December 2011 Update
Bulletin # 36
Overview of changes – September 2011 to
December 2011
This Update Bulletin sets out the
major changes to social security legislation, family assistance legislation and
policy guidelines that came into effect between September 2011 and December
2011. The update incorporates changes such as:
·
a reduction in the age of independence for Youth
Allowance (student);
·
access to the workforce independence criteria for
inner regional students;
·
changes to Youth Allowance and Family Tax Benefit
for 16 to 19 year olds;
·
new participation requirements for teenage
applicants for Parenting Payment in 10 regions;
·
a new restriction on Special Benefit for spouses
sponsored to come to Australia;
·
new impairment tables for Disability Support
Pension;
·
payment in lieu of notice counting towards a
person’s income maintenance period;
·
a new International Agreement with the Latvia;
·
changes to the social security and family
assistance rates and means tests.
New materials in this
update
This update also includes a substantial revision of
chapters concerning claiming and getting paid, visa and other residence
requirements, relationship status, students and young people, payments for
unemployed people, Parenting Payment, Special Benefit, Employment service
providers, Penalties for not complying with requirements and concession cards
and Rent Assistance. These chapter revisions have been done in preparation for
an anticipated hard copy of the Handbook in 2012. Useful self-help tools
incorporated in this update include:
Summary of the main changes to social security law since
September 2011
Youth Allowance –
reduction in the age of independence
The age of independence
for Youth Allowance (student) will reduce from 23 to 22 years on 1 January 2012.
The
independence criteria for Youth Allowance (student) can be found in
Chapter 15. This
chapter has been substantially reviewed for this online update.
Youth Allowance –
access to workforce independence criteria for inner regional students
It will be
easier for some students to qualify as independent for Youth Allowance through
their part time work or wages. Currently, these criteria are limited to a person
who has to move away from home to study
and has a combined parental income of less than $150,000 a year
and who lives in outer regional,
remote or very remote areas. From 1 January 2011 these criteria will be open to
all students without any geographical restriction on the location of the
parental home the student has had to move away from.
The independence criteria
for Youth Allowance (student) can be found in
Chapter 15. This
chapter has been substantially reviewed for this online update.
Changes to Youth
Allowance and Family Tax Benefit for 16 to 19 year olds
From 1 January 2012:
-
Family Tax Benefit Part
A will increase for dependent 16 to 19 year olds who are
undertaking full-time secondary study;
-
Family Tax Benefit Part B and Multiple Birth
Allowance will only be paid for young people in full-time
secondary study up to the end of the calendar year in which they
turn 18.
-
Young people 16 to 19 in full-time secondary
study will count as Rent Assistance children;
-
Family Tax Benefit will cease when a young
person turns 22, making 21 the maximum age;
-
A young
person 16 or 17 years old, dependent, living at home and in
full-time secondary study will not qualify for Youth Allowance.
Chapters
15 and
32 have been changed to
incorporate these new changes.
Teenage parents
From 1 January 2012 new applicants for Parenting
Payment who live in certain areas and are 19 years or under with a child six
months or older will be required to attend meetings with Centrelink and enter
into an Employment Pathway Plan. The Plan is to start when their child turns
one.
These areas are: Playford (SA), Rockhampton (Qld),
Hume (Vic), Burnie (Tas), Bankstown (NSW), Wyong (NSW), Logan (Qld), Kwinana
(WA), Greater Shepparton (Vic), Shellharbour (NSW).
Payments could be suspended where a person fails to
attend the appointment with Centrelink, enter into or fulfil their plan.
Chapter 18
details the participation requirements generally for Parenting Payment,
including this new requirement.
Spouses sponsored to
come to Australia – restriction on Special Benefit
Provisional partner visa holders were previously able
to receive Special Benefit without a two year waiting period on the basis of
being a family member of a person who has been an Australian permanent resident
for the past two years.
As of 1 January 2012 this will cease.
After this date, these visa holders will only be able to receive Special
Benefit where they are in financial hardship and have had a substantial change
in circumstances beyond their control.
Chapter 19
details the qualification criteria for Special Benefit generally and
incorporates this new change.
Disability Support
Pension – new impairment tables
From
1 January 2012 new impairment
tables will be used to assess the number of points a person scores for
Disability Support Pension. The new tables are available for examination at:
Social Security (Tables for the
Assessment of Work-related Impairment for Disability Support Pension)
Determination 2011
The new tables will apply from 1 January 2012 to new
applicants and to any existing recipient who is the subject of a review.
Chapter 25
concerning Disability Support Pension details the
qualification criteria for Disability Support Pension and a person’s rights in
relation to the new impairment tables.
Payment in lieu of notice
Payment in lieu
of notice will now be counted for a person’s income maintenance period. This
increases the time that a person who has received payment in lieu of notice is
expected to wait before starting to receive payments after leaving a job.
For details about waiting
periods, including the income maintenance period, see
Chapter
8.
New International
Social Security Agreement
A new social
security Agreement was signed on 7 September 2011 with Latvia and is expected to
commence in the second half of 2012. Other social security agreements which have
been signed during 2011 and are expected to commence in 2012 include with
Hungary and the Slovak Republic.
For details about current
International Agreements, see
Chapter
47.
Changes to social security and family assistance rates
and means tests
There were a number of changes to
rates and means tests effective 1 January 2012 including changes to:
·
fortnightly
payment amounts for Family Tax Benefit Part A, Youth Allowance, Austudy,
Disability Support Pension (under 21 years), Double Orphan Pension and Carer
Allowance;
·
personal income
limits for Youth Allowance, Austudy and Disability Support Pension (under 21
years);
·
The parental income test and the family asset
limit for Youth Allowance;
·
The care receivers income and asset limits for
Carer Payment;
·
Pharmaceutical Allowance rates and Mobility
Allowance rates
·
Permissible child earning limits for a young
person to still be considered a dependent child; and,
·
a reduction in relocation and start-up
scholarship amounts.
These changes are found throughout the Handbook.
Next Update
The next Update will be published in March 2012.
Special acknowledgements
The publication of the
Independent Social Security Handbook ONLINE and each quarterly update would not
be possible without the knowledge, commitment and contributions of the staff of
the Welfare Rights Centre, Sydney. Whilst the bulk of the research and drafting
work is completed by the Handbook Researcher, Katie
Wrigley, the Centre’s staff –
Lee
Hansen,
Matthew Butt, Danny Shaw,
Cass Wong,
Carolyn Odgers, Amie Meers, and
Gerard Thomas, make invaluable
contributions to the content of Updates. The Centre’s Office Manager, Catalina
Loyola, is responsible for
design and production of the publication.
Maree O’Halloran
Editor
The Independent Social Security Handbook
Director, Welfare Rights Centre
ISBN 1 86403 125 5
Copyright © 2001 Welfare Rights Centre Ltd, Sydney
www.welfarerights.org.au
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