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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




                REVISED 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


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.

Financial impact statement

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      |


   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 commencement clause in the Bill.  The amended  clause
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.

Amendment 2 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 3 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 4 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.