Social Security (Satisfaction of the Activity Test - Classes of Persons) (DEEWR) Amendment Specification 2010 (No. 1)

Administered by Department of Education, Employment and Workplace Relations

Legislation au F2010L00977 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Amendment Specification 2010 (No. 1)

Summary

The Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Amendment Specification 2010 (No. 1) (the Amendment Specification) is made by the Secretary of the Department of Education, Employment and Workplace Relations under subsections 541 (1AB) and 601 (4A) of the Social Security Act 1991 (the Act).

 

The purpose of the Amendment Specification is to amend the Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Specification 2009 (No. 1) (the Principal Specification) to include principal carers of one or more children as a class of persons who are taken to be satisfying the activity test for youth allowance (YA) or newstart allowance (NSA) by complying with the terms of their employment pathway plan (EPP).

Background

Certain provisions of the Act require recipients of YA and NSA to satisfy the activity test to remain qualified for their social security payment.  In general terms to satisfy the activity test a YA recipient must be either undertaking full-time study or be actively seeking and willing to undertake paid work. A NSA recipient must be actively seeking and willing to undertake paid work.  However, subsections 541 (1AA) and 601(4) of the Act provide that a person is taken to satisfy the activity test if he or she is complying with the terms of an EPP in force for him or her, and the person is in a class of persons specified in an instrument made under subsection 541 (1AB) or 601 (4A) as the case may be. The Principal Specification is this instrument.  Subparagraph 541(1AA)(b)(i) of the Act provides that YA recipients who are early school leavers also meet their activity test requirements by complying with the terms of their EPPs.

 

The Amendment Specification will allow principal carers of one or more children to be taken to satisfy the activity test by complying with their EPPs.  That is, principal carers will not be required to be actively seeking and willing to undertake paid work in addition to the requirements of their EPPs.

 

This instrument, together with the Social Security Amendment (Flexible Participation Requirements for Principal Carers) Act 2010 is a result of the 2009-10 Budget measure ‘More Flexible Participation Requirements for Parents’.  This measure responds to the report made to Government by the Participation Review Taskforce, which was asked by Government to consider ways to achieve sustainable employment outcomes for parents, including how to make participation requirements more flexible. 


Explanation of provisions

Amendment Specification

Section 1 provides that the name of the Amendment Determination is the Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Amendment Specification 2010 (No. 1).

 

Section 2 states that the Amendment Specification commences on 1 July 2010. This is consistent with the commencement of the amendments made to the social security law by the Social Security Amendment (Flexible Participation Requirements for Principal Carers) Act 2010, which enables other components of the ‘More Flexible Participation Requirements for Parents’ 2009-10 Budget measure.

 

Section 3 provides that the Principal Specification is amended as set out in Schedule 1 to the Amendment Specification.

Schedule 1 to the Amendment Specification

Item 1 inserts the words ‘persons who are principal carers of one or more children’ as new paragraph 4(c).  This specifies that persons who are the principal carer of one or more children should be taken to satisfy the activity test if they comply with the requirements of their EPPs.  The meaning of the term ‘principal carer’ can be found in subsections 5(15) to (24) of the Act.

Formal matters

Consultation

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 relevant social security payments under the Act.

 

The Participation Review Taskforce was established in 2008 and reported to Government in August 2008. Taskforce members held consultations with key stakeholders in parent participation policy. This Amendment Specification implements the recommendations in the Taskforce report that relate to flexible activities.  Taskforce members and consultation included:

 

  • Business Council of Australia
  • Australian Council of Trade Unions
  • National Welfare Rights Network
  • Australian Council of Social Services
  • Australian National University
Regulatory Impact Statement

The Amendment Specification does not require a Regulatory Impact Statement (RIS) nor a Business Cost Calculator Figure. The Amendment Specification is not regulatory in nature, will not impact on business activity and will have no compliance costs or competition impact.

Overview

The Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Amendment Specification 2010 (No. 1) was enacted by the Secretary of the Department of Education, Employment and Workplace Relations under subsections 541(1AB) and 601(4A) of the Social Security Act 1991. This legislative instrument aims to amend the Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Specification 2009 (No. 1) by including principal carers of one or more children as a class of individuals who are considered to be meeting the activity test requirements for youth allowance (YA) or newstart allowance (NSA) by adhering to the terms of their employment pathway plan (EPP). This measure was introduced to address the gap in the existing legislation that did not account for the specific circumstances of principal carers, thereby providing them with more flexibility in meeting their activity test requirements. The policy objective behind this amendment is to support sustainable employment outcomes for parents and to make participation requirements more flexible, as recommended by the Participation Review Taskforce in their report to Government.

Scope and Application

The Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Amendment Specification 2010 (No. 1) applies to individuals who are recipients of youth allowance (YA) or newstart allowance (NSA) and who are principal carers of one or more children. The purpose of this Amendment Specification is to amend the existing Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Specification 2009 (No. 1) to include principal carers of one or more children as a class of persons who are deemed to satisfy the activity test for YA or NSA by complying with the terms of their employment pathway plan (EPP). This change means that principal carers will not be required to actively seek and be willing to undertake paid work in addition to meeting their EPP requirements. This legislation is made under the Social Security Act 1991 by the Secretary of the Department of Education, Employment and Workplace Relations and is in effect from 1 July 2010. The Amendment Specification does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not regulatory in nature and will not impact on business activity, compliance costs, or competition.

Key Provisions

The key operative sections of the Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Amendment Specification 2010 (No. 1) involve amendments to the Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Specification 2009 (No. 1). Specifically, Section 3 of the Amendment Specification (section 3) amends the Principal Specification to include 'persons who are principal carers of one or more children' as a new class of individuals who are taken to satisfy the activity test by complying with the terms of their employment pathway plan (EPP). This addition is made through the insertion of new paragraph 4(c) in Schedule 1 to the Amendment Specification. The term 'principal carer' is defined in subsections 5(15) to (24) of the Social Security Act 1991. The Amendment Specification imposes certain obligations on the parties it governs, particularly on those recipients of youth allowance (YA) or newstart allowance (NSA) who are principal carers of one or more children. These individuals are required to comply with the terms of their EPPs, which include activities such as job searching, skill development, and participation in community service. By complying with these plans, principal carers are deemed to satisfy the activity test for social security purposes, thereby remaining eligible for their respective allowances. This means they do not need to be actively seeking and willing to undertake paid work in addition to fulfilling their EPP requirements. The legislation does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches of the provisions within the Amendment Specification. However, given that the amendment is designed to clarify and ease certain requirements, it can be inferred that non-compliance with the EPP terms could result in a loss of eligibility for social security payments. While the Act does not detail specific penalties for such breaches within this Amendment Specification, general provisions under the Social Security Act 1991 might apply. Typically, failure to comply with the requirements for social security payments can result in financial penalties or the need to repay the amounts received while not meeting the activity test. However, precise details on penalties would be found within the broader context of the Social Security Act.

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Social Security Law
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