EXPLANATORY STATEMENT
Social Security (NSW Lifetime Care and Support Scheme – Self‑purchasing of treatment, rehabilitation and care services) (DEEWR) Determination 2011
Summary
This Determination provides that the NSW Lifetime Care and Support Scheme – Self-purchasing of treatment, rehabilitation and care services is an ‘approved scheme’ under section 35A of the Act.
A person for whom a payment is made under the NSW Lifetime Care and Support Scheme – Self-purchasing of treatment, rehabilitation and care services may also receive a social security payment. The effect of this determination is that the person will not have the payment that was received under that Scheme taken into account for the purposes of income tests under the social security law.
Background
Under the social security law, income includes any income amount earned, derived or received for a person’s own use or benefit. However, the social security law specifically excludes some amounts from being income. Paragraph 8(8)(zi) of the Social Security Act 1991 (the Act) provides that a payment towards the cost of personal care support services for the person, being a payment made under a scheme approved under section 35A, is not income for the purposes of the Act.
Section 35A of the Act allows the relevant Minister to determine in writing that a scheme for the provision of personal care support is an ‘approved scheme’ for the purposes of the Act. Since 1992, a number of schemes have been approved for the purposes of section 35A of the Act.
Explanation of the Determination
This Determination approves the NSW Lifetime Care and Support Scheme ‑ Self-purchasing of treatment, rehabilitation and care services as an ‘approved scheme’ under section 35A of the Act. This Determination has effect in relation to social security income support payments coming within the portfolio responsibility of the Minister for Tertiary Education, Skills, Jobs, and Workplace Relations.
The Motor Accidents (Lifetime Care and Support) Act 2006 (NSW) provides for the payment of reasonable expenses for treatment and care needs of persons injured in motor accidents in that State. The Lifetime Care and Support Authority of New South Wales constituted under that Act administers the making of payments under the Scheme provided for by that Act. A person who has suffered a motor accident injury may be eligible to be a participant in the Scheme in respect of the injury.
The NSW Lifetime Care and Support Scheme – Self-purchasing of treatment, rehabilitation and care services forms a component of this broader Scheme. Under the NSW Lifetime Care and Support Scheme – Self-purchasing of treatment, rehabilitation and care services, the Authority pays an amount to cover the reasonable costs of treatment, rehabilitation and care services of the participant related to the participant’s motor accident injury. Such services support the participant in their home and in the community.
The NSW Lifetime Care and Support Scheme – Self-purchasing of treatment, rehabilitation and care services does not provide income support for persons injured in motor accidents. Instead, payments are made under this scheme to cover the cost of treatment, rehabilitation and care services incurred by the participant in this scheme, as they relate to the motor accident injury and as are reasonable and necessary in the circumstances.
The effect of this determination is that a person who receives the benefit of a payment under the NSW Lifetime Care and Support Scheme – Self-purchasing of treatment, rehabilitation and care services and who also receives a social security payment, will not have the payment under the NSW Lifetime Care and Support Scheme – Self-purchasing of treatment, rehabilitation and care services taken into account for the purposes of the income test under social security law.
Commencement
This determination will commence on the day after it is registered.
Consultation
This determination was made in response to a request from the Lifetime Care and Support Authority of New South Wales.
The Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) has been consulted to ensure a co-ordinated and consistent approach to the administration of payments made under the NSW Lifetime Care and Support Scheme – Self-purchasing of treatment, rehabilitation and care services, for all social security income support payments under the Act. It is expected that the Minister for FaHCSIA will make a corresponding determination for the purposes of the social security income support payments within the Minister’s portfolio responsibility.
This determination is beneficial to income support recipients because it excludes payments made under the NSW Lifetime Care and Support Scheme – Self-purchasing of treatment, rehabilitation and care services from being taken into account as income under the social security law. Public consultation was therefore seen as unnecessary.
Regulatory Impact
This determination does not require a Regulatory Impact Statement, as it is not regulatory in nature, does not impact on business activity and will have no, or minimal compliance costs.