Senate debates

Tuesday, 27 September 2022

Bills

Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Bill 2022; In Committee

10:07 pm

Photo of Don FarrellDon Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Hansard source

by leave—I move amendments (1) to (5) on sheet TK326 together:

(1) Clause 2, page 2 (before table item 3), insert:

(2) Schedule 1, item 41, page 12 (line 30), omit "the closure day", substitute "6 March 2023".

(3) Schedule 1, item 44, page 13 (lines 12 and 13), omit the item, substitute:

44 Paragraph 127(4)(aa)

Repeal the paragraph, substitute:

(aa) a decision to give a notice under subsection 123SE(3); or

(4) Schedule 1, item 46, page 13 (lines 19 and 20), omit the item, substitute:

46 Paragraph 144(l)

Repeal the paragraph, substitute:

(l) a decision to give a notice under subsection 123SE(3);

(5) Schedule 1, page 15 (before line 1), before Part 2, insert:

Part 1B — Stage 1B amendments

National Emergency Declaration Act 2020

48H Section 10 (before paragraph (zc) of the definition of national emergency law )

Insert:

(zbb) section 123SP of the Social Security (Administration) Act 1999;

Social Security (Administration) Act 1999

48J Section 123SA

Before:

    insert:

      48K Section 123SB

      Insert:

      balance of the qualified portion, of acategory G welfare 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 1991 Act; or

      (iii) section 84, 84A, 92, 92A, 225, 226, 227 or 228A of the Family Assistance Administration Act;

      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.

      Bundaberg and Hervey Bay area means the area within the boundaries of the Division (within the meaning of the Commonwealth Electoral Act 1918) of Hinkler, as those boundaries were in force on 31 May 2018.

      category F welfare payment means:

      (a) a social security benefit; or

      (b) a disability support pension; or

      (c) a carer payment; or

      (d) a pension PP (single); or

      (e) a payment under the scheme known as the ABSTUDY scheme that includes an amount identified as living allowance.

      category G welfare payment means:

      (a) a category F welfare payment; or

      (b) double orphan pension; or

      (c) family tax benefit under the Family Assistance Act; or

      (d) family tax benefit advance under the Family Assistance Administration Act; or

      (e) stillborn baby payment under the Family Assistance Act; or

      (f) carer allowance; or

      (g) child disability assistance; or

      (h) carer supplement; or

      (i) mobility allowance; or

      (j) pensioner education supplement; or

      (k) telephone allowance under Part 2.25 of the 1991 Act; or

      (l) utilities allowance under Part 2.25A of the 1991 Act; or

      (m) a distance education payment under the scheme known as the Assistance for Isolated Children Scheme, where the payment relates to a child or children at a Homelands Learning Centre; or

      (n) a payment under the scheme known as the ABSTUDY scheme that includes an amount identified as pensioner education supplement; or

      (o) a social security bereavement payment; or

      (p) an advance payment under Part 2.22 of the 1991 Act; or

      (q) an advance pharmaceutical allowance under Part 2.23 of the 1991 Act; or

      (r) a mobility allowance advance under section 1045 of the 1991 Act.

      C eduna area means Ceduna within the meaning of the Social Security (Administration) (Trial AreaCeduna and Surrounding Region) Determination 2015 as in force on 15 March 2016 and includes the Surrounding Region (within the meaning of that determination as so in force).

      East Kimberley area means East Kimberley within the meaning of the Social Security (Administration) (Trial Area—East Kimberley) Determination 2016 as in force on 26 April 2016 and includes the areas of each of the Included Communities (within the meaning of that determination as so in force).

      Goldfields area means the following Local Government Areas as at 7 February 2018:

      (a) the Shire of Leonora;

      (b) the Shire of Laverton;

      (c) the City of Kalgoorlie-Boulder;

      (d) the Shire of Coolgardie;

      (e) the Shire of Menzies.

      Local Government Areas means areas designated by the Governor of Western Australia to be a city, town or shire, in accordance with the Local Government Act 1995 (WA).

      qualified portion, of a category G welfare payment, has the meaning given by section 123SP.

      unqualified portion, of a category G welfare payment, has the meaning given by section 123SP.

      voluntary enhanced income management agreement has the meaning given by section 123SF.

      48L Before section 123SI

      Insert:

      123SE Persons subject to the enhanced income management regime — volunteers

      (1) For the purposes of this Part, a person is subject to the enhanced income management regime at a particular time on or after 6 March 2023 if:

      (a) at that time, a voluntary enhanced income management agreement is in force in relation to the person; or

      (b) immediately before 6 March 2023, the person was a voluntary participant under section 124PH.

      Cessation former section 124PH voluntary participants

      (2) If paragraph (1)(b) applies to a person, the person may make a request to the Secretary to cease to be subject to the enhanced income management regime under this section. The request cannot be withdrawn or revoked.

      (3) If the person does so, the Secretary must give the person a notice stating that the person ceases to be subject to the enhanced income management regime under this section. The notice comes into force on a day specified in the notice (which must be no later than 7 days after the day on which the request was made).

      (4) A notice under subsection (3) has effect accordingly.

      (5) A notice under subsection (3) is not a legislative instrument.

      (6) Subsection (3) does not prevent paragraph (1)(a) applying in relation to the person at a later time.

      123SF Voluntary enhanced income man agement agreement

      (1) A person may enter into a written agreement with the Secretary under which the person agrees voluntarily to be subject to the enhanced income management regime throughout the period when the agreement is in force.

      (2) An agreement under subsection (1) is to be known as a voluntary enhanced income management agreement.

