Amendment Bill clarifies policy

Social Development Minister Anne Tolley says that an amendment Bill introduced into Parliament under urgency clarifies Work and Income’s benefit stand down periods in line with how the policy was intended to work.

It has always been Government policy that a benefit will commence the day after a stand down period ends, for example after a seven day stand down benefit commences on day eight, and this has always been operational practice for Work and Income.

However, an amendment to section 80BA in the Social Security Amendment Act (No2) 1998 incorrectly changed the wording to the day the stand down ends. This was identified in a Social Security Appeal Authority decision in May 2014.

Operational practice was changed from 29 September 2015 so that payments were technically in line with the wording of the law until a legislative change was passed.

“The legislative error was unfortunate. The solution strikes a good balance between fairness and addressing unintended policy consequences, and the subsequent cost to the taxpayer,” says Mrs Tolley.

The Social Security (Commencement of Benefits) Amendment Bill corrects the error with full retrospective effect to 3 June 1998.

Any clients who lodged a Review of Decision related to a benefit commencement on or after the 1998 Amendment, and before the passing of corrective legislation, will still have their review processed in the usual way.     

The Bill provides a seven week review period, where client who had benefits that commenced after a Social Security Appeal Authority decision on the issue on 20 May 2014, can lodge a Review of Decision. Application forms are available online and from Work and Income offices.