Business Law Assignment: Social Security Benefits and Comparisons

This essay delves into the intricacies of social security benefits, focusing on the Australian system and its Centerlink payments. It outlines various benefits, including Newstart allowance, disability support pension, carer payments, and rent assistance, while also detailing eligibility criteria. The essay further compares Australia's social security landscape with those of Iraq, China, and India, highlighting the impacts of changes in social security on different demographics, particularly the elderly and those with disabilities. It explores policy implications, economic impacts, and the role of social security in addressing poverty and supporting vulnerable populations. The analysis includes discussions on retirement benefits, tax implications, and the historical context of social security programs in different countries. The essay concludes by emphasizing the importance of social security in providing financial assistance and improving health outcomes for older adults.

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Center link payments and other social security benefits
This essay consists of the benefits of social securities and the center link payments. It
further compares the changes of social securities that took place in Australia and compared
with other countries like Iraq, China and India. There are different varieties in the Center link
payments and entitlements that are available. There are existing rules that cover the procedure
of how travelling outside the country affects the payment (Cascio 2018). If the income test is
applied to the Newstart allowance, an individual can earn up to $104 per fortnight pre tax and
before the payment gets affected. However, if the levels of the income are above the rate
mentioned then the payment will be decreased by 50 cents for every dollar that have been
exceeded. The age of pension is only available to those eligible individuals who have
obtained the age for receiving pension. The age of pension generally increases until one has
reached the age of 67. The allowance has the authority to assist people financially (Piketty,
Saez and Zucman 2017). However, one must qualify with the criteria for the Newstart
allowance. Firstly, the individual should be unemployed. Secondly, one must take part
willingly for participating in the activities. Thirdly, one must have attained the age of 22 but
is under the age of pension. Lastly, an individual should be an Australian resident and must
be residing in the country during the period of payment (McGraw-Hill Educa Atalay and
Barrett 2015). However, centrelink is treated as one of those agencies that operates under the
banner of the Department of Human Services and will be held responsible for assessing the
eligibility for and processing the payment of the benefits of social security. It provides
another benefit of payment for the disability support pension. This refers to a situation where
payments are made to those who are unable to work because of their incapacity or long-term
illness. They can also be suffering from a kind of medical assessment. Fourthly, carer
payments are dealt with the those individuals who provide full time care for those individuals
who are said to be disabled or requires care due to old age (Alonso-Ortiz 2014.). Fifthly,

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carer allowance is paid to those persons who provide regular care which also acts as the
professional care or home care to someone who is disabled. Lastly, rent allowance is given to
the individuals in receipt of a payment that is qualified and requires additional assistance for
meeting the accommodation for the rent payments. These payments are however done online
Every payment done with the centre link are related to the eligibility that includes residency,
age, medical conditions, income, assets and work status.
The concept of social security on the other hand states that it helps workers, old and
disabled people and families. Generally, the beneficiaries belong to the range of retirees and
their families. Retirement is treated as more than social security. Individuals who receive
benefits from the social securities belong to the groups of retirees, disabled, a spouse,
divorced spouse and a dependent parent. It also consists of medicare taxes, social security
taxes and additional taxes (Saunders 2017). The effect of the security changes has majorly
affected the people who belong to the age group above the age of 60. It is beneficial for these
particular groups of individuals including disabled and challenged people. However, in
Australia, the access to the social security benefits is prohibited to the individuals who are the
permanent residents or citizens of Australia. Majority of the individuals support the payments
that have a period of two years waiting. The age of the individuals matter when it concerns
the system of tax payments. However, the government of Australia had dealt with the first
age of pensions in the state of New South Wales and Victoria. The government income
support provision in Australia has also developed in other countries (Couch, Tamborini and
Reznik 2015). Thus, the benefits associated are subject to the asset tests and income.
Comparison between Australia and overseas related to the changes in the social security
The changes in the social security have a wide effect on the society and the
individuals surviving in the society. It has been observed that there have been health
improvements that are not spread equally across all the existing groups in the society.

