EXPLANATORY STATEMENT
Social Security (Exemption from Non-payment and Waiting Periods – Activities) Specification 2009 (No. 1)
Summary
The Social Security (Exemptions from Non-payment and Waiting Periods – Activities) Specification 2009 (No. 1) (Specification) is made by the Secretary of the Department of Education, Employment and Workplace Relations (Secretary) under subsections 549A (6), 553B (2A), 553C (5), 598 (8A), 620 (3), 633 (5) and 634 (2A) of the Social Security Act 1991 (the Act).
The purpose of the instrument is to specify certain activities which, when being undertaken by recipients of youth allowance (YA) and newstart allowance (NSA), provide exemption from certain non-payment and waiting periods under the Act.
Background
Under certain provisions of the Act, recipients of YA and NSA may be subject to either a non-payment period (e.g. seasonal work preclusion period, or due to a move to area of lower employment prospects) or waiting period (e.g. liquid assets test waiting period or ordinary waiting period) before they can receive payment. Those provisions also provide for exemptions from the non-payment and waiting periods for people undertaking certain activities, such as rehabilitation programs and the Personal Support Program (PSP). From 1 July 2009, these provisions are being amended to provide that the Secretary can specify, by legislative instrument, the activities that attract exemptions from the non-payment and waiting periods.
Explanation of Provisions
Section 1 states the name of the Specification.
Section 2 states that the Specification commences on 1 July 2009. This corresponds with the commencement date of the amendments to the Act under which the Specification is made. These amendments are made by the Social Security Legislation Amendment (Employment Services Reform) Act 2009.
Section 3 contains interpretation provisions.
Section 4 specifies the activities that, if a person undertakes them, result in the person being exempt from:
- a liquid assets waiting period; and
- an ordinary waiting period; and
- a 26-week exclusion period, because the person has moved to an area of lower employment prospects; and
- a seasonal work preclusion period.
Paragraph 4 (a) provides that if a person claiming or qualified for YA or NSA is undertaking an activity as part of Stream 4 employment services provided to the person, they are exempt from serving the waiting or non-payment periods mentioned above. Under the Employment Services Contract 2009-2012, Stream 4 employment services are provided to the most disadvantaged or long-term unemployed jobseekers.
This paragraph is intended to maintain the status quo for job seekers who, prior to 1 July 2009, were participating in the PSP. PSP participants receiving YA or NSA are exempt from the non-payment and waiting periods mentioned above. The PSP will cease to operate on 30 June 2009, and PSP participants will generally be provided with Stream 4 employment services.
Paragraph 4 (b) provides that if a person claiming or qualified for YA or NSA is undertaking a rehabilitation program they are exempt from serving the waiting or non-payment periods mentioned above.
Consultation
Consultations were undertaken with the following organisations.
- Homelessness Australia;
- Catholic Social Services Australia;
- Mission Australia;
- National Employment Services Association;
- National Welfare Rights Network
- Australian Council of Social Service;
- Commonwealth Ombudsman’s office; and
- Centrelink
The organisations consulted were provided with a draft of the Determination and were invited to provide comments at a forum held on 12 March 2009.
The Department of Families, Housing, Community Services and Indigenous Affairs was consulted during the preparation of this determination. This was done to ensure a co-ordinated and consistent approach for all social security payments under the Act.
Business Cost Calculator Figure
This Specification does not require a Regulatory Impact Statement (RIS) nor a Business Cost Calculator Figure. This Specification is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.