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Saturday, 13 August 2005 |
Issues of Inequality: SOCIAL SECURITY
The issue: Providing the same rules for assistance to all
When circumstances change in the lives of Australians whether it be through unemployment, disability or illness, retirement, childbirth or the death of a loved one a safety net of social security benefits aims to help individuals and families in need.
Australia's social security system and is run by Centrelink. The Social Security Act 1991 provides dozens of different benefit payments.
Many social security payments can be reduced based on income and assets tests and can include an assessment of a partner's income or assets.
Because the Federal Government does not recognise same-sex couples for social security laws, it creates disadvantages for same-sex couples like in bereavement and widow payments.
However, it can create some advantages for gay and lesbian individuals. In some cases, a person in a same-sex relationship may get greater benefits or qualify for a payment due to their partner's income or assets being ignored by Centrelink.
Ignoring same-sex relationships and families under social security law creates advantages and disadvantages. This situation of privilege and penalty should be reviewed, but both areas of inequality should be resolved at the same time.
The current laws: A fine line between pleasure and pain
Social security legislation defines an individual's partner as being someone specifically of the opposite sex to the individual.
By being ignored, sometimes gay and lesbian couples can gain an advantage under individual asset tests. Sometimes there are disadvantages by not being able to be treated their assets as combined as asset tests are higher for couples.
For student aged 16-24 on Youth Allowance face a parental income and family assets test that could affect their benefits. Heterosexual students can be deemed independent of their parents by being in a heterosexual relationship thereby avoiding the parental income and familly asset tests. Young gay and lesbian students in a same-sex relationship are still considered dependent.
For some payments, income test limits are increased if there are dependent children. Because same-sex families are ignored, gays and lesbians may face reduced benefits due to the lower asset and income tests when their partner's children aren't recognised as their children.
The lack of recognition turns to despair when a same-sex partner dies. The surviving partner in a heterosexual relationship can claim widow and bereavement payments. Same-sex couples are denied the same treatment.
How it's unequal: In between gains and pains
Gay and lesbian couples and families in Australia get some advantages and some disadvantages because their relationships and families are ignored in social security law.
The biggest area where gays and lesbians win but sometimes lose is by being treated as separate individuals for asset and income tests.
Under some benefits gays and lesbians in relationships don't have their partner's income or assets tested. As a partner's situation may reduce or eliminate the benefit, this may result in increased benefits compared with a similar heterosexual couple.
But heterosexual couples get an advantage from higher combined asset test limits. This can assist heterosexual couples with an unequal distribution of assets between them to still qualify for payments. Since gay and lesbian relationships are not treated this way, it may disadvantage or disqualify a same-sex partner with large assets from a benefit.
The biggest disadvantage for gay and lesbian couples comes with the death of their partner. For many social security payments, a surviving heterosexual partner can be paid a lump sum or continuing bereavement payment, of up to 14 weeks of benefit payments. Also, same-sex couples do not qualify for widow pensions or payments as their relationships are ignored.
The pain suffered from the loss of a same-sex partner is the same as that of a lost heterosexual partner and bereavement benefits should be equal to those available to heterosexuals.
The price of inequality: The ups and downs for different couples
Andrew and Jocelyn are a de facto heterosexual couple. Centrelink considers them to be partners, and Jocelyn has just lost her job. They own their own home and their combined assets are $220,000 this does not exceed the $223,000 combined assets test.
Andrew's and Jocelyn's income are both assessed in determining Jocelyn's eligibility and payment levels under Newstart allowance. Because Andrew works full-time, his income eliminates Jocelyn's eligibility to be paid Newstart. The tax system does help Andrew, as he may be able to claim the Dependent Spouse tax rebate in his tax return.
On the other hand, Annie and Madeleine are a same-sex couple and Annie just lost her job too. Centrelink does not consider them partners. Annie and Madeleine own their home, and while they have the same $220,000 of assets between them, only $20,000 are Annie's assets.
Annie can claim a Newstart allowance and have it fully paid to her. She clearly meets the individual asset test of $157,000 of assets before her benefit is reduced. Madeleine even earns the same wage as Andrew, but Madeleine's income does not disqualify Annie from claiming. Unlike Andrew, Madeleine cannot claim tax rebates as Annie is not a dependent spouse.
The situation is different if all four are retirees on pensions. Andrew and Jocelyn both qualify for a full age pension as their assets are below the $223,000 combined asset test. And if one of them dies, the other may be paid a bereavement benefit equal to 14 weeks of pension payments.
Annie and Madeleine's individual pension rates are slightly higher if they are treated as individuals, but Annie and Madeleine now face an asset test disadvantage. The individual asset test for a single homeowner to get a full pension is $157,000, with a pension reducing by $3 a fortnight for every $1,000 of assets over this asset limit.
Annie qualifies for a full pension due to having just $20,000 of assets. But Madeleine's $200,000 of assets means her pension is reduced by $129 per fortnight. If they were treated like Andrew and Jocelyn, this asset test disadvantage would not exist.
And if Madeleine or Annie dies, the surviving partner does not qualify for bereavement benefits.
Talking points: Speak out about the different treatment of same-sex families
Same-sex families and couples need equal treatment for social security benefits to:
- fairly consider the income and asset situations of all couples to provide equal treatment
- allow same-sex couples to qualify for bereavement payments and widow pensions
- allow same-sex individuals to utilise higher income tests if there are dependent children
- recognise gay youth in relationships as being independent, avoiding the parental income tests
What you can do: Ask the Federal Government to recognise same-sex couples
Same-sex families and couples face discrimination in many areas due to the lack of Federal recognition of their relationships and families.
There are a number of ways you can help undo this inequality for same-sex families and couples.
You can write letters to newspapers, ask to meet your local Federal MP, and tell friends and family about the issues.
Every individual can make a difference. For more information on what you can do to change Australia's laws to treat same-sex families and couples equally, visit our website at www.coalitionforequality.org.au
More information: About the Australian Coalition for Equality
The Australian Coalition for Equality aims to achieve equality for Australias gay, lesbian, bisexual, transgendered and intersex citizens and families through campaigning, lobbying, networking and public awareness.
Our website at www.coalitionforequality.asn.au contains more fact sheets on various topics involving unequal aspects of Federal law.
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Social Security