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Therefore, it can be said that the social security benefits has both positive and negative effects
on the society (Gilbert 2017). Thereafter, the individuals belonging to the higher income of
groups have led to a reduction in depressive symptoms but it when it is related to the
households, the primary social security benefit had less than a high school education (Brown,
Kapteyn and Mitchell 2016). There have been policy implications of these changes that took
place in the last few years. As per the research, the implications for aging populations and for
public policy have essential negative impacts on the limitations of the elderly people that can
lead to the improvements in the health results. It was also noticed that there have been a
direct impact on the health of the population that increases the merits of social security. The
purpose of it is to reduce the expenses of the healthcare by the medicare programs available.
Thus, the benefits of social security have affected the health of the older people majorly. The
Social security is considered to be as one of the most successful programs in the history of
the American country (Yakita 2017). The rate of poverty among the elders was also affected
due to the benefits. In the present year, the revenues of the taxes of social security will not be
sufficient enough to pay social security benefits. In general, it was observed that the societies
have had systems for taking care of the people who does not have the ability and capability to
support themselves and work for money. The positive effect of the social security leads to
this positive change in the society. Therefore, this method acted as an advantage for the older
people. As it have been observed that an individual can pay a huge amount in return for the
amounts specified for balancing the life. The records of annuities have come in the scenario
from China, Rome, India and Egypt. The finances also got affected because of the changes in
the social security benefits. It is said, to have long-term finances that have become
increasingly precarious (Flora 2017). Due to this effect, the government lends money to itself
by using the taxes of payroll in an excess of the present benefits. However, it does not result

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in the amount of stealing since it is charged but no such thing is caused to decrease the
economic burden of the social security.
Among these effects, it was concluded that the trust fund acts as the budget authority
and provides the legal allowance for spending the general revenues to pay the benefits of the
social security. This will result in a growing essential after the present year of 2018.
However, the changes in the social security have a negative impact on the workers who are
presently engaged with work. It was observed that workers tend to wait until the normal
retirement age before attaining the benefits (O'connor 2017). The concerned issue of this
situation is that the outflow of the payments since the persons retiring early is likely to
receive a lower benefit. Therefore, the economic impact of the regulation is that it prohibits
as to how the wage income, one can earn after the retirement without losing the benefits of
the social security. As compared with the other states, India is said to be a diverse nation that
has crossed the population of one billion. There have been a major impact on the economic
reforms that was made visible on the import and export that was made unable for generating
revenue due to the various constraints that was formed earlier. In this country, it is
determined by the various schemes and the legislations that cover the employees of the
organized sector. The common form of aid in this country is also based on the concept of
pension. It refers to the post retirement remuneration that will be made available to an
employee. The beneficiaries of the pension are usually the children and spouses of the retired
employees. The schemes and policies of social security have been spread in all the states of
India. However, on the contrary, the social security changes have a different effect on the
families who receives the payments of tax benefits. The effect is more on the medical
assessment process for supporting the disability support pension. The government is involved
with the orders of the pension as even in this country the government looks after the plans
related to it.

