Bills Digest No. 134 2000-01
Family and Community Services Legislation Amendment (One-off Payment to
the Aged) Bill 2001
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
any official legal status. Other sources should be consulted to determine
the subsequent official status of the Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
Family and Community Services Legislation Amendment
(One-off Payment to the Aged) Bill 2001
Date Introduced: 22 May
2001
House: House of Representatives
Portfolio: Family and
Community Services
Commencement: Royal
Assent
To provide for a one-off payment
of $300 to people who, on 22 May 2001, are of age pension age and are
receiving a social security pension or benefit on 22 May 2001.
The one-off payment of $300 to people who, on 22 May
2001, are of age pension age and are receiving a social security pension
or benefit on 22 May 2001 gives effect to a measure announced in the 2001-2002
Budget.
Rationale
The Second Reading Speech to the Bill states that the
one-off payment of $300:
... forms part of the measures announced in the 2001-2002
Budget to give effect to the Government's appreciation and acknowledgment
of the contribution made by older Australians to society.(1)
In his 2001-2002 Budget Speech, the Treasurer gave as
a rationale for the one-off payment:
The Government is making this payment because the
economy can benefit from it, the Budget can afford it this financial
year and, most of all, our older Australians deserve it.(2)
Financial Impact
The cost of providing the one-off payment is estimated
by the Government in its Explanatory Memorandum to the Bill to total $547.2
million. It also estimates that 1.8 million people will receive the payment
under this Bill.
Who will receive the payment
The proposed one-off payment of $300 will be payable
to people who, on 22 May 2001, are of age pension age and are receiving
a social security pension or benefit on 22 May 2001. As stated by the
Treasurer in his 2001-2002 Budget speech, this covers qualifying people
with incomes up to $29,263 for a single person and $48,880 for a couple.
It should be noted that the Second Reading Speech to the Bill states:
This one-off payment will also be available, otherwise
than by this Bill, to people of age pension age receiving certain
veterans' payments and payments under the ABSTUDY Scheme. It will
also be made available to people of age pension age who are outside
the personal income taxation and social security systems.(3)
Urgent Passage through Parliament
The Treasurer in his 2001-2002 Budget Speech stated that:
If the payment (the $300 one-off payment) is to be
made with the fortnightly pension payment next month it needs to pass
the Parliament by Thursday. Any delay by the Opposition will mean
the payment cannot be made next month. There are 2.2 million people
eligible for this payment.(4)
The remarks contained in the Government's Explanatory
Memorandum to the Bill are of interest given the Government's desire that
the Bill pass both chambers of the Australian Parliament within two days
of introduction. The Explanatory Memorandum states:
It is envisaged that wherever possible, the one-off
payment to the aged will be paid on the person's first social security
payday that falls due after 17 June 2001 or in any event, before 1
July 2001.
Parliament resumes sitting on 4 June 2001 so the rationale
for passage within two days of introduction remains unclear. It is noted
that it may be possible to have the proposed measure applying from date
of announcement as is common with taxation arrangements. For example,
the announced rights could be preserved by the legislation, thereby leaving
Parliament with more time to consider the measure.
Amendments to the Income Tax Assessment Act 1997
The effect of items 1 and 2 of Schedule
1 of the Bill is to ensure that the proposed one-off payment will
not be subject to income tax.
Amendments to the Social Security Act 1991
Item 5 of Schedule 1 of the Bill inserts
a new section 93X in the Social Security Act 1991 to provide
for the one-off payment.
Proposed subsection 93X(1) sets out the qualification
criteria for the one-off payment. The qualification criteria include:
- a person has reached pension age on or before 22 May 2001, and
- a social security pension or a social security benefit is payable
to the person on 22 May 2001.
Proposed subsection 93X(2) provides that the amount
of the one-off payment is $300.
A new section 47A is inserted in the Social
Security (Administration) Act 1999 by item 8 of Schedule
1 of the Bill providing that the one-off payment is to be paid to
a person on the date that is determined by the Secretary to be the earliest
date on which it is reasonably practicable for the payment to be made.
- House of Representatives, Hansard, 22 May 2001, p. 25755.
- ibid., at p. 25759.
- ibid.
- ibid., at p. 25755.
Ian Ireland
24 May 2001
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ISSN 1328-8091
© Commonwealth of Australia 2000
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