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BUDGET SAVINGS (OMNIBUS) ACT 2016 - SCHEDULE 21

Closing carbon tax compensation to new welfare recipients

Part   1 -- Energy supplement under the family assistance law

A New Tax System (Family Assistance) Act 1999

1   At the end of subsection   58(2)

Add:

Note:   Paragraph   ( b) does not apply to certain approved care organisations: see subsections   ( 2C) and (2D).

2   After subsection   58(2B)

Insert:

  (2C)   Paragraph   ( 2)(b) does not apply in relation to an approved care organisation on or after the commencement of this subsection unless the organisation was entitled to be paid family tax benefit in respect of 19   September 2016.

  (2D)   If:

  (a)   the approved care organisation was entitled to be paid family tax benefit in respect of 19   September 2016; and

  (b)   the organisation ceases to be entitled to be paid family tax benefit in respect of a day on or after 20   September 2016;

then paragraph   ( 2)(b) does not apply, and never again applies, to the organisation from:

  (c)   if the cessation occurred before the commencement of this subsection--the start of the day this subsection commences; or

  (d)   if the cessation occurred on or after the commencement of this subsection--the start of the day of that cessation.

3   After subsection   58A(1)

Insert:

  (1A)   An individual cannot make an election under subsection   ( 1) on a day on or after the commencement of this subsection unless energy supplement (Part A) or energy supplement (Part B) is used to work out the rate of the individual's family tax benefit in respect of that day.

4   After subsection   58A(3)

Insert:

  (3AA)   An election ceases to be in force if, disregarding the election, neither energy supplement (Part A) nor energy supplement (Part B) would be used to work out the rate of the individual's family tax benefit.

5   Application provision

Subsection   58A(3AA) of the A New Tax System (Family Assistance) Act 1999 , as inserted by this Part, applies on and after the commencement of this item in relation to elections made before, on or after that commencement.

6   Clause   3 of Schedule   1

After "operation of clauses   5,", insert "6A,".

7   Clause   3 of Schedule   1 (at the end of step 1 of the method statement)

Add:

  Note:   Paragraph   ( cb) does not apply to certain individuals: see clause   6A.

8   At the end of Division   1 of Part   2 of Schedule   1

Add:

6A   Energy supplement

  (1)   Paragraph   ( cb) of step 1 of the method statement in clause   3 does not apply to an individual on or after the commencement of this clause unless:

  (a)   the individual was entitled to be paid family tax benefit in respect of 19   September 2016; and

  (b)   the individual's Part A rate of family tax benefit in respect of 19   September 2016 was not worked out under Part   3A of this Schedule.

  (2)   However, if:

  (a)   the individual ceases to be entitled to be paid family tax benefit in respect of a day (the applicable day ) on or after 20   September 2016; or

  (b)   the individual's Part A rate of family tax benefit is worked out under Part   3A of this Schedule in respect of a day (the applicable day ) on or after 20   September 2016;

then paragraph   ( cb) of step 1 of the method statement in clause   3 does not apply, and never again applies, to the individual from:

  (c)   if the applicable day is before the commencement of this clause--the start of the day this clause commences; or

  (d)   if the applicable day is on or after the commencement of this clause--the start of the applicable day.

9   Clause   24HA of Schedule   1

Before "The", insert "(1)".

10   At the end of clause   24HA of Schedule   1

Add:

  (2)   However, the individual's above base energy supplement amount for the maintenance income is nil if paragraph   ( cb) of step 1 of the method statement in clause   3 does not apply to the individual because of clause   6A.

11   Clause   24RA of Schedule   1

Before "The", insert "(1)".

12   At the end of clause   24RA of Schedule   1

Add:

  (2)   However, the individual's energy supplement amount for the maintenance income is nil if paragraph   ( e) of step 1 of the method statement in clause   25 does not apply to the individual because of clause   25C.

13   Clause   25 of Schedule   1

Omit "operation of clause   25A", substitute "operation of clauses   25A and 25C".

14   Clause   25 of Schedule   1 (at the end of step 1 of the method statement)

Add:

  Note:   Paragraph   ( e) does not apply to certain individuals: see clause   25C.

15   At the end of Division   1 of Part   3 of Schedule   1

Add:

25C   Energy supplement

  (1)   Paragraph   ( e) of step 1 of the method statement in clause   25 does not apply to an individual on or after the commencement of this clause unless:

  (a)   the individual was entitled to be paid family tax benefit in respect of 19   September 2016; and

  (b)   the individual's Part A rate of family tax benefit in respect of 19   September 2016 was not worked out under Part   3A of this Schedule.

