EXPLANATORY STATEMENT
Social Security (Satisfaction of the Activity Test – Classes of Persons) (FaHCSIA) Amendment Specification 2010 (No. 1)
Summary
The Social Security (Satisfaction of the Activity Test – Classes of Persons) (FaHCSIA) Amendment Specification 2010 (No. 1) (the Amendment Specification) is made by the Secretary of the Department of Families, Housing, Community Services and Indigenous Affairs under subsection 731A(11A) 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) (FaHCSIA) 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 special benefit by complying with the terms of their employment pathway plan (EPP).
Background
Certain provisions of the Act require some recipients of special benefit to satisfy the activity test to remain qualified for their social security payment. In general terms, to satisfy the activity test a special benefit recipient must be actively seeking and willing to undertake paid work in Australia other than unsuitable paid work within the meaning of section 731B of the Act. However, subsection 731A(11) of the Act provides 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 731A(11A) of the Act.
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
Section 1 provides that the name of the Amendment Specification is the Social Security (Satisfaction of the Activity Test – Classes of Persons) (FaHCSIA) 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 by the Amendment Specification.
Schedule 1
Item 1 inserts the words ‘persons who are the principal carers of one or more children’ as new paragraph 4(c). This specifies that persons who are the principal carers 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.
Consultation
The Amendment Specification is based on the Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Amendment Specification 2010 (No.1) prepared by the Department of Education, Employment and Workplace Relations (DEEWR). In developing their instrument, DEEWR had regard to the findings of the Participation Review Taskforce.
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
In light of the consultation undertaken by DEEWR, further consultation by the department of Families, Housing, Community Services and Indigenous Affairs was considered unnecessary.
Regulatory Impact Statement
The Amendment Specification does not require a Regulatory Impact Statement 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) (FaHCSIA) Amendment Specification 2010 (No. 1) was enacted to address a gap in the Social Security Act 1991 concerning the activity test for special benefit recipients. This legislation, made by the Secretary of the Department of Families, Housing, Community Services and Indigenous Affairs under subsection 731A(11A) of the Act, aims to amend the existing Social Security (Satisfaction of the Activity Test – Classes of Persons) (FaHCSIA) Specification 2009 (No. 1). The primary objective of the Amendment Specification is to include principal carers of one or more children as a class of persons who are taken to be satisfying the activity test for special benefit 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 the requirements of their EPPs. This amendment is a component of the 2009-10 Budget measure 'More Flexible Participation Requirements for Parents', which was initiated in response to the recommendations of the Participation Review Taskforce aimed at achieving sustainable employment outcomes for parents by making participation requirements more flexible.
Scope and Application
The Social Security (Satisfaction of the Activity Test – Classes of Persons) (FaHCSIA) Amendment Specification 2010 (No. 1) is an instrument made under the Social Security Act 1991 to amend the Social Security (Satisfaction of the Activity Test – Classes of Persons) (FaHCSIA) Specification 2009 (No. 1). Its purpose is to extend the classes of persons who are deemed to satisfy the activity test for special benefit to include principal carers of one or more children. This amendment means that such carers will not need to actively seek and be willing to undertake paid work in addition to complying with their employment pathway plan. The Amendment Specification applies to individuals who are principal carers of one or more children and who are recipients of special benefit, effectively altering their obligations under the activity test provisions of the Act. The Amendment Specification applies nationally across Australia and comes into effect on 1 July 2010, aligning with the commencement of related amendments made by the Social Security Amendment (Flexible Participation Requirements for Principal Carers) Act 2010. The specification does not introduce any new regulatory requirements or compliance costs, and it does not extend beyond the scope of the specified amendments detailed in Schedule 1.
Key Provisions
The main operative sections of the Social Security (Satisfaction of the Activity Test – Classes of Persons) (FaHCSIA) Amendment Specification 2010 (No. 1) include the insertion of a new class of persons, namely principal carers of one or more children, who are taken to satisfy the activity test by complying with their employment pathway plans (EPPs) (Section 3 and Schedule 1, Item 1). This amendment specifies that these principal carers are not required to be actively seeking and willing to undertake paid work in addition to the requirements of their EPPs (subsection 731A(11)). The definition of 'principal carer' is found in subsections 5(15) to (24) of the Social Security Act 1991.
The Amendment Specification imposes specific obligations on principal carers of one or more children who are recipients of special benefit. These carers must comply with the terms of their EPPs to be considered as satisfying the activity test. The EPPs are designed to assist these individuals in achieving employment outcomes that are suitable for them, taking into account their caring responsibilities and other personal circumstances. By complying with their EPPs, principal carers are deemed to meet the activity test requirements without the additional obligation of actively seeking and willing to undertake paid work.
The legislation does not explicitly state any new offences, penalties, or civil/criminal consequences for breach of its provisions. However, the overarching Social Security Act 1991 contains general provisions that could be applied in cases of non-compliance with activity test requirements. For example, failure to comply with the terms of an EPP could potentially lead to a cessation or reduction of special benefit payments. The specific penalties for such breaches would be governed by the general provisions of the Act, which may include fines or other administrative sanctions as determined by the relevant authorities.
Overall, the Amendment Specification seeks to provide more flexible participation requirements for principal carers by acknowledging their primary role in caring for children and allowing them to focus on their caring responsibilities while still meeting the activity test criteria through their EPPs. This aligns with the broader policy objective of supporting sustainable employment outcomes for parents.