Post by Banjo on Mar 17, 2011 15:58:33 GMT 7
Senator Fifield sent me a copy of the Revised Explanatory Memorandum for the bill today.
Schedule 2 – Residence required to qualify for disability support
pension
Summary
This Schedule will introduce an ongoing requirement for residence in Australia
for disability support pension, bringing the pension into line with other
workforce age payments.
Background
These amendments will close a loophole that has allowed continued payment
of disability support pension to people who live permanently overseas but
return to Australia every 13 weeks in order to retain their pension.
It is not the intention of the 13-week portability period to allow people to live
overseas and return to Australia for only short periods every 13 weeks to
maintain payment. The 13-week portability period is designed to allow
disability support pensioners who reside permanently in Australia sufficient
time to deal with personal matters that may arise from time to time overseas.
This is consistent with the purpose of disability support pension, which is to
assist people with the cost of living in Australia, and is designed to engage
people of workforce age in activities in Australia that will lead to greater levels
of economic and social participation.
Section 7 of the Social Security Act lists the factors to which regard must be
had in deciding whether or not a person is an Australian resident. Part 2.3
of the Social Security Act provides the qualification rules for disability support
pension. Subdivision A of Division 1 of that Part provides how a person is
qualified for disability support pension. Those provisions are to be amended
to provide that a person must be an Australian resident to qualify for disability
support pension.
The new qualification requirement for disability support pension will not apply
to a pensioner whose disability support pension is portable under an
international social security agreement. The new requirement will also not
apply to a pensioner who is grandfathered from certain portability changes
made in 2000 and 2004. Lastly, the new requirement will not apply to a
pensioner who is severely disabled and terminally ill, and who is overseas to
be with a family member or to return to the person’s country of origin.
The amendments made by this Schedule commence on 1 January 2011.
8
Explanation of the changes
Item 1 provides for the amendment of section 94 (Qualification for disability
support pension) of the Social Security Act by the insertion of new
paragraph 94(1)(ea), which requires that a disability support pensioner either
be an Australian resident or be absent from Australia and remain eligible for
disability support pension under section 1218AA.
Item 2 provides for the amendment of section 94A (Qualification for disability
support pension – person transferring to that pension) of the Social Security
Act by the insertion of paragraph 94A(1)(ja), which requires that a disability
support pensioner either be an Australian resident or be absent from Australia
and remain eligible for disability support pension under section 1218AA.
Item 3 adds a note to subsection 94A(1), referring to section 7 as the source
of the definition of Australian resident.
Item 4 provides for the amendment of section 95 (Qualification for disability
support pension – permanent blindness) of the Social Security Act by the
insertion of paragraph 95(1)(d), which requires that a disability support
pensioner either be an Australian resident or be absent from Australia and
remain eligible for disability support pension under section 1218AA.
Item 5 provides for the amendment of section 1212 of the Social Security Act
by the addition of a new definition of Australian resident disability support
pensioner.
Item 6 provides for the amendment of section 1212 of the Social Security Act
by the addition of a new definition of terminally ill overseas disability
support pensioner.
Item 7 provides for the amendment of the table in section 1217, relating to
portability of social security payments, by repealing item 3 of that table and
substituting two new items to provide for portability of an Australian resident
disability support pensioner (item 2) and of a terminally ill overseas disability
support pensioner (item 3).
Item 8 adds new clause 150 to Schedule 1A to the Social Security Act. This
provides an exemption from the requirement to be an Australian resident to
qualify for disability support pension for certain pensioners whose entitlement
to disability support pension is otherwise maintained.
Schedule 2 – Residence required to qualify for disability support
pension
Summary
This Schedule will introduce an ongoing requirement for residence in Australia
for disability support pension, bringing the pension into line with other
workforce age payments.
Background
These amendments will close a loophole that has allowed continued payment
of disability support pension to people who live permanently overseas but
return to Australia every 13 weeks in order to retain their pension.
It is not the intention of the 13-week portability period to allow people to live
overseas and return to Australia for only short periods every 13 weeks to
maintain payment. The 13-week portability period is designed to allow
disability support pensioners who reside permanently in Australia sufficient
time to deal with personal matters that may arise from time to time overseas.
This is consistent with the purpose of disability support pension, which is to
assist people with the cost of living in Australia, and is designed to engage
people of workforce age in activities in Australia that will lead to greater levels
of economic and social participation.
Section 7 of the Social Security Act lists the factors to which regard must be
had in deciding whether or not a person is an Australian resident. Part 2.3
of the Social Security Act provides the qualification rules for disability support
pension. Subdivision A of Division 1 of that Part provides how a person is
qualified for disability support pension. Those provisions are to be amended
to provide that a person must be an Australian resident to qualify for disability
support pension.
The new qualification requirement for disability support pension will not apply
to a pensioner whose disability support pension is portable under an
international social security agreement. The new requirement will also not
apply to a pensioner who is grandfathered from certain portability changes
made in 2000 and 2004. Lastly, the new requirement will not apply to a
pensioner who is severely disabled and terminally ill, and who is overseas to
be with a family member or to return to the person’s country of origin.
The amendments made by this Schedule commence on 1 January 2011.
8
Explanation of the changes
Item 1 provides for the amendment of section 94 (Qualification for disability
support pension) of the Social Security Act by the insertion of new
paragraph 94(1)(ea), which requires that a disability support pensioner either
be an Australian resident or be absent from Australia and remain eligible for
disability support pension under section 1218AA.
Item 2 provides for the amendment of section 94A (Qualification for disability
support pension – person transferring to that pension) of the Social Security
Act by the insertion of paragraph 94A(1)(ja), which requires that a disability
support pensioner either be an Australian resident or be absent from Australia
and remain eligible for disability support pension under section 1218AA.
Item 3 adds a note to subsection 94A(1), referring to section 7 as the source
of the definition of Australian resident.
Item 4 provides for the amendment of section 95 (Qualification for disability
support pension – permanent blindness) of the Social Security Act by the
insertion of paragraph 95(1)(d), which requires that a disability support
pensioner either be an Australian resident or be absent from Australia and
remain eligible for disability support pension under section 1218AA.
Item 5 provides for the amendment of section 1212 of the Social Security Act
by the addition of a new definition of Australian resident disability support
pensioner.
Item 6 provides for the amendment of section 1212 of the Social Security Act
by the addition of a new definition of terminally ill overseas disability
support pensioner.
Item 7 provides for the amendment of the table in section 1217, relating to
portability of social security payments, by repealing item 3 of that table and
substituting two new items to provide for portability of an Australian resident
disability support pensioner (item 2) and of a terminally ill overseas disability
support pensioner (item 3).
Item 8 adds new clause 150 to Schedule 1A to the Social Security Act. This
provides an exemption from the requirement to be an Australian resident to
qualify for disability support pension for certain pensioners whose entitlement
to disability support pension is otherwise maintained.
