Social Services Legislation Amendment Bill 2015

[ideas]

This is the legislative Bill before the Australian Parliament that will cause the Australian Working Life Residence rules to be applied to the Old Age Pension and the Unlimited DSP after only 6 weeks:


www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5485


 If you look at the Explanatory Memoranda, it states:

"Schedule 2 - Proportional payment of pensions outside Australia

Summary

From 1 January 2017, this Schedule reduces from 26 weeks to six weeks the period during which age pension, and a small number of other payments with unlimited portability, can be paid outside Australia at the full (means-tested) rate. After six weeks, payment will be adjusted according to the length of the pensioner’s Australian working life residence.



Background



This Schedule affects the rate of pension paid to age pension recipients and a limited number of disability support pension, wife pension and widow B pension recipients who have unlimited portability."



So the legislation will clearly affect the Unlimited DSP, meaning that people with Unlimited DSP aged under 51 will only receive a proportion of the DSP, based on the number of years resident in Australia, as a proportion of 35 years. You will need 35 years of AWLR to receive the full rate of OAP or Unlimited DSP. 

However, other schedules of this bill seek to abolish Pensioner Education Supplement and Education Entry Payment, and these schedules were defeated in the Senate in 2014, because they were blocked by the ALP, the Greens, and Palmer United, and other Senators. It remains to be seen whether this Bill will be blocked and defeated this year. 

[ideas]

There was a Senate Inquiry into this bill, that sought submissions from the public, to be submitted between 4 and 12 June 2015.

You can read the 18 submissions here:

www.aph.gov.au/Parliamentary_Business/Committees/Senate/Community_Affairs/Fair_Sustainable_Pensions

[Banjo]

So who do you know under 51 with UP who's payments dropped after 26 weeks?

[highlander4000]

I thought it was only proportianalised if your CITW happened while you werent in Australia, like this part says:

Payment may be proportionalised (7.2.2.10) after 26 weeks overseas absence if CITW did not occur in Australia.
guides.dss.gov.au/guide-social-security-law/7/1/2/20

So, is the new bill for all DSP overseas people. or only for those who got their CITW while overseas?. It doesnt say.

[Banjo]

My take, and we've gone over this before, is that proportional payments based on AWLR only applies if you have spent some of your working life outside of Australia.

People who went on the DSP within 35 years of turning 16 and have spent all of that time in Australia will get 100% AWLR for unlimited portability purposes.

[ding]

I wonder when they will change it from time spent alive in Aus, to the time spent 'employed' during that 35 years of working life residency in Aus.

It already looks like they could gain considerably if they reduce portability of OAP into line with DSP. Can you imagine the windfall if GST is increased to 15% ad applied to all the things that are GST free at present.

Forcing DSP recipients to spend more time here is already boosting revenue, but combine that with extending that tax income to almost all goods and services, then add the same GST income from all the oldies.

The feds might never have to support the states again! And they could buy a whole fleet of choppers for poor old Bronnie.

[itsmylife08]

Exemptions from the proportional rate

If a person has AWLR of 420 months or more, the normal income and asset-tested rate can be paid overseas. RA, however, would still cease after 26 weeks (6 weeks only for TAL and maximum pension supplement) of a temporary absence, or on departure if the absence was permanent. The pension supplement basic amount (former GST supplement) can be paid overseas indefinitely.

The following income support recipients, with indefinite portability, are exempt from the proportional rate. These are:
•terminally ill DSP recipients who are severely disabled, who qualified for DSP because they became unable to work or permanently blind whilst they were an Australia resident, and
•permanently and severely impaired DSP recipients with no future work capacity who qualified for DSP because they became unable to work or permanently blind whilst they were an Australian resident, and
•entitled WidB pensioners whose partner died while both members of the couple were Australian residents, and who were overseas immediately before 20 Sept 2000 and have not returned to Australia for more than 26 weeks, and
•all pensioners granted before 2 July 1986 (proportional portability only came in on 1 July 1986), who were overseas immediately before 20 Sept 2000 and have not returned to Australia for more than 26 weeks.

[blacktulipvampire]

Good find itsa, where did you find it ?

[Banjo]

guides.dss.gov.au/guide-social-security-law/7/2/2/10

[itsmylife08]

Sept 2, 2015 2:36:43 GMT 7 blacktulipvampire said:

Good find itsa, where did you find it ?

Google search if I remember correctly many moons ago

[whatsupdok]

Curious, I was out of the country on July 1, 2014 and as such I was Grndfathered in so that even though I have only been in Australia 26 years, I donot lose a portion of my Aged Pension if Im out of the country longer than 26 weeks. I go back on the new schedule only if I return to Australia for longer than 6 months and then leave. Will this situation stay the same for me or will it reapply in some way?

Also, I have just started to collect my USA Social Security payments and I know this will effect my Centrelink payments, anyone with experience in this with clues, advice or things to follow, please contact or post for me?

[fedup]

I spent a total of 30 years in oz, was out of the country for more than 26 weeks returned in 2014 for one month,left before the end of June,and had my DSP cut from around $777 to 652 per fortnight

MY DSP IS PAID UNDER MUTUAL AGREEMENT WITH ANOTHER COUNTRY

[Banjo]

I remember that you've had some fairly disastrous dealings with them in the past.
Seems like there's no end to it.