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FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS AND OTHER LEGISLATION AMENDMENT (BUDGET AND OTHER MEASURES) BILL 2011


                                  2010-2011





               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                                   SENATE








   FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS AND OTHER
                            LEGISLATION AMENDMENT
                    (BUDGET AND OTHER MEASURES) BILL 2010




                    SUPPLEMENTARY EXPLANATORY MEMORANDUM





             Amendments to be moved on behalf of the Government













                     (Circulated by the authority of the
 Minister for Families, Housing, Community Services and Indigenous Affairs,
                          the Hon Jenny Macklin MP)

   FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS AND OTHER
                            LEGISLATION AMENDMENT
                    (BUDGET AND OTHER MEASURES) BILL 2010


OUTLINE


Disability support pension

These amendments will delay, from  1  January  2011  to  1  July  2011,  the
commencement of the existing measure in the Bill on  residence  required  to
qualify for disability support pension.  This delay will ensure  there  will
be no retrospective commencement, with adverse effect, for  people  affected
by the measure.

The amendments also insert into the Bill  some  amendments  providing,  from
1 July  2011,  an  extended  portability  period  for  a  severely  disabled
disability support pensioner, if  the  pensioner  accompanies  a  supporting
family member who has been posted or seconded  by  their  employer  to  work
overseas for a period.

Reinsertion of Schedules

The amendments also reinsert into the Bill  the  measures  relating  to  the
scheduling of land and the Indigenous Land Corporation, which  were  removed
from the Bill in the House of Representatives for timing reasons.

Schedule 3 to the original Bill (on the  scheduling  of  land)  was  removed
from the Bill to allow one of the land area  measurements,  drawn  from  the
survey plan for the land in question, to be clarified.

Schedule 4 to the original Bill (on the  Indigenous  Land  Corporation)  was
removed from the Bill to allow the inquiry into the measure  by  the  Senate
Standing Committee on Legal and Constitutional Affairs  (the  Committee)  to
proceed, for report by the start of the 2011 Autumn sittings.

It appeared at that time that retaining  these  two  measures  in  the  Bill
would prevent the Bill from being passed in the 2010 Spring sittings.   That
passage was highly desirable for two  important  measures  in  the  Bill  to
commence, as intended at the time, on 1  January  2011.   The  two  measures
were special disability  trusts  (Schedule  1)  and  residence  required  to
qualify for disability support pension (Schedule 2).

However, the Senate program for the 2010 Spring sittings  did  not,  in  the
end, allow the Bill to be considered and passed in  those  sittings.   Given
the new timing for the Bill, it is  now  appropriate  to  reinsert  the  two
measures (noting that the land area measurement  mentioned  above  has  been
clarified  and  a  new  figure  is  shown,  and  also  that  some   drafting
clarifications are made to the Indigenous  Land  Corporation  measure  as  a
result of recommendations made by the Committee).

Scheduling of land

The amendments will reinsert Schedule 3 to the Bill.  This will add  further
parcels of land to Schedule  1  to  the  Aboriginal  Land  Rights  (Northern
Territory) Act 1976 to enable the land to be granted to relevant  Aboriginal
Land Trusts.

Indigenous Land Corporation

The amendments will reinsert Schedule 4 to the Bill.  This  will  amend  the
Aboriginal and Torres Strait Islander Act 2005 to include a  power  for  the
Minister to make guidelines that the Indigenous Land Corporation  must  have
regard to in deciding whether to perform  its  functions  in  support  of  a
native title settlement, and - if it decides to  perform  its  functions  in
support of a native title  settlement  -  in  performing  its  functions  in
support of that settlement.

Financial impact statement

Disability support pension

Residence required to qualify for disability support pension (as delayed to
1 July 2011)

Total change in resourcing (FaHCSIA and Centrelink)

|2010-11     |2011-12     |2012-13     |2013-14     |2014-15     |
|$1.6 m      |- $2.4 m    |- $2.8 m    |- $3.1 m    |- $3.4 m    |

Extended portability period for a severely disabled disability support
pensioner

Total change in resourcing (FaHCSIA and Centrelink)

|2010-11     |2011-12     |2012-13     |2013-14     |2014-15     |
|$0.2 m      |$0.1 m      |$0.2 m      |$0.4 m      |$0.6 m      |

Reinsertion of Schedules

There is no financial impact from the reinserted measures.

   FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS AND OTHER
                            LEGISLATION AMENDMENT
                    (BUDGET AND OTHER MEASURES) BILL 2010

                            Government amendments


NOTES ON AMENDMENTS

Amendment 1 amends the long title of the Bill to restore the  references  to
the  Aboriginal  land  rights  (scheduling  of  land)  and  Indigenous  Land
Corporation measures as purposes of the Bill.

Amendment 2 amends  the  commencement  clause  in  the  Bill.   Firstly,  it
provides for the delayed disability support pension residence  measure,  and
the new portability measure, to commence  on  1 July 2011.   The  beneficial
special disability trusts measure in Schedule 1 will  continue  to  commence
with effect from 1 January 2011.

Secondly, this amendment restores the references to the scheduling  of  land
and Indigenous Land Corporation measures to the commencement clause  in  the
Bill (providing for commencement on the day after Royal Assent).

Amendment 3 changes the title of Schedule 2 to reflect the inclusion in  the
Schedule of the new disability support pension  portability  measure,  along
with the original disability support pension residence measure.

Amendment 4 inserts ', 1218AB' into a table item substituted by  item  7  of
Schedule 2.  This is to make sure item 7 still operates  correctly  in  view
of the insertion of the new  section  1218AB,  relating  to  the  disability
support pension portability measure.

Amendment 5 inserts section  1218AB  into  the  Social  Security  Act  1991.
Subsection 1218AB(1) provides that the Secretary may extend portability  for
a disability support pensioner who accompanies  a  family  member  overseas,
provided that the qualifying circumstances set out in the section  are  met.
The disability support pensioner must be severely disabled, must  be  wholly
or substantially dependent on the family member, and  must  be  living  with
the family member during the proposed absence from  Australia.   The  family
member must be working in Australia for an employer before working  overseas
for  that  employer.   If  the  Secretary  extends  portability   in   these
circumstances for a period, the disability support pensioner  will  continue
to be paid the pension during that period.

Subsection 1218AB(2) provides for the duration of the  extended  portability
period.  Should any of the qualifying circumstances set  out  in  subsection
(1) cease to exist (for example, should the family member  cease  employment
with the employer he or she was working for immediately  before  the  period
of absence), the qualifying circumstance set out in  paragraph  1218AB(1)(f)
would cease to exist, enabling the Secretary to revoke the determination.

Subsection 1218AB(3) provides that the Secretary may revoke a  determination
to extend portability.

Subsection 1218AB(4) is for the benefit of readers.  This  subsection  makes
clear that a  determination  under  subsection  (1)  is  not  a  legislative
instrument within the meaning of the Legislative Instruments Act 2003.

Amendment 5 restores Schedule 3 to the Bill, adding further parcels of  land
to Schedule 1 to the Aboriginal Land Rights (Northern  Territory)  Act  1976
(the Land Rights  Act)  to  enable  the  land  to  be  granted  to  relevant
Aboriginal Land Trusts (noting that  the  land  area  measurement  mentioned
above has been clarified and a new figure is shown).

                                 Background

This Schedule will add further  parcels  of  Northern  Territory  land  near
Borroloola and also land comprising the Port Patterson Islands  to  Schedule
1 to the Land Rights Act.  This will  allow  the  land  in  question  to  be
granted to relevant Aboriginal Land Trusts pursuant to sections  10  and  12
of the Land Rights Act.

Government policy is that  land  should  be  added  to  Schedule  1  to  the
Land Rights Act where agreement to  do  so  has  been  reached  between  the
Northern Territory Government and the relevant Land Council.  Agreement  has
been reached between the  Commonwealth,  the  Northern Territory  Government
and the Northern Land Council that these parcels of land should  be  granted
to relevant Aboriginal Land Trusts as Aboriginal land under the Land  Rights
Act.

The parcels of land near Borroloola are associated with the Borroloola  Land
Claim, which was the first land claim made under the Land Rights  Act.   The
parcels of land include Batten Point, North Island and  some  small  islands
off  the  coast  of  Vanderlin  Island.   North  Island  has  been  held  as
Barranyi National Park and previously did not qualify to be granted as  part
of  the  land  claim.   The  small   islands,   called   Rarranggilawunyara,
Niwawunala, Wanadjurara and Alolo, were part of the  land  claim,  but  were
inadvertently   omitted   from   the    Aboriginal    Land    Commissioner's
recommendations.  Two related grants of land have previously  been  made  to
the claimants, and, once these particular parcels of land are granted,  this
land claim will be resolved.

