Christian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | Hansard source

I think, members opposite, it was actually Mike Nahan, at that stage, so don't get too excited. If an income test exemption was not granted for the cost-of-living concession payment then some recipients of the payment, in particular part-rate pensioners, could be disadvantaged compared to current arrangements. They could receive the similar level of assistance from the South Australian government via direct payment rather than as a discount off their rates bills, but the Australian government pension would be reduced. So, essentially, the bill exempts the new payment from being assessed as income for social security and veterans' affairs entitlements purposes.

If I might just roughly summarise: the previous South Australian system, being a discount, never fell into the assessable category of income for social security and veterans' affairs entitlements purposes, that having been transformed into a direct payment could possibly have been assessed as income; this bill ensures that it will not be and is thereby a beneficial bill to pensioners in South Australia. The bill ensures that people's social security and veterans' affairs income support payments are not affected by receipt of the new payment and, therefore, that they receive the full benefit of the cost-of-living concession payment that the South Australian government has enacted. Again, I thank all the members opposite for their contributions to this debate.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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