Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I seek leave to move together the government amendments on sheet ZA397.

Leave granted.

I move the government amendments on sheet ZA397:

(1) Clause 2, page 2 (table item 2), omit the table item, substitute:

(2) Schedule 1, page 3 (line 1) to page 14 (line 7), omit the Schedule, substitute:

Schedule 1—Energy supplement replacing seniors supplement

Part 1—Main amendments

Social Security Act 1991

1 Subparagraph 8(8)(y)(viib)

  Omit "seniors supplement", substitute "energy supplement".

2 Subsection 23(1) (definition of seniors supplement )

  Repeal the definition.

3 Paragraph 916D(3)(c)

  Omit "seniors supplement", substitute "energy supplement".

4 Paragraph 1061R(d)

  Omit "seniors supplement under this Act or the Veterans' Entitlements Act", substitute "energy supplement under Part 2.25B of this Act or Part VIIAD of the Veterans' Entitlements Act".

5 Paragraph 1061T(2)(b)

  Omit "seniors supplement", substitute "energy supplement under Part 2.25B".

6 Paragraph 1061TA(2)(b)

  Omit "seniors supplement under the Veterans' Entitlements Act", substitute "energy supplement under Part VIIAD of the Veterans' Entitlements Act".

7 Part 2.25B

  Repeal the Part, substitute:

Part 2.25B—Energy supplement

Division 1—Qualification and payability

1061U Qualification for energy supplement

     A person is qualified for energy supplement if the person is the holder of a seniors health card.

1061UA When energy supplement is payable

(1) Energy supplement is payable to a person in relation to each day on which the person is qualified for the supplement.

(2) However, energy supplement is not payable to the person in relation to a day if:

  (a) before that day:

     (i) the person had elected not to be covered by this Part; and

     (ii) that election had not been withdrawn; or

(b) subsection 55(5) (failing to nominate a bank account) of the Administration Act applies to the person.

Division 2—Rate of energy supplement

1061UB Rate of energy supplement

(1) If subsection (2) applies to the person on a day, the person's daily rate of energy supplement, for that day, is 1/364 of the amount worked out using the following table:

(2) This subsection applies to a person on a day if on that day the person is residing in Australia and either:

  (a) is in Australia; or

  (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

8 Section 1190 (note)

  Omit "the rate of seniors supplement (see section 1061UB) and".

Social Security (Administration) Act 1999

9 Section 12D (heading)

  Repeal the heading, substitute:

12D Energy supplement

10 Section 12D

  Omit "seniors supplement", substitute "energy supplement under Part 2.25B of the 1991 Act".

11 Section 48B (heading)

  Repeal the heading, substitute:

48B Payment of energy supplement

12 Subsection 48B(1)

  Omit "Seniors supplement", substitute "Energy supplement under Part 2.25B of the 1991 Act".

13 Subsection 48B(2)

  Omit "seniors supplement", substitute "energy supplement".

14 Paragraph 48B(3)(a)

  Omit "seniors supplement", substitute "energy supplement".

15 Subsection 48B(4) (paragraph (a) of the definition of instalment period )

  Omit "seniors supplement", substitute "energy supplement".

16 Subsection 48B(4) (note to paragraph (a) of the definition of instalment period )

  Omit "seniors supplement", substitute "energy supplement".

17 Subparagraphs 66A(2)(a)(i) and (3)(a)(i)

  Omit "seniors supplement", substitute "energy supplement under Part 2.25B of the 1991 Act".

18 Subsection 68(1)

  Omit "seniors supplement", substitute "energy supplement under Part 2.25B of the 1991 Act".

19 Subsection 69(1)

  Omit "seniors supplement", substitute "energy supplement under Part 2.25B of the 1991 Act".

20 Paragraph 75(1)(b)

  Omit "seniors supplement", substitute "energy supplement under Part 2.25B of the 1991 Act".

21 Section 78A

  Omit "seniors supplement", substitute "energy supplement under Part 2.25B of the 1991 Act".

22 Section 90A

  Omit "seniors supplement", substitute "energy supplement under Part 2.25B of the 1991 Act".

23 Section 123A (paragraph (e) of the definition of relevant payment )

  Omit "seniors supplement", substitute "energy supplement under Part 2.25B of the 1991 Act".

24 Saving and transitional provisions

(1) Paragraph 916D(3)(c) of the Social Security Act 1991 applies on and after the commencement of this item as if a reference in that paragraph to energy supplement included a reference to seniors supplement.

(2) Despite the amendments made by items 7 and 12 to 16, Part 2.25B of the Social Security Act 1991, and section 48B of the Social Security (Administration) Act 1999, as in force immediately before the commencement of this item, continue to apply on and after that commencement in relation to an instalment period ending before that commencement.

