Social Security (Youth Support and Work Focus) Amendment Act 2012

1: Title
This Act is the Social Security (Youth Support and Work Focus) Amendment Act 2012
2: Commencement
1: Part 1 sections 19 20 21 23 Part 2
2: Parts 3 4
3: The rest of this Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act
This Act amends the Social Security Act 1964 principal Act 2012-08-20 Social Security Act 1964 Part 1 (except sections 19 to 21, and 23), Part 2 and the Schedules come into force 2012-10-15 Social Security Act 1964 Parts 3 & 4 2012-07-27 Social Security Act 1964 Sections 19, 20, 21 and 23
1: Substantive provisions taking effect on 20 August 2012 or immediately
4: Section 1A amended (Purpose)
1: After section 1A(c)
ca: to provide services to encourage and help young persons to move to education, training, and employment rather than to receiving financial support under this Act: .
2: In section 1A(d) this Act , and, in the case of young persons, seeking or receiving financial support under this Act, educational, budget management, and (where appropriate) parenting requirements
5: Section 3 amended (Interpretation)
1: In section 3(1) benefit
iia: an incentive payment, a youth payment, and a young parent payment: .
2: In section 3(1) contracted service provider section 125A(1) incentive payment clauses 7 to 9 of Schedule 26 young parent payment Part 5 youth payment Part 5 youth support payment .
3: In section 3(1) dependent child and 18 18, and 26
4: In section 3(1) dependent child
e: does not include a child in respect of whom a young parent payment is being paid except in relation to that child's parent or step-parent .
5: In section 3(1) work-tested spouse or partner work-tested spouse or partner
a: who—
i: has no dependent child under 6 years (or has no dependent child at all); and
ii: is not subject to obligations under section 171
iii: has not been granted an exemption from the work test; and
b: who—
i: is the spouse or partner of a person granted an unemployment benefit, a sickness benefit, or an invalid's benefit, (being, in each case, a benefit granted at a work-test married rate); or
ii: both—
A: is the spouse or partner of a person granted an emergency benefit at a work-tested married rate; and
B: has under section 61A(1A) been required by the chief executive to comply with the work test; or
iii: is—
A: the spouse or partner of a person who is receiving long-term residential care in a hospital or rest home; and
B: aged under 60 years; and
C: in receipt of an invalid's benefit under section 42(2) or an emergency benefit under regulations under section 155 .
6: Section 11D amended (Application process for benefits)
In section 11D
3A: If the chief executive considers that the appropriate benefit for an applicant is a youth support payment, he or she may require as supporting evidence under subsection (2)﻿(b) evidence of the applicant's accommodation costs and service costs (within the meaning of section 157
3B: Subsection (3A) does not limit the generality of subsection (2)﻿(b).
7: Section 12J amended (Right of appeal)
1: In the heading to section 12J Right Rights
2: In section 12J(1)﻿(a) or Part 4 Part 4, or Part 5
8: Section 21 amended (Widows' benefits)
In section 21(1)﻿(a) who is aged 19 years or over and
9: Section 27B amended (Domestic purposes benefits for solo parents)
Replace section 27B(2)﻿(a)
a: the applicant is aged 19 years or over; and .
10: Section 27G amended (Domestic purposes benefits for care at home of the sick or infirm)
1: In section 27G(2) has attained the age of 16 years and
2: Replace section 27G(2A)
2A: An applicant must not be granted a domestic purposes benefit under this section unless,—
a: in the case of an applicant without a dependent child, he or she is aged at least 18 years:
b: in any other case, he or she is aged at least 19 years.
11: Section 54 amended (Sickness benefit: standard eligibility requirements)
Replace section 54(2)
2: An applicant for a sickness benefit—
a: must be aged at least 18 years, in the case of an applicant without a dependent child:
b: must be aged at least 19 years, in any other case.
12: Section 54A amended (Sickness benefit: grounds of hardship)
Repeal section 54A(2)
13: Sections 60F to 60GAC and cross-heading above section 60F repealed
Repeal sections 60F to 60GAC
14: Section 82 amended (Payment of benefits)
1: After section 82(6D)
6E: Subsections (6B) to (6D) do not apply to the advance payment of a youth support payment, or to the advance payment of any other benefit payable to a person receiving a youth support payment.
2: After section 82(7)
8: This section is subject to section 179
15: Section 83 amended (Apportionment of benefit between spouses or partners)
1: In section 83(1) subsection (2) subsections (2) and (2A)
2: After section 83(2)
2A: Nothing in this section applies to—
a: a rate of youth payment or young parent payment; or
b: the rate of any benefit (other than a youth payment or young parent payment) payable to a person receiving a youth payment or young parent payment.
16: Section 89 amended (Unemployment benefit: standard eligibility requirements)
Replace section 89(2)
2: An applicant for an unemployment benefit—
a: must be aged at least 18 years, in the case of an applicant without a dependent child:
b: must be aged at least 19 years, in any other case.
17: Section 105 amended (Exemption from obligations)
1: In section 105(1) work test obligations or obligations under section 170 or 171
2: In section 105(5)
a: after work test obligations or obligations under section 170 or 171
b: after 117 or (as the case requires) section 173 or 174
18: Section 123D(a) amended (Regulations)
In section 123D(a) work test obligations or obligations under section 170 or 171
19: New section 123E inserted (Services to encourage young persons to move to education, training, and employment)
Before section 124
123E: Services to encourage young persons to move to education, training, and employment
The chief executive may do either or both of the following things:
a: provide services to encourage and help young persons to move into education, training, and employment rather than to receiving financial support under this Act:
b: enter (under section 125A
20: New sections 123F to 123H inserted
After section 123E section 19
123F: Chief executive may enter into information-sharing agreement with chief executive of Ministry of Education
1: The chief executive may enter into an agreement with the chief executive of the Ministry of Education relating to the sharing, for the purposes of facilitating the provision of services of a kind described in section 123E(a)
2: While the agreement is in force, the chief executive of the Ministry of Education—
a: may provide to the chief executive any information to which subsection (1) section 123E(a)
b: may use national student numbers for the purpose of gathering the information.