  (2)   However, if:

  (a)   the individual ceases to be entitled to be paid family tax benefit in respect of a day (the applicable day ) on or after 20   September 2016; or

  (b)   the individual's Part A rate of family tax benefit is worked out under Part   3A of this Schedule in respect of a day (the applicable day ) on or after 20   September 2016;

then paragraph   ( e) of step 1 of the method statement in clause   25 does not apply, and never again applies, to the individual from:

  (c)   if the applicable day is before the commencement of this clause--the start of the day this clause commences; or

  (d)   if the applicable day is on or after the commencement of this clause--the start of the applicable day.

16   Subclause   29(1) of Schedule   1

Omit "The individual's Part B rate", substitute "Subject to clause   29AA, the individual's Part B rate".

17   At the end of subclause   29(1) of Schedule   1

Add:

Note:   Paragraph   ( c) does not apply to certain individuals: see clause   29AA.

18   Subclause   29(2) of Schedule   1 (at the end of step 1 of the method statement)

Add:

  Note:   Paragraph   ( c) does not apply to certain individuals: see clause   29AA.

19   At the end of Subdivision A of Division   1 of Part   4 of Schedule   1

Add:

29AA   Energy supplement

  (1)   Paragraph 29(1)(c) of this Schedule, or paragraph   ( c) of step 1 of the method statement in subclause   29(2) of this Schedule, does not apply to an individual on or after the commencement of this clause unless:

  (a)   the individual was entitled to be paid family tax benefit in respect of 19   September 2016; and

  (b)   the individual's Part A rate of family tax benefit in respect of 19   September 2016 was not worked out under Part   3A of this Schedule.

  (2)   However, if:

  (a)   the individual ceases to be entitled to be paid family tax benefit in respect of a day (the applicable day ) on or after 20   September 2016; or

  (b)   the individual's Part A rate of family tax benefit is worked out under Part   3A of this Schedule in respect of a day (the applicable day ) on or after 20   September 2016;

then paragraph   29(1)(c) of this Schedule, or paragraph   ( c) of step 1 of the method statement in subclause   29(2) of this Schedule, does not apply, and never again applies, to the individual from:

  (c)   if the applicable day is before the commencement of this clause--the start of the day this clause commences; or

  (d)   if the applicable day is on or after the commencement of this clause--the start of the applicable day.

20   Subclause   29A(2) of Schedule   1

Omit "The Part B rate", substitute "Subject to clause   29D, the Part B rate".

21   At the end of subclause   29A(2) of Schedule   1

Add:

Note:   Paragraph   ( c) does not apply to certain individuals: see clause   29D.

22   At the end of Subdivision B of Division   1 of Part   4 of Schedule   1

Add:

29D   Energy supplement

  (1)   Paragraph 29A(2)(c) of this Schedule does not apply to an individual on or after the commencement of this clause unless:

  (a)   the individual was entitled to be paid family tax benefit in respect of 19   September 2016; and

  (b)   the individual's Part A rate of family tax benefit in respect of 19   September 2016 was not worked out under Part   3A of this Schedule.

  (2)   However, if:

  (a)   the individual ceases to be entitled to be paid family tax benefit in respect of a day (the applicable day ) on or after 20   September 2016; or

  (b)   the individual's Part A rate of family tax benefit is worked out under Part   3A of this Schedule in respect of a day (the applicable day ) on or after 20   September 2016;

then paragraph   29A(2)(c) of this Schedule does not apply, and never again applies, to the individual from:

  (c)   if the applicable day is before the commencement of this clause--the start of the day this clause commences; or

  (d)   if the applicable day is on or after the commencement of this clause--the start of the applicable day.

23   At the end of subclause   31B(1) of Schedule   1

Add:

Note:   For certain individuals, energy supplement (Part B) is not to be added in working out the Part B rate: see clauses   29AA and 29D.

24   At the end of subclause   38AA(1) of Schedule   1

Add:

Note:   For certain individuals, energy supplement (Part A) is not to be added in working out the Part A rate: see clause   6A.

25   At the end of subclause   38AF(1) of Schedule   1

Add:

Note:   For certain individuals, energy supplement (Part A) is not to be added in working out the Part A rate: see clause   25C.

Part   2 -- Energy supplement under the social security law

Social Security Act 1991

36   Section   1061U

Before "A", insert "(1)".

37   At the end of section   1061U

Add:

Exceptions

  (2)   Subject to subsections   ( 4), (6) and (8), subsection   ( 1) applies to a person on or after the commencement of this subsection only if on 19   September 2016:

  (a)   energy supplement was payable to the person under section   1061UA; or

  (b)   energy supplement was payable to the person under section   118PA of the Veterans' Entitlements Act.

