Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

SOCIAL SECURITY AND VETERANS’ AFFAIRS LEGISLATION AMENDMENT (ONE-OFF PAYMENTS AND OTHER 2007 BUDGET MEASURES) BILL 2007

The measures in this Bill are a further demonstration of the Government’s commitment to older Australians and carers. These changes ensure that the people of Australia share in the economic prosperity that they have helped to create. In addition, several of the measures will enhance the quality of life for many ageing veterans, especially those with a disability, or their war widows or widowers.

As with past bonus payments, these new payments will be paid in the majority of cases before the end of the financial year. These payments are possible because of the Government’s record Budget surpluses, which have delivered this capacity to give extra support to these members of the Australian community.

The first payment provided by this Bill will go to older Australians. A 2007 one-off payment of $500 will be made to each person of age pension age, who is qualified for utilities allowance or seniors concession allowance on 8 May 2007. Recipients at that date of mature age allowance, partner allowance or widow allowance will also attract the one-off payment.

Older Australians not actually receiving the stipulated payment on Budget night will still get the bonus if they had made a claim by that date and subsequently have their payment backdated to cover that date.

Self-funded retirees will not miss out on the bonus payment – they will receive $500 per person if they are, on that same date, qualified for seniors concession allowance.

Carers are the second group targeted by this Bill.

Carers receiving carer income support on 8 May 2007 in the form of a social security carer payment or carer service pension under the Veterans’ Entitlements Act will be paid a $1,000 one-off payment. Carers who receive the non-means tested social security income supplement known as carer allowance in addition to either wife pension or a partner service pension under the Veterans’ Entitlements Act will also be paid a $1,000 one-off payment. Any carer receiving carer allowance will be paid a separate $600 one-off payment for each eligible care receiver. Carers who have claimed the targeted payments on or shortly before 8 May 2007 and are subsequently granted those payments (with effect from 8 May 2007 or earlier) will receive the one-off payments.

Carers whose children qualify for a carer allowance health care card only will not be eligible for bonus payments of $600. Carers who claim carer allowance after 8 May 2007 and whose payment is backdated due to the application of the carer allowance backdating provisions will not be eligible for the bonus payment, even though the backdated period will have included payment for 8 May 2007.

Neither of the special one-off payments provided by this bill will be subject to income tax, nor will either count as income for social security, veterans’ entitlements or family assistance purposes.

The third group assisted by the measures in this Bill are veterans and war widows and widowers.

The Bill provides for a once-only compensation payment to veteran and civilian prisoners of war interned by enemy forces in Europe during World War Two, or their surviving widows or widowers. The Government has previously made once-only compensation payments to persons interned by the Japanese and the North Koreans. Prisoners of war of enemy forces in Europe also experienced extreme brutality and starvation, and suffered from some of the same diseases that affected prisoners of war of the Japanese. These payments are in addition to the special level of benefits POWs and their widows already receive, including automatic eligibility for a Gold Card and eligibility to receive a war widow’s pension.

The Bill will also amend the Veterans’ Entitlement Act 1986 to increase the maximum amount of funeral benefit payable from $1,000 to $2,000. By doubling the benefit we are making a greater contribution towards the cost of funerals.

In addition, the Bill will increase the amount of the intermediate rate disability rate paid under the Veterans’ Entitlement Act by $25 per fortnight and the amount of special rate disability pension by $50 per fortnight. More than 29,000 veterans with a disability who receive Special and Intermediate Rate pensions will benefit from increases to their fortnightly payments. The pension increase will provide a substantial boost to the ability of disability pension recipients to manage their day-to-day challenges.

Finally, the Bill will also extend the maximum period for backdating of war widow or widower pension from three to six months in certain circumstances. For those eligible war widows and widowers who claim within six months of the death of their veteran partner, the war widow or widower pension will be backdated to the day after the date of death of the veteran. The extension of time to the permissible backdating period will allow those dependants of veterans who are not automatically eligible for the war widow or widower pension more in time which to lodge a claim for the pension and will ensure that they are not financially disadvantaged during such a difficult time.

SUPERANNUATION LAWS AMENDMENT (2007 BUDGET CO-CONTRIBUTION MEASURE) BILL 2007

As announced in the 2007-08 Budget, this Bill will make amendments to the Superannuation (Government Co-Contribution for Low Income Earners) Act 2003 to double the Government co-contribution in respect of contributions made during the 2005-06 income year. 

Take the example of a person who earned under $28,000 in 2005-06 and who boosted their retirement savings by contributing $1,000 to superannuation out of their take home pay.  Provided they met the other eligibility criteria they would have already received a Government co-contribution of $1,500.  

This person will now receive an extra $1,500 Government contribution. 

They have turned their initial $1,000 into $4,000, turbo-charging their retirement savings.  This amount will remain invested in their superannuation account, growing over time until they are ready to retire.

In the majority of cases the additional co-contribution will be paid to superannuation funds before 30 June 2007.  Remaining amounts will be paid in 2007-08.

This measure will result in an extra $1.1 billion being paid directly into the superannuation accounts of low to middle income Australians.  This is in addition to the $2 billion of Government co-contributions that have already been paid into superannuation under this highly successful scheme. 

This time last year the Government announced the most significant changes to Australia’s superannuation system in decades, including extending the Government co-contribution scheme to the self-employed.  In addition, the income thresholds for the co-contribution scheme will be indexed next financial year in line with growth in wages.

These measures are made possible by this Government’s continuing strong record of sound economic management.

Full details of the measures in this Bill are contained in the explanatory memorandum.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.

Ordered that the resumption of the debate be an order of the day for a later hour.

Ordered that the bills be listed on the Notice Paper as separate orders of the day.