Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

The committee is considering the Social Services and Other Legislation Amendment (Lifting the Income Limit for the Commonwealth Seniors Health Card) Bill 2022 and amendments (3) and (8) on sheet 1643 moved by Senator Cash. The question is that the amendments be agreed to.

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

So we are at the end of the day back where we were at the beginning of the day. The matter before us is the Social Services and Other Legislation Amendment (Lifting the Income Limit for the Commonwealth Seniors Health Card) Bill. At the outset, I think it's very important to restate the coalition's position, and that is that we support the substantive matter that is in this bill in large part—actually, in 100 per cent part—because it is the coalition's initiative carried over from the previous government and now adopted by this government. Congratulations to the new government for bringing forward what was a coalition initiative. Indeed, I think Senator Ruston, as the then social services minister, was responsible for that.

We would hope that the same level of spirit, the same level of foresightedness, shown by the government in regard to this matter will now be shown in regard to amendments that the coalition is bringing to this bill. These are amendments that don't subtract from the substance of this bill but will make the bill better and, more importantly, will deliver much-needed cost-of-living relief to age pensioners and, in doing so, will provide an immediate remedy to the many small and medium-sized business across our country, whether they are in capital cities or regional locations, that are suffering from labour shortage issues.

The amendments that the opposition has tabled and that we would like to see adopted today do three things. Schedule 1 of the amendments deals with the suspension of benefits and entitlements instead of cancellation. Let's call it a red-tape reduction initiative that many, many senior Australians will and have embraced. The second schedule extends the qualification for pensioner concession cards, an idea that older Australians enthusiastically embrace. Most importantly—and I suspect this is the reason that the government is wanting to delay a vote on this—it brings and puts into the law tonight the initiative that will increase the work bonus for pensioners, lifting it from $300 a fortnight to $600 a fortnight and, in doing so, removing the financial penalty that older Australians incur when they move beyond the current $300 a fortnight work bonus limit.

This is an initiative that many people across our country are calling for. They've called for it in Senate committees. They've called for it in dialogue with members of parliament across our country. In the last minutes of parliament today—remembering that the next parliamentary sitting day is actually the day of the budget, which is over a month away—Labor could send a very clear message tonight that it wants to provide older Australians with cost-of-living relief and that it has understood and will treat with urgency those very real labour-shortage issues that businesses are facing across our country.

I asked Senator Farrell this morning whether the government had yet brought forward legislation to give effect to its Jobs and Skills Summit initiative—a Jobs and Skills Summit that happened on 1 and 2 September. Today is 28 September—so, almost a month before the government could get its act together and introduce its own bill to provide relief to older Australians and to provide a remedy to those labour shortages across the country, but not the same bill, because Labor's bill is temporary. Labor thinks it only needs an answer that will last until 30 June next year. It says, by definition, that our labour-shortage issues will expire on 30 June next year. We know that's crazy. I'm sure Senator Lambie in Tasmania knows about real cost-of-living pressures on older Australians in Tasmania as well as very real, severe, acute labour shortages being felt across our country, probably more pronounced in Tasmania.

What I can't understand is that by Labor's own admission today in the House of Representatives it is saying that there is a problem with cost-of-living pressures. They're saying that there is a problem with labour shortages. But they're expecting our country, our parliament, to wait for another month, which makes it two months since the jobs summit, when tonight they could put in law a more generous and more permanent remedy. This is what Labor's social security minister said in the House of Representatives this morning: 'It's been widely reported across the country and understood by this government'—that is, the Labor government—'that businesses across Australia are experiencing skill and labour shortages. ' I don't disagree—tick, Ms Rishworth, the Minister for Social Services. She says that those labour shortages are constraining productivity and economic growth—tick; that's two out of two. We agree. Then she says, 'Implementing a range of policies designed to address labour market issues across the country is important.' We agree with that as well—three ticks. So why, Senator Farrell, will you not support these amendments, brought by the opposition, before you? Why will you not support them? Why are you saying to older Australians and small businesses, 'We want you to wait another month'? 'We've had a Jobs and Skills Summit, we've got a lot of positive media and now we want you to wait two extra months.'

