Senate debates

Wednesday, 28 September 2022

Bills

Social Services and Other Legislation Amendment (Lifting the Income Limit for the Commonwealth Seniors Health Card) Bill 2022; In Committee

7:05 pm

Photo of Dean SmithDean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Hansard source

by leave—I move opposition amendments (4) and (9) on sheet 1643 together:

(4) Clause 2, page 2 (at the end of the table), add:

(9) Page 4, at the end of the Bill (after proposed Schedule 2), add:

Schedule 3 — Extended qualification for pensioner concession cards

Part 1 — Former recipients of age pensions

Social Security Act 1991

1 After section 1061ZC

Insert:

1061ZCA Extended qualification rule: former recipie nt of age pension and partner

Qualification

(1) Subject to subsections (8) and (9), a person is qualified for a pensioner concession card for the period of 2 years starting on the day on which this section begins to apply to the person.

Former recipient of age pension with employment income

(2) Subject to subsection (6), this section applies to a person if:

(a) the person has been receiving an age pension; and

(b) age pension ceases to be payable to the person because the rate of the person's pension is nil; and

(c) the rate of the person's pension is nil because of the occurrence of an event or change of circumstances that results in the person's income reduced rate (see subsection (3)) being nil; and

(d) but for the person's income reduced rate being nil, the person would have continued to be qualified for a pensioner concession card because age pension would have continued to be payable to the person; and

(e) at the time of the cessation, the person's ordinary income (as used to work out the person's income reduced rate) includes income for remunerative work performed by the person in Australia as an employee in an employer/employee relationship.

(3) For the purposes of subsection (2), a person's income reduced rate is the rate worked out at step 8 of the method statement in point 1064-A1 in Module A of Pension Rate Calculator A.

Partner of former recipient of age pension with employment income

(4) Subject to subsection (6), this section applies to a person who is a member of a couple if:

(a) the person's partner is qualified for a pensioner concession card under this section because subsection (2) applies to the partner as a result of age pension ceasing to be payable to the partner; and

(b) immediately before the partner's cessation of payability, the person was receiving an age pension, disability support pension or carer payment; and

(c) the person's pension or payment ceases to be payable to the person because the rate of the person's pension or payment is nil; and

(d) the person's cessation of payability occurs:

(i) at the same time as the partner's cessation of payability; and

(ii) because of the occurrence of the same event or change of circumstances that resulted in the partner's cessation of payability.

(5) To avoid doubt, if the person ceases to be a member of the couple after the person's cessation of payability, the person's qualification for a pensioner concession card because of subsection (4) is not affected.

Residency requirement

(6) This section only applies to a person while the person is residing in Australia.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

(7) However, this section applies to a person in relation to a day if:

(a) the person is in Australia on that day but not residing in Australia; and

(b) the age pension, disability support pension or carer payment that the person had been receiving was received solely because of the operation of the scheduled international social security agreement between Australia and New Zealand.

No double qualification person receiving certain other social security payments

(8) If, during the period of 2 years referred to in subsection (1), a person receives an instalment of a social security pension that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or days in relation to which the person receives the instalment.

(9) If, during the period of 2 years referred to in subsection (1), a person receives an instalment of:

(a) a youth allowance while subsection 1061ZA(2A) applies to the person; or

(b) a jobseeker payment while subsection 1061ZA(2B) applies to the person; or

(c) a benefit PP (partnered) while subsection 1061ZA(2D) applies to the person;

that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or days in relation to which the person receives the instalment.

2 Subsection 1061ZEA(1)

Before "1061ZD", insert "1061ZCA,".

3 Subparagraph 1061ZUC(1)(a)(i)

After "1061ZC,", insert "1061ZCA,".

4 Application provision

Section 1061ZCA of the Social Security Act 1991, as inserted by this Part, applies in relation to:

(a) age pension, disability support pension or carer payment ceasing to be payable on or after the commencement of this Part (whether the pension or payment first became payable before, on or after that commencement); and

(b) age pension, disability support pension or carer payment ceasing to be payable during the period of 12 weeks ending immediately before the commencement of this Part.

Part 2 — Former recipients of disability support pensions

Social Security Act 1991

5 Section 1061ZD (at the end of the heading)

Add "and partner".

6 Before subsection 1061ZD(1)

Insert:

Qualification

7 Subsection 1061ZD(1)

Omit "52 weeks", substitute "2 years".

