Social Security (Administration) Amendment (Income Management and Cashless Welfare) Act 2019

Administered by Department of Social Services

Legislation au C2019A00045 In force Act

Legislation content

 

 

 

 

 

 

Social Security (Administration) Amendment (Income Management and Cashless Welfare) Act 2019

 

No. 45, 2019

 

 

 

 

 

An Act to amend the law relating to social security, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Income management and cashless welfare

Social Security (Administration) Act 1999

 

 

 

Social Security (Administration) Amendment (Income Management and Cashless Welfare) Act 2019

No. 45, 2019

 

 

 

An Act to amend the law relating to social security, and for related purposes

[Assented to 5 April 2019]

The Parliament of Australia enacts:

1  Short title

  This Act is the Social Security (Administration) Amendment (Income Management and Cashless Welfare) Act 2019.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

5 April 2019

2.  Schedule 1

The day after this Act receives the Royal Assent.

6 April 2019

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Income management and cashless welfare

 

Social Security (Administration) Act 1999

1  Paragraphs 123UF(1)(g) and (2)(h)

Omit “1 July 2019”, substitute “1 July 2020”.

1A  Subsection 124PD(1)

Insert:

health or community worker means a person who carries on, and is entitled to carry on, an occupation that involves the provision of care for the physical or mental health of people or for their wellbeing.

2  Paragraph 124PF(1)(b)

Repeal the paragraph, substitute:

 (b) ending on 30 June 2020.

3  After paragraph 124PG(1)(h)

Insert:

 (ha) section 124PHA does not apply to the person; and

4  After paragraph 124PGA(1)(h)

Insert:

 (ha) section 124PHA does not apply to the person; and

5  After paragraph 124PGB(1)(h)

Insert:

 (ha) section 124PHA does not apply to the person; and

6  After paragraph 124PGC(1)(g)

Insert:

 (ga) section 124PHA does not apply to the person; and

7  At the end of Division 2 of Part 3D

Add:

Subdivision C—Exiting cashless welfare arrangements

124PHA  Participants who responsibly manage their financial affairs

Application of this section

 (1) This section applies to a person if:

 (a) all of the following apply:

 (i) the person’s usual place of residence is within a trial area where the Minister has authorised a body as a community body;

 (ii) the person applies to their local community body on or after 1 July 2019 to exit the trial of cashless welfare arrangements;

 (iii) the person’s local community body is satisfied that the person satisfies the criteria mentioned in subsection (2);

 (iv) the community body notifies the Secretary in writing that it is so satisfied; or

 (b) all of the following apply:

 (i) the person’s usual place of residence is not within a trial area where the Minister has authorised a body as a community body;

 (ii) the person applies to the Secretary on or after 1 July 2019 to exit the trial of cashless welfare arrangements;

 (iii) the Secretary is satisfied that the person satisfies the criteria mentioned in subsection (2).

Note: Subsection (4) sets out when this section ceases to apply to a person.

Criteria

 (2) The criteria for the purposes of subparagraphs (1)(a)(iii) and (b)(iii) are:

 (a) that the person can demonstrate reasonable and responsible management of their financial affairs, taking into account all of the following:

 (i) the interest of any children for whom the person is responsible;

 (ii) whether the person has a likelihood of engaging in any unlawful activity;

 (iii) risks of homelessness;

 (iv) the health and safety of the person and the community;

 (v) the responsibilities and circumstances of the person;

 (vi) the person’s engagement in the community, including the person’s employment or efforts to obtain work; and

 (b) any further criteria that the Minister determines, by legislative instrument, for the purposes of this subsection.

 (3) Before the Minister makes a determination under paragraph (2)(b), the Minister must:

 (a) consult with local communities and trial participants; and

 (b) have regard to any feedback received as a result of those consultations.

When this section ceases to apply

 (4) This section ceases to apply to a person if a health or community worker notifies the Secretary in writing that he or she has determined that it is necessary for a person to be a trial participant for medical or safety reasons.