3: Subsection (2)
123G: Consultation on proposed agreement
1: Before entering into an agreement under section 123F(1)
a: consult on the proposed agreement, and invite submissions on it from,—
i: the Privacy Commissioner; and
ii: any person or organisation that they consider represents the interests of the kinds of people whose personal information will be shared under the proposed agreement; and
iii: any other person or organisation that the parties consider should be consulted; and
b: consider all submissions received within a reasonable time of being invited.
2: The Privacy Commissioner—
a: must consider the privacy implications of the proposed agreement; and
b: may make any submissions under subsection (1)﻿(a)﻿(i) that he or she thinks fit.
123H: Agreements to be reviewed after 3 years
1: Promptly after an agreement under section 123F(1)
2: In conducting the review, the chief executive must consult—
a: the chief executive of the Ministry of Education (as the other party to the agreement); and
b: the Privacy Commissioner; and
c: any organisation or other person that he or she considers to represent the interests of the kinds of people whose personal information may be shared under the agreement.
3: In conducting the review, the chief executive must consider—
a: whether (and if so, to what extent) the agreement is operating—
i: in a way that is unusual; or
ii: otherwise than was expected by the parties when they entered into it; or
iii: otherwise than was expected by the Privacy Commissioner when he or she was consulted on it under section 123G(1)﻿(a)﻿(i)
b: the extent to which the agreement is facilitating the provision of services of a kind described in section 123E(a)
c: the extent to which the agreement is impinging on the privacy of individuals; and
d: whether (and if so, to what extent) the benefits of sharing information under the agreement justify the costs of sharing it; and
e: all submissions made in the course of the consultation required by subsection (2)
4: After conducting the review, the chief executive must report to the Minister on its findings, and make to the Minister any recommendations arising from them that the chief executive considers appropriate.
21: New sections 125A, 125B, and 125E inserted
After section 125
125A: Chief executive may contract with service providers
1: The chief executive may from time to time, on behalf of the Crown, enter into a contract with any person, body, or organisation (a contracted service provider
a: that are—
i: services of the kind referred to in section 123E(a)
ii: services in relation to Part 5
b: that are services of a kind or description stated for the purposes of this section by regulations under this Act.
2: The chief executive must not enter into a contract with a person, body, or organisation for the provision of services of a kind stated in subsection (1)
a: is suitable to provide the services specified in the contract; and
b: is suitable to work with young persons in providing those services; and
c: has the powers and capacity to enter into and perform a contract for those services.
3: In this section, young person section 157
125B: Contracts with service providers: contents and form
1: A contract under section 125A
a: must set out the responsibilities of the contracted service provider and the chief executive in respect of each of the services the provider is to provide under the contract; and
b: must require the provider to co-operate with the chief executive; and
c: must contain all terms and conditions (if any) stated for the purposes of that section by regulations under this Act.
2: The contract must be in writing.
3: Subsection (1) section 125A
125E: Chief executive may adopt existing contracts
The chief executive may agree in writing with the other party to any contract the chief executive has entered into before the commencement of the Social Security (Youth Support and Work Focus) Amendment Act 2012 section 125A
22: New sections 125C, 125D, 125F, 125G, and 125H inserted
1: After section 125B section 21
125C: Release of personal information to and by contracted service provider
1: The purpose of this section is—
a: to authorise the department and any contracted service provider to disclose to each other relevant personal information about young persons to whom the provider's contract under section 125A
b: to assist the department to exercise and perform powers and functions under Part 5 and section 123E(a)
c: to enable the prescription of—
i: the circumstances in which the personal information may be disclosed; and
ii: conditions governing the disclosure of the personal information; and
iii: conditions governing the way in which the personal information is to be dealt with by the person to whom it is disclosed.
2: This section applies to any personal information about a young person or young persons to whom a contract under section 125A
3: For the purposes of this section, regulations under this Act may state—
a: the circumstances in which a contracted service provider and its employees may release or disclose to the chief executive and employees of the department information to which this section applies held by the contracted service provider and the conditions with which the chief executive and employees of the department must comply in dealing with the information; or
b: the circumstances in which the chief executive and employees of the department may release or disclose to a contracted service provider and its employees information to which this section applies held by the department and the conditions with which the contracted service provider and its employees must comply in dealing with the information.
4: Regulations of the kind referred to in subsection (3) section 123G section 123F(1)
5: If satisfied on reasonable grounds that its disclosure is in accordance with regulations of the kind referred to in subsection (3)
6: Nothing in this section requires the chief executive, employees of the department, a contracted service provider, or employees of a contracted service provider to release or disclose any information.
7: In this section,— employee held 2004 No 50 s 199J
125D: Information-sharing in relation to young persons
1: The purpose of this section is to authorise local agencies (for example, schools, primary health organisations, and the New Zealand Police) to disclose relevant personal information about a young person to the department or a contracted service provider where the agency concerned considers it relevant to the exercise or performance of powers or functions under this Act in respect of the young person.
2: An agency specified by the Governor-General by Order in Council for the purposes of this subsection may, for the purposes of this section, disclose any information about a young person to the chief executive, if satisfied on reasonable grounds that—
a: subsection (4)
b: the information will assist the department in—
i: performing any function, or exercising any power, under Part 5
ii: achieving any of the purposes of this Act.
3: An agency specified by the Governor-General by Order in Council for the purposes of this subsection may, for the purposes of this section, disclose any information about a young person to a contracted service provider, if satisfied on reasonable grounds that—
a: the provider is the young person's contracted service provider; and
b: subsection (4)
c: the information will assist the provider in providing services under a contract under section 125A
4: This subsection applies to a young person if he or she—
a: has applied for or is receiving a youth support payment; or
b: is subject to obligations under section 171
c: has left or finished education, and is not or may not be in employment or training; or
d: has left or finished training, and is not or may not be in employment.
5: An order of the kind referred to in subsection (2) or (3) section 123G section 123F(1)
6: Orders under subsection (2) or (3)
7: In this section, agency
2: After section 125E section 21
125F: Information on provision of contracted services to be published
The chief executive must ensure that there are published, no later than 1 October in every year,—
a: a general description of the services provided by contracted service providers during the year ending on 30 June in that year, and of the contracted service providers; and
b: details of the providers concerned.
125G: Actions of contracted service providers to be treated for certain purposes as if actions of department
1: For the purposes of section 80AA, any action or inaction of a contracted service provider must be treated as an action or inaction of an officer of the department.
