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2022-2023
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SOCIAL SECURITY (ADMINISTRATION) AMENDMENT
(INCOME MANAGEMENT REFORM) BILL 2023
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Social Services, the Hon Amanda Rishworth MP)
SOCIAL SECURITY (ADMINISTRATION) AMENDMENT
(INCOME MANAGEMENT REFORM) BILL 2023
OUTLINE
The Social Security (Administration) Amendment (Income Management Reform) Bill
2023 (the Bill) delivers the next stage of the Government's election commitment to
reform Income Management (IM) under the Social Security (Administration) Act 1999
(Administration Act). The Bill builds on changes made by the Social Security
(Administration) Amendment (Repeal of Cashless Debit Card and Other Measures)
Act 2022, which established the enhanced Income Management regime
(enhanced IM) in Part 3AA of the Administration Act and repealed cashless welfare
arrangements (also known as the Cashless Debit Card or the CDC program).
The amendments to the Administration Act made by this Bill will facilitate an effective
and efficient transition to the enhanced IM regime under Part 3AA of the Administration
Act for those who choose to access a superior banking product. This is to be given
effect through 3 key reforms. The reforms will commence on a single date to be fixed
by proclamation, or 6 months after the Bill receives the Royal Assent if it has not
commenced before that time (the commencement date).
Firstly, the Bill extends the enhanced IM regime to include all of the measures that are
in place for the IM regime in Part 3B of the Administration Act. This will allow eligible
welfare recipients to enter an enhanced IM regime that offers improved technology
and access to over one million outlets across Australia as well as 'Tap and Go'
transactions, online shopping and BPAY.
Secondly, the Bill gives people subject to the IM regime under Part 3B the choice to
move to enhanced IM from the commencement date, thereby allowing them to access
the BasicsCard bank account and superior SmartCard.
Thirdly, the Bill directs all new entrants to the enhanced IM regime while further
consultation is undertaken on the long-term future of IM.
The Government is undertaking extensive consultation with communities,
First Nations leaders and other stakeholders on the long-term future of the IM and
enhanced IM regimes.
FINANCIAL IMPACT STATEMENT
The amendments made by this Bill have commercial implications for contracted
service providers. Due to these commercial implications, the financial impacts are not
suitable for publication at this time. This is consistent with the financial impacts
disclosed in previous budget statements.
IMPACT ANALYSIS
An Impact Analysis was prepared and is titled Reforming the Cashless Debit Card and
Income Management, and is available on the website of the Department of the
Prime Minister and Cabinet at https://oia.pmc.gov.au/published-impact-analyses-and-
reports/abolish-cashless-debit-card. The executive summary from the Impact Analysis
is included at the end of this explanatory memorandum.
STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS
The statement of compatibility with human rights appears at the end of this explanatory
memorandum.
SOCIAL SECURITY (ADMINISTRATION) AMENDMENT (INCOME MANAGEMENT
REFORM) BILL 2023
NOTES ON CLAUSES
Abbreviations used in this explanatory memorandum
In this explanatory memorandum, unless the contrary is indicated:
• Administration Act means the Social Security (Administration) Act 1999.
• commencement day means the day the Act commences, which will be a single
date to be fixed by proclamation, or 6 months after the Bill receives the Royal
Assent if it has not commenced before that time.
• enhanced IM regime means the enhanced income management regime in
Part 3AA of the Administration Act.
• IM regime means the income management regime in Part 3B of the
Administration Act.
• Legislation Act means the Legislation Act 2003.
• Part 3AA means Part 3AA of the Administration Act, which established the
enhanced IM regime (and provides access to the SmartCard).
• Part 3B means Part 3B of the Administration Act, which established the
IM regime (and involves use of the BasicsCard).
• Queensland Commission has the same meaning as in Part 3B of the
Administration Act (and is also known as the Family Responsibilities
Commission or the FRC).
• Repeal Act means Social Security (Administration) Amendment (Repeal of
Cashless Debit Card and Other Measures) Act 2022.
• Social Security Act means the Social Security Act 1991.
As the Bill amends only the Administration Act, all legislative references should be
read as references to the Administration Act unless otherwise stated.
Section 1 sets out how the new Act is to be cited, that is, as the Social Security
(Administration) Amendment (Income Management Reform) Act 2023.
Section 2 sets out the commencement date for the Act. The whole of the Act will
commence on a single day to be fixed by proclamation. However, if the Bill does not
commence within the period of 6 months beginning on the day the Act receives the
Royal Assent, it will commence on the day after the end of that period.
Section 3 provides that legislation that is specified in a Schedule to this Act is
amended or repealed as set out in the applicable items in the Schedule concerned,
and any other item in a Schedule to this Act has effect according to its terms.
SCHEDULE 1--EXPANDING ACCESS TO THE ENHANCED INCOME
MANAGEMENT REGIME
Summary
Schedule 1 amends Part 3AA to facilitate access to the enhanced IM regime following
from the Government's election commitment to abolish cashless welfare
arrangements and to reform IM arrangements established under the social
security law.
Background
The IM regime in Part 3B was established in 2007 and makes use of older technology
and processes that do not take best advantage of modern banking technology and
practice.
Part 3B establishes the situations in which a person may be subject to IM.
These situations are based, in part, on geographic locations and relate to specified
circumstances in which the person's welfare payments are subsequently restricted to
prevent purchases of socially harmful goods and services.
Numerous evaluations of the IM regime undertaken since its commencement in 2007
have identified mixed outcomes with its operation. Following the commitment to reform
IM arrangements, the Government has consulted with, and listened to, individuals and
their communities. The overwhelming feedback is that the technology under the
IM regime is outdated and no longer meets their needs. The enhanced IM regime has
been established in Part 3AA in response to this feedback.
Amendments introduced by this Schedule enable people currently subject to the
IM regime to move to the enhanced IM regime if they choose to do so.
Additionally, this Schedule will amend Part 3AA to insert new measures for the
enhanced IM regime from the commencement date. This will allow people who would
previously have become subject to the IM regime under Part 3B to instead enter the
enhanced IM regime. For similar reasons, Schedule 1 will expand the scope of
voluntary enhanced IM from the commencement date so that individuals who live in
existing voluntary IM locations can instead volunteer for the enhanced IM regime.
Welfare recipients who are subject to the enhanced IM regime will have access to a
BasicsCard bank account accompanied by a debit card (known as a SmartCard) that
operates like a standard Visa debit card (except that cash cannot be withdrawn).
A SmartCard can be used to make purchases at most merchants who can undertake
EFTPOS transactions unless those primarily offer excluded goods or excluded
services. People subject to the enhanced IM regime are also able to access a range
of mainstream banking functions including 'Tap and Go' payments, online shopping
and BPAY.
Explanation of the changes
Part 1 of Schedule 1--Main amendments
Simplified outline and definitions--enhanced income management regime
Item 1 omits a segment of the current simplified outline dealing with some existing
enhanced IM situations and substitutes it with updated text to reflect the revised scope
of the enhanced IM regime. The simplified outline will assist the reader to navigate
Part 3AA and sets out, in summary form, the kinds of circumstances in which
individuals can become subject to the enhanced IM regime.
The revised simplified outline will flag that the enhanced IM regime encompasses the
following measures:
• Queensland Commission;
• Child protection;
• School enrolment and school attendance
• Referrals by a recognised State/Territory authority;
• Vulnerable welfare payment recipients;
• Disengaged youth;
• Long-term welfare payment recipients;
• Voluntary enhanced IM.
Item 2 inserts into section 123SB a new definition for the term applicable school
period. The new term has the meaning given by section 123SCG, which provides that
the Minister may, by legislative instrument, determine an applicable school period.
This term is relevant to the school enrolment and school attendance measures.
Item 3 repeals three definitions in section 123SB that relate to the term 'balance of the
qualified portion'. The definitions relate, respectively, to category B, D and G welfare
payments for the purposes of Part 3AA. These definitions are replaced by a single
definition covering affected payment types inserted by item 4.
Item 4 inserts into section 123SB a new definition for the term 'balance of the qualified
portion', which now relates to a category B welfare payment, a category D welfare
payment or a 'relevant payment'. The different payment category types are also
defined in section 123SB and will be supplemented by a definition of
'relevant payment' inserted into section 123SB (see item 10).
The new term is to be defined as follows:
• balance of the qualified portion, of a category B welfare payment,
a category D welfare payment or a relevant payment, means:
(a) if a deduction is to be made from, or an amount is to be set off
against, the payment under:
(i) section 61, 61A or 238 of this Act; or
(ii) section 1231 of the [Social Security Act 1991]; or
(iii) section 84, 84A, 92, 92A, 225, 226, 227 or 228A of the [Family
Assistance (Administration) Act 1999]
the amount of the qualified portion of the payment less the amount of
the deduction or the amount of the set-off; or
(b) in any other case--the amount of the qualified portion of the
payment.
Item 5 amends section 123SB of the Administration Act to insert 6 new definitions of
for the purposes of Part 3AA. These are:
• child protection officer, which is defined to mean an officer or employee
of a State or Territory who has functions, powers or duties in relation to the
care, protection or welfare of children.
This definition is relevant to new section 123SCA, which provides that a child
protection officer of a State or Territory may give the Secretary written notice requiring
that a particular person be subject to enhanced IM.
• declared child protection State or Territory, which is defined to have the
meaning given by subsection 123SCA(6).
This definition refers to new subsection 123SCA(6), which enables the Minister, by
legislative instrument, to determine that a specified State or Territory is a declared
child protection State or Territory.
• declared primary school area has the meaning given by subsection
123SCF(1).
This definition refers to new subsection 123SCF(1), which enables the Minister, by
legislative instrument, to determine that a specified State or Territory is a declared
primary school area. This definition is relevant in determining eligibility for enhanced
IM under sections 123SCB (school enrolment) and 123SCC (school attendance).
• declared secondary school area has the meaning given by subsection
123SCF(3).
This definition refers to new subsection 123SCF(3), which enables the Minister, by
legislative instrument, to determine that a specified State or Territory is a declared
secondary school area. This definition is relevant in determining eligibility for enhanced
IM under sections 123SCB (school enrolment) and 123SCC (school attendance).
• eligible care child has the meaning given by section 123SCD.
This definition refers to new section 123SCD, which provides that a person is an
eligible care child of another person at a particular time if the first person is a child for
whom the other person is the principle carer or where a family law order, registered
parenting plan or parenting plan is in place, and the child lives with the other person
for a minimum period of time in an eligible care period. This definition is relevant in
determining eligibility for enhanced IM under sections 123SCB (school enrolment) and
123SCC (school attendance).
• eligible care period has the meaning given by section 123SCE.
This definition refers to new section 123SCE, which provides that the Minister may, by
legislative instrument, determine an eligible care period. This definition is relevant in
determining eligibility for enhanced IM under sections 123SCB (school enrolment) and
123SCC (school attendance).
Item 6 amends section 123SB of the Administration Act to insert the following
definition:
• equivalent rate of special benefit, in relation to a person, means a rate of
special benefit equivalent to the maximum basic rate of youth allowance that
the person would receive if the person were qualified for youth allowance.
This definition is required for Part 3AA and Part 3B. As the amount of special benefit
payable to a person under the Social Security Act involves matters of discretion,
this definition of an equivalent rate of special benefit involves a set amount calculated
by reference to the maximum basic rate of youth allowance.
Item 7 repeals the definition of 'exempt welfare payment recipient' in section 123SB
and substitutes it with the following updated definition for the purposes of Part 3AA:
• exempt welfare payment recipient has the meaning given by
section 123SDB, 123SDC or 123SDD.
This definition is a navigation aid that points the reader to the term as defined in new
sections 123SDB, 123SDC and 123SDD (each of which provide for alternative ways
in which a person can be an 'exempt welfare payment recipient').
Item 8 amends section 123SB to insert 2 new definitions for the purposes of Part 3AA:
• family law order means:
(a) a parenting order within the meaning of section 64B of the Family
Law Act 1975; or
(b) a family violence order within the meaning of section 4 of that Act;
or
(c) a State child order registered under section 70D of that Act; or
(d) an overseas child order registered under section 70G of that Act.
This definition is inserted for the purposes of new section 123SCD, which sets out
when a child is an eligible care child.
• full-time student has the meaning given by section 123SDE.
This definition is a navigation aid that points the reader to new section 123SDE which,
in turn, states that a person can only be a 'full-time student' if they are an eligible
recipient of youth allowance and are 'undertaking full-time study' in accordance with
section 541B of the Social Security Act.
Item 9 amends section 123SB to repeal various definitions of the term
'qualified portion' which relate, respectively, to category B, D and G welfare payments.
The repealed definitions are replaced with one new single definition (see item 10).
Item 10 amends section 123SB to insert a number of new definitions. These are:
• qualified portion:
(a) of a category B welfare payment:
(i) for a person who is subject to the enhanced income
management regime under section 123SC--has the meaning
given by section 123SJ; or
(ii) for a person who is subject to the enhanced income
management regime under section 123SCA--has the meaning
given by section 123SLA; or
(iii) for a person who is subject to the enhanced income
management regime under section 123SCB or 123SCC--has
the meaning given by section 123SLD; or
(iv) for a person who is subject to the enhanced income
management regime under section 123SCJ--has the meaning
given by section 123SLG; or
(v) for a person who is subject to the enhanced income
management regime under section 123SCM--has the
meaning given by section 123SP; or
(b) of a category D welfare payment, has the meaning given by
section 123SM ; or
(c) of a relevant payment, has the meaning given by section 123SLJ.
This definition of 'qualified portion' contains multiple navigation aids to the reader who
is directed to the appropriate section. It is relevant to new provisions inserted by items
49 to 67 of this Schedule, relating to the splitting of welfare payments into a 'qualified
portion' and an 'unqualified portion'. This simplifies the use of this term in Division 3.
That is, it applies a single definition with multiple options that will apply as the case
requires.
• recognised State/Territory authority has the meaning given by
subsection 123SCK(1).
This definition is a navigation aid which refers the reader to subsection 123SCK(1)
(inserted by item 17) which, in turn, authorises the Minister, by legislative instrument,
to determine that a 'recognised State/Territory authority' may be any or all of
the following:
(a) a specified department, or a specified part of a department, of a State
or Territory; or
(b) a specified body of a State or Territory; or
(c) a specified agency of a State or Territory.
• registered parenting plan has the same meaning as in the Family Law Act
1975.
Subsection 63C(6) of the Family Law Act 1975 defines a 'registered parenting plan as
a parenting plan:
(a) that was registered in a court under section 63E as in force at any
time before the commence of the Family Law Amendment Act
2003; and
(b) that continued to be registered immediately before the
commencement of the Family Law Amendment Act 2003.
This definition is relevant to determining whether a child is an eligible care child for the
purposes of determining eligibility for enhanced IM under sections 123SCB (school
enrolment) and 123SCC (school attendance).
• relevant payment, for a person who is subject to the enhanced income
management regime under section 123SCL, means:
(a) if the person has been given a transfer notice referred to in
paragraph 123SCL(3)(c) and the notice is in force--a category B
welfare payment; or
(b) otherwise--a category G welfare payment.
This definition refers to new section 123SCL, inserted by item 17 of this Schedule,
which provides that a person is subject to enhanced IM due to, among other things,
being a 'vulnerable welfare payment recipient'.
• repeal day means the day on which Part 2 of Schedule 1 to the Social Security
(Administration) Amendment (Repeal of Cashless Debit Card and Other
Measures) Act 2022 commences.
In combination with the Repeal Act, this definition provides that the 'repeal day' is a
single day proclaimed by the Governor-General or, if not proclaimed, the day after the
6-month period beginning the day the Act received Royal Assent, being 31 March
2023.
• school age child has the meaning given by section 123SDF.
This definition refers to new section 123SDF (inserted by item 32), which states that a
child is a 'school age child' if the child is required, under a law of a State or Territory,
to be enrolled at a school or to attend a school at times required under that law.
• State/Territory authority means:
(a) department, or a part of a department, of a State or Territory; or
(b) a body of a State or Territory; or
(c) an agency of a State or Territory.
This definition is required for the purpose of new subparagraphs 123SCJ(1)(b) and (e)
(inserted by item 17), which set the eligibility criteria for persons to be subject to the
enhanced IM regime due to a referral by an officer or employee of a State/Territory
authority that is a 'recognised State/Territory authority'.
Item 11 amends section 123SB by repealing the definitions of the term
'unqualified portion' in section 123SB, which relate, respectively, to category B, D and
G welfare payments for the purposes of Part 3AA. The repealed definitions are
replaced with a single definition of 'unqualified portion' (see item 12).
Item 12 inserts 3 new definitions into section 123SB. These are:
• unqualified portion:
(a) of a category B welfare payment:
(i) for a person who is subject to the enhanced income management
regime under section 123SC--has the meaning given by
section 123SJ; or
(ii) for a person who is subject to the enhanced income management
regime under section 123SCA--has the meaning given by
section 123SLA; or
(iii) for a person who is subject to the enhanced income management
regime under section 123SCB or 123SCC--has the meaning
given by section 123SLD; or
(iv) for a person who is subject to the enhanced income management
regime under section 123SCJ--has the meaning given by section
123SLG; or
(v) for a person who is subject to the enhanced income management
regime under section 123SCM--has the meaning given by
section 123SP; or
(b) of a category D welfare payment, has the meaning given by section 123SM;
or
(c) of a relevant payment, has the meaning given by section 123SLJ.
This definition is relevant to new provisions inserted by items 49 to 67 of this Schedule,
relating to the splitting of welfare payments into a 'qualified portion' and an 'unqualified
portion'. This simplifies the use of this term in Division 3. That is, it applies a single
definition with multiple options that will apply as the case requires.
• unsatisfactory school attendance situation has the meaning given by
section 123SCH.
This definition points the reader to new subsection 123SCH (inserted by item 17),
which enables the Minister, by legislative instrument, to determine whether an
'unsatisfactory school attendance situation' exists, or has existed, in relation to a child
is to be ascertained.
