Explanatory Statement
Social Security (Administration) (Relocation Assistance) (DEEWR) Specification 2010
Outline of instrument
Summary
The Social Security (Administration) (Relocation Assistance) Specification 2010 (Specification) is made by the Acting Secretary to the Department of Education, Employment and Workplace Relations under paragraph 42S(3B)(b) of the Social Security (Administration) Act 1999 (Administration Act).
The Specification specifies the kinds of payments that constitute “relocation assistance” for the purposes of subsection 42S(3) of the Administration Act.
Background
Under subsection 42S(3) of the Administration Act, a person who is paid “relocation assistance” by the Commonwealth for the purpose of relocating to take up a job, and who subsequently leaves that job voluntarily or due to misconduct within 6 months of being paid relocation assistance, may not be paid an income support payment for up to 12 weeks (normally a person who leaves a job is not paid an income support payment for 8 weeks).
Subsection 42S(3B) of the Administration Act defines “relocation assistance” as:
“... a payment:
(a) that is made by the Commonwealth to a person for the purpose of assisting the person to take up the employment; and
(b) that is specified in a legislative instrument made by the Secretary for the purposes of this paragraph.”
The Specification specifies payments under the Connecting People with Jobs trial administered by the Department of Education, Employment and Workplace Relations (DEEWR) as “relocation assistance” for the purposes of paragraph 42S(3B)(b).
Regulatory impact and consultation
The Specification does not affect business or competition.
The Specification is an administrative part of the Government’s Connecting People with Jobs initiative, announced as part of the Government’s election commitments for the 2010 Federal election, and given effect through amendments to the Administration Act made by the Social Security Legislation Amendment (Connecting People with Jobs) Act 2010. No separate public consultation on the Specification was considered necessary.
DEEWR consulted with the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) on the Specification. However, as recipients of special benefit are not currently eligible for the Connecting People with Jobs trial, the Secretary of FaHCSIA will not be making an equivalent instrument in relation to his responsibilities under the social security law.
Explanation of provisions
Sections 1 and 2 of the Specification are formal provisions, setting out the name and commencement date of the instrument, respectively.
Section 3 specifies the kind of payment that is “relocation assistance” for the purposes of paragraph 42S(3B)(b) of the Administration Act, that is, a payment made to a person under the Connecting People with Jobs trial administered by DEEWR. Under that trial, people in receipt of certain income support payments may be eligible for financial assistance of up to $9000, to assist them with the costs of relocating in order to take up a job. The person must accept the job before the assistance will be paid, and the assistance will be paid only in connection with taking up that job – that is, relocation assistance under the trial will only be paid where a person has a job to go to.
The assistance may be paid to the person directly (including on a reimbursement basis), or it could be paid on the person’s behalf to an organisation that has provided services to the person (for example, an airline or removalist company). Whether the payment is made directly to the person or to an organisation on the person’s behalf, the payment will be regarded as a payment made to the person, and will be relocation assistance.
Under subsection 42S(3) of the Administration Act, if a person leaves a job within 6 months of being paid relocation assistance in relation to that job, a participation payment is not payable to the person for 12 weeks. However, a person could receive more than one payment under the Connecting People with Jobs trial, for example, separate payments might be made for airfares, removalists, and post-placement support. In that case, subsection 3(2) of the Specification provides that only the first payment made to the person in relation to a particular job is “relocation assistance”. This means that the 6 month period during which the person can be subject to a 12 week non-payment period for leaving the job commences when the person is paid the first payment. Subsequent payments made to the person under the trial, in relation to that same job, are not relocation assistance for the purposes of subsection 42S(3).
Overview
The Social Security (Administration) (Relocation Assistance) (DEEWR) Specification 2010, enacted by the Acting Secretary to the Department of Education, Employment and Workplace Relations, aims to clarify and specify what constitutes "relocation assistance" under the Social Security (Administration) Act 1999. This instrument was introduced to address a gap in the existing legislation by providing explicit guidelines on what payments can be considered as relocation assistance, particularly in the context of the Connecting People with Jobs trial. This initiative was part of the Government's broader strategy to facilitate job transitions and was aimed at ensuring that individuals who accept employment but leave voluntarily or due to misconduct within six months of receiving relocation assistance do not qualify for income support payments for up to 12 weeks. The Specification outlines that payments under the Connecting People with Jobs trial administered by the Department of Education, Employment and Workplace Relations constitute relocation assistance, thereby aligning with the legislative intent to manage the conditions under which such payments are made and their implications on social security entitlements.
Scope and Application
The Social Security (Administration) (Relocation Assistance) Specification 2010 applies to payments made under the Connecting People with Jobs trial, which is administered by the Department of Education, Employment and Workplace Relations (DEEWR). The Specification identifies these payments as "relocation assistance" within the framework of the Social Security (Administration) Act 1999 (Administration Act). The primary application of this legislation is to individuals who receive relocation assistance as part of the trial to help them move for employment purposes, thereby impacting their eligibility for income support payments if they leave their job within six months of receiving such assistance. The Specification does not specify exclusions, exemptions, or thresholds but rather details the nature of the payments that constitute relocation assistance, ensuring they fall within the legislative framework for social security administration. The geographic reach of the Specification is inherently tied to the national scope of the Connecting People with Jobs trial, meaning it applies across Australia, wherever the trial is operational. The Specification does not extend its application through subordinate instruments but serves as a direct legislative clarification under the Administration Act.
Key Provisions
The key provisions of the Social Security (Administration) (Relocation Assistance) (DEEWR) Specification 2010 (Specification) are outlined in sections 1 to 3, which together specify the types of payments that constitute “relocation assistance” under subsection 42S(3B)(b) of the Social Security (Administration) Act 1999 (Administration Act). Section 1 sets out the name of the instrument and section 2 specifies the commencement date. Section 3 specifies that the payments made under the Connecting People with Jobs trial, administered by the Department of Education, Employment and Workplace Relations (DEEWR), are considered relocation assistance for the purposes of subsection 42S(3) of the Administration Act.
The obligations imposed by the Specification on the parties or entities it governs are primarily administrative and relate to the classification and payment of relocation assistance. The Specification requires that payments made under the Connecting People with Jobs trial be treated as relocation assistance, provided they meet the criteria set out in section 3. This includes payments made directly to the person or payments made to an organisation on the person's behalf, such as for airfares or removalist services. Additionally, the Specification stipulates that only the first payment made in relation to a particular job is considered relocation assistance, with subsequent payments not falling under this category.
There are no explicit offences, penalties, or civil/criminal consequences for breach outlined in the Specification itself. However, the consequences of breaching the conditions associated with the receipt of relocation assistance are addressed in subsection 42S(3) of the Administration Act. If a person who has received relocation assistance leaves their job voluntarily or due to misconduct within six months of being paid the assistance, they may not be paid an income support payment for up to 12 weeks. This is a stricter condition compared to the usual eight-week non-payment period for leaving a job. The potential penalties or consequences for breaching these conditions would be governed by the broader social security laws, rather than the Specification itself.
In summary, the Specification sets out the criteria for payments to be considered relocation assistance under the Connecting People with Jobs trial, imposes administrative obligations on the parties involved, and indirectly references the consequences of failing to meet the conditions for receiving relocation assistance as outlined in the broader social security framework.