EXPLANATORY STATEMENT
Social Security (Method of Payment – Foreign Countries) Revocation Determination 2010
Purpose
The purpose of the Social Security (Method of Payment – Foreign Countries) Revocation Determination 2010 (the Revocation Determination) is to revoke the Social Security (Method of Payment – Foreign Countries) Determination 2003 (the 2003 Determination) in order to ensure conformity with section 55 of the Social Security (Administration) Act 1999 (the Act).
Background
Section 55 of the Act sets out how social security payments are to be made to individuals. In particular subsection 55(2) provides:
Subject to subsections (4) and (4A), the relevant amount is to be paid to the credit of a bank account nominated and maintained by the person.
In addition, subsection 55(4) of the Act provides:
The Secretary may direct that the whole or a part of the relevant amount to be paid to the person in a different way from that provided for by subsection (2). If the Secretary gives a direction, the relevant amount is to be paid in accordance with that direction.
Section 5 of the 2003 Determination provides that unless a person lives in one of the countries set out in section 6 of that determination they are to be paid by way of cheque. Payments will now be made to all individuals by direct credit as provided in the Act.
Consultation
Centrelink has been consulted about this Determination.
Regulatory Impact
The Revocation Determination does not require a Regulatory Impact Statement. The Revocation Determination 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 (Method of Payment – Foreign Countries) Revocation Determination 2010 was enacted to revoke the Social Security (Method of Payment – Foreign Countries) Determination 2003. The problem this revocation aimed to address was ensuring conformity with section 55 of the Social Security (Administration) Act 1999, which specifies the methods for making social security payments, particularly the requirement for payments to be credited to a bank account nominated by the individual. The previous determination allowed for payments to be made by cheque if the individual did not reside in certain specified countries. The revocation determination mandates that all social security payments be made by direct credit to a bank account, aligning with the statutory requirement. The determination was issued under the authority of the relevant Secretary and does not require a Regulatory Impact Statement as it is not regulatory in nature and is expected to have minimal compliance costs or competition impact.
Scope and Application
The Social Security (Method of Payment – Foreign Countries) Revocation Determination 2010 applies to individuals receiving social security payments from the Australian Government who are located outside of Australia. It revokes the 2003 Determination, ensuring that all payments are made by direct credit to a nominated bank account, as prescribed by section 55 of the Social Security (Administration) Act 1999. The Revocation Determination is designed to bring the payment process into conformity with the Act, which requires payments to be made to the credit of a bank account unless the Secretary directs otherwise. There are no stated exclusions or exemptions within the Revocation Determination itself, although the scope of its application may be extended or restricted through subordinate instruments or specific directions under the Act. The revocation affects all social security recipients abroad, streamlining the payment method and aligning it with the statutory requirements.
Key Provisions
The Social Security (Method of Payment – Foreign Countries) Revocation Determination 2010 (Revocation Determination) revokes the Social Security (Method of Payment – Foreign Countries) Determination 2003 (2003 Determination) to align with the Social Security (Administration) Act 1999 (Act). The primary aim is to ensure all social security payments are made to individuals' nominated bank accounts as stipulated in section 55(2) of the Act, rather than by cheque unless otherwise directed by the Secretary under section 55(4). This change affects individuals who do not reside in the countries listed in section 6 of the 2003 Determination.
Under the Revocation Determination, the Act's provisions now mandate that social security payments must be credited directly to the bank accounts nominated by the recipients. This method of payment applies universally unless the Secretary directs otherwise, in which case payments will follow the alternative method specified. The revocation of the 2003 Determination eliminates the option of cheque payments for individuals outside the specified countries, enforcing the direct credit method for all recipients.
The Revocation Determination imposes specific obligations on the relevant parties. The Secretary must ensure that all social security payments are made to the bank accounts nominated by the recipients, in accordance with section 55(2) of the Act. Recipients are required to nominate and maintain a bank account for the receipt of their payments. The Secretary retains the authority to direct alternative payment methods under section 55(4) if deemed necessary, but this is the exception rather than the norm.
Breaches of the requirements set out in the Revocation Determination could result in civil or criminal consequences, although the determination itself does not explicitly outline specific penalties. Generally, under the Act, non-compliance with payment provisions might lead to actions for recovery of the amount due, fines, or other legal remedies. However, the Revocation Determination does not specify the exact penalties or consequences for non-compliance, which would likely be determined under the overarching Act and any related regulations.