8 Before section 1061ZD(2)

Insert:

Former recipient with 30 hours per week employment

9 Before subsection 1061ZD(3)

Insert:

Former recipient with increase in employment income

10 After subsection 1061ZD(3)

Insert:

Partner of former recipient with employment

(3A) Subject to subsection (4), this section applies to a person who is a member of a couple if:

(a) the person's partner is qualified for a pensioner concession card under this section because:

(i) subsection (2) applies to the partner as a result of the partner ceasing to be qualified for disability support pension; or

(ii) subsection (3) applies to the partner as a result of disability support pension ceasing to be payable to the partner; and

(b) immediately before the partner's cessation of qualification or payability, the person was receiving an age pension, disability support pension or carer payment; and

(c) the person's pension or payment ceases to be payable to the person because the rate of the person's pension or payment is nil; and

(d) the person's cessation of payability occurs:

(i) at the same time as the partner's cessation of qualification or payability; and

(ii) because of the occurrence of the same event or change of circumstances that resulted in the partner's cessation of qualification or payability.

(3B) To avoid doubt, if the person ceases to be a member of the couple after the person's cessation of payability, the person's qualification for a pensioner concession card because of subsection (3A) is not affected.

11 Before subsection 1061ZD(4)

Insert:

Residency requirement

12 Before subsection 1061ZD(5)

Insert:

No double q ualification person receiving certain other social security payments

13 Subsections 1061ZD(5) and (5A)

Omit "52 weeks", substitute "2 years".

14 Before subsection 1061ZD(6)

Insert:

Residency requirement exception New Zealand agreement

15 Paragraph 1061ZD(6)(b)

Omit "disability support pension", substitute "age pension, disability support pension or carer payment".

16 Before subsection 1061ZD(7)

Insert:

No double qualification person with partial capacity to work

17 Application provisions

(1) The amendments of subsections 1061ZD(1), (5) and (5A) of the Social Security Act 1991 made by this Part apply in relation to a person who receives a disability support pension on or after the commencement day (whether or not the person was receiving the pension before the commencement day).

(2) If:

(a) on a day during the period:

(i) starting on the day that is 52 weeks before the commencement day; and

(ii) ending on the day before the commencement day;

section 1061ZD of the Social Security Act 1991 (as in force on the relevant day during that period) begins to apply to a person; and

(b) on the day before the commencement day the person is qualified for a pensioner concession card under section 1061ZD or subsection 1061ZA(1), (2A), (2B) or (2D) of the Social Security Act 1991;

the amendments to the period a person is qualified for a pensioner concession card under section 1061ZD, as made by this Part, apply in relation to the person.

(3) Subsections 1061ZD(3A) and (3B) of the Social Security Act 1991, as inserted by this Part, and the amendment of paragraph 1061ZD(6)(b) of that Act made by this Part, apply in relation to:

(a) age pension, disability support pension or carer payment ceasing to be payable on or after the commencement day (whether the pension or payment first became payable before, on or after the commencement day); and

(b) age pension, disability support pension or carer payment ceasing to be payable during the period of 12 weeks ending immediately before the commencement day.

(4) In this item:

commencement day means the day this Part commences.

Part 3 — Former recipients of veterans' entitlements and certain partners

Veterans' Entitlements Act 1986

18 Before subsection 53A(1)

Insert:

General rule

19 Before subsection 53A(1A)

Insert:

Certain persons eligible before 1 January 2017

20 Before subsection 53A(2)

Insert:

Certain recipients of invalidity service pension who cease to be permanently incapacitated for work

21 At the end of section 53A

Add:

Former recipients with employment incom e

(3) If:

(a) a person is receiving service pension or income support supplement; and

(b) the pension or supplement ceases to be payable to the person because the rate of the person's pension or supplement is nil; and

(c) the rate of the person's pension or supplement is nil because of the occurrence of an event or change of circumstances that results in the person's income reduced rate (see subsection (4)) being nil; and

(d) but for the person's income reduced rate being nil, the person would have continued to be eligible for fringe benefits because the person would have continued to receive the pension or supplement; and

(e) at the time of the cessation, the ordinary income of the person (as used to work out the person's income reduced rate) includes income for remunerative work performed by the person in Australia as an employee in an employer/employee relationship;

the person remains eligible for fringe benefits for the period of 2 years beginning on the day the pension or supplement ceased to be payable to the person.

(4) For the purposes of subsection (3), a person's income reduced rate, in relation to a service pension or income support supplement, is the rate worked out in relation to that pension or supplement at step 6 of method statement 1 or step 6 of method statement 5, as the case may be, in Module A of the Rate Calculator.

