Handbook Online Update Bulletin

Bulletin # 28

Overview of changes – October 2009 to January 2010

This Update Bulletin sets out the major changes to Social Security legislation, Family Assistance legislation and policy guidelines that came into effect between October 2009 and January 2010.  It also draws attention to amendments to the Handbook Online since the last Update.  These changes and amendments include:

·         An activity test for Family Tax Benefit Part A children aged 16 to 20 years;

·         A new international agreement between Australia and the Czech Republic;

·         The introduction of a Green Corp Supplement;

·         Changes to Social Security rates and means tests.

      Major changes were anticipated as affecting Youth Allowance, however this legislation failed to pass as at the close of Parliament for 2009. The Welfare Rights Centre will be monitoring the progress of this proposed legislation closely, and details will be available in both the April edition of the ONLINE Handbook, and Rights Review.

Summary of the main changes to Social Security law since October 2009

Increase in standard repayment rate for Centrelink debts

From 1 January 2010 the standard repayment rate for Centrelink debts will increase from 14% to 15%. This rate increase will be applied automatically from 1 January 2010.

For details about the standard rate of withholdings and how to negotiate a lesser rate of recovery see Chapter 43 at 6.3.

New International Agreements

The International Agreement between Australia and Finland came into effect from September 2009.

An International Agreement between Austria and the Czech Republic was signed on 16 September 2009 and is expected to come into effect in January 2011.

For more information about Social Security Agreements with other countries, see Chapter 47.

Family Tax Benefit Part A activity test

A new activity test for Family Tax Benefit Part A children aged 16 to 20 years commenced on 1 January 2010, with existing recipients subject to this test from 1 May 2010. The test requires that young people aged 16 to 20 years either have completed their final year of secondary school, or be working towards completing this goal by studying full-time.

Included in Chapter 32 of this edition of the online Handbook is information about the new requirements.

New Green Corp Supplement

From 1 July 2010 a training supplement of $41.60 per fortnight will be introduced for participants in the National Green Jobs Corp who receive Youth Allowance, Newstart Allowance, or Parenting Payment.

For details see Chapter 39 at 1.6.

Review of transitional arrangements for Pensions

The Welfare Rights Centre has received a number of enquiries about the impact of the changes to the income test for pensions since the rules changed on 20 September 2009. More information has been included in this edition of the online Handbook about the transitional arrangements.

Where a person would be better off under the previous rules, to access the benefit of the “transitional arrangements”, a person needs to have been in receipt of a pension as at 19 September 2009, and not had any breaks in payment, due to either cancellation, or a pension “ceasing to be payable”. A person can transfer between payments, or change from the single to the couple rate, so long as their payment remains “payable” and that there is no gap of a day or more between payments. Where a person is a member of a couple, the “transitional rate provisions” may apply to one or both members of the couple.

For details see Chapter 39 at 1.3.

Sickness Allowance, Parenting Payment (single) and Assurances of Support

It has been the case for some time that for Newstart Allowance, Widow Allowance or Youth Allowance, a general requirement existed that a person does not qualify for payment while there is an assurance of support in place, and while their assurer is willing and able to provide them with an adequate level of support, and that it would be reasonable for them to accept that support. From 4 June 2009 changes to the law were made to apply this same requirement to Sickness Allowance and Parenting Payment (single).

For the rules about Assurances of Support, see Chapter 12 at 3.3.

Youth Disability Supplement rules

A person who is assessed as having a “partial capacity to work” and who is at least 16 but not yet 21 is paid a “Youth Disability Supplement” of $106.70 per fortnight. From 4 June 2009 the rules have now changed to prevent payment of the supplement where the total rate would be greater than the rate payable to someone receiving the maximum rate of Newstart Allowance with a partial capacity to work who is over 21.

For information about Youth Disability Supplement generally, see Chapter 15 at 7.8.

Disability Sporting Grants exempt from income test

From 19 October 2009 Disability Sporting Grants are excluded from the income test for Disability Support Pension recipients.

For details, see Chapter 39 at 2.2.

Multiple partners and the income test for Parenting Payment

Centrelink policy has clarified that where more than one person qualifies for Parenting Payment (partnered) as a person’s partner, the central person’s income is to be taken into account for each partner.

This change is incorporated in Chapter 39 at 1.8.

New classes of debts to be waived

Additional classes of debts have been declared as debts which should be waived. The classes include debts incurred because of poorly performing self managed super funds or APRA funds no longer meeting the “high probability” actuarial test for an asset test exemption. Both classes have been declared because of the impact of the global financial crisis on financial markets.

For details see Chapter 43 at 7.17.

Changes to Social Security rates and means tests

There were a number of changes to rates and means tests including changes to:

·         Carer Allowance, Youth Allowance, Austudy and Disability Support Pension (under 21 without children);

·         Youth Disability Supplement;

·         Disqualifying income and asset limits for Disability Support Pension (under 21);

·         The income test for Austudy;

·         The personal income test, parental income test, and family asset tests for Youth Allowance;

·         Carer Payment’s Care Receivers Income and Asset limits;

·         Additional child amounts paid under some Overseas Agreements;

·         Mobility Allowance and Double Orphan Pension.

·         Permissible Child earning limits.

·         The annual parental income threshold for Youth Allowance recipients who are not “independent”;

·         The rate of reduction of Youth Allowance over the annual parental income threshold;

These changes are found throughout the Handbook. Tables showing the new income and assets thresholds and limits can be found in Chapters 39 and 41.

Next Update

The next Update will be published in April 2010.

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 casework staff – Dianne Anagnos, Leanne Ho, Melissa Lubowski, Amelia Meers, Gerard Thomas, Ian Turton and Cass Wong make invaluable contributions to the content of Updates. The Centre’s Administrator, Catalina Loyola, is responsible for design and production of the publication.

Maree O’Halloran
Editor
The Independent Social Security Handbook
Director, Welfare Rights Centre, Sydney

ISBN 1 86403 125 5
Copyright © 2001 Welfare Rights Centre Ltd, Sydney
www.welfarerights.org.au