12 - Lecture 12 BM Ch 14 TJHM Ch 16 CCH Ch 6 Day et al Ch 16 After studying this topic you should be able to explain the basic reasons for social

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BM Ch 14; TJHM Ch 16; CCH Ch 6; Day et al Ch 16 Lecture 12 After studying this topic, you should be able to: explain the basic reasons for social security outline the role of Centrelink provide an overview of the range of social security pensions, allowances, and benefits explain the eligibility rules for the Age Pension demonstrate an understanding of means testing outline the taxation impact on pensions and allowances 2 Social security represents decisions taken by successive governments to care for those in need, through schemes such as: age pension disability benefits unemployment benefits The purpose is to provide support for basic living standards, through provision of pensions, allowances, and benefits (mainly to those of workforce age, families with children, and retirees) 3
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The social security system comes under: i. Dept of Family and Community Services (DFaCS), administered by Centrelink, and ii. Dept of Veterans Affairs (DVA, for service pensions) Centrelink (since 1997) - a Commonwealth services delivery agency, is intended to: simplify arrangements for clients reduce duplication and inefficiencies complement the creation of a competitive environment for the provision of employment services 4 Payments fall into three categories: Pensions - provide an income designed to be payable regularly for a long term Allowances – provide an income designed to be payable regularly for a short or temporary period (most cease when a person reaches Age Pension age) Benefits – of a one-off or non-regular nature Can also qualify for concessions (Pension Concession Card, Health Care Card, C’wealth Seniors Health Card) 5 Age Pension Pension Bonus Scheme (now closed) Disability Support Pension Bereavement Allowance Carer Allowance Carer Payment 6
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Newstart Allowance Youth Allowance AUSTUDY Payment / ABSTUDY Scheme Pensioner Education Supplement Assistance for Isolated Children Partner Allowance (continuing recipients – no new payments) Sickness Allowance Widow Allowance Mature Age Allowance (continuing recipients – no new payments) Special Benefit Mobility Allowance Remote Area Allowance Carer Allowance 7 Pension/allowance/benefit claim is processed as follows: 1. Determine eligibility – depends on the facts and the rules (rules under Acts of Parliament, are generally fixed and inflexible) which may vary between items 2. Determine entitlement – work out how much should be paid (in most cases this depends on means tests such as the Income Test and Assets Test) 3. Reviews – payment continues provided certain basic conditions are met (must advise of any changes which could affect eligibility or entitlement) 8 Introduced 1909 to meet basic living expenses of older people Males 65 and females 63 can apply (qualifying age for women is increasing on a sliding scale to age 65 by 2014) New changes mean those born between 1 July
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This note was uploaded on 12/06/2011 for the course ECON 101 taught by Professor Shen during the Three '11 term at Monash.

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12 - Lecture 12 BM Ch 14 TJHM Ch 16 CCH Ch 6 Day et al Ch 16 After studying this topic you should be able to explain the basic reasons for social

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