Commonwealth of Australia Explanatory Memoranda

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COMPENSATION MEASURES LEGISLATION AMENDMENT (RENT ASSISTANCE INCREASE) BILL 2000

1998-1999-2000



THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA







HOUSE OF REPRESENTATIVES








COMPENSATION MEASURES LEGISLATION AMENDMENT
(RENT ASSISTANCE INCREASE) BILL 2000











EXPLANATORY MEMORANDUM










(Circulated by authority of the Minister for Family and Community Services,
Senator the Hon Jocelyn Newman)

ISBN: 0642 439168

COMPENSATION MEASURES LEGISLATION AMENDMENT
(RENT ASSISTANCE INCREASE) BILL 2000


OUTLINE AND FINANCIAL IMPACT STATEMENT

The A New Tax System (Compensation Measures Legislation Amendment)
Act 1999 (the Compensation Measures Act) amends the Social Security Act 1991 and the Veterans’ Entitlements Act 1986 to provide a 7% increase in the maximum rent assistance rates available to social security and veterans’ pensioners and other social security recipients. The increase applies from 1 July 2000.

This Bill amends the Compensation Measures Act to ensure that a 10% (instead of 7%) increase applies to maximum rent assistance rates from 1 July 2000. This change will provide extra assistance for people with low incomes in rental accommodation, including caravan park, mobile home and boarding house residents.

The maximum rent assistance rates for family tax benefit are also to be similarly increased by disallowable instrument (made under subclause 8(1) of Schedule 4 to the A New Tax System (Family Assistance) Act 1999).

The estimated cost of the further increase in the maximum rent assistance rates applicable to social security, veterans’ affairs and family assistance customers is $33 million in each year.

PRELIMINARY

Clause 1 of the Compensation Measures Legislation Amendment (Rent Assistance Increase) Bill 2000 sets out how the amending Act is to be cited.

Clause 2 provides for the commencement of the Bill. The Bill commences, or is taken to have commenced, immediately before the commencement of Schedule 1 to the Compensation Measures Act.

Clause 3 provides that each Act specified in a Schedule is amended or repealed as set out in that Schedule.


SCHEDULE 1 - AMENDMENTS

Amendments that affect the Social Security Act 1991


Item 135 of Schedule 1 to the Compensation Measures Act amends subsection 1192(2) of the Social Security Act 1991 (the Social Security Act) by inserting a new Note 2. The note refers to the 7% increase provided for in the Compensation Measures Act.

Item 1 amends Note 2. The existing reference to 7% is replaced by a reference to 10%.

Item 136 of Schedule 1 to the Compensation Measures Act inserts a new section 1206GAA into the Social Security Act. The new section provides for a 7% increase in the maximum rent assistance rates listed in the table in that provision.

Item 2 has the effect of amending section 1206GAA to ensure that the maximum rent assistance rates are increased by 10% instead of 7%. Accordingly, the reference to 7% in paragraph 1206GAA(2)(a) is replaced with a reference to 10%.

Amendments that affect the Veterans’ Entitlements Act 1986


Item 6 of Schedule 2 to the Compensation Measures Act amends subsection 59C(2) of the Veterans’ Entitlements Act 1986 (the VE Act) by inserting a new Note 2. The note refers to the 7% increase provided for in the Compensation Measures Act.

Item 3 amends Note 2. The existing reference to 7% is replaced by a reference to 10%.

Item 42 of Schedule 2 to the Compensation Measures Act inserts a new section 198GA into the VE Act. The new section provides for a 7% increase in the rent assistance amounts that are provided for in column 4 of the table in subpoint SCH6-C8(1) of the VE Act.

Item 4 has the effect of amending section 198GA to ensure that specified rent assistance amounts are increased by 10% instead of 7%. Accordingly, the reference in paragraph 198GA(2)(a) to 7% is replaced with a reference to 10%.

Amendment that affects the A New Tax System (Family Assistance) Act 1999


Item 1 of Schedule 4 inserts a new clause 9 into Schedule 4 of the A New Tax System (Family Assistance) Act 1999.

Item 5 makes a consequential amendment to the heading of clause 9 so that it refers to the 10% (and not 7%) increase in maximum rent assistance amounts.

 


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