Partners of certain former recipients with employment

(5) If:

(a) a person is:

(i) eligible for fringe benefits under subsection (3) because the person's pension or supplement ceases to be payable to the person; or

(ii) qualified for a pensioner concession card under section 1061ZCA of the Social Security Act because subsection (2) of that section applies to the person as a result of age pension ceasing to be payable to the person; or

(iii) qualified for a pensioner concession card under section 1061ZD of the Social Security Act because subsection (2) of that section applies to the person as a result of the person ceasing to be qualified for disability support pension; or

(iv) qualified for a pensioner concession card under section 1061ZD of the Social Security Act because subsection (3) of that section applies to the person as a result of disability support pension ceasing to be payable to the person; and

(b) immediately before the person's cessation of payability or qualification, the person's partner was receiving service pension or income support supplement; and

(c) the partner's pension or supplement ceases to be payable to the partner because the rate of the partner's pension or supplement is nil; and

(d) the partner's cessation of payability occurs:

(i) at the same time as the person's cessation of payability or qualification; and

(ii) because of the occurrence of the same event or change of circumstances that resulted in the person's cessation of payability or qualification;

the partner remains eligible for fringe benefits for the period of 2 years beginning on the day the pension or supplement ceased to be payable to the partner.

(6) To avoid doubt, subsection (5) applies to the partner even if the partner ceases to be a member of the couple after the day the pension or supplement ceased to be payable to the partner.

22 At the end of subsection 56(1)

Add:

Note: If a person ceases to receive a service pension or income support supplement, the person's eligibility for benefits under Division 12 will generally cease.

23 At the end of subsection 56A(1)

Add:

Note: If a person ceases to receive a service pension or income support supplement, the person's eligibility for benefits under Division 12 will generally cease.

24 Subsection 56E(1) (note 4)

Omit "also cancelled", substitute "generally cancelled too (but see also sections 56ED and 56EE)".

25 Subsection 56EA(2) (note 3)

Omit "also cancelled", substitute "generally cancelled too (but see also sections 56ED and 56EE)".

26 Application provision

Subsections 53A(3), (4), (5) and (6) of the Veterans' Entitlements Act 1986, as added by this Part, apply in relation to:

(a) service pension or income support supplement ceasing to be payable on or after the commencement of this Part (whether the pension or supplement first became payable before, on or after that commencement); and

(b) service pension or income support supplement ceasing to be payable during the period of 12 weeks ending immediately before the commencement of this Part.

Part 4 — Certain partners of former recipients of veterans' entitlements

Social Security Act 1991

27 After section 1061ZDA

Insert:

1061ZDB Extended qualification rule: partner of former recipient of veterans' entitlement

Qualification

(1) Subject to subsections (6) and (7), a person is qualified for a pensioner concession card for the period of 2 years starting on the day on which this section begins to apply to the person.

Partner of f ormer recipient of veterans' entitlement with employment income

(2) Subject to subsection (4), this section applies to a person who is a member of a couple if:

(a) the person's partner is eligible for fringe benefits under subsection 53A(3) of the Veterans' Entitlements Act because the partner's service pension or income support supplement ceases to be payable to the partner; and

(b) immediately before the partner's cessation of payability, the person was receiving an age pension, disability support pension or carer payment; and

(c) the person's pension or payment ceases to be payable to the person because the rate of the person's pension or payment is nil; and

(d) the person's cessation of payability occurs:

(i) at the same time as the partner's cessation of payability; and

(ii) because of the occurrence of the same event or change of circumstances that resulted in the partner's cessation of payability.

(3) To avoid doubt, if the person ceases to be a member of the couple after the person's cessation of payability, the person's qualification for a pensioner concession card because of subsection (2) is not affected.

Residency requirement

(4) This section only applies to a person while the person is residing in Australia.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

(5) However, this section applies to a person in relation to a day if:

(a) the person is in Australia on that day but not residing in Australia; and

(b) the pension or payment that the person had been receiving was received solely because of the operation of the scheduled international social security agreement between Australia and New Zealand.

No double qualificat ion person receiving certain other social security payments

(6) If, during the period of 2 years referred to in subsection (1), a person receives an instalment of a social security pension that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or days in relation to which the person receives the instalment.

(7) If, during the period of 2 years referred to in subsection (1), a person receives an instalment of:

(a) a youth allowance while subsection 1061ZA(2A) applies to the person; or

(b) a jobseeker payment while subsection 1061ZA(2B) applies to the person; or

(c) a benefit PP (partnered) while subsection 1061ZA(2D) applies to the person;

that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or days in relation to which the person receives the instalment.

28 Subsection 1061ZEA(1)

After "1061ZDA", insert ", 1061ZDB".

29 Subparagrap h 1061ZUC(1)(a)(i)

After "1061ZDA,", insert "1061ZDB,".

30 Application

Section 1061ZDB of the Social Security Act 1991, as inserted by this Part, applies in relation to:

(a) age pension, disability support pension or carer payment ceasing to be payable on or after the commencement of this Part (whether the pension or payment first became payable before, on or after that commencement); and

(b) age pension, disability support pension or carer payment ceasing to be payable during the period of 12 weeks ending immediately before the commencement of this Part.

The CHAIR: The question before the chair is that amendments (4) and (9) on sheet 1643 be agreed to:

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