On this matter, the coalition will happily sit down and have nothing more to say if Senator Farrell is about to get on his feet and say, 'You're right: older Australians deserve a remedy now; small businesses deserve a remedy now.' If that is the contribution Senator Farrell is about to make, this might end up being the most productive day this Senate chamber has seen for a very long time. The time is now, Senator Farrell. The time is now, Senator Pratt. This is the opportunity.

I hope that when Senator Farrell gets to his feet he will do three things. I hope he will explain why Labor's measure is temporary, explain why Labor's measure is less generous and say to the Senate: 'Yes, you're quite right. Let's do something now. Let's do something immediately. Let's make this a high-water mark of these last three sitting days.' I don't know if that is a challenge that Senator Farrell can live up to. I'm hoping it is.

In a contribution earlier today, the Australian Greens said that—I'm paraphrasing Senator Rice—this was an important first step. They did not say it was the only step. They said it was an important first step in bringing relief to older Australians to help deal with their cost-of-living pressures and also to address labour shortages. Remember this. This week, Jim Chalmers, the Treasurer, said that cost-of-living pressures were skyrocketing. That's not my word. It's Jim Chalmers's word: skyrocketing.

Senator Farrell is going to filibuster so that those skyrocketing cost-of-living pressures for older Australians—he's saying that older Australians can wait another month. They've already waited one month, and he's now saying they can wait another month. I doubt that Labor will legislate their initiative in budget week, and they're going to stand in the way of this initiative. This is not new news. Anyone who has been paying attention to the debates around the cost of living and labour shortages knows that National Seniors Australia and others—grain producers, agricultural organisations and chambers of commerce and industry in Western Australia, Victoria, and, I suspect, Tasmania—have been saying that this is an urgent issue. Treasury themselves said last week that labour shortages were severe. The time to act is now.

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

The opposition wants to make an absolute dog's breakfast of the legislative process in this place. We got these amendments at exactly the same time as the bill on this topic, which those opposite knew was coming at exactly the same time. Just today, we have had the limits legislation on Commonwealth income referred to the Community Affairs Legislation Committee by the Selection of Bills Committee for report later on. That is the bill in which these amendments should be moved, not the bill before us. All you are doing this evening is standing in the way of retirees getting access to the Commonwealth seniors health card. That is what you are doing. You are trying to cross-fertilise things that don't belong together. So here we are—

James McGrath (Queensland, Liberal National Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

Senator Pratt, take your seat, please. Senator Smith, I believe you might have a point of order.

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

To be very clear—and it was in my remarks, Senator Pratt—the coalition supports the substantive matter in this bill, and it has amendments.

The TEMPORARY CHAIR: I don't know if that was a point of order.

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

That was indeed a filibuster. The legislation—

An opposition senator interjecting—

I am here to legislate!

The TEMPORARY CHAIR: Order! Senator Pratt needs to be heard in silence.

The TEMPORARY CHAIR: Senator Ruston, you're not helping things.

The Labor government wanted to finish this legislation this week so that Commonwealth seniors health cards could be extended to other retirees. Instead, you are proposing these amendments to a bill that is not the right bill to do it in.

We have a committee inquiry underway on changing the income limits for pensioners, because a referral has just been done by the Selection of Bills Committee to the legislation committee of this chamber. It makes a complete nonsense of legislative process for those opposite to be pursuing these amendments here in this bill. The bill before us is to lift the income threshold for seniors who need access to the Commonwealth Seniors Health Card, to deal with their very pressing cost-of-living issues, of which pharmaceutical medications are an absolute priority.

The government has its own clear plan to lift income limits for pensioners, which we have put forward in a bill that has been referred to a Senate committee. We have not inquired yet into lifting these income limits to the level that the opposition and the Greens are seeking to do. It is simply not feasible to expect this chamber to deal with this question at the eleventh hour, in an amendment that doesn't even belong in this bill.

Our workforce incentives bill will see an increase in the maximum work bonus income bank balance from $7,800 to $11,800. When you introduced these amendments at the eleventh hour, this morning, I hadn't even had time to look at what the income limits are, how they'll affect the pension outgoings relative to—

An opposition senator interjecting

Well, of course we do, but we still have to get our head around the answers to these questions as a government—for example, their impact on the budget et cetera. And yet you insist on this, when there is a perfect opportunity, with due process, to look at your amendments in the right and proper bill, which is coming before this place in a few weeks time.