 (5) To avoid doubt, the fact that this section ceases to apply to a person following a notification under subsection (4) does not prevent that person from again applying to exit the trial of cashless welfare arrangements.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 13 February 2019

Senate on 3 April 2019]

(33/19)

 

Overview

The Social Security (Administration) Amendment (Income Management and Cashless Welfare) Act 2019, enacted by the Parliament of Australia and assented to on 5 April 2019, amends the existing Social Security (Administration) Act 1999. This legislation seeks to address issues related to income management and cashless welfare arrangements, aiming to provide a framework for the responsible management of financial affairs by participants in these welfare trials. The Act introduces provisions that allow certain individuals to exit cashless welfare trials if they can demonstrate responsible financial management, while also setting criteria for re-entry into such trials if necessary. The policy objective is to balance support for welfare recipients with measures to prevent misuse of funds and promote financial responsibility. The Act includes provisions for extending the timeline for certain measures and introduces specific criteria for individuals seeking to exit cashless welfare arrangements. It mandates that the Minister consult with local communities and trial participants before making determinations regarding additional criteria. Furthermore, the Act specifies conditions under which health or community workers can notify the Secretary to re-include a participant in the trial based on medical or safety reasons. The detailed provisions and specific criteria are outlined in Schedule 1 of the Act.

Scope and Application

The Social Security (Administration) Amendment (Income Management and Cashless Welfare) Act 2019 is an Act of the Parliament of Australia that amends the Social Security (Administration) Act 1999, specifically targeting the administration of income management and cashless welfare systems. This legislation applies to individuals residing within or outside of trial areas where the Minister has authorised a community body, as well as to the Secretary of the Department of Social Services. The Act primarily governs the criteria and conditions under which participants in cashless welfare trials can exit these arrangements, focusing on the responsible management of financial affairs. The Act's provisions commence on 5 April 2019, with specific schedule provisions commencing on 6 April 2019. It is a Commonwealth Act, thus it has a national jurisdictional reach. The Act does not explicitly state exclusions or exemptions but implies that individuals not participating in cashless welfare trials or not applying to exit such trials are not directly subject to its provisions. The application and interpretation of the Act can be further refined through subordinate instruments, such as legislative instruments and regulations determined by the Minister.

Key Provisions

The Social Security (Administration) Amendment (Income Management and Cashless Welfare) Act 2019 (Act) amends the Social Security (Administration) Act 1999 (Administration Act). The primary focus of this Act is to modify the existing provisions related to income management and cashless welfare arrangements. It specifically alters the dates and criteria for these arrangements. For example, it changes the date by which certain income management measures must be reviewed from 1 July 2019 to 1 July 2020 (Schedule, items 1 and 2). Furthermore, the Act introduces new criteria for determining when a person can exit cashless welfare arrangements if they demonstrate responsible financial management and meet certain conditions (Schedule, item 7). The Act also defines "health or community worker" for the purposes of these provisions (Schedule, item 1A). The Act imposes specific obligations on various parties. For instance, it requires local community bodies to assess applications from residents within trial areas who wish to exit cashless welfare arrangements based on the criteria outlined in the Act (Schedule, item 7(1)(a)(iii)). The Secretary of the Department of Social Services must also assess applications from individuals outside these trial areas (Schedule, item 7(1)(b)(iii)). Additionally, health or community workers have the responsibility to notify the Secretary if they determine that a person needs to remain in the trial for medical or safety reasons (Schedule, item 7(4)). Failure to comply with the provisions of the Act may result in various consequences. For example, if a local community body or the Secretary fails to properly assess an application to exit cashless welfare arrangements, this could lead to improper inclusion or exclusion of individuals from these arrangements, potentially affecting their access to necessary support. Health or community workers who do not notify the Secretary when they determine that a person should remain in the trial may also face repercussions, as their failure to act could result in individuals being excluded from the trial when they require support. Although the Act does not specify maximum penalties for these breaches, breaches of social security laws generally can result in significant civil or criminal penalties depending on the nature and severity of the breach.

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Area of Law
Social Security Law
Instrument
Act
Concepts
Commencement Provisions
Reporting & Disclosure Obligations
Regulatory Standards
Compliance Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.