EXPLANATORY STATEMENT
Social Security (Personal Care Support – ACT Government Enhanced Service Offer) (DEEWR) Determination 2013
The Social Security (Personal Care Support – ACT Government Enhanced Service Offer) (DEEWR) Determination 2013 (the Determination) provides that the Australian Capital Territory Government’s Enhanced Service Offer is an ‘approved scheme’ under section 35A of the Social Security Act 1991 (the Act).
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 recognised as income for the purposes of the income test. Paragraph 8(8)(zi) of 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 that a scheme for the provision of personal care support is an ‘approved scheme’ for the purposes of the Act.
The scheme known as Enhanced Service Offer has been established by the Australian Capital Territory Government Community Services Directorate to provide payments directly to a person with a disability, or if requested, to a third party to assist in purchasing some of the services and supports they need. Residents of the ACT may apply for funding under this scheme for:
- aids, equipment and minor modifications to a person’s home or vehicle;
- things that may increase a person’s quality of life;
- supports or services to be provided to a person, to enable a person to take part in a social, recreational, educational or vocational activity, learn new skills, increase independence and/or build social and personal networks.
These payments are not intended as income, or to be used as an income source for the person. It is expected that payments to individuals may commence from 1 September 2013.
Purpose
The purpose of the Determination is to determine that the Australian Capital Territory Government’s Enhanced Service Offer is an approved personal care support scheme for the purposes of the Act.
A person for whom a payment is made under the scheme may also receive a social security payment. The effect of this Determination is that the person will not have the payment received taken into account for the purposes of the income test under the social security law to the extent that the payment is for the cost of personal care support services for the person. This would ensure that the receipt of payments for personal care support services under the scheme would not have the unintended effect of reducing a person’s entitlement to any social security payment because of the operation of the income test.
This Determination has effect in relation to social security payments within the portfolio responsibility of the Minister for Employment and Minister for Skills and Training. A similar instrument is being considered by the Minister for Families, Community Services and Indigenous Affairs and Minister for Disability Reform, and the Minister for Higher Education.
Explanation of the Provisions
Section 1 states the name of the Determination.
Section 2 provides that the Determination commences on the day after it is registered.
Section 3 provides that the Enhanced Service Offer, being a scheme of that name established by the Australian Capital Territory Government Community Services Directorate, is an approved scheme for the purposes of the Act.
Consultation
This Determination was made in response to a request from the Australian Capital Territory Government Community Services Directorate.
Consultation on the Determination was undertaken with the Department of Families, Housing, Community Services and Indigenous Affairs and the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education.
Public consultation was considered to be unnecessary as this determination is purely beneficial in character.
Regulatory Impact Analysis
The Determination 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
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
This Legislative Instrument is the Social Security (Personal Care Support – ACT Government Enhanced Service Offer) (DEEWR) Determination 2013
The Social Security (Personal Care Support – ACT Government Enhanced Service Offer) (DEEWR) Determination 2013 (the Determination) 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.
Overview of the Legislative Instrument
The Determination is made under section 35A of the Social Security Act 1991 (the Act) and determines that the Australian Capital Territory Government’s Enhanced Service Offer is an approved personal care support scheme for the purposes of the Act, thereby exempting payments received by a person under the scheme for personal care support services from the social security income test.
The Enhanced Service Offer has been established by the Australian Capital Territory Government Community Services Directorate to allow a person with a disability to purchase some of the disability services and supports they need. Payments to individuals are expected to commence from 1 September 2013.
The Determination ensures that people receiving funding under the Enhanced Service Offer for the cost of personal care support services will not have this funding assessed as income for social security purposes.
Human rights implications
The Determination engages the human right: Right to social security.
The right to social security
Section 35A of the Act allows the Minister for Employment and Minister for Skills and Training to determine that when a person receives funding provided by a personal care support scheme this funding is exempt from the social security income test in relation to social security payments for which the Minister for Employment and Minister for Skills and Training is responsible. The determination is therefore beneficial to persons who receive such a social security payment.
Conclusion
The Determination under section 35A of the Act ensures that individuals receiving funding for personal care support services from the approved personal care support scheme do not have this funding assessed for income test purposes. The Determination supports their human right to social security and is compatible with the applicable rights and freedoms.
The Hon Brendan O’Connor MP, Minister for Employment and
Minister for Skills and Training