Note:   For subsection   ( 1) to apply to the person on a day on or after that commencement, the person needs to be the holder of a seniors health card on that day.

  (3)   Subject to subsection   ( 8), if:

  (a)   energy supplement was payable to a person under section   1061UA, or under section   118PA of the Veterans' Entitlements Act, on 19   September 2016; and

  (b)   energy supplement ceases to be payable to the person under either of those sections on or after 20   September 2016;

then subsection   ( 1) of this section does not apply, and never again applies, to the person from:

  (c)   if the cessation occurred before the commencement of this subsection--the start of the day this subsection commences; or

  (d)   if the cessation occurred on or after the commencement of this subsection--the start of the day of that cessation.

  (4)   If:

  (a)   a person was not qualified for energy supplement under subsection   ( 1) on 19   September 2016; and

  (b)   on 19   September 2016 the person was receiving an income support payment where energy supplement was used to work out the rate of that payment; and

  (c)   on a day (the cessation day ) on or after the commencement of this subsection the person ceases to be in receipt of any income support payment; and

  (d)   on the day before the cessation day the person was receiving an income support payment where energy supplement was used to work out the rate of that payment; and

  (e)   the person is required to make a claim for a seniors health card in order for such a card to be granted to the person;

the person can become qualified for energy supplement under subsection   ( 1) only if the person makes a claim for a seniors health card within the period of 6 weeks beginning on the cessation day.

  (5)   Subject to subsection   ( 8), if:

  (a)   as a result of a claim mentioned in subsection   ( 4), a seniors health card is issued to a person on a day; and

  (b)   energy supplement ceases to be payable to the person under section   1061UA on or after that day;

then subsection   ( 1) of this section does not apply, and never again applies, to the person from the start of the day of that cessation.

  (6)   If:

  (a)   a person was not qualified for energy supplement under subsection   ( 1) on 31   December 2016; and

  (b)   on that day, the person was receiving a social security pension and an amount of energy supplement was added to the rate of that pension; and

  (c)   under subsection   1061ZJA(3) or (4), the Secretary issued a seniors health card to the person;

the person can become qualified for energy supplement under subsection   ( 1) of this section because of holding that card.

  (7)   Subject to subsection   ( 8), if:

  (a)   as mentioned in paragraph   ( 6)(c), a seniors health card is issued to a person on a day; and

  (b)   energy supplement ceases to be payable to the person under section   1061UA on or after that day;

then subsection   ( 1) of this section does not apply, and never again applies, to the person from:

  (c)   if the cessation occurred before the commencement of this subsection--the start of the day this subsection commences; or

  (d)   if the cessation occurred on or after the commencement of this subsection--the start of the day of that cessation.

  (8)   If:

  (a)   on a day on or after 20   September 2016 the person ceases to hold a seniors health card under the Administration Act or the Veterans' Entitlements Act; and

  (b)   on that day the person receives an income support payment where energy supplement is used to work out the rate of that payment; and

  (c)   on a day (the cessation day ) on or after the commencement of this subsection, the person ceases to be in receipt of any income support payment; and

  (d)   on the day before the cessation day the person was receiving an income support payment where energy supplement was used to work out the rate of that payment; and

  (e)   the person is required to make a claim for a seniors health card in order for such a card to be granted to the person;

the person can become qualified for energy supplement under subsection   ( 1) only if the person makes a claim for a seniors health card within the period of 6 weeks beginning on the cessation day.

38   Transitional provision

  If:

  (a)   before 19   September 2016 a person was receiving an income support payment where energy supplement was used to work out the rate of that payment; and

  (b)   on a day (the cessation day ) in the period of 6 weeks ending at the end of 19   September 2016, the person ceased to receive that payment; and

  (c)   on the day before the cessation day, energy supplement was used to work out the rate of that payment; and

  (d)   the person made a claim under the Social Security (Administration) Act 1999 for a seniors health card within the period of 6 weeks beginning on the cessation day; and

  (e)   the person's claim was granted and the person became the holder of a seniors health card on a day on or after 20   September 2016; and

  (f)   the person held that card immediately before the commencement of this item;

then:

  (g)   the person can become qualified for energy supplement under subsection   1061U(1) of the Social Security Act 1991 (despite subsection   1061U(2) of that Act); and

  (h)   paragraph   1061U(5)(a) of the Social Security Act 1991 applies as if a reference to a claim mentioned in subsection   ( 4) included a reference to a claim mentioned in this item.