• voluntary enhanced income management area has the meaning given
by subsection 123SF(5).
This definition points the reader to new subsection 123SF(5) (inserted by item 38),
which enables the Minister, by legislative instrument, to determine that the following
can be considered a 'voluntary enhanced income management area':
(a) a specified State; or
(b) a specified Territory; or
(c) a specified area.
Enhanced income management--new eligibility criteria
Item 13 inserts a new heading 'Subdivision A--Queensland Commission' before
section 123SC. This signifies that there is a separate subdivision in Part 3AA that
provides for enhanced IM eligibility for people living in the Cape York and Doomadgee
region who are subject to a notice from the Queensland Commission (also known as
the FRC).
Item 14 amends subsection 123SC(1) to remove the phrase 'on or after 6 March 2023',
which is the first date on which people could enter the enhanced IM regime. There is
no need for this date to be retained because, from the commencement of this Act, the
enhanced IM regime will already be open to new entrants and all past references to
this date will become redundant
Item 15 repeals existing paragraph 123SC(1)(b), which states that a person will be
subject to the enhanced IM regime if, among other things, the Queensland
Commission has given a notice requiring the person to be subject to the IM regime
under Part 3B. The repealed paragraph is replaced with a new paragraph
123SC(1)(b), which provides that a person will be subject to the enhanced IM regime
if, among other things, the Queensland Commission has given a notice requiring the
person to be subject to the enhanced IM regime under section 123SC.
In accordance with new subsection 123SC(1A), inserted by Item 16, paragraph
123SC(1)(b) is taken to be satisfied if, on or after 6 March 2023, the Queensland
Commission has given a notice to the Secretary requiring a person to be subject to
the IM regime Part 3B.
Currently, the legislation governing the FRC refers specifically to a notice being given
to the Secretary requiring a person to be subject to IM under Part 3B. For this reason,
section 123SC was previously drafted to refer only to a notice being given on this
basis. As the enhanced IM regime has now commenced operation in the Cape York
and Doomadgee area and the future of the IM regime is still being considered, the
changes made by items 15 and 16 are intended to ensure the FRC has the maximum
flexibility in administering its legislation.
Item 17 creates new eligibility criteria for the enhanced IM regime in new Subdivision B
(Child protection), Subdivision C (Referrals by recognised State/Territory authority)
and Subdivision D (Vulnerable welfare payment recipient) of Division 2 of Part 3AA.
The measures in new Subdivisions B, C and D mirror equivalent measures in Part 3B
with appropriate adjustments.
Subdivision B--Child protection
New 'Subdivision B--Child Protection' contains the eligibility criteria for the enhanced
IM child protection measure and consists of new section 123SCA. This new section is
based on the equivalent section 123UC in Part 3B.
Subsection 123SCA(1) provides that a person will be subject to the enhanced
IM regime if:
• at the test time, the person, or the person's partner, is an eligible recipient
of a category A welfare payment and
• a child protection officer of a State or Territory has lawfully given the
Secretary a notice requiring that the person be subject to the enhanced IM
regime under section 123SCA and, at the test time, the notice remain in
force and
• at the test time, the State or Territory is a declared child protection State or
Territory (as determined by the Minister under subsection 123SCA(6); and
• if, at the test time, the person has a Part 3B payment nominee--that
nominee is subject to the IM regime or the enhanced IM regime and
• at the test time, the person is not subject to the enhanced IM regime under
section 123SC (Queensland Commission) and
• either of subsection 123SCA(2) (new referrals) or 123SCA(3) (transfer from
IM) applies.
This provides 2 alternate eligibility pathways to enhanced IM, that is, for new entrants
and people transferring from the IM regime.
Under the first eligibility pathway, subsection 123SCA(2) provides that a person is
subject to enhanced IM under subsection 123SCA(1) if, immediately before the test
time, they were not subject to the IM regime. This facilitates the move to enhanced IM,
allowing those people to access the modern technology offered by the BasicsCard
bank account and SmartCard under Part 3AA.
Under the second eligibility pathway, subsection 123SCA(3) enables those subject to
the IM regime under the equivalent Part 3B provision (that is, section 123UC) to
transfer to the enhanced IM regime if they choose to do so. Under this pathway,
subsection 123SCA(3) provides that a person is subject to the enhanced IM regime
under subsection 123SCA(1) if:
• a person has requested to transfer to enhanced IM and a transfer notice
given by the Secretary under subsection 123SIA(2) is in force and
• immediately before the transfer notice came into force, the person was
subject to the IM regime under section 123UC.
This pathway will ensure that those who want to access the modern technology offered
by the BasicsCard bank account and SmartCard under Part 3AA can choose to do so.
Subsection 123SCA(4) provides that a written notice given by a child protection officer
requiring that a person to be subject to the IM regime under subsection 123UC(1) is
taken to satisfy the requirement for a child protection notice to be given to the
Secretary under paragraph 123SCA(1)(b). This will allow subsection 123SCA(1) to
operate without jurisdictions needing to undertake legislative change and will facilitate
transfers from IM to enhanced IM even though child protection notices may have been
issued under past arrangements. This provision will operate with respect to notices
given to the Secretary before, on or after the day subsection 123SCA(4) commences.
Subsections 123SCA(5) and (6) deal with eligibility for individuals with a Part 3B
payment nominee.
Subsection 123SCA(5) provides for circumstances where a person is not subject to
any form of income management, but their Part 3B payment nominee is. Specifically,
a person will be subject to the enhanced IM regime if:
• they are not subject to the enhanced IM regime under Part 3AA or the IM regime
under Part 3B; and
• they have a Part 3B payment nominee; and
• the Part 3B nominee is subject to the enhanced IM regime under subsection
123SCA(1) or the IM regime under subsection 123UC(1).
Subsection 123SCA(5) will operate in the same manner as equivalent subsection
123UC(2) in Part 3B but will provide for individuals who become eligible after the
commencement of section 123SCA to enter the enhanced IM regime rather than the
IM regime, consistent with other amendments that close the IM regime to new
entrants.
Subsection 123SCA(5) has been drafted to capture circumstances where a person
has an existing nominee arrangement and their nominee becomes subject to the
enhanced IM regime under subsection 123SCA(1), as well as circumstances where a
person enters into a new nominee arrangement with a person who is already subject
to the IM regime under subsection 123UC(1) or the enhanced IM regime under
subsection 123SCA(1).
In each of these circumstances, the principal of the nominee arrangement would
become subject to the enhanced IM regime regardless of whether their nominee is
subject to that regime or the IM regime in Part 3B and they will remain subject to the
enhanced IM regime under this subsection until their nominee arrangement ends or
their nominee ceases to be subject to any form of income management. Individuals
who are subject to the IM regime under subsection 123UC(2) are able to transfer to
the enhanced IM regime if they choose to do so.
Subsection 123SCA(6) enables a person who is subject to the IM regime under
subsection 123UC(2) due to their Part 3B payment nominee's status to choose to
move to the enhanced IM regime. That is, a person may transfer to the enhanced IM
regime independently of any choice made by their Part 3B payment nominee to remain
subject to IM. The person's choice may be exercised by making a request to the
Secretary and the Secretary giving the person a written notice (a transfer notice)
stating that the person is eligible to transfer. The transfer notice must be in force at the
transfer time.
Subsection 123SCA(7) allows the Minister to, by legislative instrument, determine that
a specified State or Territory is a 'declared child protection State or Territory' for the
purposes of Part 3AA. This is necessary to give effect to this enhanced IM measure
and will only occur with State and Territory government cooperation.
Subdivision C--School enrolment and attendance
New Subdivision C of Division 2 in Part 3AA provides for enhanced IM eligibility where
the person has failed to ensure that their child is enrolled at school or there is an
unsatisfactory school attendance situation.
The new subdivision consists of sections 123SCB, 123SCC 123SCD, 123SCE,
123SCF, 123SCG, 123SCH and 123SCI. These new sections are based on the
equivalent IM measures in Part 3B (sections 123UD, 123UE and 123UH-123UL).
School enrolment
New section 123SCB sets out the criteria for the school enrolment enhanced IM
measure. This is equivalent to section 123UD in Part 3B.
Subsection 123SCB(1) provides that a person will be subject to the enhanced IM
regime if, among other things:
• at the test time, the person, or the person's partner, is an eligible recipient
of a category A welfare payment and
• at the test time, the person, or the person's partner, has an eligible care
child and
• under a law of a State or Territory, the eligible care child is required to be
enrolled at school and
• the Secretary is satisfied that it is appropriate for the eligible care child to
be enrolled at a primary school in a declared primary school area, or a
secondary school in a declared secondary school area and
• at the test time, the eligible care child is not enrolled at a primary school in
a declared primary school area, or a secondary school in a declared
secondary school area and
• if, at the test time, the person has a Part 3B payment nominee--that
nominee is subject to the IM regime or the enhanced IM regime and
• at the test time, the person is not subject to the enhanced IM regime under
section 123SC (Queensland Commission) or 123SCA (child protection);
and
• the Secretary has not determined the person is exempt from subsection
123SCB(1) under subsection 123SCB(2); and
• such other conditions (if any) as are specified in a determination under
subsection 123SCB(6) are satisfied.
Subsection 123SCB(2) provides that a person will not be subject to the enhanced IM
regime under subsection 123SCB(1) if the Secretary determines in writing that the
person is exempt. In accordance with subsection 123SCB(3), the Secretary must
comply with any principles determined by the Minister. Subsection 123SCB(4) allows
the Minister to determine, by legislative instrument, decision making principles for the
purposes of subsection 123SCB(3).
Subsection 123SCB(5) confirms that a determination made under
subsection 123SCB(2) is not a legislative instrument. This provision is included to
assist the reader. It is declaratory of the law and conveys that a determination made
under this provision is not a legislative instrument within the meaning of
subsection 8(1) of the Legislation Act. Such determinations merely apply to a
particular person and do not determine or alter the content of the law.
Subsection 123SCB(6) allows for the Minister, by legislative instrument, to set other
conditions that also need to be met before a person is subject to the enhanced IM
regime under subsection 123SCB(1).
Subsection 123SCB(7) provides a person will subject to the enhanced IM regime if:
• a person is not subject to either the enhanced IM regime under any other
provision of this Division; and
• the person has a Part 3B payment nominee; and
• the Part 3B nominee is subject to the enhanced IM regime under subsection
123SCB(1).
Subsections 123SCB(8) to (12) are relevant for determining whether a child is enrolled
in a school.
The Secretary may give written notice to a person who has an eligible care child,
requesting that the person provide documentary evidence of the child's enrolment at
a school during a specified applicable school period. A person will be given at least 7
days to provide evidence of a child's enrolment at school.
The specified compliance timeframe may be extended. This may be done in situations
such as where the reason for why the parent or carer could not provide proof of
enrolment within the initial timeframe is outside their control.
If a person does not comply with a notice, the Secretary may determine that the
person's eligible care child is not enrolled at any time during the applicable school
period specified in the notice. This consequence must be set out that in the notice.
School attendance
New section 123SCC sets out the criteria for the school attendance enhanced IM
measure. This is equivalent to section 123UE in Part 3B.
Subsection 123SCC(1) provides that a person will be subject to the enhanced IM
regime if, among other things:
• at the test time, the person, or the person's partner, is an eligible recipient
of a category A welfare payment; and
• at the test time, an unsatisfactory school attendance situation exists in
relation to a child; and
• through a period that ended before the unsatisfactory school attendance
situation, the child was an eligible care child of the person or the person's
partner; and
• at the test time, the child is enrolled in either a primary school in a declared
primary school area, or a secondary school in a declared secondary school
area; and
• before the test time, the person or the person's partner, had been given a
formal warning under section 123SCI; and
• the whole or part of an applicable school period in relation to the child
occurred in the period beginning when the formal warning was given and
ending at the test time; and
• if, at the test time, the person has a Part 3B payment nominee--that
nominee is subject to the IM regime or the enhanced IM regime and
• at the test time, the person is not subject to the enhanced IM regime under
section 123SC (Queensland Commission) or 123SCA (child protection);
and
• at the test time, a determination under subsection 123SCC(2) is not in force
in relation to the person; and
• such other conditions (if any) as are specified in a determination under
subsection 123SCC(6) are satisfied.
Subsection 123SCC(2) provides that a person will not be subject to the enhanced
regime under subsection 123SCC(1) if the Secretary determines in writing that the
person is exempt. In accordance with subsection 123SCC(3), the Secretary must
comply with any principles determined by the Minister. Subsection 123SCC(4) allows
the Minister to determine, by legislative instrument, decision making principles for the
purposes of subsection 123SCB(3).
Subsection 123SCC(5) confirms that a determination made under
subsection 123SCB(2) is not a legislative instrument. This provision is included to
assist the reader. It is declaratory of the law and conveys that a determination made
under this provision is not a legislative instrument within the meaning of
subsection 8(1) of the Legislation Act. Such determinations merely apply to a
particular person and do not determine or alter the content of the law.
Subsection 123SCC(6) allows for the Minister by legislative instrument to set other
conditions that also need to be met before a person is subject to the enhanced IM
regime under subsection 123SCC(1).
Subsection 123SCC(7) provides a person will subject to the enhanced IM regime if:
• a person is not subject to either the enhanced IM regime under any
provision of this Division; and
• the person has a Part 3B payment nominee; and
• the Part 3B nominee is subject to the enhanced IM regime under subsection
123SCB(1).
Relevant definitions
New section 123SCD sets out when a child is an 'eligible card child', which is relevant
for both the school enrolment and school attendance measures. For the purposes of
these measures, a person is an eligible care child of another person at a particular
time if, and only if:
(a) at the particular time, the person is a child for whom the other person is the
principal carer; or
(b) the following conditions apply:
(i) that time occurred during an eligible care period;
(ii) under a family law order, registered parenting plan or parenting plan
that is in force during the eligible care period, the person is supposed
to live or spend time with the other person;
(iii) assuming the family law order, registered parenting plan or parenting
plan were complied with during the eligible care period, the person
would have been in the other person's care for at least 14% of that
period.
New section 123SCE provides that an 'eligible care period' is a period ascertained in
accordance with a legislative instrument made by the Minister. This period may be a
recurring period (for example, a fortnight). Such a period can commence before the
commencement of the section.
New section 123SCF enables the Minister to determine, by legislative instrument, that
the following are either a declared primary school area under subsection (1) or a
declared secondary school area under subsection (3):
• a specified State; or
• a specified Territory; or
• a specified area.
Subsections 123SCF (2) and (4) provide that this Part does not prevent a 'specified
area' from being described as the area within the boundary of premises occupied by
a particular primary school or secondary school respectively.
New section 123SCG provides that 'an applicable school period' is a period
ascertained in accordance with a legislative instrument made by the Minister.
Subsection 123SCE(2) provides that such a period can be a recurring period (for
example, a fortnight) or a period ascertained by reference to a term of the school
attended by the child. An applicable school period can commence before the
commencement of the section.
New section 123SCH provides that the question of whether an 'unsatisfactory school
attendance situation' exists or has existed in relation to a child is to be ascertained in
accordance with a legislative instrument made by the Minister. An unsatisfactory
school attendance situation does not exist if a child is not required, under a law of a
State or Territory, to attend school in a State or Territory. An unsatisfactory school
attendance situation may exist before or after the commencement of the section.
For example, if a legislative instrument sets out that an unsatisfactory school
attendance situation exists if an eligible care child has been absent on more than five
days during a school term without an unacceptable reason then those absences can
have taken place prior to the commencement of these provisions.
Section 123SCI provides that if a person is not subject to enhanced IM under section
123SCC (school attendance) and the person, or the person's partner, has an eligible
care child and an unsatisfactory school attendance exists, or has existed in relation to
the child, the Secretary may give a person a formal warning that a person could
become subject to enhanced IM.
A person cannot become subject to enhanced IM under section 123SCC unless a
formal warning has been given to the person or the person's partner in accordance
with section 123SCI (see paragraph 123SCC(1)(g)).
Subdivision D--Referrals by recognised State/Territory authority
New Subdivision D of Division 2 in Part 3AA provides for enhanced IM eligibility where
the person is subject to a referral by a recognised State or Territory authority. The new
subdivision consists of sections 123SCB and 123SCC. New section 123SCB is based
on the equivalent IM measure in section 123UFAA in Part 3B.
Subsection 123SCJ(1) provides that a person will be subject to the enhanced IM
regime if, among other things:
• at the test time, the person, or the person's partner, is an eligible recipient
of a category A welfare payment and
• an officer or employee of a State/Territory authority has lawfully given the
Secretary a written notice requiring that the person be subject to the
enhanced IM regime under section 123SCB and, at the test time, the notice
remains in force and
• at the test time, the State or Territory authority is a recognised
State/Territory authority (as determined by the Minister under
subsection 123SCK(1)) and
• if, at the test time, the person has a Part 3B payment nominee--that
nominee is subject to the IM regime or the enhanced IM regime and
• at the test time, the person is not subject to the enhanced IM regime under
section 123SC (Queensland Commission) or 123SCA (child protection)
or123SCB (school enrolment) or 123SCC (school attendance); and
• either of subsection 123SCJ(2) (new referrals) or 123SCJ(3) (transfer
requests) applies.
This provides 2 alternate eligibility pathways to enhanced IM, that is, for new entrants
and people transferring from the IM regime.
New section 123SCJ(1), unlike its IM regime equivalent (section 123UFAA), does not
require the person to usually reside within a particular area. This is because a notice
issued by a recognised State/Territory authority already has a geographic element.
Under the first eligibility pathway, subsection 123SCJ(2) provides that a person can
become subject to the enhanced IM regime under section 123SCJif they were not
subject to the IM regime immediately before the test time. This facilitates the move to
enhanced IM, allowing people to access the modern technology offered by the
BasicsCard bank account and SmartCard under Part 3AA.
