Summary

Amends the: Social Security Act 1991 to: increase the single maximum basic rate of certain pensions; index pensions using the Pensioner and Beneficiary Living Cost Index; index pensions using a combined couple benchmark; increase pensions to compensate for anticipated increases in the living cost index arising from the Carbon Pollution Reduction Scheme; increase the income test taper rate and remove the additional income test free area for dependent children; introduce a Work Bonus so that certain income is disregarded as ordinary income; close the pension bonus scheme from 20 September 2009; make transitional arrangements; increase the qualifying age for age pension from 65 to 67 years; enable certain social security recipients to apply for an advance of social security entitlements; and enable certain social security recipients to be paid while studying overseas; Social Security Act 1991, Social Security (Administration) Act 1999 and Income Tax Assessment Act 1997 to consolidate a number of smaller payments and allowances into one pension supplement; Social Security Act 1991 and Veterans’ Entitlements Act 1986 to: require income salary sacrificed to superannuation to be included as adjusted taxable income for the Commonwealth seniors health card; and exclude amounts and benefits received under the Western Australian Cost of Living Rebate Scheme and the Western Australian Country Age Pension Fuel Card from social security and veterans’ affairs income tests; A New Tax System (Family Assistance) Act 1999 to change indexation arrangements for certain family tax benefit child rates and the maternity immunisation allowance; Aged Care Act 1997 to increase payments to people in residential aged care; and Veterans’ Entitlements Act 1986 to enable Australian Defence Force members allotted for duty on HMAS Canberra as part of Operation DAMASK VI to access entitlements under the Act.