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.
Overview
The Social Security (Exemptions from Non-payment and Waiting Periods – Activities) Specification 2009 (No. 1) was enacted to specify certain activities that provide exemption from non-payment and waiting periods for recipients of youth allowance (YA) and newstart allowance (NSA) under the Social Security Act 1991. This instrument was created by the Secretary of the Department of Education, Employment and Workplace Relations under specified subsections of the Act, with the aim of amending the provisions to allow for the Secretary to specify, via legislative instrument, activities that attract exemptions from the non-payment and waiting periods. This Specification aims to maintain the status quo for those job seekers participating in the Personal Support Program (PSP), which will cease to operate on 30 June 2009, and to provide Stream 4 employment services to the most disadvantaged or long-term unemployed jobseekers. The Specification was developed in consultation with various organisations, including Homelessness Australia, Catholic Social Services Australia, and the National Employment Services Association, among others, to ensure a coordinated and consistent approach for all social security payments under the Act.
Scope and Application
The Social Security (Exemptions from Non-payment and Waiting Periods – Activities) Specification 2009 (No. 1) applies to recipients of the youth allowance (YA) and the newstart allowance (NSA) in Australia. The instrument is designed to exempt these allowance recipients from certain non-payment and waiting periods when they are engaged in specified activities. The activities that attract these exemptions include participation in Stream 4 employment services, which are tailored for the most disadvantaged or long-term unemployed jobseekers, and participation in rehabilitation programs. This Specification is made under the Social Security Act 1991 by the Secretary of the Department of Education, Employment and Workplace Relations. It commenced on 1 July 2009, aligning with the amendments to the Act made by the Social Security Legislation Amendment (Employment Services Reform) Act 2009. The Specification does not impose significant regulatory, compliance, or competition costs and does not require a Regulatory Impact Statement or a Business Cost Calculator Figure.
Key Provisions
The main sections of the Social Security (Exemptions from Non-payment and Waiting Periods – Activities) Specification 2009 (No. 1) (Specification) include section 1, which names the instrument, and section 2, which states the commencement date of 1 July 2009 (s 2). Section 4 is particularly significant as it details the activities that qualify for exemptions from various waiting and non-payment periods under the Social Security Act 1991 (the Act). Specifically, paragraph 4(a) identifies Stream 4 employment services as activities that exempt recipients of youth allowance (YA) or newstart allowance (NSA) from certain waiting periods, aligning with the Employment Services Contract 2009-2012 (s 4(a)). Similarly, paragraph 4(b) specifies that participation in a rehabilitation program also exempts recipients from these periods (s 4(b)).
The Specification imposes obligations on YA and NSA recipients by clearly defining which activities qualify for exemptions from non-payment and waiting periods. It ensures that those who engage in specified activities, such as Stream 4 employment services or rehabilitation programs, are exempt from certain waiting periods, including the liquid assets waiting period, ordinary waiting period, 26-week exclusion period, and seasonal work preclusion period. These obligations are designed to support jobseekers, particularly the most disadvantaged or long-term unemployed, by allowing them to participate in employment services without the hindrance of waiting periods.
While the Specification itself does not explicitly outline offences, penalties, or consequences for non-compliance, it is part of a broader legislative framework under the Social Security Act 1991. Breaches of the Act's provisions, including those related to the misuse of exemptions, could lead to civil or criminal penalties as defined in the Act. The Act includes provisions for penalties, which may include fines and imprisonment, depending on the severity and intent of the breach. However, the Specification itself focuses on clarifying eligibility for exemptions rather than prescribing penalties for non-compliance with these exemptions.