Under the second eligibility pathway, subsection 123SCJ(3) provides for the transfer
to enhanced IM for individuals who were subject to the IM regime because of a notice
given by an officer or employee of a recognised State or Territory authority under
Part 3B. Under this second eligibility pathway, subsection 123SCJ(3) provides that a
person is subject to the enhanced IM regime under subsection 123SCJ(1) if:
• at the test time, the person is an eligible recipient of category A
welfare payment; and
• a transfer notice given by the Secretary under subsection 123SIA(2)
(in response to a transfer request by the person) is in force; and
• immediately before the transfer notice came into force, the person was
subject to the IM regime under section 123UCA.
This pathway will ensure that those who want to access the modern technology offered
by the BasicsCard bank account and SmartCard under Part 3AA can choose to do so.
Subsection 123SCJ(4) provides that a notice given by an officer or employee of a
recognised State or Territory authority requiring a person to be subject to the IM regime
under Part 3B is taken to satisfy the requirement for a recognised State/Territory
authority notice to be given to the Secretary in respect of a person under paragraph
123SCJ(1)(b). This will allow subsection 123SCJ(1) to operate without States and
Territories needing to undertake legislative change and will allow transfers where a
notice has been issued by a recognised State/Territory authority under past
arrangements. This provision will operate for those notices given to the Secretary
before, on or after the day subsection 123SCJ(4) commences.
Subsections 123SCJ(5) and (6) deal with eligibility for individuals with a Part 3B
payment nominee.
Subsection 123SCJ(5) provides for circumstances where a person is not subject to
any form of income management, but their Part 3B payment nominee is. Specifically,
a person will be subject to the enhanced IM regime if:
• they are not subject to the enhanced IM regime under Part 3AA or the IM
regime under Part 3B; and
• they have a Part 3B payment nominee; and
• the Part 3B nominee is subject to the enhanced IM regime under subsection
123SCJ(1) or the IM regime under subsection 123UFAA(1).
Subsection 123SCJ(5) will operate in the same manner as equivalent subsection
123UFAA(2) in Part 3B but will provide for individuals who become eligible after the
commencement of section 123SCJ to enter the enhanced IM regime rather than the
IM regime, consistent with other amendments that close the IM regime to new
entrants.
Subsection 123SCJ(5) has been drafted to capture circumstances where a person has
an existing nominee arrangement and their nominee becomes subject to the enhanced
IM regime under subsection 123SCJ(1), as well as circumstances where a person
enters into a new nominee arrangement with a person who is already subject to the
IM regime under subsection 123UFAA(1) or the enhanced IM regime under subsection
123SCJ(1).
In each of these circumstances, the principal of the nominee arrangement would
become subject to the enhanced IM regime regardless of whether their nominee is
subject to that regime or the IM regime in Part 3B and they will remain subject to the
enhanced IM regime under this subsection until their nominee arrangement ends or
their nominee ceases to be subject to any form of income management. Individuals
who are subject to the IM regime under subsection 123UFAA(2) are able to transfer
to the enhanced IM regime if they choose to do so.
Subsection 123SCJ(6) allows people who are subject to the IM regime under
subsection 123UFAA(2) due to their Part 3B payment nominee's status to choose to
move to the enhanced IM regime. That is, a person may transfer to the enhanced IM
regime independently of any choice made by their Part 3B payment nominee to remain
subject to IM. The person's choice may be exercised by making a request to the
Secretary and the Secretary giving the person a notice (a transfer notice) stating that
the person is eligible to transfer. The transfer notice must be in force at the transfer
time.
Item 17 also inserts a new section 123SCK into Subdivision D of Division 2 of
Part 3AA, based on the equivalent section 123TGAA in Part 3B.
Subsection 123SCK(1) empowers the Minister to, by legislative instrument, determine
that any of the following is a recognised State/Territory authority for the purposes of
Part 3AA:
• a specified department, or a specified part of a department, of a State or
Territory; or
• a specified body of a State or Territory; or
• a specified agency of a State or Territory.
Before making such a determination, the Minister must be satisfied that officers or
employees of the authority have functions, powers or duties in relation to the care,
protection, welfare or safety of adults, children or families (subsection 123SCK(2)) and
that there is an appropriate review process for reviewing the decision by an officer or
employee of the authority to issue a notice requiring the person to be subject to the
enhanced IM regime (subsections 123SCK(3) and (4)).
Subsection 123SCK(4) provides that, without limiting the matters to which the Minister
may consider to become satisfied about appropriate review processes as mentioned
in subsection 123SCK(3), the Minister must have regard to the following:
(a) the cost of the review process to applicants;
(b) the timeliness of the review process;
(c) whether the review process provides that applicants are entitled to be
represented and heard;
(d) the degree of independence of the review process;
(e) whether the review process provides for the use of the services of an
interpreter.
These important considerations ensure that appropriate review mechanism are in
place so that the enhanced IM regime does not operate capriciously or arbitrarily. The
Minister may also take other relevant considerations into account.
Subdivision E--Vulnerable welfare payment recipients
Item 17 also inserts new 'Subdivision E--Vulnerable welfare payment recipient'
in Division 2 of Part 3AA. The new subdivision consists of sections 123SCL and
123SCM and is equivalent to sections 123UCA and 123UGA in Part 3B.
Subsection 123SCL(1) provides that a person will be subject to the enhanced IM
regime if, among other things:
• at the test time, the person's usual place of residence is within a State, a
Territory or an area specified in an instrument made by the Minister under
subsection 123SCL(5)
• at the test time, the Secretary has made a determination under
section 123SCMthat the person is a vulnerable welfare payment recipient
and that determination is in force
• if, at the test time, the person has a Part 3B payment nominee--that
nominee is subject to the IM regime or the enhanced IM regime
• at the test time, the person is not subject to the enhanced IM regime under
section 123SC (Queensland Commission), 123SCA (child protection) or,
section 123SCB (school enrolment), or section 123SCC (school
attendance), or section 123SCJ (recognised State/Territory authority
referrals) and
• either of subsection 123SCL(2) (new referrals) or 123SCL(3) (transfer
requests) applies.
This provides 2 alternate eligibility pathways to enhanced IM, that is, for new entrants
and people transferring from the IM regime.
Under the first eligibility pathway, subsection 123SCL(2) provides that a person can
become subject to the enhanced IM regime under section 123SCL(1) if they are an
eligible recipient of a category F welfare payment and are not subject to the IM regime
immediately before the test time. This facilitates the move to enhanced IM allowing
people to access the modern technology offered by the BasicsCard bank account and
SmartCard under Part 3AA.
Under the second eligibility pathway, subsection 123SCL(3) provides that a person is
subject to the enhanced IM regime under subsection 123SCL(1) if:
• at the test time, the person is an eligible recipient of category A
welfare payment; and
• a transfer notice given by the Secretary under subsection 123SIA(2)
(in response to a request by the person) is in force; and
• immediately before the transfer notice came into force, the person was
subject to the IM regime under section 123UCA.
This pathway will ensure that those who want to access the modern technology offered
by the BasicsCard bank account and SmartCard under Part 3AA can choose to do so.
A minor difference in payment categories between the 2 subsections (categories F
and A) will ensure that only individuals intended to be within the scope of the enhanced
IM regime are captured as new entrants, while all individuals presently subject to the
IM regime under the equivalent measure are able to transfer to enhanced IM if they
choose to do so.
Subsection 123SCL(4) provides that where a person is subject to the enhanced IM
regime under subsection 123SCL(1) and the person changes to their usual place of
residence to a place outside of a specified State, Territory or area, that person will
remain subject to the enhanced IM regime under the measures until one of the
following occurs:
• the Secretary's determination that the person is a vulnerable welfare
payment recipient ceases to be in force (for example, it is revoked or
expires)
• if the person has a Part 3B payment--that nominee is ceases to be subject
to the IM regime or the enhanced IM regime
• the person becomes subject to the enhanced IM regime under
section 123SC (Queensland Commission), 123SCA (child protection),
123SCB (school enrolment), 123SCC (school attendance) or
123SCJ(recognised State/Territory authority referrals)
• the person ceases to be an eligible recipient of a Category F welfare
payment
• the person ceases to be an eligible recipient of a Category A welfare
payment.
This means that a change in a person's usual place of residence will not, by itself,
result in the person ceasing to be subject to the enhanced IM regime. This is consistent
with the equivalent measure in Part 3B.
Subsection 123SCL(5) provides that the Minister may, by legislative instrument, make
a determination specifying a State, a Territory or an area for the purposes of paragraph
123SCK(1)(a) which relates to person's usual place of residence.
New section 123SM, titled 'Determination by Secretary--vulnerable welfare payment
recipient', sets out the circumstances in which the Secretary may determine that a
person is a vulnerable welfare payment recipient for the purpose of Part 3AA. This new
section is based on section 123UGA in Part 3B.
Relevantly, subsection 123SCM(1) provides that the Secretary may determine that a
person is a vulnerable welfare payment recipient for the purposes of Part 3AA.
Subsection 123SCM(2) provides that, in making such a determination, the Secretary
must comply with any decision-making principles determined, by legislative
instrument, under subsection 123SCM(12).
Subsection 123SCM(3) provides that a determination made by the Secretary under
subsection 123SCM(1) comes into force either on the day it was made or, alternatively,
if a later day is specified in the determination, on that later day. The determination
remains in force for 12 months or a shorter period as specified in the determination
unless the determination is revoked earlier.
Subsection 123SCM(4) confirms that subsection 123SCM(3) does not prevent the
Secretary from making a new determination under subsection 123SCM(1) where a
notice is, or has been, in force in relation to a person.
Subsection 123SCM(5) provides that the Secretary may, by writing, vary or revoke a
determination made under subsection 123SCM(1) on their own initiative or on request
by the person. Subsection 123SCM(6) provides that, in deciding whether to vary or
revoke a determination made under subsection 123SCM(1), the Secretary must
comply with any decision-making principles that have been determined, by legislative
instrument, under subsection 123SCM(12).
Subsection 123SCM(7) confirms that the Secretary's power to vary or revoke a
determination in subsection 123SCM(5) does not limit the application of
subsection 33(3) of the Acts Interpretation Act 1901 to other instruments under the
Administration Act. Subsection 123SGA(5) is equivalent to subsection 123UGA(7),
and is included to avoid doubt as to availability of the Secretary's powers to repeal,
rescind, revoke, amend or vary other instruments made under the Administration Act
under the general provisions of the Acts Interpretation Act.
Subsection 123SCM(8) provides that if a determination under subsection 123SCM(1)
is in force in relation to a person, the person may request the Secretary to reconsider
the person's circumstances and either vary or revoke the determination. This provision
operates subject to subsection 123SCM(9), which states a person cannot ask the
Secretary to reconsider their circumstances if they have made a request in relation to
the same determination within the last 90 days. Under subsection 123SCM(10),
the Secretary must reconsider a person's circumstances upon request by the person
unless the request contravenes the 90-day limit placed on subsequent requests.
Subsection 123SCM(11) confirms that a determination made under
subsection 123SCM(1) is not a legislative instrument. This provision is included to
assist the reader. It is declaratory of the law and conveys that a determination made
under this provision is not a legislative instrument within the meaning of
subsection 8(1) of the Legislation Act. Such determinations merely apply to a
particular person and do not determine or alter the content of the law.
Subsection 123SCM(12) provides that the Minister may determine decision-making
principles, by legislative instrument, for the purposes of subsections 123SCM(2)
and (6).
Subsection 123SCM(13) provides that, without limiting subsection 123SCM(12),
the decision-making principles may set out when the Secretary must make a
determination under subsection 123SCM(1) in relation to a person.
Enhanced income management--amendments to existing eligibility criteria
Disengaged youth and long term welfare payment recipients
Item 18 creates new 'Subdivision F--Disengaged youth and long-term welfare
payment recipients' in Division 2 of Part 3AA.
Items 19 and 20 omit references in subsection 123SD(1) to the phrase 'on or after
6 March 2023,' which is the first date on which people could enter the enhanced IM
regime. There is no need for this date to be retained because, from the
commencement of this Act, the enhanced IM regime will already be open to new
entrants and all past references to this date will become redundant. For this reason,
paragraph 123SD(1)(a) is repealed in full.
Item 21 inserts new paragraphs 123SD(1)(h) and (i) to include additional eligibility
criteria for the measure relating to persons who are long-term welfare payment
recipients or disengaged youth residing in the Northern Territory. The new criterion in
paragraph 123SD(1)(h) is that the person is not subject to the enhanced IM regime
under sections 123SC (Queensland Commission), 123SCA (child protection),
123SCB (school enrolment), 123SCC (school attendance), 123SCJ(referrals by a
recognised State/Territory authority) or 123SCL(vulnerable welfare payment
recipients). This prevents overlapping eligibility and allows individuals at risk due to
their circumstances to become subject to the enhanced IM regime under a more
appropriate measure.
New paragraph 123SD(1)(i) provides that either of subsections 123SD(1A) and (1B)
must apply to the person for them to be subject to the long-term welfare payment
recipients or disengaged youth measure whilst residing in the Northern Territory
(inserted by item 22). This provides 2 alternate eligibility pathways to enhanced IM,
that is, for new entrants and people transferring from the IM regime.
Item 22 inserts new paragraphs 123SD(1A) and (1AB) to provide the alternate
eligibility pathways set out in new paragraph 123SD(1)(i).
Under the first eligibility pathway, subsection 123SD(1A) provides that a person will
be subject to the enhanced IM regime under section 123SD(1) if they were not subject
to the IM regime immediately before the test time. This facilitates the move to
enhanced IM, allowing people to access the modern technology offered by the
BasicsCard bank account and SmartCard under Part 3AA.
Under the second eligibility pathway, subsection 123SD(1B) provides that a person is
subject to the enhanced IM regime under subsection 123SD(1) if:
• a transfer notice given by the Secretary under subsection 123SIA(2)
(in response to a request by the person) is in force; and
• immediately before the transfer notice came into force, the person was
subject to the IM regime under subsection 123UCB(1).
This pathway will ensure that those currently subject to IM who want to access the
modern technology offered by the BasicsCard bank account and SmartCard under
Part 3AA can choose to do so.
Items 23 and 24 consequentially amend existing paragraphs 123SD(2)(c) and (d).
This ensures that a person who is subject to the enhanced IM regime under
subsection 123SD(1) will cease to be subject to enhanced IM under the measure if
they become subject to the enhanced IM regime under sections 123SC (Queensland
Commission), 123SCA (child protection), 123SCB (school enrolment), 123SCC
(school attendance), 123SCJ(recognised State or Territory authority) or
123SCL(vulnerable welfare payment recipient). This will exclude overlapping eligibility
and allows individuals who are at risk due to their circumstances to become subject to
the enhanced IM regime under a more appropriate measure.
Item 25 inserts subsections 123SD(2A) and 123SD(2B) relating to Part 3B nominee
arrangements for persons subject to the Northern Territory disengaged youth
measure.
Subsection 123SD(2A) provides for circumstances where a person is not subject to
any form of income management, but their Part 3B payment nominee is. Specifically,
a person will be subject to the enhanced IM regime if:
• they are not subject to the enhanced IM regime under Part 3AA or the IM regime
under Part 3B; and
• they have a Part 3B payment nominee; and
• the Part 3B nominee is subject to the enhanced IM regime under subsection
123SD(1) or the IM regime under subsection 123UCB(1).
Subsection 123SD(2A) will operate in the same manner as the equivalent provision in
Part 3B but will provide for individuals who become eligible after the commencement
of section 123SD to enter the enhanced IM regime rather than the IM regime,
consistent with other amendments that close the IM regime to new entrants.
Subsection 123SD(2A) has been drafted to capture circumstances where a person
has an existing nominee arrangement and their nominee becomes subject to the
enhanced IM regime under subsection 123SD(1), as well as circumstances where a
person enters into a new nominee arrangement with a person who is already subject
to the IM regime under subsection 123UCB(1).
In each of these circumstances, the principal of the nominee arrangement would
become subject to the enhanced IM regime regardless of whether their nominee is
subject to that regime or the IM regime in Part 3B and they will remain subject to the
enhanced IM regime under this subsection until their nominee arrangement ends or
their nominee ceases to be subject to any form of income management. Individuals
who are subject to the IM regime under subsection 123UCB(1) are able to transfer to
the enhanced IM regime if they choose to do so.
Subsection 123SCB(2B) allows those people who are subject to the IM regime under
subsection 123UCB(2) due to their Part 3B payment nominee's status can choose to
move to the enhanced IM regime. That is, a person may transfer to the enhanced IM
regime independently of any choice made by their Part 3B payment nominee to remain
subject to IM. The person's choice may be exercised by making a request to the
Secretary and the Secretary giving the person a notice (a transfer notice) stating that
the person is eligible to transfer. The transfer notice must be in force at the transfer
time.
Items 26 and 27 omit references in subsection 123SD(3) to the phrase 'on or after
6 March 2023,' which is the first date on which people could enter the enhanced IM
regime. There is no need for this date to be retained because, from the
commencement of this Act, the enhanced IM regime will already be open to new
entrants and all past references to this date will become redundant. For this reason,
paragraph 123SD(3)(a) is repealed in full.
Item 28 inserts new paragraphs 123SD(3)(h) and (i) to include additional eligibility
criteria for the measure relating to persons who are long-term welfare payment
recipients residing in the Northern Territory.
The new criterion in paragraph 123SD(3)(h) is that the person is not subject to the
enhanced IM regime under sections 123SC (Queensland Commission), 123SCA
(child protection), 123SCB (school enrolment), 123SCC (school attendance), 123SCJ
(referrals by a recognised State/Territory authority) or 123SCL(vulnerable welfare
payment recipients). This prevents overlapping eligibility and allows individuals at risk
due to their circumstances to become subject to the enhanced IM regime under a more
appropriate measure.
New paragraph 123SD(3)(i) provides that either of subsections 123SD(5) and (6) must
apply to the person for them to be subject to the long-term welfare payment recipients
or disengaged youth measure whilst residing in the Northern Territory (inserted by item
31). This provides 2 alternate eligibility pathways to enhanced IM, that is, for new
entrants and people transferring from the IM regime.
Items 29 and 30 consequentially amend existing paragraphs 123SD(4)(c) and (d).
