Social security and welfare reforms
Increasing its focus on the family, the government has announced the following changes:
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A tax-free bonus of $1,000 or $600 will be paid to you by 30 June 2007 if you are in receipt of a Carer Payment or Carer Allowance respectively as at 8 May 2007. In addition there is an ex-gratia payment over 2 years for families who are not eligible for Carer Payment but have significant costs and requirements in relation to a child under 6 years of age. Payments of up to $10,000 can be made in the 2006-07 financial year.
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Currently, Funeral Bonds purchased for no more than $5,000 to fund one funeral are exempt under the Centrelink and DVA income and assets tests. The bond can increase in value over time but the original purchase price can be no more than $5,000. From 1 July 2007 the purchase price limit has been increased to $10,000 and will indexed thereafter.
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Multiple Birth Allowance is paid to Family Tax Benefit Part A recipients where three or more children were born at the same time. Currently this payment ceases when the children turn six. From 1 July 2007 this payment will continue until the children reach 16 and in the case of full time students, the calendar year in which they reach 18.
Individuals of Age Pension or Service Pension age receiving the Utilities Allowance, or Seniors Concession Allowance as at 8 May 2007 will receive a one-off payment of $500. The same payment will also be made to Mature Age Allowance, Widows Allowance or Partner Allowance recipients at 8 May 2007. A small number of claimants who, after 1 July 2007, are determined by Centrelink to be eligible for the qualifying payments as at 8 May 2007, will also receive the bonus.
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Enhancements will be made to the Pension Bonus Scheme (whereby you continue to work after reaching age pension age and defer claiming the age pension or service age pension for up to 5 years), including:
- paying the bonus to your spouse if you die before claiming it
- allowing the bonus paid to be increased if your rate of age pension increases in the 13 weeks after lodging the claim — currently the bonus is paid based on the pension you receive on the first day of eligibility
- providing Centrelink offices with discretion to accept a claim lodged after the normal 13 week period in exceptional circumstances.
Changes will also be made which will increase the cost of accessing accommodation in an aged care facility, although these changes will not occur until 20 March 2008 and will be phased in through to September 2011.
Getting started
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