(3) An election referred to in subparagraph 1061UA(2)(a)(i) of the Social Security Act 1991 that was in force immediately before the commencement of this item continues in force on and after that commencement.

Veterans ' Entitlements Act 1986

25 Paragraph 5H(8)(gb)

  Omit "seniors supplement", substitute "energy supplement".

26 Subsection 5Q(1) (definition of seniors supplement )

  Repeal the definition.

27 Section 59A (note 1)

  Omit "Note 1", substitute "Note".

28 Section 59A (note 1)

  Omit "and the rate of seniors supplement (see section 118PB)".

29 Section 59A (note 2)

  Repeal the note.

30 Subsection 62E(1) (note 1)

  Repeal the note.

31 Subsection 62E(1) (note 2)

  Omit "Note 2", substitute "Note".

32 Paragraph 118B(3)(c)

  Omit "seniors supplement under this Act or the Social Security Act", substitute "energy supplement under Part VIIAD of this Act or Part 2.25B of the Social Security Act".

33 Part VIIAD (heading)

  Repeal the heading, substitute:

Part VIIAD—Energy supplement

34 Section 118P (heading)

  Repeal the heading, substitute:

118P Eligibility for energy supplement

35 Subsection 118P(1)

  Omit "for seniors supplement", substitute "for energy supplement".

36 Subparagraph 118P(1)(b)(iv)

  Repeal the subparagraph, substitute:

     (iv) energy supplement under Part 2.25B of the Social Security Act.

37 Subsection 118P(2)

  Omit "for seniors supplement", substitute "for energy supplement".

38 Subparagraph 118P(2)(d)(iv)

  Repeal the subparagraph, substitute:

     (iv) energy supplement under Part 2.25B of the Social Security Act.

39 Section 118PA (heading)

  Repeal the heading, substitute:

118PA When energy supplement is payable

40 Subsection 118PA(1)

  Omit "Seniors supplement", substitute "Energy supplement".

41 Subsection 118PA(2)

  Omit "seniors supplement", substitute "energy supplement".

42 Division 2 of Part VIIAD (heading)

  Repeal the heading, substitute:

Division 2—Rate of energy supplement

43 Section 118PB (heading)

  Repeal the heading, substitute:

118PB Rate of energy supplement

44 Subsections 118PB(1) and (1A)

  Repeal the subsections, substitute:

(1) If subsection (2) applies to the person on a day, the person's daily rate of energy supplement, for that day, is 1/364 of the amount worked out using the following table:

Note: For member of a couple, partnered, illness separated couple and respite care couple see subsections 5E(1) and (5) and 5R(5) and (6) respectively.

45 Subsection 118PB(2) (heading)

  Repeal the heading.

46 Division 3 of Part VIIAD

  Repeal the Division, substitute:

Division 3—Payment of energy supplement

118PC Payment of energy supplement

(1) Energy supplement under this Part is to be paid by instalments.

(2) An instalment of energy supplement is to be paid to a person as soon as is reasonably practicable after the end of an instalment period.

(3) The amount of the instalment is worked out by:

  (a) working out the person's amount of energy supplement for each day in the instalment period (using the daily rate of the supplement for that day); and

  (b) adding up the amounts resulting from paragraph (a).

(4) In this section:

  instalment period means a period:

  (a) in relation to each day of which energy supplement is payable to the person; and

Note: For when energy supplement is payable to the person, see section 118PA.

  (b) that either begins on any 20 March, 20 June, 20 September or 20 December or does not include any such day; and

  (c) that either ends on any 19 March, 19 June, 19 September or 19 December or does not include any such day; and

  (d) that is not included in a longer instalment period.

47 Subsections 122A(1A) and (1C)

  Omit "seniors supplement", substitute "energy supplement under Part VIIAD".

48 Saving and transitional provisions

(1) Despite the amendments made by items 33 to 46, Part VIIAD of the Veterans' Entitlements Act 1986, as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to an instalment period ending before that commencement.

(2) An election referred to in subparagraph 118PA(2)(a)(i) of the Veterans' Entitlements Act 1986 that was in force immediately before the commencement of this item continues in force on and after that commencement.

Part 2—Consequential amendments

Income Tax Assessment Act 1997

49 Section 52 -10 (table item 22B.1)

  Omit "Seniors supplement", substitute "Energy supplement under Part2.25B of the Social Security Act 1991".

50 Section 52 -40 (table item 22B)

  Omit "Seniors supplement", substitute "Energy supplement".

51 Section 52 -65 (table item 16A.1)

  Omit "Seniors supplement", substitute "Energy supplement under PartVIIAD of the Veterans' Entitlements Act 1986".

52 Section 52 -75 (table item 16A)

  Omit "Seniors supplement", substitute "Energy supplement".