This ensures that a person who is subject to the enhanced IM regime under
subsection 123SD(3) will cease to be subject to enhanced IM under the measure if
they become subject to the enhanced IM regime under sections 123SC (Queensland
Commission), 123SCA (child protection), 123SCB (school enrolment), 123SCC
(school attendance), 123SCJ(recognised State or Territory authority) or
123SCL(vulnerable welfare payment recipient). This will exclude overlapping eligibility
and allows individuals who are at risk due to their circumstances to become subject to
the enhanced IM regime under a more appropriate measure.
Item 31 inserts subsections 123SD(5), 123SD(6), 123SD(7) and 123SD(8) relating to
Part 3B nominee arrangements for persons subject to the Northern Territory long-term
payment welfare recipients measure.
Subsections 123SD(5) and 123SD(6) provide the alternate eligibility pathways set out
in new paragraph 123SD(3)(i).
Under the first eligibility pathway, subsection 123SD(5) provides that a person will be
subject to the enhanced IM regime under section 123SD(3) if they were not subject to
the IM regime immediately before the test time. This facilitates the move to enhanced
IM, allowing people to access the modern technology offered by the BasicsCard bank
account and SmartCard under Part 3AA.
Under the second eligibility pathway, subsection 123SD(6) provides that a person is
subject to the enhanced IM regime under subsection 123SD(3) if:
• a transfer notice given by the Secretary under subsection 123SIA(2)
(in response to a request by the person) is in force; and
• immediately before the transfer notice came into force, the person was
subject to the IM regime under subsection 123UCC(1).
This pathway will ensure that those currently subject to IM who want to access the
modern technology offered by the BasicsCard bank account and SmartCard under
Part 3AA can choose to do so.
Subsection 123SD(7) provides for circumstances where a person is not subject to any
form of income management, but their Part 3B payment nominee is. Specifically, a
person will be subject to the enhanced IM regime if:
• they are not subject to the enhanced IM regime under Part 3AA or the IM regime
under Part 3B; and
• they have a Part 3B payment nominee; and
• the Part 3B nominee is subject to the enhanced IM regime under subsection
123SIA(2) or the IM regime under subsection 123UCC(1).
Subsection 123SD(7) will operate in the same manner as the equivalent provision in
Part 3B but will provide for individuals who become eligible after the commencement
of section 123SD(3) to enter the enhanced IM regime rather than the IM regime,
consistent with other amendments that close the IM regime to new entrants.
Subsection 123SD(7) has been drafted to capture circumstances where a person has
an existing nominee arrangement and their nominee becomes subject to the enhanced
IM regime under subsection 123SD(3), as well as circumstances where a person
enters into a new nominee arrangement with a person who is already subject to the
IM regime under subsection 123UCC(1).
In each of these circumstances, the principal of the nominee arrangement would
become subject to the enhanced IM regime regardless of whether their nominee is
subject to that regime or the IM regime in Part 3B and they will remain subject to the
enhanced IM regime under this subsection until their nominee arrangement ends or
their nominee ceases to be subject to any form of income management. Individuals
who are subject to the IM regime under subsection 123UCC(1) are able to transfer to
the enhanced IM regime if they choose to do so.
Subsection 123SD(8) allows those people who are subject to the IM regime under
subsection 123UCC(2) due to their Part 3B payment nominee's status can choose to
move to the enhanced IM regime. That is, a person may transfer to the enhanced IM
regime independently of any choice made by their Part 3B payment nominee to remain
subject to IM. The person's choice may be exercised by making a request to the
Secretary and the Secretary giving the person a notice (a transfer notice) stating that
the person is eligible to transfer. The transfer notice must be in force at the transfer
time.
Item 32 inserts new section 123SDA, which establishes a 'disengaged youth' and
'long-term welfare payment' recipients measures for persons residing in areas other
than the Northern Territory.
Disengaged youth
Under new subsection 123SDA(1), a person will be subject to the enhanced IM regime
under the disengaged youth measure if:
• at the test time, the person's usual place of residence is within a State, a
Territory or an area specified in an instrument made by the Minister under
subsection 123SDA(2) and
• at the test time, the person is an eligible recipient of a category C welfare
payment; and
• at the test time, the person is at least 15 years of age and under 25 years
of age; and
• at the test time, the person is not an exempt welfare payment recipient; and
• if, at the test time, the person has a Part 3B payment nominee--that
nominee is subject to the IM regime or the enhanced IM regime or is subject
to the income management regime (within the meaning of Part 3B); and
• the person was an eligible recipient of a category C welfare payment for at
least 13 weeks during the 26-week period ending immediately before the
test time; and
• at the test time, the person is not subject to the enhanced IM regime under
section 123SC (Queensland Commission), 123SCA (child protection),
123SCB (school enrolment), 123SCC (school attendance),
123SCJ(referrals by recognised State/Territory authority) or
123SCL(vulnerable welfare payment recipients).
The purpose of this last criteria is to prevent overlapping eligibility and allows
individuals who are at risk due to their circumstances to become subject to the
enhanced IM regime under a more appropriate measure.
Subsection 123SDA(2) enables the Minister to, by legislative instrument, make a
determination specifying a State, a Territory or an area for the purposes of paragraph
123SDA(1)(a).
Subsection 123SDA(3) provides that where a person is subject to the enhanced IM
regime under subsection 123SDA(1) and there is a change to their usual place of
residence to a place outside a specified State, a Territory or area, the person will
remain subject to the enhanced IM regime under the measures until the earlier of:
(a) the end of the period of 13 weeks beginning on the day that paragraph
123SDA(1)(a) ceased to apply to the person, that is, the day the person's
usual place of residence changed; and
(b) the time that any one of the following occurs:
(i) the person ceases to be an eligible recipient of a category C welfare
payment
(ii) the person reaches 25 years of age
(iii) the person becomes an exempt welfare payment recipient
(iv) the person becomes subject to the enhanced IM regime under section
123SC (Queensland Commission), 123SCA (child protection),
123SCB (school enrolment), 123SCC (school attendance),
123SCJ(recognised State or Territory authority) or
123SCL(vulnerable welfare payment recipients).
The purpose of this last criteria is to prevent overlapping eligibility and allows
individuals who are at risk due to their circumstances to become subject to the
enhanced IM regime under a more appropriate measure.
Subsection 123SDA(4) provides for circumstances where a person is not subject to
any form of income management, but their Part 3B payment nominee is. Specifically,
a person will be subject to the enhanced IM regime if:
• they are not subject to the enhanced IM regime under Part 3AA or the IM regime
under Part 3B; and
• they have a Part 3B payment nominee; and
• the Part 3B nominee is subject to the enhanced IM regime under subsection
123SIA(2) or the IM regime under subsection 123UCB(1).
Subsection 123SDA(4) will operate in the same manner as the equivalent provision in
Part 3B but will provide for individuals who become eligible after the commencement
of section 123SDA(4) to enter the enhanced IM regime rather than the IM regime,
consistent with other amendments that close the IM regime to new entrants.
Subsection 123SDA(4) has been drafted to capture circumstances where a person
has an existing nominee arrangement and their nominee becomes subject to the
enhanced IM regime under subsection 123SDA(1), as well as circumstances where a
person enters into a new nominee arrangement with a person who is already subject
to the IM regime under subsection 123UCB(1).
In each of these circumstances, the principal of the nominee arrangement would
become subject to the enhanced IM regime regardless of whether their nominee is
subject to that regime or the IM regime in Part 3B and they will remain subject to the
enhanced IM regime under this subsection until their nominee arrangement ends or
their nominee ceases to be subject to any form of income management. Individuals
who are subject to the IM regime under subsection 123UCB(1) are able to transfer to
the enhanced IM regime if they choose to do so.
Long-term welfare payment recipients
Under new subsection 123SDA(5), a person will be subject to the enhanced IM regime
under the disengaged youth measure if:
• at the test time, the person's usual place of residence is within a State, a
Territory or an area specified in an instrument made by the Minister under
subsection 123SDA(6) and
• at the test time, the person is an eligible recipient of a category C welfare
payment; and
• at the test time, the person is at least 25 years of age but has not yet
reached pension age and
• at the test time, the person is not an exempt welfare payment recipient; and
• if, at the test time, the person has a Part 3B payment nominee--that
nominee is subject to the IM regime or the enhanced IM regime and
• the person was an eligible recipient of a category C welfare payment for at
least 52 weeks during the 104-week period ending immediately before the
test time and
• at the test time, the person is not subject to the enhanced IM regime under
section 123SC (Queensland Commission), 123SCA (child protection), 123
SCAA (school enrolment), 123SCC (school attendance), 123SCJ(referrals
by recognised State/Territory authority) or 123SCL(vulnerable welfare
payment recipients) and
The purpose of this last criteria is to prevent overlapping eligibility and allows
individuals who are at risk due to their circumstances to become subject to the
enhanced IM regime under a more appropriate measure.
Subsection 123SDA(6) enables the Minister to, by legislative instrument, specify a
State, a Territory or an area for the purpose of paragraph 123SDA(5)(a).
Subsection 123SDA(7) provides that where a person is subject to the enhanced IM
regime under subsection 123SDA(5) and there is a change to their usual place of
residence to a place outside a specified State, a Territory or area, the person will
remain subject to the enhanced IM regime under the measures until the earlier of:
(a) the end of the period of 13 weeks beginning on the day that paragraph
123SDA(1)(a) ceased to apply to the person, that is, the day the person's
usual place of residence changed; and
(b) the time that any one of the following occurs:
(i) the person ceases to be an eligible recipient of a category C welfare
payment
(ii) the person's age is no longer between the age of 25 years and
pension age
(iii) the person becomes an exempt welfare payment recipient
(iv) the person becomes subject to the enhanced IM regime under section
123SC (Queensland Commission), 123SCA (child protection),
123SCB (school enrolment), 123SCC (school attendance),
123SCJ(recognised State or Territory authority) or
123SCL(vulnerable welfare payment recipients).
The purpose of this last criteria is to prevent overlapping eligibility and allows
individuals who are at risk due to their circumstances to become subject to the
enhanced IM regime under a more appropriate measure.
Subsection 123SDA(8) provides for circumstances where a person is not subject to
any form of income management, but their Part 3B payment nominee is. Specifically,
a person will be subject to the enhanced IM regime if:
• they are not subject to the enhanced IM regime under Part 3AA or the IM regime
under Part 3B; and
• they have a Part 3B payment nominee; and
• the Part 3B nominee is subject to the enhanced IM regime under subsection
123SIA(2) or the IM regime under subsection 123UCC(1).
Subsection 123SDA(8) will operate in the same manner as the equivalent provision in
Part 3B but will provide for individuals who become eligible after the commencement
of section 123SDA(5) to enter the enhanced IM regime rather than the IM regime,
consistent with other amendments that close the IM regime to new entrants.
Subsection 123SDA(8) has been drafted to capture circumstances where a person
has an existing nominee arrangement and their nominee becomes subject to the
enhanced IM regime under subsection 123SDA(5), as well as circumstances where a
person enters into a new nominee arrangement with a person who is already subject
to the IM regime under subsection 123UCC(1).
In each of these circumstances, the principal of the nominee arrangement would
become subject to the enhanced IM regime regardless of whether their nominee is
subject to that regime or the IM regime in Part 3B and they will remain subject to the
enhanced IM regime under this subsection until their nominee arrangement ends or
their nominee ceases to be subject to any form of income management. Individuals
who are subject to the IM regime under subsection 123UCC(1) are able to transfer to
the enhanced IM regime if they choose to do so.
Item 32 also inserts new sections 123SDB, 123SDC, 123SDD, 123SDE and 123SDF
which state when the Secretary may, by writing, determine that a person is an 'exempt
welfare payment recipient'. These sections are relevant to the disengaged youth and
long-term welfare payment recipient measures in Part 3AA, and mirror equivalent
provisions in Subdivision BB of Division 2 of Part 3B.
New section 123SDB is based on section 123UGB. Subsection 123SDB(1) provides
that the Secretary may determine, in writing, that a person is an exempt welfare
payment recipient if the Secretary is satisfied that the person is included in a class of
persons specified in an instrument made by the Minister under subsection 123SDB(2).
Subsection 123SDB(2) empowers the Minister to, by legislative instrument, make a
determination specifying a class of persons for the purposes of this section.
Subsection 123SDB(3) states that a determination made under this subsection
123SDB(1) is not a legislative instrument. This provision is included to assist the
reader. It is declaratory of the law and conveys that a determination made under this
provision is not a legislative instrument within the meaning of subsection 8(1) of the
Legislation Act. Such determinations merely apply to a particular person and do not
determine or alter the content of the law.
New section 123SDC is equivalent to section 123UGC in Part 3B. It provides for
circumstances in which a person who is not the principal carer of a child may be an
'exempt welfare payment recipient'. Specifically, subsection 123SDC(1) provides that
the Secretary may determine, in writing, that a person is an exempt welfare payment
if:
(a) the person is not the principal carer of a child who is a school-age child or
younger and
(b) the Secretary is satisfied that one of the following applies:
(i) the person is a full-time student or a new apprentice
(ii) within at least 4 of the last 6 fortnights, the person has received less
than 25% of:
o the maximum basic rate of an eligible payment (being youth
allowance, jobseeker payment, pension PP (single) or benefit
(PP) partnered) (other than because a compliance penalty
period applied to the person) or
o the equivalent rate of special benefit (other than because a
compliance penalty period applied to the person);
(iii) the person is undertaking an activity specified by the Minister in an
instrument made under subsection 123SDC(2).
Subsection 123SDC(2) empowers the Minister to make, by legislative instrument,
a determination specifying activities for persons for the purpose of paragraph
123SDC(1)(b)(iv).
Subsection 123SDC(3) notes that a determination made under this section is not a
legislative instrument. This provision is included to assist the reader. It is declaratory
of the law and conveys that a determination made under this provision is not a
legislative instrument within the meaning of subsection 8(1) of the Legislation Act.
Such determinations merely apply to a particular person and do not determine or alter
the content of the law.
New section 123SDD is equivalent to existing section 123UGD. This new section
establishes the circumstances in which the Secretary may determine that a person
who is the principal carer of a child is an 'exempt welfare payment recipient'.
Specifically, subsection 123SDD(1) provides that the Secretary may, in writing,
determine a person is an exempt welfare payment recipient if:
(a) the person is the principal carer of a child who is a school age child or
younger and
(b) in relation to each child who is a school age child--the Secretary is
satisfied that:
(i) the child is enrolled in school and, in each of the last two terms, has
had no more than 5 absences for reasons that are not satisfactory to
a person responsible for the operation of the school;
(ii) the child has had more than 5 absences, in each of the last two terms,
that are not satisfactory to a person responsible for the operation of
the school, but the person is taking reasonable steps to ensure
attendance at school as required by law;
(iii) the child is covered by a schooling arrangement (for example, the
child is home-schooled) and the child's schooling is progressing
satisfactorily; or
(iv) the child is participating in an activity specified in an instrument made
by the Minister under subsection (2); and
(c) in relation to each other (non-school age) child--the Secretary is satisfied
that the person or the child is participating in the required number and kind
of activities specified by the Minister in a legislative instrument made under
subsection 123SDD(3); and
(d) the Secretary is satisfied that there are no indications of financial
vulnerability in relation to the person during the last 12-month period.
Subsection 123SDD(2) provides that the Minister may, by legislative instrument, make
a determination specifying activities for school age children for the purpose of
subparagraph(1)(b)(iv).
Subsection 123SDD(3) provides that the Minister must, by legislative instrument,
make a determination specifying the number and kind of activities for a person, or the
person's non-school age child for the purpose of paragraph 123SDD(1)(c).
Subsection 123SDD(4) provides that the activities specified in the determination made
for this purpose may relate to a child's intellectual, physical or social development.
Subsection 123SDD(5) provides that, the Secretary must comply with any decision-
making principles determined under subsection 123SDD(6) in deciding whether the
Secretary is satisfied that there are no indications of financial vulnerability.
Subsection 123SDD(6) empowers the Minister to determine decision-making
principles, by legislative instrument, for the purposes of subsection 123SDD(5).
Subsection 123SDD(7) states that a determination made under subsection
123SDD(1) is not a legislative instrument. This provision is included to assist the
reader. It is declaratory of the law and conveys that a determination made under this
provision is not a legislative instrument within the meaning of subsection 8(1) of the
Legislation Act. Such determinations merely apply to a particular person and do not
determine or alter the content of the law.
Subsection 123SDD(8) provides a definition for the term 'person responsible',
in relation to the operation of a school, stating that it has the same meaning as in
Part 3C of the Administration Act.
This definition is set out in section 124A of Part 3C, which defines a 'person
responsible', for the operation of a school, to include:
(aa) a person included in a class of persons specified in an instrument under
subsection 124A(2); and
(a) a person responsible for schooling (or for the administration of schooling)
at a place, other than a school, to which the definition
of attendance applies; and
(b) a person responsible for schooling (or for the administration of schooling)
in relation to which alternative enrolment of a kind mentioned in the
definition of enrolment applies.
For completeness, the terms 'attendance' and 'enrolment' are defined in identical
terms in section 124A for the purposes of that section and Part 3C.
New section 123SDE is equivalent to section 123UGF in Part 3B, both defining the
term 'full-time student'. New section 123SDF defines the term for the purpose of
Part 3AA to be a 'full-time student' as a person who is an eligible recipient of youth
allowance and who is undertaking full time study (as defined by section 541B of the
Social Security Act).
New section 123SDF is equivalent to section 123UGG in Part 3B, both defining the
term 'school-age child'. New section 123SDF defines the term for the purpose of
Part 3AA. Specifically, subsection 123SDF(1) provides that a child is a 'school age
child' if the child is required, under a law of a State or Territory, to be enrolled at a
school or to attend a school at times required under that law.
Subsection 123SDF(2) provides the following definitions for the purpose of
section 123SDF:
• attendance, at a school, includes attendance at a place, for the purpose of
schooling, that is acceptable under a law of a State or Territory as an
alternative to a requirement under that law to attend a school.
