Post by Banjo on Mar 9, 2011 7:33:51 GMT 7
March 2011 Update Bulletin # 33
This Update Bulletin sets out the major changes to Social Security legislation, Family Assistance legislation and policy guidelines that came into effect between January 2011 and April 2011. These changes include:
• the reduction from 31 March 2011 in the liquid assets test waiting period threshold amounts;
• changes to the Social Security Appeals Tribunal’s policy regarding single member hearings;
• the access to six months payments from 26 February 2011 for New Zealanders who have been in Australia for 10 years; and
• changes to the Social Security rates and means tests.
Following enquiries our Centre has received in the course of provision of advice, we have also incorporated more information to the Handbook concerning:
• the choice between Disability Support Pension and Youth Allowance for young people aged under 21 years in Chapter 15;
• examples of how the income test affects pensioner / worker couples, and where one member of a couple earns and receives periodic compensation and their partner applies for a pension in Chapter 39;
• when employment income is apportioned over 12 months and when employment income is assessed fortnightly in Chapter 39;
• how the income test is applied for illness separated couples and couples who are treated as single because of a special reason in Chapter 39; and
• a sample letter for a person to take to a doctor to ask for a support letter when travelling overseas to visit a critically ill relative in Chapter 45.
Summary of the main changes to Social Security law since January 2011
Reduction in Liquid Assets Test thresholds
Claimants of Newstart Allowance, Youth Allowance and Sickness Allowance can be subject to a liquid assets test waiting period of up to 13 weeks if their liquid assets are above certain threshold amounts.
As a temporary measure in response to the global financial crisis, from 1 April 2009 to 31 March 2011 these thresholds were increased to $10,000 for a member of a couple or a single person with a dependent child, and $5,000 for a single person without a child.
From 31 March 2011 these threshold figures will revert to the previous lower amounts of $5,000 for a member of a couple or a single person with a dependent child, and $2,500 for a single person without a child.
For details about the liquid assets test waiting period, see Chapter 8.
Social Security Appeals Tribunal – single member hearings
Legislation passed in April 2010 currently allows the Social Security Appeals Tribunal to conduct hearings by way of a single member panel. From 1 February 2011 the Tribunal will exercise this power to hold single member hearings for all Tribunal panels, except in limited circumstances. Information about the Tribunal procedure generally is found in Chapter 49.
New Zealanders in Australia for 10 years since 26/2/01 – 6 months of payments
From 26 February 2011, New Zealand citizens who hold a Special Category Visa and arrived in Australia after 26 February 2001 will be able to access a once only payment of Newstart Allowance, Youth Allowance or Sickness Allowance. To be eligible, a person needs to have lived continuously in Australia for at least 10 years. A temporary absence such as a holiday can be included in the 10 years, but any break during which the person ceases to be regarded as residing in Australia will restart the 10 year clock. If eligible, payment of Newstart Allowance, Youth Allowance or Sickness Allowance can be made for up to six months. Where a person loses qualification within the six month period, their payments will be stopped and cannot be restarted. It is not possible to transfer between payments in the six month period. For example a person who is receiving Youth Allowance who turns 21 during their six months of payment cannot transfer to Newstart Allowance.
For details of the rules that apply to people from New Zealand generally, see Chapter 12 at 2.7.
Changes to Social Security rates and means tests
There were a number of changes to rates and means tests effective 20 March 2011 including changes to:
• fortnightly pension, allowance and Parenting Payment amounts;
• pension disqualifying income and asset limits;
• income test cutoffs limits for allowances;
• income test limits and partner free area for Parenting Payment;
• Rent Assistance limits and thresholds including maximum payment rates, rent thresholds, and minimum rent to receive maximum payment;
• the amount of Seniors Supplement and Utilities Allowance; and
• Health Care Card income thresholds.
These changes are found throughout the Handbook. Tables showing the new income thresholds and limits can be found in Chapters 39 and 41. Chapters 38 and 32 details the new Rent Assistance thresholds.
