EXPLANATORY STATEMENT

Social Security (Australian Government Disaster Recovery Payment— Victorian Bushfires) Determination 2020 (No. 5)

Social Security Act 1991

Issued by authority of the Minister for Water Resources, Drought, Rural Finance, Natural Disaster and Emergency Management

1. The Australian Government Disaster Recovery Payment (the AGDRP) provides an immediate, one-off payment to Australians adversely affected by a major disaster.
2. Section 1061K of the Social Security Act 1991 (the Act) specifies the qualification criteria for the AGDRP. One of the qualification criteria requires a person to be “adversely affected by a major disaster”.
3. Subsection 1061L(1) of the Act provides that, for the purposes of the Act, a person is adversely affected by a major disaster if the person is affected by the disaster in a way determined by the Minister in relation to the disaster.
4. Subsection 1061L(2) of the Act provides that the Minister may determine in writing, in relation to a major disaster, the circumstances in which persons are to be taken to be adversely affected by the disaster.
5. Section 36 of the Act empowers the Minister to determine in writing that an event is a ‘major disaster’ if the Minister is satisfied that an event is a disaster that has such a significant impact on individuals that a government response is required.
6. The Minister made a determination under section 36(1) of the Act that applies to the bushfires occurring in November and December 2019, and January 2020 in Victoria, affecting the local government areas of East Gippsland and Towong.  
7. The Social Security (Australian Government Disaster Recovery Payment—Victorian Bushfires) Determination 2020 (No.5) (the Determination) gives effect to the disaster referred to above and sets out the circumstances in which a person is to be ‘adversely affected’ by the major disaster.
8. Section 1 of the instrument specifies the name of the instrument. 
9. Section 2 provides that the instrument commences on the day it is signed. For the purposes of section 12 of the Legislation Act 2003, the instrument may commence before it is registered as it will not disadvantage any persons adversely affected by the disaster.
10. Section 3 of the instrument contains definitions relevant to the instrument.
11. Subsection 4(1) of the instrument provides that the instrument applies to the major disaster being the bushfire occurring in November, December 2019 and January 2020 in Victoria, affecting the local government areas of East Gippsland and Towong.
12. Subsection 4(2) of the instrument provides that the circumstances in which a person will be taken to be adversely affected by the major disaster described in subsection 4(1) are where:
    1. the person is seriously injured as a direct result of the disaster (paragraph 4(2)(a)); or
    2. the person is an immediate family member of an Australian who is killed as a direct result of the disaster (paragraph 4(2)(b)); or
    3. the person’s principal place of residence has been destroyed or has major damage as a direct result of the disaster (paragraph 4(2)(c)); or
    4. a major asset or assets of the person has or have been destroyed or suffered major damage as a result of the disaster; or
    5. the person is a principal carer of a child to whom paragraphs 4(2)(a), (b), (c) or (d) apply (paragraph 4(2)(e)). 
13. The terms ‘destroyed’, ‘immediate family member’, ‘major asset or assets’, ‘major damage’ and ‘seriously injured’ are defined in section 4 of instrument.
14. Section 5 of the instrument operates to repeal the following instruments:
    1. Social Security (Australian Government Disaster Recovery Payment—Victorian Bushfires) Determination 2019 (No. 24); and
    2. Social Security (Australian Government Disaster Recovery Payment) Determination 2020 (No. 1).
15. The Social Security (Australian Government Disaster Recovery Payment) Determination 2020 (No. 1) instrument was made on 14 January 2020 and is being repealed as it did not fully achieve the government’s policy intent. The policy intent is to support Australians adversely affected by the bushfires by providing them with an immediate, one-off payment. This instrument will allow Australians to receive an immediate, one-off payment, if their major asset or assets with a market value of at least $20,000 have been destroyed or suffered major damage, thereby widening the scope for the government to support Australians affected by the major disaster outlined in paragraph 6.
16. Section 6 of the instrument provides that anything done under the Social Security (Australian Government Disaster Recovery Payment—Victorian Bushfires) Determination 2019 (No. 2) or the Social Security (Australian Government Disaster Recovery Payment) Determination 2020 (No.1) continues to be in effect as if it had been done under this instrument.
17. Subsection 1061L(3) of the Act provides that a determination under section 1061L is a legislative instrument. However, this instrument is not subject to disallowance by the Parliament as subsection 1061L(3) of the Act provides that section 42 of the Legislation Act 2003 does not apply to the instrument.
18. Formal consultation has not been undertaken as the instrument was required to commence as a matter of urgency.