• enrolment, at a school, includes anything, for the purposes of schooling,
that is acceptable under a law of a State or Territory as an alternative to a
requirement under that law to enrol at a school.
These terms mirror the same terms used in Part 3C of the Administration Act
(as defined in section 124A).
Expansion of voluntary enhanced income management
Item 32 also inserts a new heading 'Subdivision F--Volunteers' after section 123SDF
creating a new subdivision for voluntary enhanced income management. The new
subdivision contains sections 123SE, 123SF, 123SG, and 123SH.
Item 33 removes from subsection 123SE(1) the requirement for transferring
volunteers to meet eligibility criteria 'on or after 6 March 2023', being the date on which
the enhanced IM regime commenced. There is no need for this date to be retained
because, by the commencement of this Bill, all past references to this date will become
redundant.
Item 34 inserts new subsection 123SE(7), which provides that a person will cease to
be subject to the enhanced IM regime as a volunteer under paragraph 123SE(1)(b)
if they become subject to the regime under section 123SC (Queensland Commission),
123SCA (child protection), 123SCB (school enrolment), 123SCC (school attendance)
123SCJ(recognised State/Territory referrals), 123SCL(vulnerable welfare payment
recipients), 123SDor 123SDA (disengaged youth or long-term welfare payment
recipients).
This prevents overlapping eligibility and allows individuals who are at risk due to their
circumstances to become subject to the enhanced IM regime under a more
appropriate measure.
Item 35 amends paragraph 123SF(3)(a) to change the payment category applicable
to volunteers from a 'category F welfare payment' to 'category A welfare payment'.
This ensures that all volunteers who would like to move from the IM regime to the
enhanced IM regime can enter into a voluntary enhanced IM agreement.
Item 36 amends paragraph 123SF(3)(b) to extend the eligibility criteria for individuals
who seek to volunteer for the enhanced IM regime to usually reside within a 'voluntary
enhanced income management area (see item 38 for this term).
Item 37 inserts new paragraph (aa) into subsection 123SF(4).
New paragraph 123SF(4)(aa) will prevent the Secretary from entering into a voluntary
enhanced IM agreement with a person who is already subject to the enhanced IM
regime under another enhanced IM measure. This complements other amendments
made by the Bill to prevent overlapping eligibility and allows individuals at risk due to
their circumstances to become subject to the enhanced IM regime under a more
appropriate measure.
Item 38 inserts new subsection 123SF(5) to allow the Minister to determine,
by legislative instrument, that a specified State, Territory or area is a voluntary
enhanced IM area for the purpose of Part 3AA.
Item 39 consequentially amends subparagraph 123SG(1)(a)(i), relating to volunteers,
to change the words 'category F welfare payment' to 'category A welfare payment'.
Item 40 amends subparagraph 123SG(1)(a)(ii) to extend the eligibility criteria for
individuals who seek to volunteer for the enhanced IM regime to usually reside within
a 'voluntary enhanced income management area.' The Minister may specify these
areas by legislative instrument made under subsection 123SF(5) (see item 38 above).
The Minister intends to specify only existing voluntary IM areas at this time.
Item 41 inserts new subparagraph 123SG(1)(a)(iiia) consequential to the addition of
a new eligibility criterion in subsection 123SE(7). Section 123SG determines the
duration of a voluntary enhanced income management agreement, including the time
that the agreement comes into force.
The new subparagraph provides that an agreement in relation to a person will not
come into force if the person is already subject to the enhanced IM regime under
another provision, specifically, sections 123SC (Queensland Commission), 123SCA
(child protection), 123SCB (school enrolment), 123SCC (school attendance),
123SCJ(State/Territory referral), 123SCL(vulnerable welfare payment recipient),
123SD,123SDA (disengaged youth or long-term welfare payment recipients) or
paragraph 123SE(1)(b) (volunteers).
This will exclude overlapping eligibility and allows individuals who are at risk due to
their circumstances to become subject to the enhanced IM regime under the more
appropriate measure.
Items 42, 43 and 44 amend subsection 123SH(4), which establishes grounds for
terminating a person's voluntary enhanced income management agreement.
The purpose of these amendments is to ensure a person's enhanced income
management agreement will be terminated when they become subject to
the enhanced IM regime under another provision (specifically, section 123SC
(Queensland Commission), 123SCA (child protection), 123SCB (school enrolment),
123SCC (school attendance), 123SCJ(State/Territory referral), 123SCL(vulnerable
welfare recipient), 123SD or 123SDA (disengaged youth or long-term welfare payment
recipient).
This prevents overlapping eligibility and allows individuals at risk due to their
circumstances to become subject to the enhanced IM regime under a more
appropriate measure.
Item 43 amends the subparagraph 123SH(4)(b)(i) to omit the phrase 'category F
welfare payment' and substitute it with 'category A welfare payment'.
Relationship with other provisions
Item 45 inserts a new heading 'Subdivision G--Relationship with other provisions'
before section 123SI in Division 2 of Part 3AA.
Items 46 and 47 amend existing section 123SI to make clear the relationship between
voluntary enhanced IM and the other enhanced IM measures.
Item 46 retains the existing text of section 123SI but converts it into a new subsection
123SI(1) while item 47 inserts new subsection 123SI(2).
Subsection 123SI(1) will provide that a person who is subject to the enhanced IM
regime cannot be subject to the income management regime under Part 3B.
New subsection 123SI(2) provides that a person who was a CDC program participant
in the Northern Territory (that is, under section 124PGE) before 1 October 2022 and
who exited the CDC program on or after that date due to their mental, physical or
emotional wellbeing (section 124PHA) or because the Secretary was satisfied that
person could responsibly manage their affairs (section 124PHB), cannot become
subject to the enhanced IM regime under section 123SCB (school enrolment),
123SCC (school attendance), 123SCJ(recognised State/Territory authority referrals),
123SCL (vulnerable welfare payment recipients), 123SD,or 123SDA (disengaged
youth and long-term welfare payment recipients).
Item 48 inserts new section 123SIA in Division 2 of Part 3AA relating to requests by
certain persons subject to the IM regime under Part 3B to allow them to transfer to the
enhanced IM regime under Part 3AA.
New subsection 123SIA(1) provides that a person who is subject to the IM regime
under section 123UC (child protection), 123UCA (vulnerable welfare payment
recipients), 123UCB (disengaged youth), 123UCC (long-term welfare payment
recipients) or 123UFAA (other State/Territory referrals) under Part 3B can make a
request to the Secretary to transfer to the enhanced IM regime. Such transfers will
enable eligible people to access the more modern BasicsCard bank account and
SmartCard under the enhanced IM regime. A request to transfer cannot be withdrawn
or revoked.
Subsection 123SIA(2) provides that if a person makes a transfer request under
subsections 123SIA(1), the Secretary must give the person a written notice stating
that they are eligible to transfer to the enhanced IM regime. Under subsection
123SIA(3), the notice comes into force on a day specified in the notice (which must be
no later than 28 days after the request was made).
Subsection 123SIA(4) provides that a transfer notice ceases to be in force immediately
after a person first ceases to be subject to the enhanced IM regime. While a person
may re-enter the enhanced IM regime at a later date, they cannot later become subject
to the IM regime (due, in part, to amendments to section 123UP made by item 74).
Subsection 123SIA(5) states that a notice given under this section is not a legislative
instrument. This provision is included to assist the reader. It is declaratory of the law
and conveys that a determination made under this provision is not a legislative
instrument within the meaning of subsection 8(1) of the Legislation Act.
Such determinations merely apply to a particular person and do not determine or alter
the content of the law.
Portioning of welfare payments--enhanced income management regime
Item 49 repeals the heading of Division 3 of Part 3AA and substitutes it with a new
heading: 'Division 3--Portioning of welfare payments' to more appropriately reflect the
content of this division. Division 3 deals with portioning of welfare payments between
a BasicsCard bank account and another bank account held by a person for
discretionary spending purposes.
Item 50 amends section 123SL to make it clear that this provision applies only to
individuals who are subject to the enhanced IM regime under section 123SC
(Queensland Commission). This change is needed for clarity only. It has been
included to exclude new enhanced IM measures established by this Bill, which can
also be triggered by the person receiving a category B welfare payment.
Item 51 inserts new Subdivisions AA, AB and AC into Division 3 of Part 3AA. The new
subdivisions contain welfare splitting percentages into a 'qualified portion' and an
'unqualified portion' for the purposes of accessing welfare payments through a
BasicsCard bank account or the person's discretionary account (as the case requires).
Persons subject to the enhanced income management regime--child protection
New 'Subdivision AA--Persons subject to the enhanced income management
regime--child protection' contains new sections 123SLA, 123SLB and 123SLC.
New section 123SLA provides for the percentages of a person's welfare payment that
are the 'qualified portion' and the 'unqualified portion' for an instalment of a category B
welfare payment that is payable to a person subject to the enhanced IM regime under
new section 123SCA (child protection). Specifically:
• the percentage of the gross amount of the payment that is the qualified
portion is 100%, unless a another percentage is determined by the Minister
under subsection 123SLA(2) which supports tailoring to support needs of
different eligible groups' circumstances; and
• the percentage of the gross amount of the payment that is the unqualified
portion is the percentage that is equal to 100% minus the percentage
applicable above.
There is a note at the end of subsection 123SLA(1) to inform the reader that these
percentages may be varied under subsection 123SLA(7).
Subsection 123SLA(2) provides that the Minister may, by legislative instrument,
determine a percentage that is the qualified portion of a payment received by
instalment for the purposes of subparagraph 123SLA(1)(a)(ii).
Subsection 123SLA(3) confirms that an instrument made under subsection 123SLA(2)
may determine different percentages in relation to different kinds of category B welfare
payments. This provides flexibility in how instalments of individual payment types may
be disbursed to people subject to the child protection measure.
Subsection 123SLA(4) provides that if category B welfare payment is payable,
otherwise than by instalments (that is, as a lump sum), to a person who is subject to
enhanced IM under section 123SCA:
• the percentage of the gross amount of the payment that is the qualified
portion is 100%, unless a lower percentage is determined by the Minister
under subsection (5); and
• the percentage of the gross amount of the payment that is the unqualified
portion is the percentage that is equal to 100% minus the percentage
applicable above.
There is a note at the end of subsection 123SLA(4) to inform the reader that these
percentages may be varied under subsection 123SLA(7).
Subsection 123SLA(5) provides that the Minister may, by legislative instrument,
determine a percentage that is the qualified portion of a payment received other than
by instalments (that is, as a lump sum) for the purposes of subparagraph
123SLA(4)(a)(ii).
Subsection 123SLA(6) confirms that an instrument made under subsection 123SLA(5)
may determine different percentages in relation to different kinds of category B welfare
payments. This provides flexibility in how lump sum payments of individual payment
types may be disbursed to people subject to the child protection measure.
Subsection 123SLA(7) allows the Secretary to determine, in the limited circumstances
specified in subsection 123SLA(8), that the qualified portion of a category B welfare
payment payable to a person subject to the enhanced IM regime is 0% and the
unqualified portion is 100%. This applies whether the amount is paid by instalment or
by lump sum.
Subsection 123SLA(8) provides that the Secretary may make a determination under
subsection 123SLA(7) only if:
(a) the Secretary is satisfied that the person is unable to use the person's debit
card that was issued to the person and that is attached to the person's
BasicsCard bank account, or is unable to access that account, as a direct
result of:
(i) a technological fault or malfunction with that card or account; or
(ii) a natural disaster; or
(iii) if a national emergency declaration (within the meaning of the National
Emergency Declaration Act 2020) is in force--an emergency to which
the declaration relates; or
(b) the person's category B welfare payment is payable in instalments and the
Secretary is satisfied that any part of the payment is payable:
(i) at a time determined under subsection 43(2), where that
determination is made because the person is in severe financial
hardship as a result of exceptional and unforeseen circumstances; or
(ii) under a determination under subsection 51(1) relating to advance
payments in cases of severe financial hardship.
The circumstances specified in subsection 123SLA(8) are deliberately narrow and
reflect the fact that, in emergency situations, direct payments may need to be made to
individuals in a different way that does not involve the use of their BasicsCard bank
account. It is not possible to list all circumstances in which this need might arise,
although major floods, bush fires and domestic violence situations provide reasonable
examples of how this power might come to be used.
Subsection 123SLA(9) provides that a determination under subsection 123SLA(7)
takes effect on the day specified in the determination and must not be earlier than the
day on which the determination is made.
Subsection 123SLA(10) states that a determination made under
subsection 123SLA(7) is not a legislative instrument. This provision is included to
assist the reader. It is declaratory of the law and conveys that a determination made
under this provision is not a legislative instrument within the meaning of subsection
8(1) of the Legislation Act. Such determinations merely apply to a particular person
and do not determine or alter the content of the law.
Payment of the balance of qualified portion of category B welfare payment
New section 123SLB provides where a category B welfare payment is payable to a
person subject to the enhanced IM regime under section 123SCA, the Secretary must
pay the 'balance of the qualified portion' of the payment to the credit of a BasicsCard
bank account maintained by the recipient. See item 3 for the definition of the term
'balance of the qualified portion'. The requirements for a BasicsCard bank account are
established by legislative instrument made under section 123SU.
Recipient's use of funds from category B welfare payment
New section 123SLC provides that the balance of the qualified portion of a person's
category B welfare payment may be used to purchase goods and services other than
excluded goods, excluded services or a cash-like product that could be used to obtain
excluded goods or excluded services.
The terms 'excluded goods' and 'excluded services' are defined in section 123SB to
have the same meaning as in Part 3B. Excluded goods are alcoholic beverages,
tobacco products, pornographic material and goods specified in a legislative
instrument made by the Minister. Excluded services are gambling or a service
specified in a legislative instrument made by the Minister.
The unqualified portion paid to the person may be used at the person's discretion.
This ensures that people who are subject to the enhanced IM regime have
discretionary access to cash for any purpose they choose.
Persons subject to the enhanced income management regime--school enrolment and
attendance
New 'Subdivision AB--Persons subject to the enhanced income management
regime--school enrolment and attendance' contains new sections 123SLD, 123SLE
and 123SLF.
New section 123SLA provides for the percentages of a person's welfare payment that
are the 'qualified portion' and the 'unqualified portion' for an instalment of a category B
welfare payment that is payable to a person subject to the enhanced IM regime under
new section 123SCB (school enrolment) or 123SCC (school attendance). Specifically:
• the percentage of the gross amount of the payment that is the qualified
portion is 100%, unless a another percentage is determined by the Minister
under subsection 123SLD(2) which supports tailoring to support needs of
different eligible groups' circumstances; and
• the percentage of the gross amount of the payment that is the unqualified
portion is the percentage that is equal to 100% minus the percentage
applicable above.
There is a note at the end of subsection 123SLD(1) to inform the reader that these
percentages may be varied under subsection 123SLD(7).
The percentage for the qualified portion is consistent with the equivalent IM measures
in Part 3B (section 123XK).
Subsection 123SLD(2) provides that the Minister may, by legislative instrument,
determine a percentage that is the qualified portion of a payment received by
instalment for the purposes of subparagraph 123SLD(1)(a)(ii).
Subsection 123SLD(3) confirms that an instrument made under subsection 123SLD(2)
may determine different percentages in relation to different kinds of category B welfare
payments. This provides flexibility in how instalments of individual payment types may
be disbursed to people subject to the child protection measure.
Subsection 123SLD(4) provides that if category B welfare payment is payable,
otherwise than by instalments (that is, as a lump sum), to a person who is subject to
enhanced IM under section 123SCB or 123SCC:
• the percentage of the gross amount of the payment that is the qualified
portion is 100%, unless a lower percentage is determined by the Minister
under subsection (5); and
• the percentage of the gross amount of the payment that is the unqualified
portion is the percentage that is equal to 100% minus the percentage
applicable above.
There is a note at the end of subsection 123SLD(4) to inform the reader that these
percentages may be varied under subsection 123SLD(7).
Subsection 123SLD(5) provides that the Minister may, by legislative instrument,
determine a percentage that is the qualified portion of a payment received other than
by instalments (that is, as a lump sum) for the purposes of subparagraph
123SLD(4)(a)(ii).
Subsection 123SLD(6) confirms that an instrument made under subsection 123SLD(5)
may determine different percentages in relation to different kinds of category B welfare
payments. This provides flexibility in how lump sum payments of individual payment
types may be disbursed to people subject to the school enrolment and school
attendance measures.
Subsection 123SLD(7) allows the Secretary to determine, in the limited circumstances
specified in subsection 123SLD(8), that the qualified portion of a category B welfare
payment payable to a person subject to the enhanced IM regime is 0% and the
unqualified portion is 100%. This applies whether the amount is paid by instalment or
by lump sum.
Subsection 123SLD(8) provides that the Secretary may make a determination under
subsection 123SLD(7) only if:
(a) the Secretary is satisfied that the person is unable to use the person's debit
card that was issued to the person and that is attached to the person's
BasicsCard bank account, or is unable to access that account, as a direct
result of:
(iv) a technological fault or malfunction with that card or account; or
(v) a natural disaster; or
(vi) if a national emergency declaration (within the meaning of the National
Emergency Declaration Act 2020) is in force--an emergency to which
the declaration relates; or
(b) the person's category B welfare payment is payable in instalments and the
Secretary is satisfied that any part of the payment is payable:
(iii) at a time determined under subsection 43(2), where that
determination is made because the person is in severe financial
hardship as a result of exceptional and unforeseen circumstances; or
(iv) under a determination under subsection 51(1) relating to advance
payments in cases of severe financial hardship.
The circumstances specified in subsection 123SLD(8) are deliberately narrow and
reflect the fact that, in emergency situations, direct payments may need to be made to
individuals in a different way that does not involve the use of their BasicsCard bank
account. It is not possible to list all circumstances in which this need might arise,
although major floods, bush fires and domestic violence situations provide reasonable
examples of how this power might come to be used.