2: For the purposes of section 80A, a contracted service provider must be treated as an officer of the department.
3: For the purposes of section 86(9A) and (9B), the provision of information by, and any act or omission of, a contracted service provider must be treated as having been done or omitted by an officer of the department.
125H: Operation of certain provisions to be reviewed after 3 years
1: Promptly after the expiration of 3 years after the commencement of section 22 of the Social Security (Youth Support and Work Focus) Amendment Act 2012 sections 123F, 123G, 125C, and 125D
2: In conducting the review, the chief executive must consult—
a: the Privacy Commissioner; and
b: any organisation or other person that he or she considers to represent the interests of the kinds of people whose personal information may be disclosed under any of those provisions.
3: After conducting the review, the chief executive must report to the Minister on its findings, and make to the Minister any recommendations for the amendment of those provisions arising from them that the chief executive considers appropriate.
23: New section 125I inserted (Complaints to Privacy Commissioner)
After section 125H section 22
125I: Complaints to Privacy Commissioner
1: A person may complain to the Privacy Commissioner if personal information relating to the person has been disclosed under section 125C or 125D
a: regulations of the kind referred to in section 125C
b: the requirements of section 125D
2: A person may complain to the Privacy Commissioner if personal information relating to the person has been disclosed pursuant to an information-sharing agreement under section 123F
3: Part 8 of the Privacy Act 1993—
a: applies to a complaint under subsection (1) section 125D
b: applies to a complaint under subsection (2)
24: New Part 5 inserted
After section 155
5: Financial support for young people
156: Purpose
The purpose of this Part is to specify the supports, obligations, and sanctions that apply to certain young people who receive financial assistance under this Act.
157: Interpretation
In this Part and in Schedule 26 accommodation costs approved training full-time course in-hand allowance clause 6 Schedule 26 NCEA level 2 parents
a: means the parents or guardians or other person who had the care of the young person most recently before the young person turned 16 years; and
b: includes any other parent, or guardian or former guardian, willing to have financial responsibility for the young person; but
c: does not include—
i: the chief executive of the department responsible for administering the Children, Young Persons, and Their Families Act 1989 in his or her official capacity; or
ii: any body or organisation approved under section 396 of that Act service costs specified beneficiary
a: a domestic purposes benefit under section 27G; or
b: an emergency benefit, invalid's benefit, sickness benefit, or unemployment benefit; or
c: New Zealand superannuation paid at a rate specified in clause 2 of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001; or
d: a veteran’s pension paid at a rate specified in clause 2 of Schedule 11 of the War Pensions Act 1954 teen parent unit WFF tax credit work-based learning young person
a: except in section 123E
b: in section 123E Youth payment
158: Youth payment: basic criteria
1: The basic qualifications for entitlement to a youth payment are in subsection (2) section 159 section 160
2: The basic qualifications for entitlement to a youth payment are that the young person—
a: is aged 16 or 17 years; and
b: is without a dependent child or dependent children; and
c: either—
i: is undertaking or is available for a full-time course of secondary instruction, or tertiary education, or approved training, or approved work-based learning, leading to—
A: NCEA level 2; or
B: an equivalent qualification (in the opinion of the chief executive); or
C: a higher qualification; or
ii: would be so available but for circumstances that would qualify the young person for an exemption under section 105 from the obligation to undertake education or training or work-based learning in section 170(1)﻿(a)
d: meets the residential requirements set out in section 74AA; and
e: has no income or an income of less than the amount that would fully abate the youth payment.
3: Nothing in subsection (2)﻿(e) 1964 No 136 ss 60F(1), (2), 89(5)
159: Youth payment: single young persons
1: A single person is entitled to a youth payment if—
a: section 158(2)
b: the chief executive is satisfied that the young person is in exceptional circumstances.
2: For the purposes of subsection (1) exceptional circumstances
a: each of his or her parents (and guardians (if any)) is unable to support him or her financially; or
b: his or her relationship with his or her parents (and guardians (if any)) has broken down, and none of them is prepared to support him or her financially; or
c: he or she has ceased to be subject to—
i: an agreement under section 140 of the Children, Young Persons, and Their Families Act 1989; or
ii: an order under section 78, 101, or 283(n) of that Act; or
iii: a sole guardianship order under section 110 of that Act; or
d: the chief executive is satisfied that (for some other good and sufficient reason) the young person cannot reasonably be expected to be financially dependent on his or her parents or any other person.
3: However, a young person is not in exceptional circumstances
a: he or she has the option of living with a parent or guardian but chooses not to; and
b: the chief executive is not satisfied that there are good and sufficient reasons for the young person not to live with that parent or guardian. 1964 No 136, s 60FA
160: Youth payment: young persons who are or have been married, or in civil union or de facto relationship
A person is entitled to a youth payment if—
a: he or she is or has been married, or in a civil union or de facto relationship; and
b: he or she is not married to, or in a civil union or de facto relationship with, a specified beneficiary within the meaning of any of paragraphs (b) to (d) section 157
c: section 158(2)
161: Youth payment: ground of hardship
The chief executive may grant a youth payment under section 159 or 160 paragraphs (a) to (c) and (e) section 158(2) paragraph (d)
a: the young person is suffering hardship; and
b: the young person is not qualified to receive any other benefit; and
c: the young person is unable to earn a sufficient income to support himself or herself and his or her spouse or partner (if any). 1964 No 136 s 90(1)
162: Youth payment: continuation after age 18
1: A youth payment granted when the young person concerned was aged under 18 years continues, if he or she is otherwise qualified for it,—
a: in the case of a payment granted on an application made on or after the commencement of Part 1 2012
b: in the case only of a payment granted to a young person who, on the day when he or she turns 18, is (in the chief executive's opinion) continuing in a course of education, training, or work-based learning, until,—
i: if the course is a course of secondary instruction, the close of the calendar year in which the young person turned 18:
ii: in any other case, the earlier of—
A: the close of the calendar year in which the young person turned 18; and
B: the close of the day the course ends.
2: While a youth payment continues by virtue of subsection (1)﻿(a)
a: a widow’s benefit:
b: a domestic purposes benefit:
c: a sickness benefit:
d: an emergency benefit:
e: an unemployment benefit.
