EXPLANATORY STATEMENT
Social Security (Waiver of Waiting Period for Advance Payment of Entitlement) Determination 2009 (No. 1)
Summary
Subsection 1061A (2) of the Social Security Act 1991 (the Act) allows the Secretary of the Department of Education, Employment and Workplace Relations (DEEWR) to determine that paragraph 1061A (1) (b) does not apply to a person who has applied for an advance payment of a social security entitlement for which the Secretary is responsible (including austudy, mature age allowance, youth allowance, and newstart allowance).
The Advance Payment of Entitlement (Waiver of Waiting Period) Determination (No. 1) 1998 currently provides an exemption from having to satisfy paragraph 1061A (1) (b) of the Act for austudy recipients and youth allowance recipients who are undertaking or about to undertake an approved course of study. This determination will maintain that exemption as well as extend that exemption to new apprentices.
Background
Under Part 2.22 of the Act, eligible income support recipients are able to apply for an advance payment of their social security entitlement. An advance payment is a lump sum payment of a future social security entitlement.
Paragraph 1061A (1) (b) of the Act provides that in order for a person to qualify for an advance payment of a social security entitlement the person must have been receiving an income support payment for a period of three months immediately before the day on which the person’s application for the advance payment is made. However, subsection 1061A (2) of the Act permits the Secretary to waive this requirement for people who have applied for advance payments of youth allowance or austudy payment.
The acting Secretary of the then Department of Social Security made the Advance Payment of Entitlement (Waiver of Waiting Period) Determination (No. 1) 1998 under subsection 1061A (2) of the Act with effect from 1 July 1998. That determination had the effect of waiving the three-month receipt requirement for (a) recipients of austudy; and (b) recipients of youth allowance who are undertaking, or are about to undertake, an approved course of education or study.
On 1 July 2005 eligibility for austudy payment and youth allowance was extended to new apprentices. However, the Advance Payment of Entitlement (Waiver of Waiting Period) Determination (No. 1) 1998 was not amended at the time to exempt new apprentices from the requirement to be in receipt of youth allowance for three months before being eligible for advance payments.
The Social Security (Waiver of Waiting Period for Advance Payment of Entitlement) 2009 (No. 1) rectifies this inadvertent omission by waiving the three-month receipt requirement for new apprentices. As Centrelink has in fact been granting new apprentices advance payment of youth allowance since 2005 in accordance with the intended policy, the determination is back-dated to 1 July 2005.
The determination is beneficial in effect and does not adversely affect the rights of, or impose liabilities on, any person other than the Commonwealth.
Explanation of Provisions
Section 1 of the determination states the name of the determination.
Section 2 states that the determination is taken to have commenced on 1 July 2005. The determination commences on 1 July 2005 as this is the date that new apprentices became eligible for the advance payment under the social security law. The instrument will have retrospective application from 1 July 2005 so that any advance payments made to new apprentices under the social security law will be taken to have been made in accordance with this determination.
Section 3 revokes the Advance Payment of Entitlement (Waiver of Waiting Period) Determination (No.1) 1998.
Section 4 contains definitions.
The term approved course of education or study is defined in section 4 as having the meaning given by subsection 541B (5) of the Act. Subsection 541B (5) of the Act provides that a course is an approved course of education or study if it is a course determined, under section 5D of the Student Assistance Act 1973, to be a secondary course or a tertiary course for the purposes of that Act.
The term new apprentice is defined in section 4 as having the meaning given by subsection 23(1) of the Act. New apprentices are also known as ‘Australian Apprentices’.
Subsection 5 (1) provides that paragraph 1061A (1) (b) of the Act does not apply to a person who has applied for an advance payment of austudy payment.
Subsection 5 (2) provides that that paragraph 1061A (1) (b) of the Act does not apply to a person who has applied for an advance payment of youth allowance payment where that person:
- is undertaking, or about to undertake, an approved course of education or study; or
- is, or is about to become, a new apprentice.
Consultation
The determination has no impact on business or competition and is beneficial to social security claimants and recipients. Public consultation was therefore seen as unnecessary. The Department of Families, Housing, Community Services and Indigenous Affairs was consulted about the determination.
Business Cost Calculator Figure
The determination does not require a Regulatory Impact Statement (RIS) or a Business Cost Calculator Figure. This exemption is not regulatory in nature, will not impact on business activity and will have no compliance costs or competition impact.