Part   4 -- Energy supplement under the Veterans' Entitlements Act

Veterans' Entitlements Act 1986

104   After subsection   118P(1)

Insert:

  (1A)   Subject to subsections   ( 1C), (1E) and (1G), subsection   ( 1) applies to a person on or after the commencement of this subsection only if on 19   September 2016:

  (a)   energy supplement was payable to the person under section   118PA; or

  (b)   energy supplement was payable to the person under section   1061UA of the Social Security Act 1991 .

Note:   For subsection   ( 1) to apply to the person on a day on or after that commencement, the person needs to satisfy paragraphs   ( 1)(a) to (b) on that day.

  (1B)   Subject to subsection   ( 1G), if:

  (a)   energy supplement was payable to a person under section   118PA, or section   1061UA of the Social Security Act 1991 , on 19   September 2016; and

  (b)   energy supplement ceases to be payable to the person under either of those sections on or after 20   September 2016;

then subsection   ( 1) of this section does not apply, and never again applies, to the person from:

  (c)   if the cessation occurred before the commencement of this subsection--the start of the day this subsection commences; or

  (d)   if the cessation occurred on or after the commencement of this subsection--the start of the day of that cessation.

  (1C)   If:

  (a)   a person was not eligible for energy supplement under subsection   ( 1) on 19   September 2016; and

  (b)   on 19   September 2016 the person was receiving an income support payment (within the meaning of the Social Security Act 1991 ), where energy supplement was used to work out the rate of that payment; and

  (c)   on a day (the cessation day ) on or after the commencement of this subsection the person ceases to be in receipt of any income support payment (within the meaning of the Social Security Act 1991 ); and

  (d)   on the day before the cessation day the person was receiving an income support payment (within the meaning of the Social Security Act 1991 ) where energy supplement was used to work out the rate of that payment; and

  (e)   the person is required to make a claim for a seniors health card in order for such a card to be granted to the person;

the person can become eligible for energy supplement under subsection   ( 1) only if the person makes a claim for a seniors health card within the period of 6 weeks beginning on the cessation day.

  (1D)   Subject to subsection   ( 1G), if:

  (a)   as a result of a claim mentioned in subsection   ( 1C), a person becomes the holder of a seniors health card on a day; and

  (b)   energy supplement ceases to be payable to the person under section   118PA on or after that day;

then subsection   ( 1) of this section does not apply, and never again applies, to the person from the start of the day of that cessation.

  (1E)   If:

  (a)   a person was not eligible for energy supplement under subsection   ( 1) on 31   December 2016; and

  (b)   on that day, the person was receiving a service pension and an amount of energy supplement was added to the rate of that pension; and

  (c)   under subsection   118XA(3), the Commission made a determination under section   118ZG that the person is entitled to a seniors health card;

the person can become eligible for energy supplement under subsection   ( 1) of this section because of being the holder of that card.

  (1F)   Subject to subsection   ( 1G), if:

  (a)   as mentioned in paragraph   ( 1E)(c), a person becomes the holder of a seniors health card on a day; and

  (b)   energy supplement ceases to be payable to the person under section   118PA on or after that day;

then subsection   ( 1) of this section does not apply, and never again applies, to the person from:

  (c)   if the cessation occurred before the commencement of this subsection--the start of the day this subsection commences; or

  (d)   if the cessation occurred on or after the commencement of this subsection--the start of the day of that cessation.

  (1G)   If:

  (a)   on a day on or after 20   September 2016 the person ceases to hold a seniors health card under this Act or the Social Security (Administration) Act 1999 ; and

  (b)   on that day the person receives an income support payment (within the meaning of the Social Security Act 1991 ) where energy supplement was used to work out the rate of that payment; and

  (c)   on a day (the cessation day ) on or after the commencement of this subsection the person ceases to be in receipt of any income support payment (within the meaning of the Social Security Act 1991 ); and

  (d)   on the day before the cessation day the person was receiving an income support payment (within the meaning of the Social Security Act 1991 ) where energy supplement was used to work out the rate of that payment; and

  (e)   the person is required to make a claim for a seniors health card in order for such a card to be granted to the person;

the person can become eligible for energy supplement under subsection   ( 1) only if the person makes a claim for a seniors health card within the period of 6 weeks beginning on the cessation day.

