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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
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3 provides that each Act specified in a Schedule is amended or repealed as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
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%.
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%.
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.