      (3) The Secretary must not enter into a voluntary enhancedincome management agreement with a person unless:

      (a) the person is an eligible recipient of a category F welfare payment; and

      (b) the person's usual place of residence is within the Ceduna area, the East Kimberley area, the Goldfields area or the Bundaberg and Hervey Bay area; and

      (c) if the person has a Part 3B payment nominee—that nominee is subject to the enhanced income management regime or is subject to the income management regime (within the meaning of Part 3B).

      (4) The Secretary must not enter into a voluntary enhanced income management agreement with a person if:

      (a) the person is subject to the income management regime under Part 3B; or

      (b) during the 12-month period ending when the voluntary enhanced income management agreement is to come into force, there were 4 occasions on which previous voluntary enhanced income management agreements relating to the person were terminated under subsection 123SH(3).

      123SG Duration of voluntary enhanced income management agreement

      (1) A voluntary enhanced income management agreement in relation to a person:

      (a) comes into force at the time specified in the agreement, so long as:

      (i) at that time, the person is an eligible recipient of a category F welfare payment; and

      (ii) at that time, the person's usual place of residence is within the Ceduna area, the East Kimberley area, the Goldfields area or the Bundaberg and Hervey Bay area; and

      (iii) if, at that time, the person has a Part 3B payment nominee—that nominee is subject to the enhanced income management regime or is subject to the income management regime (within the meaning of Part 3B); and

      (iv) at that time, the person is not subject to the income management regime under Part 3B; and

      (b) remains in force until:

      (i) it is terminated under section 123SH, unless subparagraph (ii) applies; or

      (ii) if the agreement specifies a period (which must be at least 13 weeks) during which it is to remain in force, and the agreement has not been terminated under section 123SH before the end of that period—the end of that period.

      (2) If a voluntary enhanced income management agreement (the original agreement) in relation to a person is in force, subsection (1) does not prevent the Secretary from entering into a new voluntary enhanced income management agreement with the person, so long as the new agreement is expressed to come into force immediately after the original agreement ceases to be in force.

      (3) If a voluntary enhanced income management agreement in relation to a person has ceased to be in force, subsection (1) does not prevent the Secretary from entering into a new voluntary enhanced income management agreement with the person.

      123SH Termination of voluntary enhanced income management agreement

      Termination by request

      (1) If a voluntary enhanced income management agreement in relation to a person is in force, the person may, by written notice given to the Secretary, request the Secretary to terminate the agreement.

      (2) However, a person may make a request under subsection (1) only if the agreement has been in force for at least 13 weeks.

      (3) The Secretary must comply with a request made in accordance with subsections (1) and (2) by terminating the agreement as soon as practicable after receiving the request.

      Other ground s for termination

      (4) If:

      (a) a voluntary enhanced income management agreement in relation to a person is in force; and

      (b) either of the following events occurs:

      (i) the person ceases to be an eligible recipient of a category F welfare payment;

      (ii) in a case where the person has a Part 3B payment nominee—that nominee ceases to be subject to the enhanced income management regime or ceases to be subject to the income management regime (within the meaning of Part 3B);

      the Secretary must terminate the agreement as soon as practicable after the occurrence of the event.

      Limit on new voluntary enhanced income management agreements

      (5) If a voluntary enhanced income management agreement in relation to a person is terminated under this section, the Secretary must not enter into another voluntary enhanced income management agreement with the person within 21 days after the termination.

      48M Before Division 4 of Part 3AA

      Insert:

      Subdivision C — Persons subject to the enhanced income management regime — volunteers

      123SP Cat egory G welfare payment to be split into qualified and unqualified portions

      Payments by instalments

      (1) If an instalment of a category G welfare payment is payable to a person who is subject to the enhanced income management regime under section 123SE:

      (a) the percentage of the gross amount of the payment that is qualified (the qualified portion) is 50%; and

      (b) the percentage of the gross amount of the payment that is unqualified (the unqualified portion) is 50%.

      Note: The percentage may be varied under subsection (3).

      Payments otherwise than by instalments

      (2) If a category G welfare payment is payable, otherwise than by instalments, to a person who is subject to the enhanced income management regime under section 123SE, 100% of the gross amount of the payment is qualified (the qualified portion).

      Note: The percentage may be varied under subsection (3).

      Variation by Secretary

      (3) For a person who is subject to the enhanced income management regime under section 123SE, the Secretary may make a determination that:

      (a) varies the percentage applicable under paragraph (1)(a) to 0%; and

      (b) varies the percentage applicable under paragraph (1)(b) to 100%; and

      (c) varies the percentage applicable under subsection (2) to 0%.

      (4) The Secretary may make a determination under subsection (3) 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 G 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).

      (5) A determination under subsection (3) takes effect on the day specified in the determination (which must not be earlier than the day on which the determination is made).

      (6) A determination under subsection (3) is not a legislative instrument.

      123SQ Payment of balance of qualified portion of category G welfare payment

      If a category G welfare payment is payable to a person who is subject to the enhanced income management regime under section 123SE, the Secretary must pay the balance of the qualified portion of the payment to the credit of a BasicsCard bank account maintained by the person.

      123SR Recipient's use of funds from category G welfare payments

      A person who receives a category G welfare payment:

      (a) may use the balance of the qualified portion of the payment, as paid under section 123SQ, to obtain goods or services, other than:

      (i) excluded goods or excluded services; or

      (ii) a cash-like product that could be used to obtain excluded goods or excluded services; and

      (b) may use the unqualified portion of the payment, as paid to the person, at the person's discretion.

      I indicate that the government's amendments allow for an enhanced technology option for any participants wanting to voluntarily stay on income management in the other four cashless debit card sites—that is, Ceduna, East Kimberley, Bundaberg and Hervey Bay, and Goldfields.

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