EXPLANATORY STATEMENT
Social Security (Administration) (Weekly Payments – Classes of Persons) (DEEWR) Specification 2010
Summary
The Social Security (Administration) (Weekly Payments – Classes of Persons) (DEEWR) Specification 2010 (the Specification) is made by the Minister for Education, Minister for Employment and Workplace Relations under section 43(3B) of the Social Security (Administration) Act 1999 (the Administration Act).
The purpose of the Specification is to specify a class of persons to whom a weekly payment cycle of social security periodic payments could apply. The Secretary will then determine whether a particular person who is within that class of persons should be paid their social security periodic payment, in respect of a 14-day instalment period, in two weekly payments.
Background
As part of the strategy for reducing homelessness, the Australian Government’s White Paper, The Road Home: a National Approach to Reducing Homelessness, stated that weekly payments will be available to Centrelink’s most vulnerable customers including people who are homeless. The intention is for weekly payments to be specifically targeted to those social security recipients who are financially vulnerable and who have additional support needs due to difficulties in managing their payment across the 14-day instalment period.
Currently, in most cases, social security payments are paid fortnightly in arrears in respect of a 14-day instalment period. However, this Specification sets out the classes of persons who may be paid weekly, in arrears.
Explanation of provisions
Section 1 provides that the name of the Specification is the Social Security (Administration) (Weekly Payments – Classes of Persons) (DEEWR) Specification 2010.
Section 2 provides that the Specification commences on the day after it is registered.
Section 3 provides definitions of terms used in the Specification.
Section 4 specifies the class of persons for the purpose of making weekly payments, being persons who meet each of the following requirements:
(a) the person is an Australian resident and living in Australia;
(b) the person is receiving one of the payments listed in subsection 4(2);
(c) the person would benefit from having their social security periodic payment paid weekly; and
(d) the person has voluntarily agreed to be paid the total amount of their social security periodic payment in respect of a 14-day instalment period in two weekly payments as provided by subsection 43(3A), and has not revoked or withdrawn that agreement.
Subsection 4(2) provides that, for the purposes of paragraph 4(1)(b), the person must be receiving one of the payments listed.
Subsection 4(3) sets out non-exclusively, circumstances under which a person is taken to benefit from having their social security periodic payment paid weekly. Those circumstances are that the person does not have access to safe, secure and adequate housing, or is using emergency accommodation or a refuge; or the person is financially vulnerable and significantly disadvantaged.
Subsection 4(4) sets out, non-exclusively, circumstances under which a person is taken not to have access to safe, secure and adequate housing. This definition is derived from the Supported Accommodation Assistance Act 1994, and is intended to encompass the particular characteristics or incidents of a person’s accommodation that may adversely affect them or place them at risk. This definition encompasses people who would be considered homeless under the definitions of primary, secondary and tertiary homelessness currently used by the Australian Bureau of Statistics but is preferred for the purpose of the instrument because it defines homelessness by its impacts on individuals and provides consistency with other instruments made under social security law which also use this definition.
Whether a person is financially vulnerable and significantly disadvantaged is not defined in the Specification, as it is intended to be a broad and flexible concept examining many aspects of a person’s circumstances. It is intended that guidance be given to decision-makers through administrative guidance material, such as the Guide to Social Security Law and Centrelink’s e-Reference system. Examples of matters that decision-makers will be asked to consider include whether:
(a) the person has suffered a recent traumatic relationship breakdown, particularly if domestic or family violence was involved;
(b) the person or their partner or a family member has a diagnosed mental illness, acquired brain injury or acute cognitive impairment;
(c) the person or their partner or a family member has a gambling, substance or alcohol dependence that is severe enough to impede the person from managing their finances on a fortnightly basis;
(d) the person has ongoing budgeting difficulties with his or her fortnightly payment arrangements;
(e) the person has suffered an unforseen event that has substantially reduced his or her income or requires significant additional expenditure; or
(f) the person has previously been offered other services and referrals which have failed to stabilise the person’s financial circumstances.
This Specification is beneficial in nature and intended to assist a broad class of persons. In addition, a person must consent to be paid weekly before the Secretary can determine that a person is to receive their social security periodic payment on a weekly basis.
Consultation
Consultation was undertaken with Centrelink and the Department of Families, Housing, Community Services and Indigenous Affairs in relation to this instrument. A similar instrument has also been made by the Minister for Families, Housing, Community Services and Indigenous Affairs to specify the class of persons receiving social security payments for which that Minister has responsibility.
Regulatory Impact Statement
This instrument does not require a Regulatory Impact Statement and/or a Business Cost Calculator Figure. This instrument is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.
Apart from requirements relating to all legislative instruments (e.g. under the Legislative Instruments Act 2003), no statutory preconditions needed to be satisfied prior to the making of this instrument.