163: Youth payment: rate and components
1: A youth payment is payable at the appropriate rate set out in Schedule 26
2: If a young person to whom a youth payment is payable meets the criteria prescribed for the purposes of this section by regulations made under this Act, there is payable together with that payment the appropriate incentive payment (if any) stated in Schedule 26
3: Subsection (2) section 178 Young parent payment
164: Young parent payment: basic criteria
1: The basic qualifications for entitlement to a young parent payment are in subsection (2) section 165 section 166
2: The basic qualifications for entitlement to a young parent payment are that the young person—
a: is aged 16 to 18 years; and
b: is a parent or step-parent of a dependent child or dependent children; and
c: either—
i: is undertaking or is available for a full-time course of secondary instruction, tertiary education, approved training, or approved work-based learning, leading to—
A: NCEA level 2; or
B: an equivalent qualification (in the opinion of the chief executive); or
C: a higher qualification; or
ii: would be so available but for circumstances—
A: under which the obligation to undertake education or training or work-based learning in section 170(1)﻿(a) section 170(3)
B: that would qualify the young person for an exemption under section 105 from that obligation; and
d: meets the residential requirements set out in section 74AA; and
e: has no income or an income of less than the amount that would fully abate the young parent payment.
3: Nothing in subsection (2)﻿(e)
4: For the purposes of subsection (2)﻿(b) 1964 No 136 ss 3(5), 60F(1), (2), 89(5)
165: Young parent payment: single young persons
1: A young person is entitled to receive a young parent payment if—
a: section 164(2)
b: subsection (2) or subsection (3) or subsection (4)
2: This subsection applies to a single young person if he or she—
a: is aged 16 or 17 years; and
b: is not living with a parent or guardian; and
c: is in exceptional circumstances (within the meaning of section 159
3: This subsection applies to a single young person if—
a: he or she is aged 16 or 17 years; and
b: he or she is living with or being financially supported by a parent or guardian; and
c: the family scheme income (within the meaning of the Income Tax Act 2007) of the parent or guardian concerned and the spouse or partner (if any) of the parent or guardian concerned is less than the amount that would, in accordance with sections MD 1 and MD 13 of that Act, fully abate the amount of the parent or guardian concerned's family tax credit entitlement under that Act.
4: This subsection applies to a single young person who is aged 18 years.
5: For the purposes of the calculation required by subsection (3)﻿(c)
6: Nothing in this section entitles a parent or guardian to whom subsection (5)
166: Young parent payment: persons who are or have been married, or in civil union or de facto relationship
A young person is entitled to receive a young parent payment if section 164(2)
a: he or she is not married, or in a civil union or de facto relationship, but has been married or in a civil union or de facto relationship; or
b: he or she is married, or in a civil union or a de facto relationship, but his or her spouse or partner is not a specified beneficiary within the meaning of paragraphs (b) to (d) section 157 1964 No 136 s 60FB
167: Young parent payment: ground of hardship
The chief executive may grant a young parent payment under section 165 or 166 paragraphs (a) to (c) and (e) of section 164(2) paragraph (d)
a: the young person is suffering hardship; and
b: the young person is not qualified to receive any other benefit; and
c: the young person is unable to earn a sufficient income to support himself or herself, and his or her spouse or partner (if any) and dependent children. 1964 No 136 s 90(1)
168: Young parent payment: continuation after age 19
1: A young parent payment granted when the young person concerned was aged under 19 years continues, if he or she is otherwise qualified for it,—
a: in the case of a payment granted on an application made on or after the commencement of section 24 2012
b: in the case only of a payment granted to a young person who, on the day when he or she turns 19, is (in the chief executive's opinion) continuing in a course of education, training, or work-based learning, until,—
i: if the course is a course of secondary instruction, the close of the calendar year in which the young person turned 19:
ii: in any other case, the earlier of—
A: the close of the calendar year in which the young person turned 19; and
B: the close of the day the course ends.
2: While a young parent payment continues by virtue of subsection (1)﻿(a)
a: a widow’s benefit:
b: a domestic purposes benefit:
c: a sickness benefit:
d: an emergency benefit:
e: an unemployment benefit.
169: Young parent payment: rate and components
1: A young parent payment is payable at the appropriate rate set out in Schedule 26
2: If a young person to whom a young parent payment is payable meets the criteria prescribed for the purpose of this section by regulations made under this Act, there is payable together with that payment the appropriate incentive payment (if any) stated in Schedule 26
3: Subsection (2) section 178 Obligations
170: Youth support payments: obligations
1: A young person receiving a youth support payment is subject to the following obligations:
a: to be enrolled in and undertaking to the satisfaction of the chief executive, or be available for, a full-time course of secondary instruction or tertiary education or approved training or work-based learning leading to—
i: NCEA level 2; or
ii: an equivalent qualification (in the opinion of the chief executive); or
iii: a higher qualification:
b: when required by the chief executive, to participate in and complete a budgeting programme approved by the chief executive for the purpose:
c: in the case only of a young person receiving a young parent payment, when required by the chief executive, to participate to the satisfaction of the chief executive in a parenting education programme approved by the chief executive for the purpose:
d: when required by the chief executive, to attend and participate in any interview with an officer of the department or other person on behalf of the chief executive:
e: if a contracted service provider assigned to the young person by the chief executive has so required, to attend and participate in any interview with that provider:
f: to report to the department, or to any contracted service provider assigned to the young person by the chief executive, on his or her compliance with the obligations in paragraphs (a) to (c) and subsection (2)
g: to co-operate with the chief executive, or with any contracted service provider assigned to the young person by the chief executive, in managing the spending of the young person’s youth payment or young parent payment, and (in particular)—
i: attend and participate in regular discussions on budgeting with an officer of the department (or, as the case requires, the provider); and
ii: at any discussion or when otherwise required, provide information on—
A: the young person’s accommodation costs and service costs and other lawful debts and liabilities for the purpose of section 179(4)
B: how the young person has spent the amount of the payment paid to him or her and how the young person has spent any money credited to a payment card, voucher, or device in accordance with regulations under this Act.
