1998-99

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

SENATE

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FURTHER 1998 BUDGET MEASURES LEGISLATION AMENDMENT (SOCIAL SECURITY) BILL 1999
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SUPPLEMENTARY EXPLANATORY MEMORANDUM

Requests for amendments to be moved on behalf of the Government

(Circulated by authority of the Minister for Family and Community Services,
Senator the Hon Jocelyn Newman)

ISBN:  0642 408874

FURTHER 1998 BUDGET MEASURES LEGISLATION AMENDMENT (SOCIAL SECURITY) BILL 1999

Requests for amendments to be moved on behalf of the Government

OUTLINE AND FINANCIAL IMPACT STATEMENT

Request for amendments Nos 1 to 10

The Bill contains requests for amendments to address recommendations in the Spicer Report, including a $20 CDEP Participation Supplement (similar to the $20 work‑for‑the-dole payment) and access to the social security "add-ons" for CDEP Participants.

These requests for amendments also provide for a revised commencement date for the "add‑ons" measure.   The new commencement date is 20 March 2000.

•	The Bill provides for new CDEP Participation Supplement to be paid with retrospective effect from 20 March 1999.   These amendments do not change that position.

The following requests for amendments maintain the 20 March 1999 commencement for the $20 CDEP Participation Supplement (and its continuation on and from 20 March 2000).

Request for Amendment No. 1
Request for Amendment No. 2
Request for Amendment No. 3
Request for Amendment No. 5
Request for Amendment No. 6

The following requests for amendments remove certain references to "pension payday" which are now redundant following the passage of the Payment Processing Legislation Amendment (Social Security and Veterans' Entitlements) Act 1998.

Request for Amendment No. 6
Request for Amendment No. 7
Request for Amendment No. 8
Request for Amendment No. 9
Request for Amendment No. 10

The following requests for amendment inserts in new sections 1188E and 1188F the requirement that a person be a CDEP Scheme Participant (as distinct from a person who is receiving a CDEP payment.

Request for Amendment No. 4
Request for Amendment No. 9

The revised costings for this measure as a result of these requests for amendments are as follows:

(program costs)
	1999-00	$11.276m
	2000-01	$5.827m (savings)
	2001-02	$9.564m (savings)

Requests for amendments Nos 11 and 12

These requests for amendments deal with circumstances where a person will be considered to have sufficient reason to move to a new place of residence even though the person’s employment prospects will be reduced as a result of the move.

Key features

In general, where a claimant or recipient of newstart allowance or youth allowance moves from one place of residence to a new place of residence and the person’s employment prospects are reduced as a result of that move, a 26 week non-payment period applies to the person.  Requests for amendments Nos 11 and 12 provide that, where the person has moved as a result of an extreme circumstance and the Secretary is satisfied that the extreme circumstance made it reasonable for the person to move to the new place of residence (even though the person’s employment prospects would be reduced), then the person is considered to have sufficient reason for moving and the penalty period does not apply.  An example of an extreme circumstance that would make it reasonable for the person to move to a new place of residence even though the person’s employment prospects would be reduced is where the person is moving to escape domestic violence.

There are negligible financial implications for these amendments.