Social Security and Other Legislation Amendment (Income Support Bonus) Act 2013

Administered by Department of Social Services

Legislation au C2013A00005 In force Act

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Social Security and Other Legislation Amendment (Income Support Bonus) Act 2013

 

No. 5, 2013

 

 

 

 

 

An Act to amend the law relating to social security, farm household support and taxation, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendments

Part 1—Main amendments

Social Security Act 1991

Social Security (Administration) Act 1999

Part 2—Consequential amendments

Farm Household Support Act 1992

Income Tax Assessment Act 1997

Social Security Act 1991

Social Security (Administration) Act 1999

 

 

 

Social Security and Other Legislation Amendment (Income Support Bonus) Act 2013

No. 5, 2013

 

 

 

An Act to amend the law relating to social security, farm household support and taxation, and for related purposes

[Assented to 5 March 2013]

 

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Social Security and Other Legislation Amendment (Income Support Bonus) Act 2013.

2  Commencement

  This Act commences on the day this Act receives the Royal Assent.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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

Part 1—Main amendments

Social Security Act 1991

1  Subsection 23(1)

Insert:

income support bonus means income support bonus under section 919.

2  Subsection 23(1)

Insert:

income support bonus test day has the meaning given by section 919.

3  After paragraph 23(4AA)(ab)

Insert:

 (ac) paragraph 919(1)(a);

4  After Part 2.18A

Insert:

Part 2.18B—Income support bonus

 

919  Qualification for an income support bonus

Qualification—social security payments

 (1) A person is qualified for an income support bonus on an income support bonus test day if:

 (a) the person is receiving one of the following payments in respect of that day:

 (i) newstart allowance;

 (ii) youth allowance;

 (iii) parenting payment;

 (iv) sickness allowance;

 (v) austudy payment;

 (vi) special benefit; and

 (b) if the person is receiving parenting payment, austudy payment or special benefit in respect of that day—the person is under pension age on that day.

Note: For pension age see section 23.

Qualification—ABSTUDY payment and farm payments

 (2) A person is qualified for an income support bonus on an income support bonus test day if:

 (a) one of the following payments is payable to the person in respect of a period that includes that day:

 (i) a payment under the ABSTUDY Scheme that includes an amount identified as living allowance;

 (ii) exceptional circumstances relief payment under the Farm Household Support Act 1992;

 (iii) transitional farm family payment under the program administered by the Commonwealth known as the Transitional Farm Family Payment program; and

 (b) if a payment under the ABSTUDY Scheme that includes an amount identified as living allowance is payable to the person in respect of a period that includes that day—the person is under pension age on that day.

Note: For pension age see section 23.

One income support bonus only in respect of an income support bonus test day

 (3) A person cannot receive more than one income support bonus under this section in respect of an income support bonus test day, regardless of how many times the person qualifies under this section on that day.

Definition

 (4) In this Act:

income support bonus test day means:

 (a) 20 March 2013; and

 (b) 20 September 2013; and

 (c) each later 20 March; and

 (d) each later 20 September.

920  Amount of income support bonus

  The amount of a person’s income support bonus under section 919 is the amount, specified in column 2 of an item in the following table, that corresponds to the person’s family situation, specified in column 1 of that item, on the income support bonus test day:

 

Amount of income support bonus

Item

Column 1
Person’s family situation

Column 2
Amount

1

Not a member of a couple

$105

2

Member of a couple, not covered by item 3, 4 or 5

$87.50

3

Member of illness separated couple

$105

4

Member of respite care couple

$105

5

Partnered (partner in gaol)

$105

Note 1: For member of a couple, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Note 2: The amounts specified are indexed twice a year in line with CPI increases (see sections 1190 to 1194).

921  Non‑receipt of social security payment

 (1) This section applies for the purposes of a provision of this or another Act if:

 (a) the provision provides a benefit (whether the benefit is a pension, benefit, payment, supplement or any other sort of benefit) if a person meets specified criteria; and

 (b) one of the specified criteria is that the person is receiving a social security payment, or is a recipient of a social security payment.

 (2) For the purposes of the provision, a person is not taken to be receiving a social security payment, or to be a recipient of a social security payment, merely because the person receives an income support bonus.

5  Section 1190 (at the end of the table)

Add:

 

 

Income support bonus

 

 

71.

income support bonus

income support bonus

section 920—table—items 1, 2, 3, 4 and 5

6  Subsection 1191(1) (at the end of the table)

Add:

 

 

Income support bonus

 

 

 

 

43.

income support bonus

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June or December quarter before reference quarter (but not earlier than December quarter 2012)

$0.10

7  At the end of section 1192

Add:

 (10) The first indexation of amounts under item 43 of the CPI Indexation Table in subsection 1191(1) is to take place on 20 September 2013.

Social Security (Administration) Act 1999

8  After section 12K

Insert:

12L  Income support bonus

  A claim is not required for an income support bonus.

9  Subsection 47(1) (at the end of the definition of lump sum benefit)

Add:

 ; or (m) income support bonus.

10  After section 47DAA

Insert:

47DAB  Payment of income support bonus

  If a person is qualified for an income support bonus on an income support bonus test day, the Secretary must pay the bonus to the person in a single lump sum:

 (a) on the day that the Secretary considers to be the earliest day on which it is reasonably practicable for the bonus to be paid; and

 (b) in such manner as the Secretary considers appropriate.


Part 2—Consequential amendments

Farm Household Support Act 1992

11  After subsection 24A(8)

Insert:

Income support bonus disregarded

 (8A) To avoid doubt, in calculating a rate referred to in subsection (1), any income support bonus under the Social Security Act 1991 is to be disregarded.