2: A young person receiving a young parent payment is also subject to the following obligations:
a: to enrol every dependent child with a primary health organisation:
b: to keep every dependent child under the age of 5 years up-to-date with checks under—
i: the programme that immediately before the commencement of section 24 Social Security (Youth Support and Work Focus) Amendment Act 2012
ii: any similar programme established in its place:
c: to ensure the child’s attendance at an approved early childhood education programme (as defined in regulations under this Act) or other suitable childcare while the young person is in education, training, work-based learning, or part-time work.
3: Except as provided in subsection (4) subsections (1) and (2)
4: Where a young person receiving a young parent payment is the principal caregiver of his or her youngest dependent child and the child is aged under 12 months, the obligation in subsection (1)﻿(a)
a: the first day on which—
i: the child is at least 6 months old; and
ii: a suitable place is available for the young person in a teen parent unit; and
iii: the chief executive is satisfied that there are no special circumstances justifying the obligation's beginning to apply later:
b: the day on which the child becomes 12 months old.
5: A failure without good and sufficient reason to comply with obligations under this section is subject to sanctions, as provided in sections 173 and 174
171: Obligations of spouses and partners of specified beneficiaries
1: A young person who is aged 16 or 17 years and is without dependent children and is the spouse, or civil union or de facto partner, of a specified beneficiary—
a: is subject to the obligations set out in section 170(1)﻿(a) and (b), (d) to (f), and (g)﻿(i)
b: is not subject to the work test or to employment plan obligations under section 60Q.
2: A young person who is aged 16 to 18 years, has a dependent child or children, and is the spouse, or civil union or de facto partner, of a specified beneficiary—
a: is subject to the obligations set out in section 170(1)﻿(a) to (f) and (g)﻿(i), and 170(2)
b: is not subject to the work test or to employment plan obligations under section 60Q.
3: A failure without good and sufficient reason to comply with any of the obligations placed on a young person under this section,—
a: for a young person who would, but for subsection (1)﻿(b) or (2)﻿(b)
b: for a person who would, but for subsection (1)﻿(b) or (2)﻿(b)
172: Department to explain obligations to young person
The chief executive must take reasonable and appropriate steps to make every young person who is subject to obligations under section 170 or 171
a: those obligations; and
b: the consequences of failure to comply with them and (in particular) the sanctions that may be imposed under this Act for failing to comply with them. 1964 No 136 ss 60GAC, 105C Sanction regime
173: Sanctions for failure by young person receiving youth payment to comply with obligations under section 170
1: If satisfied that a young person receiving a youth payment has, without good and sufficient reason, failed to comply with an obligation placed on him or her by section 170
a: for a first or second failure,—
i: suspend the in-hand allowance and any incentive payments until the young person satisfies the obligation (or, if he or she has failed to comply with 2 or more obligations, until he or she satisfies all of them); and
ii: if the young person has not satisfied the obligation (or, if he or she has failed to comply with 2 or more obligations, if he or she has not satisfied all of them) within 4 weeks after the date on which the suspension took effect, suspend the whole of the youth payment and any incentive payments until the young person satisfies the obligation or obligations; and
b: for a third failure, cancel the youth payment and any incentive payments.
2: A person whose benefit is cancelled under subsection (1)﻿(b)
a: is not entitled to be granted any benefit for 13 weeks from the date of the cancellation; and
b: if he or she wishes to become entitled to a benefit again, must apply for it and establish his or her eligibility for it.
3: Subsection (2)
4: For the purposes of subsection (3)
a: if the young person concerned is not already in part-time work, participation in part-time work or work experience:
b: participation in recognised community activities (as defined in section 88A):
c: participation in any other activity that the chief executive considers will enhance skills or improve motivation.
5: This section overrides every other provision of this Act.
174: Sanctions for failure by young person receiving young parent payment to comply with obligations under section 170
1: If satisfied that a young person receiving a young parent payment has, without good and sufficient reason, failed to comply with an obligation placed on him or her by section 170
a: for a first or second failure, suspend the in-hand allowance and any incentive payments until the young person satisfies the obligation (or, if he or she has failed to comply with 2 or more obligations, until he or she satisfies all of them); and
b: for a third failure,—
i: cancel the young person’s young parent payment; and
ii: cancel any incentive payments.
2: A person whose benefit is cancelled under subsection (1)﻿(b)
a: is not entitled to be granted any benefit for 13 weeks from the date of the cancellation; and
b: if he or she wishes to become entitled to a benefit again, must apply for it and establish his or her eligibility for it.
3: Subsection (2)
4: For the purposes of subsection (3)
a: if the young person concerned is not already in part-time work, participation in part-time work or work experience:
b: participation in recognised community activities (as defined in section 88A):
c: participation in any other activity that the chief executive considers will enhance skills or improve motivation.
5: In order to satisfy himself or herself that a young person has established continued eligibility for a young parent payment, the chief executive may require the young person to comply with the requirements of section 11D(2) as if applying for a young parent payment (and that section, with any necessary modifications, applies accordingly).
6: This section overrides every other provision of this Act.
175: Effect of sanctions on supplementary benefits
1: While a young person's youth payment is cancelled under section 173
a: the young person is not entitled to receive any accommodation supplement or temporary additional support if he or she is not married, or in a civil union or de facto relationship:
b: if the young person is married, or in a civil union or de facto relationship and his or her spouse or partner's youth payment is not also cancelled under that section,—
i: any accommodation supplement or temporary additional support otherwise payable to him or her must be reduced by half, and paid to the spouse or partner; and
ii: any accommodation supplement or temporary additional support otherwise payable to his or her spouse or partner must be reduced by half:
c: if the young person is married, or in a civil union or de facto relationship and his or her spouse or partner's youth payment is also cancelled under that section,—
i: the young person is not entitled to receive any accommodation supplement or temporary additional support otherwise payable to him or her; and
ii: the young person's spouse or partner is not entitled to receive any accommodation supplement or temporary additional support otherwise payable to him or her.
2: The cancellation under section 174
3: While the young parent payment of a young person who is married, to or in a civil union or de facto relationship with, a spouse or partner whose young parent payment is not also cancelled under that section is cancelled under section 174
a: any accommodation supplement or temporary additional support otherwise payable to him or her must be reduced by half, and paid to the spouse or partner; and
b: any accommodation supplement or temporary additional support otherwise payable to his or her spouse or partner must be reduced by half.
