Bills Digest no. 33 2015–16
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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.
Michael Klapdor
Social Policy Section
15 October 2015
This Bills Digest should be read in conjunction with
the Bills Digest for the Social
Services Legislation Amendment (Youth Employment and Other Measures) Bill 2015.
Contents
History
of the Bill
Structure of the Bill Digest
Purpose of the Bill
Committee consideration
Statement of Compatibility with Human Rights
Concluding comments
Date introduced: 16
September 2015
House: House of
Representatives
Portfolio: Social
Services
Commencement: Parts
1, 2 and 4 of Schedule 1 on 1 July 2017; item 20 and item 21 of Schedule 1 on
dates contingent on the passing of the Social Services and Other Legislation
Amendment (Student Measures) Bill 2015 as outlined in the table at clause 2; the
remaining sections on Royal Assent.
Links: The links to the Bill,
its Explanatory Memorandum and second reading speech can be found on the
Bill’s home page, or through the Australian
Parliament website.
When Bills have been passed and have received Royal Assent, they
become Acts, which can be found at the ComLaw
website.
The provisions of the Social Services Legislation Amendment (Low
Income Supplement) Bill 2015 (the Bill) were previously proposed in Schedule 4
of the Social
Services Legislation (Youth Employment and Other Measures) Bill 2015 (the
previous Bill).[1]
The previous Bill passed the House of Representatives on 24
June 2015 but was negatived in the Senate on 9 September 2015. The
Labor Opposition was not opposed to Schedule 4 of the previous Bill but was
opposed to the other components of that Bill. The Opposition circulated
amendments in the Senate to attempt to split Schedule 4 of the Bill but the
whole Bill was put to a vote by the Government and negatived with the
Opposition, the Australian Greens and Senators Lambie, Lazarus, Muir, Wang and
Xenophon voting against the Bill.[2]
The provisions in this Bill are identical to those in
Schedule 4 of the previous Bill. For background and analysis of the measures
proposed in this Bill see the Bills Digest for the previous Bill.[3]
The Bill will amend the Social Security Act 1991,
the Social Security Administration Act 1999, the Income Tax
Assessment Act 1936 and the Taxation Administration Act 1953 to abolish
the Low Income Supplement and the Low Income Family Supplement (LIS/LIFS).[4]
These payments provide an annual lump sum payment worth up to $300 to a small
number of lower-income households who have not received the same level of
assistance as other low-income families have from tax cuts or social security
payments introduced to offset the average expected cost impact of the carbon
price implemented by the Gillard Government in 2012.[5]
The measure was announced in the 2015–16 Budget, will commence on 1 July 2017
and is expected to save $42.9 million over four years.[6]
In 2012–13 there were 7,615 LIS recipients.[7]
On 16 September 2015, the Senate Selection of Bills
Committee resolved to not refer the Bill to a committee.[8]
As required under Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed the
Bill’s compatibility with the human rights and freedoms recognised or declared
in the international instruments listed in section 3 of that Act. The
Government considers that the Bill is compatible.[9]
As noted in the Bills Digest for the previous Bill, the
LIS/LIFS is a relatively small payment to a relatively small number of
households and administratively complex. However, it was an important component
of the Household Assistance package which ensured households at the same income
level would receive similar levels of compensation for the introduction of
carbon pricing. With the carbon price removed, it is questionable whether or
not the LIS/LIFS is needed. However, abolishing the payment is inconsistent
with the Government’s pre-election commitment to remove the carbon price while
keeping the compensation measures.[10]
Members, Senators and Parliamentary staff can obtain
further information from the Parliamentary Library on (02) 6277 2500.
[1]. Parliament
of Australia, ‘Social
Services Legislation Amendment (Youth Employment and Other Measures) Bill 2015
homepage’, Australian Parliament website, accessed 14 October 2015.
[2]. Ibid.;
Australia, Senate, Journals,
(proof), 113, 2013–15, 9 September 2015, p. 3076, accessed 14 October 2015.
[3]. See
M Klapdor and M Thomas, Social Services Legislation Amendment (Youth Employment and Other
Measures) Bill 2015, Bills digest, 120,
2014–15, Parliamentary Library, Canberra, 15 June 2015, accessed 14 October
2015.
[4]. The
Low Income Family Supplement (LIFS) is an administrative name for the Low
Income Supplement (LIS) as it is paid to Family Tax Benefit recipients and to
one member of a couple if eligible.
[5]. P
Yeend and L Buckmaster, Clean
Energy (Household Assistance Amendments) Bill 2011, Bills digest, 58,
2011–12, Parliamentary Library, Canberra, 21 November 2011, p. 28, accessed 14
October 2015.
[6]. Australian
Government, Budget
measures: budget paper no. 2: 2015–16, p. 162, accessed 14 October
2015.
[7]. Senate
Community Affairs Committee, Answers to Questions on Notice, Social Services
Portfolio, Additional Estimates 2013–14, 27 February 2014, Question
350, Attachment A, accessed 14 October 2015.
[8]. Senate
Selection of Bills Committee, Report,
12, 2015, The Senate, Canberra, p. 3, accessed 14 October 2015.
[9]. The
Statement of Compatibility with Human Rights can be found at page 6 of the
Explanatory Memorandum to the Bill. Explanatory
Memorandum, Social Services Legislation Amendment (Low Income Supplement)
Bill 2015, p. 6, accessed 14 October 2015.
[10]. T
Abbott, ‘Second
reading speech: Clean Energy Legislation (Carbon Tax Repeal) Bill 2013’,
House of Representatives, Debates, 13 November 2013, p. 74, accessed
14 October 2015.
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