Subsection 123SLD(9) provides that a determination under subsection 123SLD(7)
takes effect on the day specified in the determination and must not be earlier than the
day on which the determination is made.
Subsection 123SLD(10) states that a determination made under
subsection 123SLD(7) is not a legislative instrument. This provision is included to
assist the reader. It is declaratory of the law and conveys that a determination made
under this provision is not a legislative instrument within the meaning of subsection
8(1) of the Legislation Act. Such determinations merely apply to a particular person
and do not determine or alter the content of the law.
Payment of the balance of qualified portion of category B welfare payment
New section 123SLEprovides where a category B welfare payment is payable to a
person subject to the enhanced IM regime under sections 123SCB (school enrolment)
and 123SCC (school attendance), the Secretary must pay the 'balance of the qualified
portion' of the payment to the credit of a BasicsCard bank account maintained by the
recipient. See item 3 for the definition of the term 'balance of the qualified portion'. The
requirements for a BasicsCard bank account are established by legislative instrument
made under section 123SU.
Recipient's use of funds from category B welfare payment
New section 123SLFprovides that the balance of the qualified portion of a person's
category B welfare payment may be used to purchase goods and services other than
excluded goods, excluded services or a cash-like product that could be used to obtain
excluded goods or excluded services.
The terms 'excluded goods' and 'excluded services' are defined in section 123SB to
have the same meaning as in Part 3B. Excluded goods are alcoholic beverages,
tobacco products, pornographic material and goods specified in a legislative
instrument made by the Minister. Excluded services are gambling or a service
specified in a legislative instrument made by the Minister.
The unqualified portion paid to the person may be used at the person's discretion.
This ensures that people who are subject to the enhanced IM regime have
discretionary access to cash for any purpose they choose.
Persons subject to the enhanced income management regime--referrals by
recognised State/Territory authority
New 'Subdivision AC--Persons subject to the enhanced income management
regime--referrals by recognised State/Territory authority' is inserted in Division 3 of
Part 3AA and consists of new sections 123SLG, 123SLH, and 123SLI.
New section 123SLGprovides for the percentages of a person's welfare payment that
are the qualified portion and the unqualified portion where an instalment of a category
B welfare payment is payable to a person who is subject to the enhanced IM regime
under new section 123SCJ (referrals from a recognised State or Territory authority).
New subsection 123SLG(1) provides that if an instalment of a category B welfare
payment is payable to a person who is subject to the enhanced IM regime under
section 123SCA:
• the percentage of the gross amount of the payment that is the qualified
portion is 70% unless a lower percentage is determined by the Minister
under subsection (2); and
• the percentage of the gross amount of the payment that is the unqualified
portion is the percentage that is equal to 100% minus the percentage
applicable above.
There is a note at the end of subsection 123SLG(1) to inform the reader that these
percentages may be varied under subsection 123SLG(7).
Subsection 123SLG(2) provides that the Minister may, by legislative instrument,
determine a percentage that is the a qualified portion of a payment received by
instalments for the purposes of subparagraph 123SLG(1)(a)(ii).
Subsection 123SLG(3) confirms that an instrument made under
subsection 123SLG(2) may determine different percentages depending on one or
more of the following:
• the different kinds of category B welfare payments payable to persons
subject to the enhanced IM regime under section 123SCJ;
• the usual place of residence of those persons;
• the recognised State/Territory authority.
This provides flexibility in the way that payments by instalment may be disbursed to
people subject to a referral by a recognised State or Territory authority according to a
range of factors that affect them.
Subsection 123SLG(4) provides that if category B welfare payment is payable,
otherwise than by instalments (that is, as a lump sum), to a person who is subject to
enhanced IM under section 123SCA:
• the percentage of the gross amount of the payment that is the qualified
portion is 100%, unless a lower percentage is determined by the Minister
under subsection (5); and
• the percentage of the gross amount of the payment that is unqualified
portion, is the percentage that is equal to 100% minus the percentage
applicable above.
There is a note at the end of subsection 123SLA(4) to inform the reader that these
percentages may be varied under subsection 123SLA(7).
Subsection 123SLG(5) provides that the Minister may, by legislative instrument,
determine a percentage that is the a qualified portion of a payment received other than
by instalments (that is, as a lump sum) for the purposes of subparagraph
123SLG(4)(a)(ii).
Subsection 123SLG(6) then provides that an instrument made under subsection
123SLG(5) may determine different percentages depending on one or more of the
following:
• the different kinds of category B welfare payments payable to persons
subject to the enhanced IM regime under section 123SCJ;
• the usual place of residence of those persons;
• the recognised State/Territory authority.
This clarifies that an instrument made under subsection 123SLG(5) may determine
different percentages in relation to different kinds of category B welfare payments,
different places of residence and different State or Territory authorities. This provides
flexibility in how lump sum payments may be disbursed to people subject to a referral
by a recognised State or Territory authority according to a range of factors that affect
them.
Subsection 123SLG(7) allows the Secretary to determine, in the limited circumstances
specified in subsection 123SLD(8), that the qualified portion of a category B welfare
payment payable to a person subject to the enhanced IM regime is 0% and the
unqualified portion is 100%. This applies whether the amount is paid by instalment or
by lump sum.
The circumstances specified in subsection 123SLG(8) are that:
(a) the Secretary is satisfied that the person is unable to use the person's debit
card that was issued to the person and that is attached to the person's
BasicsCard bank account, or is unable to access that account, as a direct
result of:
(i) a technological fault or malfunction with that card or account; or
(ii) a natural disaster; or
(iii) if a national emergency declaration (within the meaning of the National
Emergency Declaration Act 2020) is in force--an emergency to which
the declaration relates; or
(b) the person's category B welfare payment is payable in instalments and the
Secretary is satisfied that any part of the payment is payable:
(i) at a time determined under subsection 43(2), where that determination
is made because the person is in severe financial hardship as a result of
exceptional and unforeseen circumstances; or
(ii) under a determination under subsection 51(1) relating to advance
payments in cases of severe financial hardship.
These circumstances specified in subsection 123SLG(8) are deliberately narrow and
reflect the fact that, in emergency situations, direct payments may need to be made to
individuals in a different way that does not involve the use of their BasicsCard bank
account. It is not possible to list all circumstances in which this need might arise,
although major floods, bush fires and domestic violence situations are examples of
how this power may be used.
Subsection 123SLG(9) provides that a determination under subsection 123SLG(7)
takes effect on the day specified in the determination and must not be earlier than the
day on which the determination is made.
Subsection 123SLG(10) provides that a determination made under subsection
123SLG(7) is not a legislative instrument. This provision is included to assist the
reader. It is declaratory of the law and conveys that the determination is not a
legislative instrument within the meaning of subsection 8(1) of the Legislation Act.
Such determinations merely apply to a particular person and do not determine or alter
the content of the law.
Payment of the balance of qualified portion of category B welfare payment
New section 123SLHprovides where a category B welfare payment is payable to a
person subject to the enhanced IM regime under section 123SCJ, the Secretary must
pay the 'balance of the qualified portion' of the payment to the credit of a BasicsCard
bank account maintained by the recipient. See item 3 for the definition of the term
'balance of the qualified portion'. The requirements for a BasicsCard bank account are
established by legislative instrument made under section 123SU.
Recipient's use of funds from category B welfare payment
New section 123SLI provides that the balance of the qualified portion of a person's
category B welfare payment may be used to purchase goods and services other than
excluded goods, excluded services or a cash-like product that could be used to obtain
excluded goods or excluded services.
The terms 'excluded goods' and 'excluded services' are defined in section 123SB to
have the same meaning as in Part 3B. Excluded goods are alcoholic beverages,
tobacco products, pornographic material and goods specified in a legislative
instrument made by the Minister. Excluded services are gambling or a service
specified in a legislative instrument made by the Minister.
The unqualified portion paid to the person may be used at the person's discretion.
This ensures that individuals subject to the enhanced IM regime will receive
discretionary amounts that are available for any purpose they choose.
Persons subject to the enhanced income management regime--vulnerable welfare
payment recipients
New 'Subdivision AD--Persons subject to the enhanced income management
regime--vulnerable welfare payment recipients' in Division 3 of Part 3AA consists of
new sections 123SLJ, 123SLK and 123SLL.
New section 123SLJprovides for the percentages of a person's welfare payment that
are the qualified portion and the unqualified portion where an instalment of a relevant
payment is payable to a person who is subject to enhanced IM under new section
123SCL (vulnerable welfare payment recipients).
New subsection 123SLJ(1) provides that if an instalment of a 'relevant payment'
(as defined in section 123SB per item 10) is payable to a person who is subject to the
enhanced IM regime under new section 123SCL:
• the percentage of the gross amount of the payment that is the qualified
portion is 50%, unless a lower percentage is determined by the Minister
under subsection (2); and
• the percentage of the gross amount of the payment that is the unqualified
portion is the percentage that is equal to 100% minus the percentage
applicable above.
There is a note at the end of subsection 123SLJ(1) to inform the reader that these
percentages may be varied under subsection 123SLJ(7).
Subsection 123SLJ(2) provides that the Minister may, by legislative instrument,
determine a percentage that is the qualified portion of a payment received by
instalments for the purposes of subparagraph 123SLJ(1)(a)(ii).
Subsection 123SLJ(3) confirms that an instrument made under subsection (2) may
determine different percentages in relation to different kinds of relevant payments.
This provides flexibility for how instalments of individual payment types may be
disbursed to people subject to the vulnerable welfare payment recipients measure.
Subsection 123SLJ(4) provides that if relevant payment is payable, otherwise than by
instalments (that is, as a lump sum), to a person who is subject to enhanced IM under
section 123SCL:
• the percentage of the gross amount of the payment that is the qualified
portion is 100%, unless a lower percentage is determined by the Minister
under subsection (5); and
• the percentage of the gross amount of the payment that is the unqualified
portion is the percentage that is equal to 100% minus the percentage
applicable above.
There is a note at the end of subsection 123SLJ(4) to inform the reader that these
percentages may be varied under subsection 123SLJ(7).
Subsection 123SLJ(5) provides that the Minister may, by legislative instrument,
determine a percentage that is the qualified portion of a payment received other than
by instalments (that is, as a lump sum) for the purposes of subparagraph
123SLJ(2)(a)(ii),
Subsection 123SLJ(6) then confirms that an instrument made under subsection (5)
may determine different percentages in relation to different kinds of relevant
welfare payments. This provides flexibility in how lump sums of individual payment
types may be disbursed to people subject to the vulnerable welfare payment
recipients measure.
Subsections 123SLJ(7) and (8) provide that in certain circumstances the Secretary
can determine that no amount of a relevant payment to a person subject to the
enhanced IM regime is qualified.
Subsection 123SLJ(7) allows the Secretary to determine, in the limited circumstances
specified in subsection 123SLJ(8), that the qualified portion of a relevant payment
payable to a person subject to the enhanced IM regime is 0% and the unqualified
portion is 100%. This applies whether the amount is paid by instalment or by lump
sum.
The circumstances specified in subsection 123SLJ(8) are that:
(a) the Secretary is satisfied that the person is unable to use the person's debit
card that was issued to the person and that is attached to the person's
BasicsCard bank account, or is unable to access that account, as a direct
result of:
(i) a technological fault or malfunction with that card or account; or
(ii) a natural disaster; or
(iii) if a national emergency declaration (within the meaning of the National
Emergency Declaration Act 2020) is in force--an emergency to which
the declaration relates; or
(b) the person's relevant payment is payable in instalments and the Secretary is
satisfied that any part of the payment is payable:
(i) at a time determined under subsection 43(2), where that
determination is made because the person is in severe financial
hardship as a result of exceptional and unforeseen circumstances; or
(ii) under a determination under subsection 51(1) relating to advance
payments in cases of severe financial hardship.
The circumstances specified in subsection 123SLJ(8) are deliberately narrow and
reflect the fact that, in emergency situations, direct payments may need to be made to
individuals in a different way that does not involve the use of their BasicsCard bank
account. It is not possible to list all circumstances in which this need might arise,
although major floods, bush fires and domestic violence situations provide reasonable
examples of how this power might come to be used.
Subsection 123SLJ(9) provides that a determination under subsection 123SLJ(7)
takes effect on the day specified in the determination and must not be earlier than the
day on which the determination is made.
Subsection 123SLJ(10) provides that a determination made under
subsection 123SLJ(7) is not a legislative instrument. This provision is included to
assist the reader. It is declaratory of the law and conveys that the determination is not
a legislative instrument within the meaning of subsection 8(1) of the Legislation Act.
Such determinations merely apply to a particular person and do not determine or alter
the content of the law.
Payment of the balance of qualified portion of relevant payment
New section 123SLKprovides where a relevant payment is payable to a person subject
to the enhanced IM regime under section 123SCL, the Secretary must pay the
'balance of the qualified portion' of the payment to the credit of a BasicsCard bank
account maintained by the recipient. See item 3 for the definition of the term 'balance
of the qualified portion'. The requirements for a BasicsCard bank account are
established by legislative instrument made under section 123SU.
Recipient's use of funds from relevant payment
New section 123SLLprovides that the balance of the qualified portion of a person's
relevant payment may be used to purchase goods and services other than excluded
goods, excluded services or a cash-like product that could be used to obtain excluded
goods or excluded services.
The terms 'excluded goods' and 'excluded services' are defined in section 123SB to
have the same meaning as in Part 3B. Excluded goods are alcoholic beverages,
tobacco products, pornographic material and goods specified in a legislative
instrument made by the Minister. Excluded services are gambling or a service
specified in a legislative instrument made by the Minister.
The unqualified portion paid to the person may be used at the person's discretion. This
ensures that individuals subject to the enhanced IM regime have discretionary cash
available to use for any purpose they choose.
Persons subject to the enhanced income management regime--disengaged youth
and long-term welfare payment recipients
Item 52 amends the heading for Subdivision B of Division 3 of Part 3AA by omitting
the term 'Northern Territory' and substituting it with the phrase 'disengaged youth and
long-term welfare payment recipients'. This change reflects the revised scope of these
2 measures which can potentially apply to locations other than the Northern Territory.
This is consistent with the equivalent provisions in the IM regime (that is,
sections 123UCB and 123UCC). The Minister intends for this measure to continue to
operate only in the Northern Territory.
Items 53 to 57 amend section 123SM, which currently deals with the percentages of
a person's welfare payment that are the qualified portion and the unqualified portion
where an instalment of a category D welfare payment was payable to a person who is
subject to the enhanced IM regime under section 123SD. These amendments expand
the scope of section 123SM so that it now applies to both 123SD and 123SDA,
reflecting the split of the disengaged youth and long-term welfare payment recipients
into two sections.
Item 53 amends subsection 123SM(1) to insert a reference to new section 123SDA
after section 123SD. This has the effect of providing for the percentages that apply to
individuals subject to the enhanced IM regime under the disengaged youth measure
and the long-term welfare payment recipient measures (which are now set out in
separate sections).
Item 54 repeals paragraphs 123SM(1)(a) and (b) and provides the percentages of a
person's welfare payment that are the qualified portion and the unqualified portion for
an instalment of a category B welfare payment that is payable to a person subject to
the enhanced IM regime under section 123SD or 123SDA. Specifically:
• the percentage of the gross amount of the payment that is the qualified
portion is 50%, unless a lower percentage is determined by the Minister
under subsection (1A); and
• the percentage of the gross amount of the payment that is the unqualified
portion is the percentage that is equal to 100% minus the percentage
applicable above.
This change recognises that the Minister may determine a lower percentage for a
qualified portion for the instalment payments with respect to disengaged youth and
long-term welfare payment recipient measures under new subsection 123SM(1A)
to be inserted by item 55.
Item 55 repeals subsection 123SM(2) and substitutes it with new subsections
123SM(1A), (1B), (2), (2A) and (2B) and, where relevant, associated headings
and notes.
New subsection 123SM(1A) provides that the Minister may, by legislative instrument,
determine a percentage that is the a qualified portion of a payment received by
instalments for the purposes of subparagraph 123SM(1)(a)(ii).
New subsection 123SM(1B) confirms that an instrument made under subsection (1A)
may determine different percentages in relation to different kinds of category D welfare
payments. This provides flexibility in how instalments of individual payment types may
be disbursed to people subject to the disengaged youth or long-term welfare payment
recipient measures.
New subsection 123SM(2) provides that if a category D welfare payment is payable,
otherwise than by instalments (that is, as a lump sum), to a person who is subject to
enhanced IM under section 123SD or 123SDA:
• the percentage of the gross amount of the payment that is the qualified
portion is 100%, unless a lower percentage is determined by the Minister
under subsection (2A); and
• the percentage of the gross amount of the payment that is the unqualified
portion, is the percentage that is equal to 100% minus the percentage
applicable above.
New subsection 123SM(2A) provides that the Minister may, by legislative instrument,
determine a percentage that is the a qualified portion of a payment received other than
by instalments (that is, as a lump sum) for the purposes of subparagraph
123SM(2)(a)(ii).
New subsection 123SM(2B) confirms that an instrument made under
subsection 123SM(2A) may determine different percentages in relation to different
kinds of category D welfare payments. This provides flexibility in how lump sums of
individual payment types may be disbursed to people subject to the disengaged youth
or long-term welfare payment recipient measures.
Item 56 amends existing subsection 123SM(3) to insert a reference to new
section 123SDA after section 123SD. This is required to ensure that
subsection 123SM(3) applies to individuals subject to the enhanced IM regime under
the disengaged youth measure and the long-term welfare payment recipients measure
(noting that both measures were located in section 123SD and are now located in
separate sections, respectively, section 123SD and section 123SDA).
Item 57 repeals paragraph 123SM(3)(c) and substitutes it with new paragraphs
123SM(3)(c) and 123SM(3)(d). This has the effect that the Secretary may determine
that the qualified portion of a category D welfare payment payable to a person other
than by instalment (that is, a lump sum) is 0% and the unqualified portion is 100%.