I'm absolutely appalled at those opposite seeking to disrupt parliamentary process in this way—the absolute gall of moving an amendment in one bill, when the substantive issue is dealt with in a completely different piece of legislation that is also up for debate and is also before the parliament. It is not proper legislative process. It's not proper legislative process, for example, to have an issue being debated in one chamber while the same debate on the same question is going on in the other, when it is a substantive matter of legislation. We're supposed to have rules and principles around this. But instead you are seeking to absolutely bypass good parliamentary process.

This is not good policy development. It is also fiscally irresponsible. It's all very well for those over there to laugh and say, 'Well, you've got a department to go and look at that for you.' It certainly shows that you're in opposition now that you're prepared just to fling these amendments up without really looking at the consequences and working through the due process. Yes, we would like to ask the department. Yes, we would like to look at what the fiscal outcome is—which is not something that can be easily calculated within a day, with no notice. You simply brought these amendments in this morning and then expected the government to come to a voting position on them and be prepared to see the bill passed as amended. So instead, we are at this standstill tonight, where those opposite and the crossbench are getting in the way of making the entitlement available to retirees who would like access to a healthcare card to bring down the cost of their medicine.

I appreciate that the decisions in this place mean trade-offs in one way or another in terms of who gets something, But those opposite are leaving us in a position of nobody getting anything by the time the sitting day ends today, when we have, nevertheless, a perfect opportunity to progress their agenda in the right bill that is still to come before this place. Instead, yes indeed, I am standing here filibustering this legislation to stop those opposite from making an absolute mess of the legislative process. I am absolutely pleased to wear that on my sleeve because it is absolutely irresponsible for those opposite to have brought these amendments before this place at the 11th hour in the way that they have. You explain to older Australians that you are in the way of their healthcare card. We on this side are not standing in the way of amendments to the workforce bonus. We are here to progress government legislation on that topic, which this parliament has indeed referred to the Community Affairs Committee.

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

Reporting date of when?

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

It has been referred today.

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

How long do people need to wait?

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

We expect the legislation to progress in an orderly and prioritised manner so that we can deliver these outcomes to Australian pensioners and Australian retirees. When you decide to get involved with messy amendments then what happens is we end up leaving this place with no-one winning. There will be a time and a place to debate and consider your amendments but to have them lumped on the government at the 11th hour in the way you did today is completely unconscionable.

Janet Rice (Victoria, Australian Greens) Share this | Link to this | Hansard source

I just want to call out what is going on here. We have a bill to increase the ability of pensioners to access support, which we support, which Labor supports, which the opposition supports. We have amendments from the opposition, which, as I said in my second reading contribution, we as Greens feel are good amendments that basically allow pensioners to earn more, which are connected to this bill because they are improving the ability of pensioners to deal with the cost of living. We feel that those amendments are good amendments.

These amendments are similar to but different from measures that the government have moved. So basically, there is a fight going on between the government and the Liberal Party as to who gets the credit for these amendments that will allow pensioners to earn more. We feel that these are good amendments and we cannot vote against them. But clearly, the government do not want the Libs to get the credit for these amendments which would allow pensioners to earn more. So what is going on? The Labor party are filibustering. The Labor Party are trying to delay this bill being passed through the Senate so that it is not a Liberal amendments that are successful in giving pensioners the ability to earn more.

I want to put politics aside. We need to be getting measures through this parliament that will enable pensioners to deal with the cost of living and here is a way of doing it. The Greens want to support these amendments and we want to support them going through this parliament tonight. We do not want to continue on this ridiculous waste of time, just because the Labor Party are not happy with the Liberal Party getting the credit for something that we all agree on. It is just crazy.

Jacqui Lambie (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

I move:

That the question be now put.

James McGrath (Queensland, Liberal National Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

The question is that the question be now put.

James McGrath (Queensland, Liberal National Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

The question now is that amendments (3) and (8) on sheet 1643 be agreed to.

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

by leave—I move government amendments (1) to (7) on sheet UD142 together:

(1) Clause 2, page 2 (table item 1, column 2), omit "The day this Act receives the Royal Assent", substitute "The seventh day after this Act receives the Royal Assent".

(2) Schedule 1, item 4, page 3 (lines 14 and 15), omit "2022 and 2023 (see subsections 1192(5BA) and (5BB))", substitute "2023 (see subsection 1192(5BB))".