4: Where the young parent payment of each of 2 young persons who are married to, or in a civil union or de facto relationship with, each other is cancelled, each is entitled to receive only half of any accommodation supplement or temporary additional support that would otherwise be payable to him or her.
5: A young person whose youth payment or young parent payment is cancelled under section 173 or 174
6: The cancellation of a young person's youth payment or young parent payment under section 173 or 174
176: Sanctions generally
1: For the purposes of sections 173 and 174
a: remedies the failure concerned; or
b: if (in the chief executive's opinion) it is not possible to remedy the failure, undertakes to the chief executive's satisfaction an activity that is (in the chief executive's opinion) the same as or substantially similar to the performance of the obligation.
2: Sections 113 (procedure for imposing sanctions), 114 (notices), and 119 (calculation of failure rate) apply with all necessary modifications to the imposition of sanctions under sections 173 and 174
3: In sections 173 and 174 second failure third failure
4: If a young person whose youth support payment has been cancelled under section 173(1)﻿(b) or 174(1)﻿(b)
a: except as provided in paragraph (b)
b: if the failure that led to the cancellation was a failure to comply with section 170(1)﻿(a)
177: Effect of sanction on young parent payment
1: If under section 174(1)﻿(b)﻿(i)
a: the person is entitled during the period of cancellation to receive half of that base rate of young parent payment and only half the abatement rate in clause 10 or 11 of Schedule 26
b: during the period of cancellation, no incentive payments are payable.
2: While subsection (1)﻿(b) 1964 No 136 s 121
178: Incentive payment may be cancelled if young person's actions inconsistent with purpose
1: The chief executive may cancel an incentive payment if satisfied that the young person concerned has intentionally acted in a way inconsistent with the purpose for which it was granted.
2: The cancellation makes the young person ineligible for the incentive payment again until the chief executive decides that it may be re-granted. Administration
179: Money management in relation to youth support payments: general
1: Except as provided in this section and section 177(2)
2: Except as provided in subsection (4)
3: Every youth support payment is paid in respect of a 7-day week.
4: Except as otherwise provided in this Act,—
a: the following must be paid in a manner stated in regulations made under this Act for the purposes of this section:
i: any youth support payment (including the in-hand allowance up to the maximum amount set out in clause 6 of Schedule 26
ii: any WFF tax credit payable to a young person by the chief executive:
iii: the amount of any child disability allowance or disability allowance to which a young person is entitled:
iv: any other benefit or payment under this Act to which a young person is entitled specified for the purposes of this paragraph by the regulations; but
b: if no manner is for the time being stated for a benefit or payment of a kind referred to in paragraph (a)﻿(i) to (iv)
5: A manner stated under subsection (4)
6: Subsection (5) subsection (4)
7: If the chief executive considers that the young person has met the criteria stated for the purposes of this section in regulations under this Act for managing his or her own payments, the chief executive may pay the whole or any part of the payments referred to in subsection (4)﻿(a) to or on account of the young person personally until a sanction is imposed on the young person under section 173 or 174
8: No appeal under this Act lies against a determination by the chief executive under regulations made under this Act for the purposes of this section.
9: This section overrides section 82(1) to (3).
10: Subsection (4)
11: Section 84(1) is subject to regulations under this Act made for the purposes of subsection (4)
180: Young person beneficiaries may elect money management
1: To the extent that regulations under this Act made for the purposes of this section allow (and subject to any conditions prescribed by the regulations), a young person to whom section 171 applies may elect to have any or all of the amounts stated in subsection (2)
2: The amounts are—
a: any part of a specified beneficiary's benefit:
b: any part of any other benefit payable under section 83:
c: any WFF tax credit:
d: any child disability allowance or disability allowance:
e: any other benefit or payment under this Act to which he or she is entitled.
3: The young person may revoke the election at any time.
181: Chief executive may assign contracted service provider to young person
The chief executive may assign a contracted service provider to a young person,—
a: at any time after the young person has contacted the department for financial assistance at which the chief executive considers that the most appropriate financial assistance for the young person is likely to be a youth support payment; or
b: at the time, or at any time after, the youth support payment is payable to the young person; or
c: at any time section 171
25: Schedule 26 replaced
Replace Schedule 26 Schedule 1
2: Consequential amendments, and transitional and savings provisions, taking effect on 20 August 2012
Consequential amendments to Income Tax Act 2007 and Child Support Act 1991
26: Amendments to Income Tax Act 2007
1: This section amends the Income Tax Act 2007
2: In section YA 1 financially independent , payable under Part 1 of the Act
3: In section YA 1 income-tested benefit
a: repeal paragraph (c):
b: in paragraph (g), replace benefit benefit:
4: In section YA 1 income-tested benefit
h: young parent payment:
i: youth payment . 2012-08-20 Income Tax Act 2007
27: Amendment to Child Support Act 1991
1: This section amends the Child Support Act 1991
2: In section 2 social security benefit
v: young parent payment . 2012-08-20 Child Support Act 1991 Other consequential amendments
28: Consequential amendments
1: Amend the principal Act as set out in Part 1
2: Amend the enactments specified in Part 2
3: Amend the regulations specified in Part 3 2012-08-20 Education Act 1989 Health Entitlement Cards Regulations 1993 Social Security (Debt Recovery Suspension) Regulations 2007 Social Security (Temporary Additional Support) Regulations 2005 Student Allowances Regulations 1998
29: Transitional provision: entitlement to youth payment or young parent payment
1: This subsection applies to a person—
a: who, immediately before the commencement of this Part,—
i: was aged 16 or 17 years and did not have a dependent child; and
ii: was receiving in his or her own right an independent youth benefit or sickness benefit; and
b: who—
i: is not married, or in a civil union or de facto relationship, and does not have an income that exceeds the limit in clause 10 of Schedule 26
ii: is married, or in a civil union or de facto relationship, and does not have a combined income that exceeds the limit in clause 11 of Schedule 26
c: who is not the spouse or civil union or de facto partner of a specified beneficiary within the meaning of any of paragraphs (b) to (d) of the definition of that term in section 157 section 24
2: A person to whom subsection (1) applies is entitled, on the commencement of this Part of this Act to receive a youth payment as if it had been granted on that commencement under section 159 or 160 of the principal Act.