The Port Patterson Islands also relate to a  long-running  land  claim,  the
Kenbi land claim over the Cox Peninsula  near  Darwin.   After  a  long  and
complex process, this  land  claim  is  also  approaching  resolution.   The
addition of the Port Patterson Islands to Schedule 1 to the Land Rights  Act
will enable this land to be included in a grant associated  with  the  Kenbi
Land Claim in the near future.

The  amendments  made  by  this  Schedule  commence   on   the   day   after
Royal Assent.

                         Explanation of the changes

Item 1 amends Part 4 of Schedule 1 to  the  Land  Rights  Act  by  inserting
various portions of land near Borroloola in the Northern Territory  as  land
to be granted as Aboriginal land.

Item 2 also amends Part 4 of Schedule 1 to the Land Rights Act by  inserting
a portion of land in the Northern Territory  known  as  the  Port  Patterson
Islands to be granted as Aboriginal land.

Amendment 6 restores Schedule 4  to  the  Bill,  making  amendments  to  the
Aboriginal and Torres Strait Islander Act 2005 (the ATSI Act) to  include  a
power  for  the  Minister  to  make  guidelines  that  the  Indigenous  Land
Corporation must have regard to before deciding to perform its functions  in
support of a native title settlement, as well as when it decides to  perform
its functions in support of a native  title  settlement  (noting  that  some
drafting clarifications are made as a result of recommendations made by  the
Committee).

                                 Background

The purpose of the Indigenous  Land  Corporation  is  to  assist  Aboriginal
people and Torres Strait Islanders to  acquire  and  manage  Indigenous-held
land  so  as  to  provide  economic,  environmental,  social  and   cultural
benefits.

The Indigenous Land Corporation's functions are set out  in  sections  191C,
191D and 191E of the ATSI Act.  Its main functions are land acquisition  and
land management.  These functions can be  exercised  in  support  of  native
title settlements, whether or not the settlement  includes  a  determination
of native title.

The Government promotes  flexible  native  title  settlements  that  can  be
sustained over the long term,  instead  of  litigation,  wherever  possible.
Settlements may provide for a range of practical benefits.

In  introducing  these  amendments,  the  Government  recognises  that   the
Indigenous Land Corporation can assist with the resolution of  native  title
settlements, particularly where connection to the land  in  question  is  at
issue and native title may not be established.

The amendments provide a power for the Minister to make guidelines that  the
Indigenous Land Corporation must have regard to before deciding  to  perform
its functions in support of a native title settlement, as well  as  when  it
decides to perform its functions in support of a  native  title  settlement.
In these instances, the Indigenous Land  Corporation  will  be  required  to
have regard to any guidelines made in the exercise of the Minister's power.

The amendments made by  this  Schedule  commence  on  the  day  after  Royal
Assent.

                         Explanation of the changes

Item 1 inserts new subsection 191F(2A), which will  require  the  Indigenous
Land Corporation to have regard to guidelines made under  new  section 191HA
in deciding whether to perform its functions in support of  a  native  title
settlement, and - if it decides to perform its functions  in  support  of  a
native title settlement - in performing its functions  in  support  of  that
settlement.

Item 1 also inserts a note to clarify that the Native Title Act  1993  deals
with making and resolving native title claims.

The Indigenous Land Corporation may perform its  functions  for  any  reason
covered in its enabling legislation.  The Indigenous Land  Corporation  must
have regard to the guidelines before deciding to perform  its  functions  in
support of a native title settlement, as well as when it decides to  perform
its functions in support of a native  title  settlement.   It  will  not  be
required to have regard to the guidelines when performing its  functions  in
other contexts.

Item 2 inserts new section 191HA, which provides that the Minister may  make
guidelines in the circumstances provided for  in  new  subsection  191F(2A).
Any guidelines made under this provision will be a disallowable  legislative
instrument.

Subsection 191I(1) applies if the Indigenous Land Corporation makes its  own
guidelines  about  the  performance   of   a   function   referred   to   in
paragraph 191D(1)(a), (c) or (d) or paragraph 191E(1)(d), (e) or (f) of  the
ATSI Act.

New subsection 191I(1A), inserted  by  item  3,  makes  it  clear  that  any
guidelines made by the Indigenous Land Corporation will have no  effect,  to
the  extent  of  any  inconsistency,  if  they  are  inconsistent  with  any
guidelines made by the Minister under new  section 191HA.

The heading to section 191I is altered by  omitting  the  word  'Guidelines'
and substituting 'Indigenous Land Corporation guidelines' to  describe  more
accurately the content of the section.

Item 4 makes an amendment to subsection 191I(2) required  as  a  consequence
of item 3.

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