EXPLANATORY STATEMENT
Social Security (Prospective Determination for Parenting Payment Recipients) (DEWR) Guidelines 2006
Summary
These Guidelines are made under of the Social Security Act 1991 (the Act).
These Guidelines are intended to provide guidance to the Secretary in deciding if the criteria set out in paragraph 500E(1)(b) of the Act are satisfied.
Explanation of the Guidelines
From 1 July 2006, similar to newstart allowance recipients, parenting payment recipients who have participation requirements will be required to lodge their continuation of qualification forms on a fortnightly basis. However, the Secretary can, under section 500E, make a prospective determination about a person’s qualification for parenting payment. That is, the Secretary can determine in advance that a person will be qualified for period of longer than a fortnight with the consequence that during the period the person will not have to lodge a continuation of qualification form.
In making such a determination the Secretary must be satisfied of a number of criteria. These are:
- that a person is reasonably expected to qualify for parenting payment during the period;
- it is reasonable to expect that parenting payment will be payable to the person; and
- the person will comply with the Act during the period.
These guidelines are made to provide guidance in respect of the above criteria.
Explanation of the provisions
Section 1 sets out the name of the Guidelines. Section 2 sets out the commencement date of the Guidelines being 1 July 2006. This corresponds with the commencement of the provisions in the Act under which the Guidelines are made. Section 3 sets out the interpretation to be used in the Guidelines with terms appearing in the Guidelines having the same meaning as in the Act. Section 4 sets out the purpose of the Guidelines.
Section 5 of these Guidelines provides that if the Secretary is satisfied that one or more of the matters listed in paragraphs 5(a) to (d) apply to the person the Secretary may conclude that the person will not fulfil the criteria set relating to prospective determinations. Consequently, this would mean that a person is not qualified for a prospective determination. The first matter is where a person is required to provide additional evidence of his or her participation requirement, including written records of approaches made to potential employers about work.
Where a person is required to provide additional evidence of meeting participation requirements, it is likely that to demonstrate ongoing qualification for parenting payment the person may need to report on a fortnightly basis. In such a case, a person may not reasonably be expected to qualify for parenting payment during the prospective period, and therefore may not fulfil the criteria in the Act.
Under paragraph 5(b), if a parenting payment recipient has incurred overpayments arising from failure to comply with the provisions of the Act, then the Secretary may conclude the person does not fulfil the criteria relating to prospective determinations. If a parenting payment recipient due to non compliance has had overpayments, then it may be necessary for a person to report regularly to ensure that reporting of earnings are accurate and that overpayments do not occur over a protracted period in the future.
Under paragraph 5(c), the matter is if a person has not complied with the provisions of the Act. In determining if a person is qualified for a prospective determination, likely compliance with the Act is a specific criteria which the person must meet. It is only by complying with the Act that a person retains eligibility for payment. If a person has previously failed to comply with the Act, there is a risk that a future failure may also occur.
The final matter from which the Secretary may conclude that a person will not fulfil the criteria in the Act, is if the person has had a change in domestic circumstances that might affect the person’s qualification, or rate of payment of parenting payment. This is particularly relevant in considering whether a person will remain qualified or payable in the prospective period. A change of a person’s circumstances, for example, entering into a relationship, could result in parenting payment no longer being payable to the person. This would mean the person would not satisfy the qualification criteria relating to prospective determinations.
Section 6 of the Guidelines sets out that any prospective determination for parenting payment recipients cannot be longer than 12 weeks.
Consultation
The Guidelines are similar to those which are already in effect for prospective determinations for newstart allowance recipients. However, consultation was still undertaken on these Guidelines acknowledging that there may be special issues to consider for parenting payment recipients.
Consultations were undertaken with the following organisations.
- National Welfare Rights Network;
- the Australian Council of Social Service;
- the National Council of Single Mothers and their Children;
- the Sole Parents’ Union;
- the Welfare to Work Consultative Forum; and
- the Disability Advisory Group.
The organisations consulted were provided with a draft of the Guidelines and were invited to provide comments at a forum held on 13 January 2006 and to provide written comments to the Department of Employment and Workplace Relations.