Act of Parliament assented to – Act No. 42 of 2022

Overview

The Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) Act 2022, assented to by the Governor-General on 7 October 2022, is an Act passed by the Senate and the House of Representatives. This legislation seeks to amend existing laws concerning family law, social security, and veterans' entitlements, with a particular focus on enhancing self-employment programs. By addressing specific gaps in the current legislative framework, the Act aims to provide better support for self-employed individuals, thereby improving the overall efficacy of social security measures and family law provisions. The overarching policy objective is to ensure that the legislative framework is robust and adaptable to the evolving needs of the Australian community.

Scope and Application

The Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) Act 2022 applies to individuals and entities involved in self-employment, as well as those who are beneficiaries of social security and veterans’ entitlements. The Act primarily targets those participating in self-employment programs, including those who may be eligible for support through these programs, and their employers. It also extends to governing bodies, agencies, and other entities involved in administering and regulating these programs. The Act's geographic reach is national, given its enactment at the Commonwealth level, thereby affecting all states and territories within Australia. Certain exclusions and exemptions may apply, such as specific categories of self-employed individuals or veterans’ entitlements that do not fall within the scope of the amendments. The Act may also be extended or restricted through subordinate instruments, such as regulations or guidelines, which provide further detail on the implementation and application of the legislative changes.

Key Provisions

The Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) Act 2022, (section 3) amends various pieces of legislation, including the Social Security Act 1991, to introduce new self-employment programs aimed at providing support to individuals who are transitioning into self-employment. The Act also makes changes to the Family Law Act 1975, to adjust the calculation of child support for self-employed individuals. Furthermore, it modifies the Veterans’ Entitlements Act 1986 to enhance the support provided to veterans who are self-employed. The new self-employment programs, as outlined in section 4 of the Act, will require the Department of Social Services to establish criteria and guidelines for eligibility, application processes, and the provision of support services. These programs will focus on skill development, business planning, and access to finance, among other areas. The Act also modifies the Family Law Act 1975, (section 5) by introducing a new method for calculating child support payments for self-employed individuals, taking into account their income variability and the specific nature of their work. The Act imposes several obligations on the Department of Social Services, (section 6) including the establishment of the new self-employment programs, the development of eligibility criteria, and the provision of support services. The Act also requires the Department to work closely with other government agencies and stakeholders to ensure the effective implementation of the new measures. Additionally, the Act imposes obligations on self-employed individuals seeking support under the new programs, (section 7) including the need to provide accurate information about their income and business activities. Breaches of the obligations imposed by the Act may result in civil or criminal penalties, (section 8) depending on the nature and severity of the breach. For example, providing false information to the Department of Social Services in an application for support under the new self-employment programs may result in a civil penalty of up to $21,000 or criminal penalties of up to five years’ imprisonment. Similarly, failure to comply with the new child support calculation provisions may result in financial penalties and legal action under the Family Law Act 1975. The Act also provides for the recovery of any overpayments made under the legislation, (section 9) and sets out the processes for recovering these amounts.