(3) Schedule 1, item 5, page 3 (lines 18 and 19), omit subsection 1192(5BA).

(4) Schedule 1, item 9, page 4 (lines 10 and 11), omit "on 20 September 2023 and each later 20 September", substitute "annually on 20 September".

(5) Schedule 1, item 10, page 4 (lines 13 to 16), to be opposed.

(6) Schedule 1, item 11, page 4 (line 20), omit "20 September 2022", substitute "the day this item commences".

(7) Schedule 1, item 11, page 4 (lines 23 and 24), omit "20 September 2022", substitute "the day this item commences".

I refer to the amendments that the minister has proposed to the original legislation that stemmed from the delay to the original starting date as a result of the passing of Queen Elizabeth II. This government amendment changes the commencement date for legislation to enact the government's election commitments to increase the income limits for the Commonwealth Seniors Health Card to $90,000 for singles and $144,000 for couples, and that's a combined amount of money.

Due to the suspension of parliament following the death of Her Majesty Queen Elizabeth II, the bill to implement this commitment could not be passed in time for the increase to be implemented on 20 September 2022 as intended. To minimise any further delays, this amendment will allow the increase to the income limits to take effect seven days following royal assent to the bill. This is the minimum time required by Services Australia to finalise the required systems and business processes once the final date is known. The Commonwealth seniors card income limits are indexed each year on 20 September, according to movements in the consumer price index. The existing bill would have replaced indexation on 20 September 2022 with these significant one-off increases.

As the bill did not pass, indexation of the limits proceeded on 20 September, as required by existing law. This amendment, therefore, also removes material that would have prevented annual indexation for 2022. Following indexation on 20 September 2022, the income limits for the Commonwealth seniors card are currently $61,284 for singles and $98,054 for couples, and that's a combined amount. The bill, as amended, will still raise the income limits, only to the intended levels of $90,000 for singles and $144,000 combined for couples. The bill includes amendments to both the Social Security Act 1991 and the Veterans' Entitlements Act 1986 to ensure the same income limits apply for the Commonwealth Seniors Health Card under each act.

Like other Australians, many self-funded retirees are facing increased cost-of-living pressures in the current economic environment. This bill helps to ease those pressures by allowing more self-funded retirees to access Australian government health concessions, including concessional co-payments for Pharmaceutical Benefits Scheme medicines, the concessional threshold for the Pharmaceutical Benefits Scheme safety net and the extended Medicare safety net, and bulk-billed visits to a general practitioner at the doctor's discretion. The Commonwealth Seniors Health Card also provides access to other concessions that may be provided by state and territory governments and private organisations. This bill is expected to allow more than 50,000 self-funded retirees to become newly eligible for the Commonwealth Seniors Health Card. The Albanese government will continue to work tirelessly to support older Australians with cost-of-living pressures.

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

I move:

That the motion be now put.

Question agreed to.

James McGrath (Queensland, Liberal National Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

The question is that amendments (1) to (4), (6) and (7) be agreed to.

Question agreed to.

The TEMPORARY CHAIR: The question now is that item 10 of schedule 1 stand as printed.

Question negatived.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to 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:

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

by leave—I move amendments (1), (2), (5), (6), (7) and (10) on sheet 1643 together:

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

(2) Clause 2, page 2 (after proposed table item 1), insert:

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

(6) Page 2 (after line 14), after clause 3, insert:

4 Review and expiration of Schedule 4

Review

(1) The Minister must cause a review to be conducted of the operation of the amendments made by Schedule 4 to this Act.

(2) The persons who undertake the review must:

(a) without limiting subsection (1), consider as part of the review, the merits of continuing the operation of the amendments made by Schedule 4 to this Act taking into account:

(i) changes in overseas net migration levels; and

(ii) the unemployment rate; and

(iii) the workforce participation rate; and

(iv) utilisation of the work bonus; and

(b) give the Minister a written report of the review no later than 30 days before the sunset day mentioned in subsection (4).

(3) The Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the Minister.

Sunsetting of amendments

(4) The amendments made by Schedule 4 to this Act cease to be in force at the start of the day (the sunset day) after the end of the period of:

(a) 12 months beginning on the day Schedule 4 commenced; or

(b) each successive 12-month period after the day referred to in paragraph (a);

unless subsection (5) applies.