3: This subsection applies to a person—
a: who, immediately before the commencement of this Part,—
i: was aged 16, 17, or 18 years; and
ii: was receiving in his or her own right a widow’s benefit, a domestic purposes benefit (other than a domestic purposes benefit under section 61G section 27B section 90(2) or (3)
b: who has a dependent child or children; and
c: who—
i: is not married, or in a civil union or de facto relationship, and does not have an income that exceeds the limit in clause 10 of Schedule 26
ii: is married, or in a civil union or de facto relationship, and does not have a combined income that exceeds the limit in clause 11 of Schedule 26
d: who is not the spouse or civil union or de facto partner of a specified beneficiary within the meaning of any of paragraphs (b) to (d) of the definition of that term in section 157 section 24
4: A person to whom subsection (3) applies is entitled, on the commencement of this Part to receive a young parent payment as if it had been granted on that commencement under section 165 or 166
5: A youth payment or young parent payment under subsection (2) or (4)—
a: is, despite Schedule 26 section 30
b: continues at that rate until the young person’s entitlement to the payment is reviewed under section 81 following a change of circumstances.
6: If, immediately before the commencement of this Part, the benefit of a person to whom subsection (1) or (3) applies is subject to a sanction under section 60Y 60Z 117 Act
a: the sanction ceases to apply; and
b: for the purposes of subsections (2) and (4), the rate of the benefit that would have been payable if the sanction had not been imposed must be treated as the rate of the benefit that the person was receiving immediately before that commencement.
30: Savings provision: domestic purposes benefit under section 27G
1: This section applies to a person who—
a: either—
i: was receiving a domestic purposes benefit under section 27G
ii: had made an application for a domestic purposes benefit under section 27G
b: is aged 16 or 17 years; or
c: is aged 18 years and has a dependent child or children.
2: A person to whom this section applies is entitled to continue to receive that benefit for so long as he or she otherwise qualifies for it as if section 10
31: Transitional arrangements for financially disadvantaged people
1: The Governor-General may, by Order in Council, make regulations authorising the provision of financial assistance to any people who are financially disadvantaged as a result of the net effects of the amendments made by Part 1 2
2: The regulations must state the day on and after which they have effect (which may be earlier than the day on which they were made).
3: The chief executive may provide financial assistance of the kind prescribed by the regulations to a person disadvantaged as a result of the net effects of the amendments made by Part 1 2
a: in the amount, for the period, and in accordance with the criteria, prescribed by the regulations; and
b: in accordance with any other requirements imposed by the regulations.
4: After it has initially been granted, financial assistance provided under the regulations must for the purposes of the principal Act
5: A decision or determination made by the chief executive under the regulations is a decision or determination for the purposes of section 12J(1)
3: Substantive provisions taking effect on 15 October 2012
32: Section 1B amended (Principles)
In section 1B(c) plan prepare
33: Section 3 amended (Interpretation)
1: In section 3(1) part-time work-tested beneficiary
a: a person with a youngest dependent child aged 5 or older, but under 14 years, who is—
i: a work-tested spouse or partner; or
ii: a work-tested domestic purposes beneficiary; or
iii: a work-tested widow's beneficiary; or .
2: In section 3(1) work-tested beneficiary work-tested benefit work-tested domestic purposes beneficiary work-tested beneficiary
a: who is granted an unemployment benefit; or
b: who is—
i: a work-tested spouse or partner; or
ii: a work-tested domestic purposes beneficiary; or
iii: a work-tested widow's beneficiary; or
iv: a work-tested sickness beneficiary work-tested benefit
a: except in relation to a work-tested domestic purposes beneficiary, a work-tested sickness beneficiary, or a work-tested widow's beneficiary, means an unemployment benefit; and
b: in relation to a work-tested spouse or partner, includes a sickness benefit, an emergency benefit, and an invalid's benefit; and
c: in relation to a work-tested domestic purposes beneficiary, means a domestic purposes benefit under section 27B or 27C; and
d: in relation to a work-tested sickness beneficiary, means a sickness benefit; and
e: in relation to a work-tested widow's beneficiary, means a widow's benefit work-tested domestic purposes beneficiary
a: who has no dependent children; or
b: whose youngest dependent child—
i: is aged 5 years or older, but under 18 years; or
ii: is aged 18 years or older, and is a child in respect of whom that benefit is paid, or continues to be paid, under section 63A .
3: In section 3(1) suitable employment suitable employment .
4: In section 3(1) work-tested spouse or partner 6 5
5: In section 3(1) work-tested widow's beneficiary
a: who has no dependent children; or
b: whose youngest dependent child—
i: is aged 5 years or older, but under 18 years; or
ii: is aged 18 years or older, and is a child in respect of whom that benefit is paid, or continues to be paid, under section 63A .
34: Section 21 amended (Widows' benefits)
Replace section 21(2A)
2A: A woman who receives a benefit under this section must—
a: comply with any obligation arising under section 60Q
b: if she is a work-tested widow's beneficiary, comply with the work test.
35: New section 21A inserted (Widows' benefits: pre-benefit activities)
After section 21
21A: Widows' benefits: pre-benefit activities
1: This subsection applies to a person if—
a: she contacts the department requesting financial assistance after the commencement of Part 3
b: the chief executive considers that the appropriate financial assistance for her would be a widow's benefit.
2: Section 96A(2) to (13) applies to a person to whom subsection (1)
36: Section 27B amended (Domestic purposes benefits for solo parents)
Replace section 27B(2A)﻿(a)
a: comply with all obligations arising under section 60Q .
37: Section 27C amended (Domestic purposes benefits for women alone)
Replace section 27C(4)
4: A woman who receives a benefit under this section must comply with the work test.
38: New section 27CA inserted (Domestic purposes benefits under section 27B or 27C: pre-benefit activities)
After section 27C
27CA: Domestic purposes benefits under section 27B or 27C: pre-benefit activities
1: This subsection applies to a person if—
a: he or she who contacts the department requesting financial assistance after the commencement of Part 3 Social Security (Youth Support and Work Focus) Amendment Act 2012
b: the chief executive considers that the appropriate financial assistance for him or her would be a domestic purposes benefit under section 27B or 27C.