The Secretary can only make such a determination in the limited circumstances set
out in existing subsection 123SM(4), that is, only if:
(a) the Secretary is satisfied that the person is unable to use the person's debit
card that was issued to the person and that is attached to the person's
BasicsCard bank account, or is unable to access that account, as a direct
result of:
(i) a technological fault or malfunction with that card or account; or
(ii) a natural disaster; or
(iii) if a national emergency declaration (within the meaning of the National
Emergency Declaration Act 2020) is in force--an emergency to which
the declaration relates; or
(b) the person's category B welfare payment is payable in instalments and the
Secretary is satisfied that any part of the payment is payable:
(i) at a time determined under subsection 43(2), where that
determination is made because the person is in severe financial
hardship as a result of exceptional and unforeseen circumstances; or
(ii) under a determination under subsection 51(1) relating to advance
payments in cases of severe financial hardship.
The circumstances specified in subsection 123SM(4) are deliberately narrow and
reflect the fact that, in emergency situations, direct payments may need to be made to
individuals in a different way that does not involve the use of their BasicsCard bank
account. It is not possible to list all circumstances in which this need might arise,
although major floods, bush fires and domestic violence situations provide examples
of how this power may be used.
Item 58 is a consequential amendment to section 123SN, which provides for the
manner of paying the balance of the qualified portion, where an instalment of a
category D welfare payment is payable to a person who is subject to enhanced IM.
The item insert the words 'section 123SDA' after 'section 123SD' recognising that the
disengaged youth measure and the long-term welfare payment recipients measures
are now separated into their own sections. Under section 123SN, the Secretary must
pay the balance of the qualified portion of the category D welfare payment to the credit
of a BasicsCard bank account maintained by the recipient.
Item 59 amends section 123SO of the Administration Act to limit its operation to
individuals who are subject to the enhanced IM regime under sections 123SD and
123SDA (that is, disengaged youth and long-term welfare payment recipients).
Section 123SO relates to a recipient's use of their welfare payments under the
enhanced IM regime, specifically, how a person may use the balance of their qualified
portion and their unqualified portion of a category D welfare payment.
Item 60 amends the heading of section 123SP, which is currently titled 'Category G
welfare payment to be split into qualified and unqualified portions'. This item omits the
reference in the heading to 'Category G welfare payment' and substitutes it with
'Category B welfare payment'.
Persons subject to the enhanced income management regime--volunteers
Item 61 repeals sections 123SP(1) and (2), which sets out the percentages of welfare
payments that are the 'qualified portion' and 'unqualified portion' applicable to
volunteers for instalment and lump sum payments. New section 123SP will refer to
category B welfare payments (rather than Category G) to facilitate transfer of all
existing IM volunteers should they choose to do so.
New paragraph 123SP(1)(a), which concerns payments by instalment for volunteers
applies:
• a default 50% 'qualified portion' and 'unqualified portion' to the
gross amount of the volunteer's category B welfare payment, reflecting the
position in the existing legislation (other than the payment category type);
or
• a different percentage of 'qualified portion' where the Minister makes a
determination, by legislative instrument, under subsection 123SP(1A).
New paragraph 123SP(1)(b) provides that the percentage of the gross amount of the
instalment payment that is the 'unqualified portion' is the percentage equal to 100%
minus the percentage of 'qualified portion'. This will be either the default 50% or other
percentage determined by the Minister (as the case requires).
Subsection 123SP(2) is replaced by new subsections 123SP (1A) and 123SP(1B).
New subsection 123SP(1A) provides that the Minister may, by legislative instrument,
determine a percentage that is the qualified portion of a payment received by
instalments for the purposes of subparagraph 123SP(1)(a)(ii).
New subsection 123SP(1B) confirms that an instrument made under subsection (1A)
may determine different percentages in relation to different kinds of category B
welfare payments. This provides flexibility in how instalments of individual payment
types may be disbursed to people subject to the voluntary measure.
New subsection 123SP(2) provides that if a category B welfare payment is payable,
otherwise than by instalments (that is, as a lump sum), to a person who is subject to
enhanced IM under section 123SE:
• the percentage of the gross amount of the payment that is the qualified
portion is 100% unless a lower percentage is determined by the Minister
under subsection (2A); and
• the percentage of the gross amount of the payment that is the unqualified
portion, is the percentage that is equal to 100% minus the percentage
applicable above.
New subsection 123SP(2A) provides that the Minister may, by legislative instrument,
determine a percentage that is the a qualified portion of a payment received other than
by instalments (that is, as a lump sum) for the purposes of subparagraph
123SP(2)(a)(ii).
New subsection 123SP(2B) confirms that an instrument made under
subsection 123SP(2A) may determine different percentages in relation to different
kinds of category B welfare payments. This provides flexibility in how lump sums of
individual payment types may be disbursed to people subject to the voluntary
measure.
Item 62 repeals paragraph 123SP(3)(c) and substitutes it with new paragraphs
123SP(3)(c) and (d) which enable the Secretary to determine that the qualified portion
of a category B welfare payment payable to a person other than by instalment (that is,
a lump sum) is 0% and the unqualified portion is 100%. The new paragraphs operate
with respect to Category B welfare payments.
A determination under subsection 123SP(3) can only be made in the limited
circumstances already outlined in subsection 123SP(4).
The circumstances specified in subsection 123SP(4) are deliberately narrow and
reflect the fact that, in emergency situations, direct payments may need to be made to
individuals in a different way that does not involve the use of their BasicsCard bank
account. It is not possible to list all circumstances in which this need might arise,
although major floods, bush fires and domestic violence situations provide reasonable
examples of how this power might come to be used.
Items 63 to 67 make minor amendments to several provisions in order to omit
references to term 'Category G welfare payment' and substitute these with the term
'Category B welfare payment'. This reflects minor changes in the scope of the
voluntary enhanced IM measure. Affected provisions consequentially amended are:
• paragraph 123SP(4)(b)--see item 63;
• section 123SQ (including its section heading)--see items 64 and 65;
• section 123SR (including the section heading)--see item 66 and 67.
Information sharing--enhanced income management regime
Item 68 inserts new sections 123STA, 123TAA 123STC, and 123STC into Division 4
of Part 3AA and relate to disclosure of information for the purpose of the enhanced IM
regime, specifically, the enhanced IM child protection (section 123SCA) school
enrolment (section 123SCB), school attendance (section 123SCC) and recognised
State/Territory referrals (section 123SCJ) measures as well as to determine whether
a person is an 'exempt welfare payment recipient' (see sections 123SDB to 123SDD).
New section 123STA enables disclosure of information between the Secretary and
State or Territory child protection officers. Specifically, subsection 123STA(1) provides
that despite any law (whether written or unwritten) in a State or Territory, a child
protection officer may give the Secretary information about a person if that information
is relevant to the operation of the enhanced IM regime and either:
• the person is subject to the enhanced IM regime under section 123SCA; or
• the child protection officer is considering whether to give a notice to the
Secretary requiring the person to become subject to the enhanced income
management regime under section 123SCA.
Subsection 123STA(2) provides that if a child protection officer discloses information
about a person in the above circumstances, the Secretary is also able to disclose
information about the person to a child protection officer of the same State or Territory
for the purposes of the operation of Part 3AA.
Subsection 123STA(3) provides that the Secretary must advise a State or Territory
child protection officer as soon as practicable if a person subject to the enhanced IM
regime under section 123SCA ceases to receive a category A welfare payment
because it has been cancelled or their partner's payment has been cancelled.
These information sharing provisions are reasonable and necessary to enable the
operation of the child protection measure under enhanced IM. They are limited, in the
sense that the provisions permit information sharing only to the extent that this is
relevant to the person's involvement in the enhanced IM regime.
New section 123STB enables disclosure of information to the Secretary relating to
enrolment and attendance of children at school. Subsections 123STB(1) and 123TB(2)
respectively provide that despite any law (whether written or unwritten) in a State or
Territory, the Secretary may be given relevant information about the enrolment or
attendance of children at school by:
• a State or Territory; or
• a non government school authority; or
• any other person who is responsible for the operation of one or more
schools.
The information must be relevant to the operation of Part 3AA. This will ensure that
the reach of these information sharing provisions is strictly confined and cannot be
used to compromise a person's privacy (including a child's privacy) for non-essential
reasons.
New section 123STC enables disclosure of information between the Secretary and
recognised State or Territory authorities. Specifically, subsection 123STC(1) provides
that despite any law (whether written or unwritten) in a State or Territory, an employee
or officer of a recognised State or Territory authority may give the Secretary
information about a person if that information is relevant to the operation of the
enhanced IM regime and either:
• the person is subject to the enhanced IM regime under section 123SCJ; or
• the officer or employee is considering whether to give a notice to the
Secretary requiring the person to become subject to the enhanced IM
regime under section123SCJ.
Subsection 123STC(2) provides that if an officer or employee of a recognised State or
Territory authority discloses information about a person in the above circumstances,
the Secretary is also able to disclose information about the person to an officer or
employee of the same authority for the purpose of the operation of Part 3AA.
Subsection 123STC(3) provides that the Secretary must advise an officer or employee
of a recognised State or Territory authority as soon as practicable if a person subject
to the enhanced IM regime under section 123SCJ or their partner has their category A
welfare payment cancelled while a notice was still in force.
These information sharing provisions are reasonable and necessary to enable the
operation of the recognised State/Territory authority referral measure under enhanced
IM. They are limited, in the sense that the provisions permit information sharing only
to the extent that this is relevant to the person's involvement in the enhanced
IM regime.
Associated amendments to the Act
Amendments to Part 3B
Nominees
Items 69 to 72 amend Part 3B to ensure that people who have a Part 3B payment
nominee can choose to transfer to the enhanced IM regime. The items will ensure that
a person who became subject to the IM regime because their Part 3B payment
nominee was subject to IM, will remain subject to the IM regime after commencement
regardless of whether their Part 3B payment nominee chooses to transfer to the
enhanced IM regime (that is, unless they also choose to transfer to the enhanced
IM regime).
Specifically, the items repeal paragraphs 123UC(2)(c), 123UCB(2)(c), 123UCC(2)(c),
and 123UFAA(2)(c) and replace each with a new paragraph (c) which provides that a
person will be subject to the IM regime under the relevant section if their Part 3B
payment nominee is either subject to the IM regime under that section or subject to
the enhanced IM regime under the equivalent provision in Part 3AA.
These amendments ensure that all people currently subject to the IM regime can
choose how they receive their welfare payments, regardless of whether they have a
Part 3B payment nominee.
Relationship with other provisions
Item 73 repeals subsections 123UO(1), (1A) and (2), which relate to voluntary
enhanced IM agreements, and substitutes in new subsections 123UO(1) and (2).
New subsection 123UO(1) provides that a person may make a request to the
Secretary to terminate their voluntary IM agreement under Part 3B provided the
agreement has been in force for at least 13 weeks or the person has made a request
to the Secretary (orally or in writing) to enter into a voluntary enhanced IM agreement
(within the meaning of Part 3AA).
New subsection 123UO(2) provides that the Secretary must terminate a person's
voluntary IM agreement as soon as practicable after the person makes a valid request
under subsection 123UO(1).
The new provisions ensure an individual who enters into a voluntary IM agreement
less than 13 weeks before the enhanced IM regime begins operating is not precluded
from moving to the enhanced IM regime if they would like to do so and without any
time limit applied.
Item 74 inserts a new heading 'Subdivision E--Relationship with Part 3AA' at the end
of Division 2 of Part 3B. This subdivision will allow money to be transferred from an
income management account to a BasicsCard bank account and for the closure of the
Part 3B income management account.
New section 123UP applies if a person becomes subject to the enhanced IM regime
on a day (being the trigger day). A note states that a person who is subject to the
income management regime can request a move to the enhanced IM regime, and
refers the reader to new section 123SIA (see item 48).
New subsection 123UP(2) provides that the Secretary may, on the payment day,
transfer an amount equal to funds held in the person's IM account to their BasicsCard
bank account (within the meaning of Part 3AA) within 60 days of the person moving
from the IM regime to the enhanced IM regime.
New subsection 123UP(3) provides that immediately after such payment, the Income
Management Record and the person's income management account are debited by
an amount equal to the payment.
New subsection 123UP(4) clarifies that, despite any other provision in Part 3B, the
person cannot become subject to the IM regime at any time on or after the trigger day.
This means that once a person becomes subject to enhanced IM they cannot
subsequently be subject to IM.
Item 75 inserts new paragraph 123ZN(1)(aa), which appropriates the Consolidated
Revenue Fund, to the extent necessary, to make payments under
subsection 123UP(2). This subsection concerns the payment of credit balances in an
income management account to the credit of a BasicsCard bank account after a
person becomes subject to the enhanced IM regime.
Specific legislative authorisation of these payments is required for the purposes of
section 83 of the Commonwealth Constitution, which provides that no money may be
paid out of the consolidated revenue fund except under an appropriation made by law.
Amendments to Part 4
Internal review of certain decisions--exclusions
Item 76 amends existing paragraph 127(4)(aa) to provide that the Secretary may not
review a decision to give a notice to a person under subsection 123SIA(2) that the
person is eligible to transfer to the enhanced IM regime. The Secretary has no
discretion in whether to give a transfer notice under new subsection 123SIA(2). The
decision is made by operation of law following a person making a transfer request
under subsection 123SIA(1)).
Item 77 inserts new paragraph 127(4)(aab) into the Administration Act.
New paragraph 127(4)(aab) provides that the Secretary may not review a decision (or
a failure to make a decision) to make a payment under subsection 123UP(2) to the
credit of a BasicsCard bank account maintained by the person who transferred from
the IM regime to the enhanced IM regime.
Under subsection 123UP(2), the Secretary may pay residual amounts in a person's
income management account to a BasicsCard bank account within 60 days of the
trigger (or transfer) day. A decision by the Secretary to credit a BasicsCard bank
account, while discretionary, arises as a direct consequence of the person's request
to transfer from Part 3B to an equivalent measure under Part 3AA. If payment is not
made within 60 days, the amount must be paid to the credit of the bank account kept
by the person or as otherwise directed by the Secretary (see section 123WK of the
Administration Act).
Subsection 123UP(2) is expressed in discretionary terms to accommodate a range of
practical circumstances where a transfer of funds is not viable or does not occur due
to unforeseen circumstances. For example, where a person ceases to be a welfare
recipient after the trigger day but before amounts can be paid into a BasicsCard bank
account, because a small amount is payable (e.g. $0.50) or where an administrative
error occurs (and the money is paid out by other means).
For these reasons, and particularly because a person's right to payment is
uncontroversial, administrative review of transfer decisions should not be prematurely
triggered. Additionally, it is noted that a transferee has an existing right to merits review
as a decision made (or not made) under section 123WK of the Administration Act is
reviewable under the social security law. Having said that, it is anticipated that such
decisions would ultimately take account of the Secretary's discretion in new
section 123UP(2).
External review of certain decisions--exclusions
Item 78 amends paragraph 144(l) of the Administration Act to provide that the
Administrative Appeals Tribunal may not review a decision of the Secretary to give a
transfer notice to a person under subsection 123SIA(2). As noted for item 77 above,
the Secretary's decision to give a transfer notice under new subsection 123SIA(2) is
compulsory (that is, once the person makes a request) and has the effect that the
person will cease to be subject to the IM regime as a consequence of their
own request.
Item 79 inserts new paragraph 144(l)(lab) into the Administration Act. This paragraph
states that the Administrative Appeals Tribunal may not review a decision of the
Secretary to make a payment under subsection 123UP(2), which enables a payment
to the credit of a BasicsCard bank account of a person who transferred from the
IM regime to the enhanced IM regime. As noted in item 74 above, a decision by the
Secretary to make a payment to a BasicsCard bank account may be made within
60 days of the trigger day. This formulation reflects reasons of practicality. For the
same reasons as outlined in item 77, administrative review of these decisions should
not be prematurely triggered, noting that a transferee has an existing right to merits
review as a decision made (or not made) under section 123WK is reviewable under
the social security law.
Part 2 of Schedule 1--Application and transitional provisions
The purpose of the items included in Part 2 of Schedule 1 is to include an application
provision and deal with matters of a transitional nature.
Item 80 is an application provision. This item provides that the amendment to
section 123UO of the Administration Act, relating to the termination of a voluntary
enhanced income management agreement, made by this Schedule applies in relation
to requests made on or after the commencement of this item. That is, the new grounds
for termination are only available for requests made at or after the time that the new
grounds commences.
Transitional provisions--vulnerable welfare payment recipients
Item 81 contains a transitional provision to ensure a seamless transition to the
enhanced IM regime for certain vulnerable welfare payment recipients (that is, people
who are subject to the IM regime under section 123UGA and who elect to transfer to
the enhanced IM regime).
Sub-item 81(1) provides that where the Secretary gives a transfer notice under
paragraph 123CD(3)(c) of the Administration Act to a person who is subject to a
determination (under section 123UGA) that the person is a vulnerable welfare
payment recipient, the determination--if still in force--has effect as if it were a
determination made under section 123SCM. That is, the person's status as a
vulnerable welfare payment recipient is not affected, and nor is that person's ability to
have the determination or status revoked when they transfer from the IM regime to the
enhanced IM regime.
Sub-item 81(2) confirms that the new determination will remain in force for the balance
of the period referred to in paragraph 123UGA(3)(b)--which is either 12 months or, if
less than 12 months, the period specified in the determination--unless revoked earlier.
Sub-item 81(3) provides that if a person who is subject to a determination under
section 123UGA (that the person is a vulnerable welfare payment recipient) made a
request that the determination be revoked or varied and the request remains pending
immediately before a transfer notice comes into force, that request has effect at and
after the transfer notice comes into force as if the request had been made under
subsection 123SCM(8) of the Administration Act. This transitional provision will ensure
that any changes in the person's status can be readily resolved without complication
or delay under Part 3AA.
Transitional provisions--Exempt welfare payment recipients
Item 82 provides that a determination made by the Secretary that a person is an
exempt welfare payment recipient for the purpose of Part 3B has effect as if that
determination was made under Part 3AA. This ensures that an individual who the
Secretary has determined is an 'exempt welfare payment recipient' can transfer to the
enhanced IM regime without needing a new determination of that status.
