Post by Banjo on Nov 2, 2014 7:39:56 GMT 7
October
2014
Update
Bulletin # 47
Overview of changes
This update includes changes affecting social security and family assistance law incorporated or flagged in this edition of the Handbook, and bills currently before Parliament.
Compulsory participation requirements for disability support pension recipients under 35
Since 1 July 2012, disability support pension recipients under 25 have had participation
requirements, including attending an initial interview, agreeing to a participation plan,
and requirements to attend ongoing interviews.
This applies only if the person has an assessed work capacity of at least 8 hours per week and does not have a child under 6.
From 1 July 2014 disability support pension recipients with participation requirements must have
at least one compulsory work focused activity in their participation plan (eg work experience,
connection with an employment services provider).
There are additional requirements for recipients aged 22 or younger and for recipients with a
psychological or psychiatric condition.
Under Centrelink policy, a first failure to comply with a compulsory participation requirement
results in suspension of payment, but this can be restored without penalty. If a recipient incurs a
second failure with in 12 months, they will again be suspended but may not be backpaid if they
comply. A third failure will result in cancellation.
Changes to the Commonwealth Seniors Health Card
The Commonwealth Seniors Health Card (CSHC) gives holders access to subsidised
prescription medicines and other health services. It is paid to people over age pension age whose income or assets are too high to qualify for the age pension. The person or couple’s adjusted taxable income must be under certain limits, which were not indexed.
Holders of the CSHC are entitled to the Seniors Supplement and the Clean Energy Supplement, which are paid quarterly.
These income limits will now be indexed once per year to the consumer price index (CPI).
Two bills before Parliament propose additional changes to the CSHC, but have not been passed
by the Parliament at the time of writing.
The Social Services and Other Legislation Amendment (Seniors Supplement Cessation)
Bill 2014 includes a measure to abolish the Seniors Supplement.
The Social Services and Other Legislation Amendment (2014 Budget Measures No. 6) Bill 2014
includes two proposed changes to the CSHC. The first is the proposed inclusion of untaxed
superannuation income in a person or couple’s income for the purposes of determining
whether they are under the income limits for the CSHC. The measure would apply to certain account based superannuation income streams from 1 January 2015, which would be deemed to earn set rate of return under social security law deeming rules. There are exemptions for income streams purchased before 1 January 2015 and for existing CSHC holders (provided they do not change their superannuation arrangements).
The second proposed change is an increase to the period of temporary absence from Australia a person can have and still retain eligibility for the CSHC. If enacted, it would increase that period from the current 6 weeks to 19 weeks (although the renamed Energy Supplement would cease to be paid after 6 weeks, as is currently the case).
Income support bonus and schoolkids bonus to be abolished in 2016
The income support bonus is a supplementary payment paid twice per year to recipients of newstart allowance, youth allowance, parenting payment and student payments. It will be abolished from 31December 2016.
www.welfarerights.org.au/sites/default/files/field_publication_documents/5059/Handbook%20Bulletin%2047%20-%20October%202014.docx.pdf
2014
Update
Bulletin # 47
Overview of changes
This update includes changes affecting social security and family assistance law incorporated or flagged in this edition of the Handbook, and bills currently before Parliament.
Compulsory participation requirements for disability support pension recipients under 35
Since 1 July 2012, disability support pension recipients under 25 have had participation
requirements, including attending an initial interview, agreeing to a participation plan,
and requirements to attend ongoing interviews.
This applies only if the person has an assessed work capacity of at least 8 hours per week and does not have a child under 6.
From 1 July 2014 disability support pension recipients with participation requirements must have
at least one compulsory work focused activity in their participation plan (eg work experience,
connection with an employment services provider).
There are additional requirements for recipients aged 22 or younger and for recipients with a
psychological or psychiatric condition.
Under Centrelink policy, a first failure to comply with a compulsory participation requirement
results in suspension of payment, but this can be restored without penalty. If a recipient incurs a
second failure with in 12 months, they will again be suspended but may not be backpaid if they
comply. A third failure will result in cancellation.
Changes to the Commonwealth Seniors Health Card
The Commonwealth Seniors Health Card (CSHC) gives holders access to subsidised
prescription medicines and other health services. It is paid to people over age pension age whose income or assets are too high to qualify for the age pension. The person or couple’s adjusted taxable income must be under certain limits, which were not indexed.
Holders of the CSHC are entitled to the Seniors Supplement and the Clean Energy Supplement, which are paid quarterly.
These income limits will now be indexed once per year to the consumer price index (CPI).
Two bills before Parliament propose additional changes to the CSHC, but have not been passed
by the Parliament at the time of writing.
The Social Services and Other Legislation Amendment (Seniors Supplement Cessation)
Bill 2014 includes a measure to abolish the Seniors Supplement.
The Social Services and Other Legislation Amendment (2014 Budget Measures No. 6) Bill 2014
includes two proposed changes to the CSHC. The first is the proposed inclusion of untaxed
superannuation income in a person or couple’s income for the purposes of determining
whether they are under the income limits for the CSHC. The measure would apply to certain account based superannuation income streams from 1 January 2015, which would be deemed to earn set rate of return under social security law deeming rules. There are exemptions for income streams purchased before 1 January 2015 and for existing CSHC holders (provided they do not change their superannuation arrangements).
The second proposed change is an increase to the period of temporary absence from Australia a person can have and still retain eligibility for the CSHC. If enacted, it would increase that period from the current 6 weeks to 19 weeks (although the renamed Energy Supplement would cease to be paid after 6 weeks, as is currently the case).
Income support bonus and schoolkids bonus to be abolished in 2016
The income support bonus is a supplementary payment paid twice per year to recipients of newstart allowance, youth allowance, parenting payment and student payments. It will be abolished from 31December 2016.
www.welfarerights.org.au/sites/default/files/field_publication_documents/5059/Handbook%20Bulletin%2047%20-%20October%202014.docx.pdf
