Explanatory Statement
Social Security (Disaster Recovery Allowance) (Prescribed Payments) Determination 2015
This determination is made under Section 1061KA(5) of the Social Security Act 1991 and provides that the Minister may prescribe income support payments that a person must not be in receipt of in order to qualify for the Disaster Recovery Allowance.
Section 36A of the Act empowers the Minister to determine in writing that an event is a “Part 2.23A 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 in the form of income support is required and that the event is of national significance.
Section 1061KA of the Social Security Act 1991 (the Act) provides the qualification criteria for the DRA.
Section 1061KA(1) of the Act specifies the qualification criteria for DRA. One of the qualification criteria is that the Minister has determined in writing that the event is a Part 2.23 major disaster.
Section 1061KA(2) of the Act provides that a person under 22 years of age is not qualified if they are wholly or substantially dependent on another person (other than their partner); they are not a parent; and their income for that financial year is under $6,403.
Section 1061KA(3) of the Act provides that where the Minister has specified one or more affected industries under Section 36A, the DRA will only be granted to a person that earns, derives or receives income from one of those industries and does so through working in one of those areas.
Section 1061KA(4) of the Act provides that where the Minister has specified one or more affected areas under Section 36A, the DRA will only be granted to a person that earns, derives or receives income from one of those areas and does so through working in one of those areas, or to a person who resides in one of those areas.
Section 1061KA(6) of the Act gives the Minister the power to prescribe additional eligibility criteria for the DRA via written determination.
Section 1061KA(7) of the Act provides that determinations made under section 1061KA (this instrument) are not subject to disallowance meaning that Section 42 of the Legislative Instruments Act 2003 does not apply.
The Prescribed Payments Determination gives effect to the declaration referred to above and provides the DRA will not be granted if a person is in receipt of the prescribed payments.
Section 1 of the Prescribed Payments Determination specifies the name of the determination.
Section 2 of the Prescribed Payments Determination provides that it commences on the date after it is registered.
Section 3 of the Prescribed Payments Determination contains definitions relevant to this Determination.
Section 4 of the Prescribed Payments Determination provides the prescribed payments that exclude persons from being granted the DRA.
Overview
The Social Security (Disaster Recovery Allowance) (Prescribed Payments) Determination 2015 was enacted to address the need for specific qualifications and criteria to be established for the Disaster Recovery Allowance (DRA) under the Social Security Act 1991. This determination was made under Section 1061KA(5) of the Act, providing the Minister with the authority to prescribe income support payments that would disqualify a person from receiving the DRA. The enactment was carried out by the Minister for Social Services, following the authority granted by the Parliament of Australia. The primary policy objective behind this determination was to ensure that the DRA is targeted and effectively provided to individuals who genuinely need financial support due to a major disaster of national significance, while also preventing any potential overlap or duplication with other forms of income support. The determination specifies certain income support payments that, if received by an individual, would disqualify them from being granted the DRA.
Scope and Application
The Social Security (Disaster Recovery Allowance) (Prescribed Payments) Determination 2015 applies to individuals seeking the Disaster Recovery Allowance (DRA) under Section 1061KA of the Social Security Act 1991, with the determination made under Section 1061KA(5). This legislation stipulates the income support payments that disqualify a person from receiving the DRA. The Act applies to individuals who have been affected by an event determined to be a "Part 2.23A major disaster" by the Minister, meaning the disaster must have a significant impact on individuals necessitating a government response in the form of income support. The scope extends to those who reside or work in areas or industries affected by the disaster, as outlined in Sections 1061KA(3) and 1061KA(4) of the Act. Notably, the Act excludes those under 22 years of age who are wholly or substantially dependent on another person, are not parents, and have an income under $6,403. The geographic reach of this legislation is national, as the Act pertains to events of national significance. The Act does not apply to persons currently receiving the specified income support payments listed in the Prescribed Payments Determination.
Key Provisions
The main operative sections of the Social Security (Disaster Recovery Allowance) (Prescribed Payments) Determination 2015 detail the circumstances under which the Disaster Recovery Allowance (DRA) will not be granted. According to Section 4 of the determination, the allowance will not be granted to individuals who are in receipt of specific prescribed payments. These payments are outlined in Section 4 and are intended to ensure that those who are already receiving sufficient support do not qualify for the DRA. Section 3 defines key terms used within the determination, while Section 2 establishes that the determination commences on the date it is registered. The overarching purpose of these sections is to clarify the eligibility criteria for the DRA by excluding those who are already receiving other forms of income support.
The obligations imposed by the Act on the parties and entities it governs include ensuring that individuals who apply for the DRA meet the specified criteria. Under Section 1061KA(1), the Minister must determine in writing that the event is a major disaster, which is a prerequisite for DRA eligibility. Additionally, Section 1061KA(2) stipulates that individuals under 22 must not be wholly or substantially dependent on another person, must be parents, and must have an income above $6,403 to qualify. Section 1061KA(3) and (4) impose conditions based on specified affected industries and areas, ensuring that only those directly impacted by the disaster are eligible for the DRA. Furthermore, the Minister has the authority under Section 1061KA(6) to add further eligibility criteria via written determination. These obligations ensure that the DRA is directed towards those who are genuinely in need due to the disaster.
Failure to comply with the provisions of the Act can result in various civil and criminal consequences. Although the determination itself does not specify penalties, breaches of the Social Security Act 1991 can lead to civil penalties under Section 1061KB. For instance, providing false information to obtain the DRA could result in fines or the repayment of any amounts wrongly received. Additionally, under Section 36A, if the Minister determines an event to be a major disaster without proper justification, this could lead to legal challenges or administrative penalties. It is crucial for applicants to ensure their eligibility and for the Minister to accurately determine the nature of the disaster to avoid any adverse consequences.