Commonwealth of Australia Explanatory Memoranda

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

2010-2011





               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA





                          HOUSE OF REPRESENTATIVES







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




                    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
         (FURTHER ELECTION COMMITMENTS AND OTHER MEASURES) BILL 2011

                            Government amendments


OUTLINE


Notice of payments of recompense for personal injuries

The amendments relate to the measure in the Bill  that  requires  payers  of
compensation, such as insurance companies, to notify Centrelink of  proposed
payments of compensation.  The Bill currently provides for Centrelink to  be
notified at least 14 days before the payment is made.  The amendments  allow
the Secretary and the compensation payer to agree on an  alternative  period
within which notice must be given.  This  will  make  the  new  arrangements
easier for the industry to manage.

Financial impact statement

It is estimated that there is a reduction in savings of  approximately  $1.1
million for the forward estimates period.   The  main  reason  for  this  is
potential  delay  in  negotiating  and   entering   into   agreements   with
compensation payers to provide data.


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

                            Government amendments

NOTES ON AMENDMENTS

Notice of payments of recompense for personal injuries

Amendments 1, 2 and 3 insert into new  subsections  1167A(1),  (2)  and  (3)
(relating to notice by a compensation  payer  and  inserted  by  item  6  of
Schedule 4) words  to  permit  the  operation  of  alternative  notification
arrangements that may be made by agreement with the Secretary under the  new
subsections inserted by amendment 4.

Amendment 4 adds to new section 1167A further subsections (3A),  (3B),  (3C)
and (3D).  These provide  for  notification  agreements  as  an  alternative
notice arrangement to that provided by subsection (3).

New  subsection  1167A(3A)  provides  that  a  person  is  covered  by   the
subsection if the person has entered into  a  notification  agreement  which
covers relevant payments and is in force.

New  subsection  1167A(3B)  provides  that  a  notification  agreement  must
include the kinds of payments covered by the agreement and the  requirements
for notifying the Secretary of the making of payments.

New subsection 1167A(3C) provides that notification agreements  will  remain
in force until the earlier of two dates - namely, the date specified in  the
agreement or, if the Secretary determines that  the  person  has  failed  to
comply with the agreement, the  day  on  which  notice  of  the  Secretary's
determination is given to the person.

New subsection 1167A(3D) excludes a decision  of  the  Secretary  under  new
subsection 1167A(3B) or (3C) from the operation of  Part  4  of  the  Social
Security (Administration) Act 1999, which  provides  for  merits  review  of
decisions under the social security law and certain other laws.  It  is  not
appropriate for decisions relating to agreements between large  corporations
and the Secretary to be subject to the  merits  review  process,  which  has
been created  to  provide  efficient  and  economical  review  of  decisions
relating to social security and other entitlements for natural persons.

In mirror arrangements for new section 1167B (relating to notice by an
insurer and also inserted by item 6 of Schedule 4), amendments 5, 6 and 7
insert words to permit the operation of the alternative notification
arrangements, and amendment 8 inserts the mirror scheme.