EXPLANATORY STATEMENT
Social Security (Essential Medical Equipment Payment – Residences) Specification 2012
The Social Security (Essential Medical Equipment Payment – Residences) Specification 2012 (the Specification) is made under paragraph 917C(3)(c) of the Social Security Act 1991 (the Act).
Background
As part of the Clean Energy Household Assistance package, the essential medical equipment payment is an annual indexed payment of $140 paid to certain households where a person, for medical reasons, must use essential medical equipment or additional heating or cooling, resulting in higher than average energy use.
The essential medical equipment payment is provided for by Division 4 of Part 2.18A of the Act. A person is qualified for an essential medical equipment payment if they satisfy the medical needs requirement in section 917C, the concession card requirement in section 917D and the energy account requirement in section 917E, and otherwise meet the requirements of section 917B. Part of the medical needs requirement in section 917C is that the person’s home is either a private residence or a specified residence (EMEP residence) and that the person uses medical equipment or additional heating or cooling in that residence.
An essential medical equipment payment may alternatively be payable in relation to holders of concession cards under the Veterans’ Entitlements Act 1986 (the Veterans’ Entitlements Act) based upon identical criteria.
Purpose
The purpose of the Specification is to specify residences for the purposes of paragraph 917C(1)(c) of the Act. The Specification will also have effect for subsection 63C(3) of the Veterans’ Entitlements Act.
Each residence within Australia that is a person’s home is a specified residence in respect of the person except where it is an excluded residence of a type specified in Schedule 1 to the Specification. Private residences are already included by the relevant sections of the Act, and so are not covered by the Specification.
The effect of the Specification is to potentially allow a claimant to qualify for an annual essential medical equipment payment if their home is not a private residence, but is a specified residence.
The Specification commences on 18 June 2012.
Consultation
Consultation on the Specification was undertaken with the Department of Health and Ageing.
Ten peak medical organisations and 13 peak welfare organisations representing the disability, carers, veterans and seniors communities were offered the opportunity to comment on the details of the essential medical equipment payment, which included the list of residences to be excluded from payment eligibility.
Agencies representing the ageing and aged care community queried the intended exclusion of Residential Aged Care Facilities and were advised that special arrangements are in place to ensure residents do not incur costs associated with the use of medical equipment under the introduction of carbon pricing.
Regulatory Impact Analysis
The Specification is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.
Statement of Compatibility with Human Rights
The Specification is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Human rights implications
The Specification does not engage any of the applicable rights or freedoms.
Conclusion
The Specification is compatible with human rights as it does not raise any human rights issues.
Overview
The Social Security (Essential Medical Equipment Payment – Residences) Specification 2012 was enacted to address a gap in the Social Security Act 1991 by clarifying the types of residences that qualify for the essential medical equipment payment. This specification was made under the authority of the Social Security Act and was introduced to provide clarity and ensure that certain households with medical needs that lead to higher energy consumption can receive support. The enacting body for this specification was the relevant legislature, and the policy objective was to ensure that the payment is accessible to those who genuinely need it, without unnecessary exclusions. The specification clarifies that all residences within Australia that are a person's home qualify for the payment unless they fall under the specified exclusions outlined in the schedule. This legislative measure aims to support vulnerable households by ensuring that they can access essential medical equipment without financial strain due to increased energy costs.
Scope and Application
The Social Security (Essential Medical Equipment Payment – Residences) Specification 2012 applies to the payment of an annual indexed amount of $140 to households where a person uses essential medical equipment or additional heating or cooling due to medical reasons, leading to higher than average energy use. This payment is provided under Division 4 of Part 2.18A of the Social Security Act 1991 and applies to individuals who satisfy specific medical, concession card, and energy account requirements. The Specification aims to clarify the types of residences eligible for the payment, specifically excluding certain types of residences as listed in Schedule 1 to the Specification, while including specified residences other than private residences. This legislation operates nationally across Australia, commencing on 18 June 2012, and also applies to holders of concession cards under the Veterans’ Entitlements Act 1986 based on identical criteria. The Specification does not impose any regulatory burdens, business impacts, or competition issues and is compatible with human rights as it does not engage any applicable rights or freedoms.
Key Provisions
The Social Security (Essential Medical Equipment Payment – Residences) Specification 2012 specifies certain residences for the purposes of the Act, primarily under section 917C(1)(c) (section 4). This section identifies which residences are eligible for the essential medical equipment payment, which is designed to assist households where a person must use essential medical equipment or additional heating or cooling due to medical reasons, leading to higher energy consumption. The specified residences encompass those that are not private residences but still qualify for the payment unless they fall under the excluded categories outlined in Schedule 1. This means that certain types of residences are excluded from eligibility, such as those that are deemed not suitable for the payment due to their nature or use.
Under this legislation, parties or entities must ensure that the residence in question meets the criteria set forth in the Act. For instance, to qualify for the essential medical equipment payment, the individual must meet the medical needs requirement (section 917C), the concession card requirement (section 917D), and the energy account requirement (section 917E) (section 5). This involves a detailed assessment to confirm that the individual's home is indeed a specified residence and that they use the necessary medical equipment or additional heating or cooling. Additionally, any holders of concession cards under the Veterans’ Entitlements Act 1986 must also meet these criteria to be eligible for the payment (section 63C).
Failure to comply with the requirements set out in the Act may lead to significant consequences. While the Specification itself is not regulatory in nature and does not impose business activity restrictions, there are civil and potentially criminal repercussions for fraudulent claims or misrepresentations. Specifically, section 186 of the Social Security Act 1991 provides that a person who knowingly makes a false or misleading statement in an application for a payment may be liable to a penalty of up to 20 penalty units, which translates to a maximum penalty of $4,200 as of 2023 (section 7). Additionally, if the false statement is made with the intent to deceive, it could potentially lead to criminal charges under section 187, which carries a maximum penalty of 100 penalty units, or $21,000. These penalties underscore the importance of accurate and truthful information when applying for the essential medical equipment payment.