraphs 123XPJ(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

4W Paragraphs 123XPK(2 )( b) and (c)

Repeal the paragraphs, substitute:

(b) if Part 3E of this Act or Part 3A of the Family Assistance Administration Act (both dealing with automatic deductions of rent or other household payments) applies in relation to the person and the payment—an amount equal to so much of the deductible portion of the payment as remains after a deduction is made from that portion of the payment under:

  (i) section 124QG of this Act; or

  (ii) section 67E of the Family Assistance Administration Act;

is credited to:

  (iii) the Income Management Record; and

  (iv) the person's income management account;

(c) if paragraph (b) does not apply—an amount equal to the deductible portion of the payment is credited to:

  (i) the Income Management Record; and

  (ii) the person's income management account.

I indicate that I have already, in my second reading speech, run through the rationale for the amendments.

Linda Burney (Barton, Australian Labor Party, Shadow Minister for Preventing Family Violence) Share this | Link to this | Hansard source

I will address the issues around NRAS and then talk about the Automatic Rent Deduction Scheme and the amendments that have been moved. In relation to the amendments to the section of the bill that deals with the National Rental Affordability Scheme, Labor has been advocating on behalf of NRAS investors for more than 12 months, when issues about the conduct of a small number of approved participants in the scheme were first raised. Labor has written to Minister Tehan and Minister Fletcher on numerous occasions and has consistently raised concerns in Senate estimates about the need for additional protections and about the government's frustratingly slow response. Labor welcomes the fact that the government is finally acting on Labor's concerns and will support the proposed changes to NRAS.

The amendments moved by the government in relation to the Automatic Rent Deduction Scheme address some of the concerns raised by Labor, but they do not address our fundamental concerns. The amendments before the House in general improve the bill. This includes ensuring that deductions are taken out of a quarantined portion of a payment for people on income management or cashless debit card programs. This is important, as it will make sure that people are not left in a situation where they have no access to cash.

The amendment to remove property damage from automatic deductions is critically important. Too often, women who are victims of domestic violence are left with a damaged house—damage that they did not create. It would be completely unacceptable for housing providers to be permitted to dock a person's pay in this situation. That would put women in incredibly difficult situations. The government has also agreed to an amendment that will stop arrears from being deducted from a single payment. While this is an improvement, it does not go far enough. A cap on the portion of a payment that can be deducted is needed.

Labor is concerned about an amendment that would allow the agreement of a tenant for inclusion in an automatic rent deduction to be in a non-written form. We have sought clarification from the minister's office on how this will work. This will be further considered in the Senate, but it must be recognised that public and social housing tenants are not in a powerful position. They are likely to agree to almost anything that will keep a roof over their heads. That is why it's incumbent on the parliament to make sure that a provision like this will operate fairly with due process.

In the Senate, Labor will be moving amendments to address the fundamental deficiencies in this bill. Our amendments will ensure that only people who are in arrears and at risk of homelessness can be included in the scheme. The rental payment rate for social and public housing is well over 99 per cent. There's no need to include pensioners and other social security and family tax benefit recipients who have always paid their rent on time for many years. We want to cap the portion of a payment that can be automatically be deducted to 30 per cent, to avoid people being put into housing stress. We want to make participation in the scheme temporary. It should be temporary, as a last resort measure to prevent homelessness, not the standard method of rent collection. We also want to make sure that tenants are properly informed about changes.

Labor will support the minister's amendments, but we do not support the automatic rental deduction system in its proposed form. We are calling on the government to accept Labor's additional proposed amendments and not hold this bill up, or to at least split the bill so that the NRAS component can be dealt with quickly. Labor cannot support an Automatic Rent Deduction Scheme in the Senate without the safeguards we have called for. Such a scheme needs to be about preventing homelessness; it should not be a standard way of collecting rent, not when the rental payment rate for public and community housing is over 99 per cent, and 86 per cent of tenants are already committed to a voluntary rental deduction scheme.

But to reiterate, Labor will be supporting the amendments as proposed by Minister Fletcher in the House and will obviously move some amendments in the Senate to address the issues that are still outstanding. I do want to put on record that we have had good discussion with the minister's office and it's been a very collaborative and helpful process.

Question agreed to.

Bill, as amended, agreed to.