106   At the end of section   118P

Add:

Portability

  (4)   If:

  (a)   on 19   September 2016 energy supplement was payable to a person under section   118PA; and

  (b)   either:

  (i)   the person is absent from Australia on 19   September 2016 and has been so for a continuous period not exceeding 6 weeks; or

  (ii)   the person leaves Australia on a day on or after 20   September 2016 and, on the day before so leaving, energy supplement was payable to the person under section   118PA; and

  (c)   the person returns to Australia, where the period of that absence has exceeded 6 weeks but not exceeded 19 weeks; and

  (d)   the person is the holder of a seniors health card on the day before the person returns to Australia;

then the person is taken to have been eligible for energy supplement under this section on each day that occurs in the period beginning on the day after the end of that 6 - week period of absence and ending at the end of the day before the person returned to Australia.

  (5)   Subsection   ( 4) does not limit section   118PB.

Note:   After the person's period of absence exceeds 6 weeks, there will be no daily rate of energy supplement for the person: see subsection   118PB(2).

107   Transitional provision

  If:

  (a)   before 19   September 2016 a person was receiving an income support payment (within the meaning of the Social Security Act 1991 ) where energy supplement was used to work out the rate of that payment; and

  (b)   on a day (the cessation day ) in the period of 6 weeks ending at the end of 19   September 2016, the person ceased to receive that payment; and

  (c)   on the day before the cessation day, energy supplement was used to work out the rate of that payment; and

  (d)   the person made a claim under the Veterans' Entitlements Act 1986 for a seniors health card within the period of 6 weeks beginning on the cessation day; and

  (e)   the person's claim was granted and the person became the holder of a seniors health card on a day on or after 20   September 2016; and

  (f)   the person held that card immediately before the commencement of this item;

then:

  (g)   the person can become eligible for energy supplement under subsection   118P(1) of the Veterans' Entitlements Act 1986 if the person satisfies paragraphs 118P(1)(a) to (b) of that Act (despite subsection   118P(1A) of that Act); and

  (h)   paragraph   118P(1D)(a) of the Veterans' Entitlements Act 1986 applies as if a reference to a claim mentioned in subsection   ( 1C) included a reference to a claim mentioned in this item.

Part   6 -- Telephone allowance

Social Security Act 1991

125   Subsection   17(1) ( subparagraph   ( l)(ii) of the definition of compensation affected payment )

Omit ", other than a telephone allowance payable to the holder of a seniors health card".

126   Subsection   1061Q(4A)

Repeal the subsection.

127   Subsection   1061SA(1) (cell at table item   10, column 2)

Repeal the cell, substitute:

Partnered (partner getting pension or benefit) and partner getting telephone allowance at the standard rate

 

128   Paragraphs 1061SB(2)(a) and (b)

Repeal the paragraphs.

Social Security (Administration) Act 1999

129   Subsection   48(4) (definition of telephone allowance payday )

Repeal the definition, substitute:

"telephone allowance payday" means the first day on which an instalment of a social security periodic payment would normally be paid to the person on or after any of the following:

  (a)   1   January;

  (b)   20   March;

  (c)   1   July;

  (d)   20   September.

130   Subsection   48(4) (definition of working day )

Repeal the definition.

131   Application provisions

(1)   The repeal of subsection   1061Q(4A) of the Social Security Act 1991 made by this Part applies in relation to working out if a person is qualified for a telephone allowance on a telephone allowance payday occurring on or after the commencement of this item.

(2)   The amendments of sections   1061SA and 1061SB of the Social Security Act 1991 made by this Part apply in relation to working out the rate of telephone allowance for a telephone allowance payday occurring on or after the commencement of this item.

Part   7 -- Single income family supplement

 

A New Tax System (Family Assistance) Act 1999

132   At the end of subsection   57G(1)

Add:

Note:   This section does not apply to certain individuals: see section   57GDA.

133   At the end of Subdivision A of Division   6 of Part   3

Add:

57GDA   Cessation of eligibility

  (1)   Section   57G does not apply to an individual on or after the commencement of this section unless the individual was eligible for single income family supplement in respect of the day before that commencement.

  (2)   Section   57G does not apply, and never again applies, to the individual from the start of the first day on or after the commencement of this section on which the individual ceases to be eligible for single income family supplement.

  (3)   If:

  (a)   an individual is eligible for single income family supplement in respect of a period falling within the income year (the relevant income year ) ending on the day before the commencement of this section or within a later income year (also the relevant income year ); and

  (b)   in order to become entitled to be paid single income family supplement in respect of that period, the individual is required to make a claim for payment of single income family supplement for a past period; and

  (c)   the individual does not make the claim in accordance with section   65KD of the Family Assistance Administration Act;

then section   57G of this Act does not apply, and never again applies, to the individual from the start of the first income year after the relevant income year.



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