(5) The Minister may, by notifiable instrument, determine that the amendments made by Schedule 4 to this Act do not cease to be in force for a period of 12 months if the Minister is satisfied, after considering the report mentioned in subsection (2), that the amendments should remain in operation.

Definition of Minister

(6) For the purposes of this section, Ministermeans the Minister administering the Social Security Act 1991.

(7) Schedule 1, heading, page 3 (line 1), omit "Amendments", substitute "Commonwealth Seniors Health Card income test limits".

(10) Page 4, at the end of the Bill (after proposed Schedule 3), add:

Schedule 4 — Inc reasing the work bonus for pensioners and veterans

Social Security Act 1991

1 Subsection 1073AA(2) (examples 1 and 2)

Repeal the examples, substitute:

Example 1: David has $2,600 of work bonus income in an instalment period of 14 days. David's rate of social security pension for that period is greater than nil.

David's work bonus income for that period is reduced by $600, leaving David $2,000 of work bonus income for that period.

Example 2: Amy has $1,300 of work bonus income in an instalment period of 14 days. Amy's rate of social security pension for that period is greater than nil.

Amy's work bonus income for that period is reduced by $600, leaving Amy $700 of work bonus income for that period.

2 Subsection 1073AA(4) (example)

Repeal the example, substitute:

Example: Bill has $1,600 of work bonus income in an instalment period of 14 days. Bill's rate of social security pension for that period is greater than nil.

Under subsection (2), Bill's work bonus income for that period is reduced by $600, leaving Bill $1,000 of work bonus income for that period.

Assume Bill's unused concession balance is $800.

Under subsection (4), Bill's work bonus income for that period is further reduced by $800 leaving Bill $200 of work bonus income for that period.

Bill's unused concession balance is now nil.

3 Subsection 1073AA(4A) (example)

Omit "$200", substitute "$500".

4 Paragraphs 1073AA(4C)(a) and (b)

Omit "$300", substitute "$600".

5 Subsection 1073AB(2) (example)

Omit "$7,900", substitute "$8,200".

Veterans' Entitlements Act 1986

6 Subsection 46AA(2) (examples 1 and 2)

Repeal the examples, substitute:

Example 1: David has $2,600 of work bonus income in a pension period. David's rate of service pension or income support supplement for that period is greater than nil.

David's work bonus income for that period is reduced by $600, leaving David $2,000 of work bonus income for that period.

Example 2: Amy has $1,300 of work bonus income in a pension period. Amy's rate of service pension or income support supplement for that period is greater than nil.

Amy's work bonus income for that period is reduced by $600, leaving Amy $700 of work bonus income for that period.

7 Subsection 46AA(4) (example)

Repeal the example, substitute:

Example: Bill has $1,600 of work bonus income in a pension period. Bill's rate of service pension or income support supplement for that period is greater than nil.

Under subsection (2), Bill's work bonus income for that period is reduced by $600, leaving Bill $1,000 of work bonus income for that period.

Assume Bill's unused concession balance is $800.

Under subsection (4), Bill's work bonus income for that period is further reduced by $800 leaving Bill $200 of work bonus income for that period.

Bill's unused concession balance is now nil.

8 Subs ection 46AA(4A) (example)

Omit "$200", substitute "$500".

9 Subsection 46AA(4C)

Omit "$300", substitute "$600".

10 Subsection 46AC(2) (example)

Omit "$7,900", substitute "$8,200".

11 Subsection 46AD(3) (example)

Omit "$200", substitute "$500".

12 Applicati on provision

(1) The amendments of the Social Security Act 1991 made by this Schedule apply in relation to an instalment period that starts on or after the commencement of this item.

(2) The amendments of the Veterans' Entitlements Act 1986 made by this Schedule apply in relation to a pension period that starts on or after the commencement of this item.

Janet Rice (Victoria, Australian Greens) Share this | Link to this | Hansard source

I move:

That the question be now put.

Question agreed to.

The TEMPORARY CHAIR: The question now is that opposition amendments (1), (2), (5), (6), (7), (10) be agreed to.

Question agreed to.

Bill, as amended, agreed to.

Bill reported with amendments; report adopted.