12  After subsection 24AA(10)

Insert:

Income support bonus disregarded

 (10A) To avoid doubt, in calculating a rate referred to in subsection (1), any income support bonus under the Social Security Act 1991 is to be disregarded.

13  At the end of section 24B

Add:

 (6) To avoid doubt, in calculating a rate referred to in this section, any income support bonus under the Social Security Act 1991 is to be disregarded.

Income Tax Assessment Act 1997

14  Section 11‑15 (table item headed “social security or like payments”)

After:

Household Stimulus Package Act (No. 2) 2009, payments under the scheme determined under Schedule 4 to the             



52‑165

insert:

income support bonus under the Social Security Act 1991 


52‑10

income support bonus under the scheme prepared under Part VII of the Veterans’ Entitlements Act 1986             


52‑65

income support bonus under the scheme determined under section 258 of the Military Rehabilitation and Compensation Act 2004             



52‑114

15  At the end of subsection 52‑10(1) (before the note)

Add:

 ; or (zc) income support bonus under the Social Security Act 1991.

16  Before subsection 52‑10(2)

Insert:

 (1M) Income support bonus under the Social Security Act 1991 is exempt from income tax.

17  After paragraph 52‑65(1)(b)

Insert:

 (c) payments of income support bonus under the scheme prepared under Part VII (about educating veterans’ children) of the Veterans’ Entitlements Act 1986; or

18  Before subsection 52‑65(2)

Insert:

 (1K) Payments of income support bonus under the scheme prepared under Part VII (about educating veterans’ children) of the Veterans’ Entitlements Act 1986 are exempt from income tax.

19  Section 52‑75 (after table item 5C)

Insert:

5D

Income support bonus under Veterans’ Children Education Scheme

Part VII

Not applicable

20  Section 52‑114 (before table item 17)

Insert:

16A

Income support bonus under the education scheme for certain eligible young persons (section 258)

Exempt

Not applicable

Social Security Act 1991

21  Paragraph 1231(1AA)(b)

Omit “or farmers hardship bonus”, substitute “, farmers hardship bonus or income support bonus”.

Social Security (Administration) Act 1999

22  Section 123TC (after paragraph (e) of the definition of category I welfare payment)

Insert:

 (f) income support bonus; or

23  Section 123TC (after paragraph (a) of the definition of category Q welfare payment)

Insert:

 (aa) income support bonus; or

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 29 November 2012

Senate on 25 February 2013]

 

(222/12)

 

Overview

The Social Security and Other Legislation Amendment (Income Support Bonus) Act 2013 was enacted by the Parliament of Australia to address gaps in the social security system by introducing an income support bonus. This Act amends several existing Acts, including the Social Security Act 1991 and the Social Security (Administration) Act 1999, to facilitate the introduction of an income support bonus for eligible recipients on specific dates. The policy objective of this legislation is to provide targeted financial assistance to individuals who meet certain criteria, thereby supplementing their income and supporting their welfare. The Act ensures that income support bonuses are not subject to income tax and outlines the specific family situations and amounts for which recipients may qualify. The Act also includes consequential amendments to other legislation to ensure consistency and proper integration of the new income support bonus provisions.

Scope and Application

The Social Security and Other Legislation Amendment (Income Support Bonus) Act 2013 applies to individuals who are receiving certain social security payments as specified in the Act, including Newstart Allowance, Youth Allowance, Parenting Payment, Sickness Allowance, Austudy Payment, Special Benefit, and payments under the ABSTUDY Scheme that include a living allowance. Additionally, it applies to recipients of the Exceptional Circumstances Relief Payment and the Transitional Farm Family Payment. The Act is a Commonwealth legislation, thereby having jurisdiction across Australia. Notably, the Act provides for the payment of an income support bonus on specified test days, which are 20 March and 20 September of each year, and each subsequent occurrence of those dates. The Act also includes provisions for the indexation of the income support bonus amount in line with Consumer Price Index (CPI) increases. Exemptions and exclusions are not explicitly stated within the text provided, but the Act specifies that the income support bonus is exempt from income tax. The application of the Act may be extended or restricted through subordinate instruments, although specific details on such instruments are not provided in the text.

Key Provisions

The Social Security and Other Legislation Amendment (Income Support Bonus) Act 2013 amends several pieces of legislation to introduce an income support bonus. Section 919 of the Social Security Act 1991 outlines the qualification for an income support bonus, which is available to individuals receiving certain social security payments on specified test days, namely 20 March and 20 September each year. The bonus amount depends on the individual's family situation, ranging from $87.50 to $105. Section 920 sets out the specific amounts for different family situations. Section 921 clarifies that the receipt of an income support bonus does not affect eligibility for other benefits based on receiving social security payments. The Act imposes several obligations on the relevant parties. The Secretary, as defined in the Social Security (Administration) Act 1999, must pay the income support bonus to eligible individuals in a single lump sum payment on the earliest practicable date, as per section 47DAB. The payment process does not require a claim to be made by the individual, as stated in section 12L of the Social Security (Administration) Act 1999. Furthermore, the income support bonus is to be disregarded in calculating rates under certain sections of the Farm Household Support Act 1992, as clarified in sections 24A(8A), 24AA(10A), and 24B(6). The Act also specifies certain offences, penalties, and consequences for breaches. While the Act does not explicitly state penalties for non-compliance, it does outline the tax treatment of the income support bonus. Under the Income Tax Assessment Act 1997, the income support bonus is exempt from income tax, as detailed in sections 52-10(1M) and 52-65(1K). This means that recipients of the bonus do not need to include it in their taxable income. The Act also ensures that the income support bonus is disregarded in the calculation of rates in other legislation, which prevents any potential adverse effects on other entitlements or benefits.

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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.