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Another country that gets affected with the benefits of the changes in the social
security is China. This country is said to be an aging population for accelerating the increase.
The poverty rate of China got affected due to the changes that took place. Even in present
poverty remains to be one of the serious social problems. Under the impact of the financial
crisis, the government has started to invest on an increase in the investment rather than the
consumption process. As per the social and economic challenges, it includes a huge gap in
the income of the individuals. This results in increasing the social conflicts and the instability
of the society. There is a large number of poor people who are still unemployed in the
country and do not receive any kind of remuneration or pension. A major number of the
urban and rural migrant workers has accelerated in the process of urbanization. However, the
benefits of pension is utilized by a very few individuals since it does not have too many
employed person in the country as per the population. Even if there is opportunity of any kind
then there would still be a decline in the propensity for consuming. The share of consumption
in the national income has declined at a greater rate resulting in the decline in the share of
consumption (Ravallion 2017). It has a rapid decline in the proportion of the household
consumption as well. On the other hand, Australia does not have this effect since it is not as
populated as China and every aged individual have received the benefits of the changes in the
social security.
The regulatory framework of the changes in the social securities results in the old age,
survivors and disability (Liebman and Luttmer 2015). It deals with the sources of funds, the
qualifying conditions of the persons receiving pension, the benefits received by the old age
people, the permanent benefits of the disabled individuals, maternity and sick framework and
the administrative organization. Australia on the other hand does not deal with all the changes
that have been mentioned above in case of Iraq. It majorly deals with the benefits attained by
the older people in the country and them receiving pensions. Using data from a nationally

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representative survey of older adults, we find that higher Social Security income significantly
improves health outcomes among the elderly (Sherraden and Gilbert 2016). Specifically, we
find that increases in annual Social Security benefits led to significant improvements in
functional limitations and cognitive function, and that the improvements in cognition function
were larger for individuals with better cognition.
Essential improvements have been found in mental health, but only in the subsample
of households whose primary beneficiary has less than a high school education. In contrast,
we do not find any significant improvements in self-rated health (Kitao 2014). By using a
quasi-experimental approach based on amendments to the Social Security Act in the 1970s,
this study is able to address several limitations of prior literature on the relationship between
income and health, including unmeasured confounders and reverse causality. Therefore, these
changes of the security benefits have taken place in Australia as well as other countries.

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References:
Alonso-Ortiz, J., 2014. Social security and retirement across the OECD. Journal of Economic
Dynamics and Control, 47, pp.300-316.
Brown, J.R., Kapteyn, A. and Mitchell, O.S., 2016. Framing and claiming: how information‐
framing affects expected social security claiming behavior. Journal of Risk and
Insurance, 83(1), pp.139-162.
Cascio, W., 2018. Managing human resources.
Couch, K.A., Tamborini, C.R. and Reznik, G.L., 2015. The Long-Term Health Implications
of Marital Disruption: Divorce, Work Limits, and Social Security Disability Benefits Among
Men. Demography, 52(5), pp.1487-1512.
Flora, P., 2017. Development of welfare states in Europe and America. Routledge.
Gilbert, N. ed., 2017. Targeting social benefits: international perspectives and trends.
Routledge.
Hildred, K., Mazerski, P., Krent, H.J. and Christian, J., 2016. Transitional Benefits for a
Subset of the Social Security Disability Insurance Population. SSDI Solutions: Ideas to
Strengthen the Social Security Disability Insurance Program, pp.339-56.
Kitao, S., 2014. Sustainable social security: Four options. Review of Economic
Dynamics, 17(4), pp.756-779.
Liebman, J.B. and Luttmer, E.F., 2015. Would people behave differently if they better
understood social security? Evidence from a field experiment. American Economic Journal:
Economic Policy, 7(1), pp.275-99.

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McGraw-Hill Educa Atalay, K. and Barrett, G.F., 2015. The impact of age pension eligibility
age on retirement and program dependence: Evidence from an Australian experiment. Review
of Economics and Statistics, 97(1), pp.71-87.tion.
O'connor, J., 2017. The fiscal crisis of the state. Routledge.
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estimates for the United States. The Quarterly Journal of Economics, 133(2), pp.553-609.
Ravallion, M., 2017. Poverty comparisons. Routledge.
Saunders, P. ed., 2017. Welfare to work in practice: social security and participation in
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Yakita, A., 2017. Macroeconomic Effects of Changes in the Eligibility Age for Payments of
Social Security Benefits Under Cash-in-Advance Constraints. In Population Aging, Fertility
and Social Security (pp. 65-84). Springer, Cham.