Next Update
The next Update will be published in July 2011.
This Update Bulletin sets out the major changes to Social Security legislation, Family Assistance legislation and policy guidelines that came into effect between January 2011 and April 2011. These changes include:
• the reduction from 31 March 2011 in the liquid assets test waiting period threshold amounts;
• changes to the Social Security Appeals Tribunal’s policy regarding single member hearings;
• the access to six months payments from 26 February 2011 for New Zealanders who have been in Australia for 10 years; and
• changes to the Social Security rates and means tests.
Following enquiries our Centre has received in the course of provision of advice, we have also incorporated more information to the Handbook concerning:
• the choice between Disability Support Pension and Youth Allowance for young people aged under 21 years in Chapter 15;
• examples of how the income test affects pensioner / worker couples, and where one member of a couple earns and receives periodic compensation and their partner applies for a pension in Chapter 39;
• when employment income is apportioned over 12 months and when employment income is assessed fortnightly in Chapter 39;
• how the income test is applied for illness separated couples and couples who are treated as single because of a special reason in Chapter 39; and
• a sample letter for a person to take to a doctor to ask for a support letter when travelling overseas to visit a critically ill relative in Chapter 45.
Summary of the main changes to Social Security law since January 2011
Reduction in Liquid Assets Test thresholds
Claimants of Newstart Allowance, Youth Allowance and Sickness Allowance can be subject to a liquid assets test waiting period of up to 13 weeks if their liquid assets are above certain threshold amounts.
As a temporary measure in response to the global financial crisis, from 1 April 2009 to 31 March 2011 these thresholds were increased to $10,000 for a member of a couple or a single person with a dependent child, and $5,000 for a single person without a child.
From 31 March 2011 these threshold figures will revert to the previous lower amounts of $5,000 for a member of a couple or a single person with a dependent child, and $2,500 for a single person without a child.
For details about the liquid assets test waiting period, see Chapter 8.
Social Security Appeals Tribunal – single member hearings
Legislation passed in April 2010 currently allows the Social Security Appeals Tribunal to conduct hearings by way of a single member panel. From 1 February 2011 the Tribunal will exercise this power to hold single member hearings for all Tribunal panels, except in limited circumstances. Information about the Tribunal procedure generally is found in Chapter 49.
New Zealanders in Australia for 10 years since 26/2/01 – 6 months of payments
From 26 February 2011, New Zealand citizens who hold a Special Category Visa and arrived in Australia after 26 February 2001 will be able to access a once only payment of Newstart Allowance, Youth Allowance or Sickness Allowance. To be eligible, a person needs to have lived continuously in Australia for at least 10 years. A temporary absence such as a holiday can be included in the 10 years, but any break during which the person ceases to be regarded as residing in Australia will restart the 10 year clock. If eligible, payment of Newstart Allowance, Youth Allowance or Sickness Allowance can be made for up to six months. Where a person loses qualification within the six month period, their payments will be stopped and cannot be restarted. It is not possible to transfer between payments in the six month period. For example a person who is receiving Youth Allowance who turns 21 during their six months of payment cannot transfer to Newstart Allowance.
For details of the rules that apply to people from New Zealand generally, see Chapter 12 at 2.7.
Changes to Social Security rates and means tests
There were a number of changes to rates and means tests effective 20 March 2011 including changes to:
• fortnightly pension, allowance and Parenting Payment amounts;
• pension disqualifying income and asset limits;
• income test cutoffs limits for allowances;
• income test limits and partner free area for Parenting Payment;
• Rent Assistance limits and thresholds including maximum payment rates, rent thresholds, and minimum rent to receive maximum payment;
• the amount of Seniors Supplement and Utilities Allowance; and
• Health Care Card income thresholds.
These changes are found throughout the Handbook. Tables showing the new income thresholds and limits can be found in Chapters 39 and 41. Chapters 38 and 32 details the new Rent Assistance thresholds.
Next Update
The next Update will be published in July 2011.