53 Saving provision

  Despite the amendments of sections 52-10 and 52-65 of the Income Tax Assessment Act 1997 made by this Schedule, item 22B.1 of the table in section 52-10 of that Act, and item 16A.1 of the table in section 52-65 of that Act, as in force immediately before the commencement of this item, continue to apply on and after that commencement in relation to a payment of seniors supplement made before, on or after that commencement.

Military Rehabilitation and Compensation Act 2004

54 Paragraph 222(5)(d)

  Repeal the paragraph, substitute:

  (d) energy supplement under Part 2.25B of the Social Security Act 1991 or Part VIIAD of the Veterans' Entitlements Act 1986; or

55 Paragraph 246(4)(d)

  Repeal the paragraph, substitute:

  (d) energy supplement under Part 2.25B of the Social Security Act 1991 or Part VIIAD of the Veterans' Entitlements Act 1986; or

Part 3—Transitional provisions

56 Transitional provision—seniors supplement

  If a person has been paid seniors supplement under Part 2.25B of the Social Security Act 1991 or Part VIIAD of the Veterans' Entitlements Act 1986 in relation to a day on or after 20 June 2015 and before 20 September 2015, then the amendments made by this Schedule do not apply in relation to the person in relation to that day.

Claire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | Link to this | Hansard source

At this stage it is important that I put on record that our position has changed on this bill. Those of you who can remember the passionate speeches made in this place last November will understand that after consideration of the range of issues before us in this area—there have been several changes as proposed legislation by the 2015 budget, which overtakes this process as it was part of the 2014 budget—and the fact that many, many more proposals are on the table, Labor's position has now changed. In view of Labor's need to focus on our support of people who are receiving pensions, our position on the removal of the pensioner supplement is that we are now supporting the government's position on this bill.

Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

The Greens also spoke about this bill at the time and some concerns were expressed. We had a lot of concerns around this particular bill when we spoke about it in the chamber. People will also remember that when we put in our dissenting report to the committee inquiry into the 2014-15 budget measures, this was the measure that we thought, if you were considering it in the context of a retirement income review, would be one that would make the most sense of all of those terrible budget measures that the government sought to put through this place last year.

As the government noted last week, they have now committed to a review, through the tax white paper process, of looking at retirement income reviews and a more holistic approach. Although the government have not committed to some of the policy changes that we would like to see, at least we now have that retirement income review and people can participate in it. People can see the need for changes. As the Council on the Ageing said on Radio National before the budget:

… it's clear that there's a broad consensus out there in the sector that wasn't there five years ago as to how the basic architecture of the system ought to be restructured—

and we agree. We agree that the system does need a significant amount of change. The removal of this payment is in fact one of the first steps to what we believe would be a fairer system, a system where it makes sense to make sure that those who have the advantages that have allowed them to accumulate their wealth can, in fact, start using those assets that they have accumulated.

As we know, the senior supplement is a payment to older Australians who do not in fact qualify for the age pension. They do not qualify at all for the pension because their personal wealth and accumulated savings are very significant. In fact, in order to qualify for this supplement you have to have a significant amount of savings and assets. In the context of the changes that have occurred through this budget measure and the fact that we now have a commitment to a retirement income review, we have re-looked at this bill and we now think that this is an appropriate measure.

We also need to bear in mind the ACOSS report that has just come out today, which talks about inequality and points out that wealth and income inequality in this country is a huge issue. Although the report says that Australia's is above average for the OECD, in fact inequality is still, fortunately, below that in the US and that in the UK and a few other countries—but it is above average in the OECD. We need to address the issue around wealth and income inequality now or it is only going to get worse. The top 20 per cent hold 70 times the wealth of the rest of Australia. That is a significant issue that needs to be addressed.

We know that income inequality has a devastating impact on a society. It lowers health outcomes and it means that there are fewer opportunities for people to gain access to education to get better jobs. It can increase intergenerational inequality. These are all things that we believe need to be addressed. I think the ACOSS report is a very timely report that highlights this fact, and we are bearing that issue in mind whenever we look at these measures. We believe that a system of addressing income inequality and retirement income has only just started being addressed in this country. There is broad agreement among stakeholders that the system is not working—that it is skewed and needs to be re-addressed. We are starting to take those first steps now. We are looking at the long-term aim of having a fairer system for all people on income support, particularly those who have to rely on the pension.

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I table a supplementary explanatory memorandum relating to the government amendments moved to this bill.

Zed Seselja (ACT, Liberal Party) Share this | Link to this | Hansard source

The question now is that government amendments (1) and (2) on sheet ZA397 be agreed to.

Question agreed to.

Bill, as amended, agreed to.

Bill reported with amendments; report adopted.