2: Section 96A(2) to (13) applies to a person to whom subsection (1)
39: New sections 60GAD to 60GAF inserted
Insert before section 60GA
60GAD: Purpose of sections 60GAE and 60GAF
The purpose of sections 60GAE and 60GAF
60GAE: Beneficiaries having additional dependent child: general
1: This section applies to a person (the beneficiary parent additional dependent child
a: is receiving a domestic purposes benefit, an invalid's benefit, a sickness benefit, an unemployment benefit, a widow's benefit, or an emergency benefit (whether in his or her own right, or as the spouse or partner of the person granted the benefit); and
b: is already a caregiver, or the principal caregiver, of a dependent child or children.
2: An additional dependent child aged 1 or over must not be included in the determination for the purposes of the definitions of part-time work-tested beneficiary work-tested domestic purposes beneficiary work-tested spouse or partner work-tested widow’s beneficiary section 60Q(1)
a: the age of the youngest dependent child of the beneficiary parent concerned; and
b: whether the beneficiary parent concerned has a dependent child or children under 5 or 14 (and if so, how many).
3: Subsection (2)
4: The chief executive may apply this section in relation to any dependent child or children of whom a person who already has any dependent child or children becomes a caregiver, or the principal caregiver, if satisfied that—
a: the person's situation is analogous to that of a person to whom subsection (1)
b: to do so would best achieve the purpose stated in section 60GAD
5: An example of a situation that is analogous to that of a person to whom section 60GAE(1)
6: Subsection (5) subsection (4)
60GAF: Chief executive may refrain from applying section 60GAE
The chief executive may refrain (for any period he or she thinks fit) from applying section 60GAE
a: to do so would best achieve the purpose stated in section 60GAD
b: there are circumstances beyond the control of the beneficiary parent concerned making it inappropriate or unreasonable to apply that section.
40: Sections 60O to 60Z replaced
Replace sections 60O to 60Z
60P: Purposes of section 60Q
The purposes of section 60Q
a: to facilitate the movement into ongoing employment (as their parenting responsibilities and individual circumstances allow) of beneficiaries to whom that section applies; and
b: to provide opportunities for them to improve their capabilities and preparation for employment; and
c: to improve social and economic outcomes for them and their dependent children.
60Q: Certain obligations may be placed on beneficiaries and their spouses and partners
1: This section applies to every person (other than a person who is a work-tested beneficiary or is for the time being exempted under section 105) who—
a: is the recipient of a benefit under section 21 (the widow's benefit) and has a youngest dependent child under the age of 5 years; or
b: is the recipient of a benefit under section 27B (the domestic purposes benefit for solo parents) and has a youngest dependent child under the age of 5 years; or
c: is the spouse or partner of a person who—
i: is the recipient of an emergency benefit, an invalid's benefit, a sickness benefit, or an unemployment benefit; and
ii: has a youngest dependent child aged under 5 years.
2: A person to whom this section applies has a general obligation to take all steps that are reasonably practicable in his or her particular circumstances to prepare for employment and (in particular) an obligation to comply with any requirement under subsection (3)
3: The chief executive may, from time to time, require a person to whom this section applies—
a: to undertake planning for employment:
b: to participate in or undertake (as the case requires) any of the following activities specified by the chief executive that the chief executive considers suitable to improve his or her work-readiness or prospects for employment:
i: a work assessment:
ii: a programme or seminar to increase particular skills or enhance motivation:
iii: a work-experience or work-exploration activity:
iv: employment-related training:
v: an education programme:
vi: any other activity (including rehabilitation) other than medical treatment, voluntary work, or activity in the community.
60R: Department to explain obligations to beneficiaries
The chief executive must take reasonable and appropriate steps to make every person who is subject to obligations under section 60Q
a: those obligations; and
b: the consequences of failure to comply with them and (in particular) the sanctions that may be imposed under this Act for failing to comply with them.
41: Section 96A amended (Unemployment benefit: pre-benefit activities)
1: Repeal section 96A(1)
1: This section applies to a person if—
a: he or she contacts the department requesting financial assistance after the commencement of this section; and
b: the chief executive considers that the appropriate financial assistance for him or her would be an unemployment benefit.
2: In section 96A(2) If the chief executive considers that the appropriate financial assistance for the person would be an unemployment benefit, the chief executive may (for the purpose stated in section 1A(a)﻿(ii)) require him or her The chief executive may (for the purpose stated in section 1A(a)﻿(ii)) require a person to whom this section applies
3: Insert after section 96A(2)
2A: For the purposes of subsection (2), suitable employment
a: in relation to a person who has a dependent child aged under 14 years, and to whom this section applies by virtue of section 21A or 27CA
b: in relation to any other person, means employment that would be suitable employment within the meaning of section 3(1) if he or she were a work-tested beneficiary.
42: Section 105 amended (Exemption from obligations)
1: In section 105(1) work test obligations , or obligations under section 60Q
2: In section 105(5) work test obligations , or obligations under section 60Q
43: New section 116A inserted (Failure to comply with obligations under section 60Q(2))
Insert before section 117
116A: Failure to comply with obligations under section 60Q(2)
The sanctions stated in section 117 must be imposed on a person on whom an obligation has been imposed under section 60Q(2)
44: Section 117 amended (Sanctions that may be imposed for failures)
Insert before are section 117(1) or section 116A
45: Section 119 amended (Calculation of failure rate)
Insert before is section 119(2) or section 116A
46: Section 122 amended (Meaning of recompliance)
Insert before a person section 122(1) or section 116A
4: Consequential provisions taking effect on 15 October 2012
47: Section 171 amended (Obligations of spouses and partners of specified beneficiaries)
1: Delete from subsections (1)﻿(b), (2)﻿(b), and (3)﻿(b) of section 171 section 24 employment plan
2: In section 171(3)﻿(b) section 60Q(1) for the purposes of 60U section 60Q(2) section 116A
48: Section 123D amended (Regulations)
In section 123D(a) work test obligations , or obligations under section 60Q
49: Employment plans and certain sanctions cease to have effect
On the commencement of this Part
a: all employment plans under former section 60R
b: all reviews of an employment plan commenced under former section 60S 60U 60V
c: all requirements under former section 60W
d: all notices under former section 60X
e: all sanctions under section 60Y 60Z