The amendment also ensures that the Secretary can revoke or vary an existing
determination using powers under Part 3AA.
Sub-item 82(1) provides that where the Secretary gives a transfer notice referred to in
paragraph 123SD(1B)(b) or 123SDA(6)(b), a determination made under
section 123UGB that a person is an exempt welfare payment recipient--if still in
force--has effect as if it were a determination made under section 123SDB.
Sub-item 82(2) provides that where the Secretary gives a transfer notice referred to in
paragraph 123SD(1B)(b) or 123SDA(6)(b), a determination made under
section 123UGC that a person is an exempt welfare payment recipient--if still in
force--has effect as if it were a determination made under section 123SDC.
Sub-item 82(3) provides that where the Secretary gives a transfer notice referred to in
paragraph 123SD(1B)(b) or 123SDA(6)(b), a determination made under
section 123UGD that a person is an exempt welfare payment recipient--if still in
force--has effect as if it were a determination made under section 123SDD.
SCHEDULE 2--CLOSING THE INCOME MANAGEMENT REGIME TO
NEW ENTRANTS
Summary
Schedule 2 amends Part 3B so that from the time the Bill commences:
• there can be no new entrants to the IM regime
• people who are subject to the IM regime immediately before the
commencement date will be able to choose to remain subject to IM unless
and until they choose to move to the enhanced IM regime
Background
Schedule 2 will ensure there are no new entrants to IM under Part 3B on or after the
commencement date. New individuals will become subject to the enhanced IM regime
under the amendments made by Schedule 1 if they meet the eligibility criteria.
Before this Schedule commences, individuals may still become subject to IM under
the following measures:
(a) child protection (section 123UC);
(b) vulnerable welfare payment recipients (section 123UCA);
(c) disengaged youth (section 123UCB);
(d) long-term welfare payment recipients (section 123UCC);
(e) school enrolment (section 123UD);
(f) school attendance (section 123UE);
(g) other State/Territory referrals (section 123UFAA);
(h) voluntary income management (section 123UFA).
Amendments made by this Schedule will cease individuals entering the IM regime
under the above sections from the commencement day.
Explanation of the changes
The following measures apply from 4 September 2023 (the commencement date).
Part 1--Main amendments
Item 1 inserts new subsection 123UC(3) into Part 3B to ensure that from the
commencement date no new individuals can become subject to the IM regime under
section 123UC (child protection measure).
Item 2 inserts new subsection 123UCA(6) to ensure that on or after the
commencement date no new individuals can become subject to the IM regime under
section 123UCA (vulnerable welfare payment recipients measure).
Item 3 inserts new subsection 123UCB(7) ensures that on or after the commencement
date no new individuals can become subject to the IM regime under section 123UCB
(disengaged youth measure).
Item 4 inserts new subsection 123UCC(7) to ensure that on or after the
commencement date no new individuals can become subject to the IM regime under
section 123UCC (long-term welfare payment recipients measure).
Item 5 inserts new subsection 123UFAA(5) to ensure that no new individuals can
become subject to the IM regime under section 123UFAA (other State/Territory
referrals) on or after the commencement date.
Items 6 and 7 insert new subsection 123UFA(2) to ensure that on or after the
commencement date no new individuals can become subject to the IM regime under
section 123UFA (voluntary income management). Item 6 renumbers existing section
123UFA into subsection 123UFA(1) while item 7 adds a new subsection 123UFA(2)
to cease new entrants under that Part 3B measure.
Impact Analysis Executive Summary
Currently, there are 2 programs in operation that restrict what people can purchase
with their welfare payments. These programs are IM which was established in 2007
and the CDC program which was established in 2016. These programs run
concurrently across several locations in Australia. Both CDC and IM have an objective
to restrict the purchase of items such as alcohol and gambling products so participants
prioritise expenditure on essential expenses such as rent, food and utilities.
Since the CDC program inception, the policy landscape has changed considerably in
Australia. Frameworks established between the Commonwealth and the States and
Territory governments have seen the development of new national and community
level initiatives to address the effects of drug and alcohol misuse and reduce domestic,
family and sexual violence. The Commonwealth and State governments have also
entered into a National Partnership agreement with the Coalition of Peaks on Closing
the Gap.
Both programs have undergone several evaluations to monitor and evaluate the
programs' successes and shortfalls. These evaluations have established that the
CDC program has produced mixed results. The recent audit report of the Cashless
Debit Card by the Australian National Audit Office (ANAO) (published 2022) highlights
a lack of available data to confirm that the CDC program is achieving its outcomes and
little evidence to support the continuation of the program.
The Government made an election commitment to abolish the CDC program and
consult with communities about alternative options to support individuals and
communities including options for voluntary IM.
In supporting the Government's implementation of this commitment, the Department
of Social Services (the Department) has considered 2 options regarding the future of
welfare quarantining.
The first option, for purpose of comparison, maintains the status quo, and continues a
CDC program that has not demonstrated an ability to achieve its policy outcomes and
places a regulatory burden on participants, businesses and communities due to
geographical location and places barriers in relation to undertaking simple financial
transactions. The CDC program assumes all people in a particular geography,
in receipt of working age income support payments, need restrictions on the types of
goods and services that can be purchased with their money.
The preferred option is Option 2 where the CDC program is abolished and reforms
are made to IM to enable a greater level of community decision-making. Transitional
arrangements including support services would assist those who choose to leave the
programs. Option 2 complements the Government's strategic priority to give people
on these programs more choice on how they spend their income support payments. It
will also provide greater value for money given the lack of evidence that the programs
are meeting their objectives.
Option 2 will see a reduction in the regulatory burden faced by individuals and
businesses in affected locations and provide participants with greater freedom to
choose how and where to spend their money and how they manage their finances
including decisions on who they bank with. These are freedoms afforded to most
Australians and those on the program have limits placed on these choices.
The regulatory save has been calculated at $21.5m over 10 years.
The Department has undertaken consultation with those in affected locations including
targeted Ministerial visits by the Minister for Social Services, the Hon Amanda
Rishworth MP (the Minister) and the Assistant Minister for Social Services, the
Hon Justine Elliot MP (the Assistant Minister). Senator the Hon Patrick Dodson,
Senator the Hon Malarndirri McCarthy, and Ms Marion Scrymgour MP have also
participated in consultations. This has included consulting with CDC participants and
other local stakeholders about the cessation of the CDC program. Consultations
captured a wide range of stakeholders and captured a diversity of perspectives,
including CDC participants, senior First Nations leaders, Community Reference
Groups, service providers, local police, health services and local councils.
Engagement with communities will continue as part of the implementation of the
reforms.
Consultations involved understanding what the impacts of the CDC program are and
how these are impacting individuals and businesses in the affected regions. It also
involves seeking their views on what a suitable process for people to transition off the
CDC program needs to include and what supports the community feel are required. In
addition, in preparation for stage 2 discussions were held regarding what IM could
look like.
At all times, the focus of these consultations is to understand the CDC participants'
experiences and possible impacts on them and their communities to inform
implementation arrangements and understand individual and community
support needs.
These early consultations have included key service agencies and First Nations
leadership groups. Consistent with the CDC program's evaluations they have stated
that the impact of the program has been variable. The preference is the importance of
support services to participants and their communities. Further, they have been clear
that if the CDC program is removed, these services must endure to support the
community and they must be guided by local priorities and led by local leadership.
Transition will be a staged approach with any future evaluation focused on the
experience of participants coming off the programs and effectiveness of support
services. The Department will consult with affected communities to ensure that the
evaluation methodology is fit for purpose. This may include co-designing an evaluation
methodology with communities, and identifying measures the communities see as
important. It is important to note this information along with any lessons learnt will help
develop Government's future evidence based policy.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
SOCIAL SECURITY (ADMINISTRATION) AMENDMENT (INCOME
MANAGEMENT REFORM) BILL 2023
This Bill is compatible with the human rights and freedoms recognised
or declared in the international instruments listed in
section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
The Social Security (Administration) Amendment (Income Management Reform)
Bill 2023 (the Bill) is the next step in delivering the Government's election commitment
to reform income management in Australia following the abolition of the Cashless
Debit Card (CDC) program. The Bill facilitates a broader transition towards the
enhanced IM regime, established by Part 3AA of the Social Security (Administration)
Act 1999, and has been developed on the basis of extensive community consultation
with stakeholders, including First Nations people and businesses who live or operate
in affected areas of Australia.
On 6 March 2023, CDC program participants in the Northern Territory and Cape York
and Doomadgee regions will be transferred to the enhanced IM regime along with
voluntary participants (who were the able to choose whether they would remain
subject to the enhanced IM regime).
The amendments made by the Bill will commence on 4 September 2023 (the
commencement date). They are focused on opening access to the enhanced IM
regime for people who need or seek assistance in managing their welfare payments.
The amendments will:
• enable more than 24,400 individuals currently subject to the IM regime to
choose the modern technology available under the enhanced IM regime, which
provides banking functions including 'tap to pay' payments, online shopping and
BPAY; and
• close the IM regime to new entrants from the commencement date, with eligible
individuals instead becoming subject to the enhanced IM regime from that date.
For individuals who choose not to transfer to the enhanced IM regime, the IM regime
will continue to operate in its current form until the Government has consulted further
with affected communities.
Human rights implications
The Bill engages the following rights or freedoms:
• the rights of equality and non-discrimination;
• the right to self-determination;
• the right to an adequate standard of living, including food, water and housing;
• the right to social security;
• the right to a private life without arbitrary interference.
These rights and a number of other considerations are addressed in turn below.
Objectives
The key objective of the Bill is to deliver on the next stage of the Government's election
commitment to reform IM by facilitating a seamless transition to the enhanced IM
regime which engages superior technology for everyday purchasing and bill payment.
This technology is superior compared technology underpinning the BasicsCard, which
is the only option available for individuals subject to the IM regime.
General safeguards
A number of general safeguards have been incorporated into the proposal to reform
IM to protect human rights. The Bill will enable individuals currently subject to the IM
regime to transfer to the enhanced IM regime if they would like to do so, but does not
mandate or require transfers to occur. The Bill ensures individuals retain the maximum
level of choice around the mechanism for receiving their welfare payments. The Bill
mirrors IM measures in the enhanced IM regime, so that people can access the
modern technology and enjoy an improved customer experience compared with the
IM regime.
Rights of equality and non-discrimination
The rights of equality and non-discrimination are provided for in a number of the 7 core
international human rights treaties to which Australia is a party, most relevantly the
International Covenant on Civil and Political Rights (ICCPR) and the Convention on
the Elimination of All Forms of Racial Discrimination (the CERD). In particular, article 5
of the CERD requires parties 'to prohibit and eliminate racial discrimination in all its
forms and to guarantee the right of everyone, without distinction as to race, colour or
national or ethnic origin, to equality before the law', notably in the enjoyment of 'the
right to ... social security and social services' (article 5(e)(iv)).
Discrimination involves impermissible differential treatment among persons or groups
that result in a person or a group being treated less favourably than others, based on
a prohibited ground for discrimination such as race. However, the UN Human Rights
Committee has recognised that 'not every differentiation of treatment will constitute
discrimination, if the criteria for such differentiation are reasonable and objective, and
if the aim is to achieve a purpose which is legitimate under the Covenant'.
As has been observed with the CDC program (under abolition) and the IM regime,
individuals who become subject to the enhanced IM regime may include a high
proportion of First Nations people. Extensive consultation has been undertaken and
continues with First Nations communities and other stakeholders about the enhanced
IM regime and the future of income management more broadly so that any direct or
indirect limitations on the rights to equality and non-discrimination are avoided or
minimised in a way that is reasonable, necessary and proportionate.
This Bill does not directly limit an individual's right to equality and non-discrimination.
It ensures that individuals who choose to transfer to the enhanced IM regime, and
those that become subject to it by virtue of their particular circumstances, are not
identified based on race, colour, nationality, sex or gender. Rather, all individuals who
become subject to the enhanced IM regime do so on the basis of their individual
circumstances, including their usual place of residence where relevant. Once an
individual is subject to the enhanced IM regime, they will receive the same access to
facilities and technology as all other individuals subject to the enhanced IM regime.
Right to self determination
Article 1 of the International Covenant on Economic, Social and Cultural Rights
(ICESCR) states that 'all peoples have the right of self-determination. By virtue of that
right they freely determine their political status and freely pursue their economic, social
and cultural development'.
The enhanced IM regime does not limit or interfere with the right to self-determination
or a person's right to freely pursue their economic, social or cultural development.
Individuals subject to the enhanced IM regime can continue to spend a portion of their
welfare payments on any goods or services when and how they choose while also
ensuring that a portion of those payments is reserved for living expenses such as rent,
food, and other everyday bills such as for utilities.
This Bill will provide more than 24,400 existing IM participants with the choice to
transfer to the enhanced IM regime, which will provide them with access to the more
modern SmartCard without creating any additional restrictions on how the individual's
payments are received and can be used. The SmartCard is a Visa debit card
administered by Services Australia that can be used at over one million outlets across
Australia and provides banking functions including 'tap to pay' payments, online
shopping and BPAY.
This Bill supports the right for a person to freely determine and pursue their economic,
social and cultural development by providing the flexibility of updated technology
should they choose to access it. The enhanced IM regime ensures that a portion of
welfare payments for eligible individuals cannot be used to purchase excluded goods,
excluded services or cash-like products, thereby allowing that portion to be utilised for
basic human needs for the individual and their family. Support is provided to eligible
individuals to assist in developing skills around budgeting and economic development,
further protecting an individual's right to self-determination.
The right to an adequate standard of living, including food, water and housing
Article 11(1) of the ICESCR states that everyone has the right to 'an adequate
standard of living for himself and his family, including adequate food, clothing and
housing, and to the continuous improvement of living conditions'.
This Bill does not limit the right to an adequate standard of living for affected people.
By expanding access to the enhanced IM regime and the associated SmartCard,
this Bill provides individuals the ability to make choices that best suit them and their
families, and may, in fact, increase the amount of funds they have available
for housing.
The SmartCard looks and operates like any other EFTPOS card, which can be used
to make any purchases that are not excluded goods, excluded services or cash-like
products that can be used to purchase such goods and services. Excluded goods
include alcohol, gambling products, pornography and tobacco and excluded services
include gambling. By stopping individuals from spending a significant portion of their
welfare payment to purchase these goods and services, the enhanced IM regime
ensures individuals will have sufficient funds available to meet their basic needs such
as rent, food and household bills. This will in turn promote improvement of living
conditions, while also enabling individuals to spend the remaining portion of the
welfare payment in an unrestricted manner.
The right to social security
Article 9 of the ICESCR recognises 'the right of everyone to social security, including
social insurance'. The United Nations Committee of Economic, Social and Cultural
Rights (the UN Committee) has stated that implementing this right requires a country,
within its maximum available resources, to provide 'a minimum essential level of
benefits to all individuals and families that will enable them to acquire at least essential
health care, basic shelter and housing, water and sanitation, foodstuffs, and the most
basic forms of education'.
The right to social security is limited only to the extent that individuals subject to the
enhanced IM regime may not use a portion of their payment to purchase excluded
goods or excluded services. This Bill does not affect the eligibility of a person to receive
welfare payments, nor reduce the amount of a person's welfare payments. It simply
ensures that individuals subject to the enhanced IM regime have a portion of their
welfare payments available to meet their basic needs, such as rent, food, and
household bills. The remaining portion of the person's welfare payment can be used
at their discretion. Therefore, the amendments under made by this Bill do not limit the
right to social security.
The right to a private life without arbitrary interference
Article 17(1) of the ICCPR prohibits unlawful or arbitrary interferences with a person's
privacy, family, home and correspondence, nor should a person be subjected to
unlawful attacks on his or her honour and reputation.
The UN Human Rights Committee has not defined 'privacy', but this concept is
understood to comprise freedom from unwarranted and unreasonable intrusions into
activities that society recognises as falling within the sphere of individual autonomy.
This Bill seeks to achieve the legitimate objective of reforming IM by facilitating a
seamless transition to the enhanced IM regime, which engages superior technology
for everyday purchasing and bill payments. Updated technology reduces the likelihood
that a welfare payment recipient will be subject to undue harassment in relation to their
welfare payments or stigma of a BasicsCard.
This Bill limits the right to privacy by restricting a person from purchasing certain
excluded goods, excluded services and cash-like products to ensure they have funds
available for priority needs such as rent, food and bills. A person still has choice and
autonomy about where and how they spend their non-qualified portion of their welfare
payment. Introducing updated and modern technology for the enhanced IM regime
expands a person's choice of where and how they shop and the services they may
use by providing more options than are available under the BasicsCard and Part 3B
of the Administration Act.
Sections 123STA, 123STC and 123STC also facilitate the disclosure of certain
information between the Secretary and relevant State or Territory authorities or officers
and other relevant bodies and persons. These information-sharing provisions are
reasonable, necessary and proportionate to the operation of the child protection
measure under the enhanced IM regime. The provisions do not provide a blanket
exemption from privacy laws. They allow sharing of information to the extent
necessary for the operation of the enhanced IM regime in Part 3AA of the
Administration Act. Any information collected by the Department of Social Services or
Services Australia will be protected information that is subject to the secrecy provisions
in the Administration Act.
Any limitations pertaining to a person's right to a privacy and reputation are
reasonable, proportionate and appropriate in order to provide choice and thereby
promoting positive financial decisions.
Conclusion
This Bill is compatible with human rights. The amendments in this Bill focus on
expanding access to the enhanced IM regime and closing access to the IM regime.
The arrangements in place will advance the protection of human rights by giving
individuals appropriate choice over how they receive and use their welfare payments.
Any limiting measures are reasonable, necessary and proportionate to achieving the
objectives of reforming income management in Australia, which offers
self-determination for communities, and choice and protection for vulnerable people.
[Circulated by the authority of the Minister for Social Services,
the Hon Amanda Rishworth MP]