EXPLANATORY STATEMENT
Household Stimulus Payment (DAFF) Scheme 2009
SUMMARY
The Household Stimulus Payment (DAFF) Scheme 2009 (Scheme) is determined by the Minister for Agriculture, Fisheries and Forestry under subitem 1(1) of Schedule 4 to the Household Stimulus Package Act (No. 2) 2009 (HSP Act).
The purpose of the Scheme is to provide one-off payments, known as household stimulus payments, to certain recipients of farm household income support payments who did not receive a farmers hardship bonus under the HSP Act.
BACKGROUND
The HSP Act amended the Social Security Act to, among other things, provide for farmers hardship bonus. Farmers hardship bonus is a one-off payment of $950. Section 912 of the Social Security Act provides that a person is qualified for a farmers hardship bonus if they received an instalment of one of a specified type of farm household income support payments for a period that included 3 February 2009.
Schedule 4 to the HSP Act empowers the Minister to make a legislative instrument under which household stimulus payments may be made to persons in circumstances:
- occurring in the financial year starting on 1 July 2008; and
- in which the Minister considers Part 2.18 of the Social Security Act (which provides for farmers hardship bonus) does not produce appropriate results.
The Minister has considered that Part 2.18 of the Social Security Act produces inappropriate results for persons who would have received a farmers hardship bonus but for the application of the income tests to the payments mentioned in section 912 of the Social Security Act. The Scheme has been determined accordingly, to provide that persons who would have received a farmers hardship bonus but for their income during the specified period, are qualified for a household stimulus payment.
EXPLANATION OF PROVISIONS
Part 1
Section 1 provides that the name of the Scheme is the Household Stimulus Payment (DAFF) Scheme 2009.
Section 2 provides that the Scheme commences on the day after it is registered on the Federal Register of Legislative Instruments.
Section 3 defines a number of terms used in the Scheme.
Subsection 3(2) provides that if a term is used in the Scheme that is also used in the Social Security Act, the term has the same meaning as in the Social Security Act. Examples of terms used in both the Scheme and the Social Security Act are listed in the note to subsection 3(2).
Part 2
Section 5 requires the Secretary to make a determination that a person is qualified for a household stimulus payment if one of three circumstances applies. The circumstances are set out in sections 6, 7 and 8.
Section 6 provides the first circumstance, being that the person was not paid an instalment of exceptional circumstances relief payment in respect of a period including 3 February 2009, but would have been paid such an instalment if the income test provisions were disregarded. The intention of this provision is that a person who missed out on a farmers hardship bonus because of an income test will qualify for a household stimulus payment.
The income test provisions are defined in section 3 of the Scheme to refer to the income tests for the purposes of youth allowance and newstart allowance in the Social Security Act. These income tests apply to working out a person’s rate of exceptional circumstances relief payment because of paragraphs 24A(1)(a) and 24AA(1)(a) of the Farm Household Support Act 1992 (Farm Household Support Act). Those provisions tie a person’s rate of exceptional circumstances relief payment to the rate of youth allowance or newstart allowance that the person would have received had the person been eligible for either of those payments. Both newstart allowance and youth allowance are subject to income tests that reduce the rate of payment depending on the income of the person.
After disregarding the income test provisions, if the person would have been paid exceptional circumstances relief payment in respect of a period including 3 February 2009, section 6 will apply and the person will be qualified for a household stimulus payment.
For section 6 to apply, the income test provisions have to be the only obstacle to the person having received an exceptional circumstances relief payment in respect of a period including 3 February 2009. All other conditions for the payment must be satisfied. The person must have been qualified for exceptional circumstances relief payment for the period; the person must have made a claim for exceptional circumstances relief payment; and the claim must have been granted.
Section 7 provides the second circumstance, being that the person was not paid an instalment of farm help income support in respect of a period including 3 February 2009, but would have been paid an instalment but for the youth allowance and newstart allowance income tests. Section 7 is therefore identical to section 6, except that it refers to farm help income support instead of exceptional circumstances relief payment. Farm help income support payments are paid under the Farm Household Support Act. Like exceptional circumstances relief payment, the rate of farm held income support is affected by the income tests for youth allowance and newstart allowance (see paragraph 24B(1)(a) of the Farm Household Support Act).
Paragraph 7(c) ensures that section 7 cannot apply to a person if section 6 applies.
Section 8 provides the third circumstance, being that a person was not paid an instalment of Exceptional Circumstances Interim Income Support, Transitional Income Support, or a like payment, in respect of a period including 3 February 2009. These payments are not made under legislation, so there is no legislated income test applicable to the payments. However, a person’s income and the income of the person’s partner are taken into account in working out the person’s rate of payment.
Section 8 will apply if a person would have been paid such a payment in respect of a period including 3 February 2009, but for the income of the person or the person’s partner. “Partner” has the same meaning as in the Social Security Act (see subsection 3(2) of the Scheme and section 4 of the Social Security Act).
Paragraph 8(c) ensures that section 8 cannot apply to a person if section 6 or 7 applies.
Section 9 sets the amount of a household stimulus payment at $950. This is the same as the amount of farmers hardship bonus set by section 913 of the Social Security Act.
Part 3
Section 10 provides that a person is not required to make a claim for a household stimulus payment. Centrelink will determine qualification for household stimulus payments based on information in its records, and if necessary, supplement that information by seeking information under section 11.
Section 11 allows a delegate of the Secretary to seek information from a person relevant to the person’s qualification for a household stimulus payment under the Scheme. The power to seek information may only be exercised by issuing a notice in writing.
Section 12 provides for the manner in which a household stimulus payment must be made once a determination has been made that a person qualifies for a payment. A household stimulus payment is paid to the person who qualifies for it, as soon as reasonably practicable, and in such manner as the Secretary considers appropriate.
Section 13 provides that a person owes a debt to the Commonwealth for a household stimulus payment where the person has knowingly provided false or misleading information, or has knowingly provided a false statement, in order to obtain the payment. A debt is recoverable by the Commonwealth in a court of competent jurisdiction.
Section 14 allows the Secretary to delegate his or her powers under the Scheme to an officer of Department or the CEO of Centrelink, and for the CEO of Centrelink to further delegate those powers to an employee of Centrelink.
Consultation
The Treasury, Department of Families, Housing, Community Services and Indigenous Affairs, and the Department of Education, Employment and Workplace Relations were consulted during the preparation of this Determination.
The Determination is beneficial and supplements an existing legislative scheme for one-off payments to recipients of Exceptional Circumstances Relief Payments, Transitional Income Support or Farm Help Income Support. No public consultation was considered necessary.
Regulatory Impact Statement
This Determination does not require a Regulatory Impact Statement (RIS) nor a Business Cost Calculator Figure. This Determination is not regulatory in nature, will not impact on business activity and will have no compliance costs or competition impact.