Social Security (Personal Care Support - Direct Payments Project) (DEST) Determination 2007

Administered by Department of Social Services

Legislation au F2007L03686 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Social Security (Personal Care Support– Direct Payments Project) (DEST) Determination 2007

Summary

Section 35A of the Social Security Act 1991 (the Act) allows Ministers to determine that a scheme for the provision of personal care support is an “approved scheme” for the purposes of the Act.   This determination provides that the ‘Direct Payments Project’, that provides personal care support, administered by the Victorian Department of Human Services, is an “approved scheme” under section 35A of the Act.

The effect of this determination is that people who receive a payment under the Direct Payments Project, and who also receive a social security payment, will not have their payments under the Direct Payments Project taken into account for the purposes of the social security income test.

Background

Under the social security law all income earned, derived or received for a person’s own use or benefit, is generally counted as income.  However, items can be specifically exempted under the social security law from the income test.  Specific provisions in the Act allow Ministers to exempt certain kinds of payments from the social security income test, within principles defined in the Act, without the need for legislative change.

In particular, section 35A of the Act allows Ministers to determine that a scheme or project for the provision of personal care support is an ‘approved scheme’ for the purposes of the Act.  Payments made under an ‘approved scheme’ are exempt from the income test in relation to the person who is receiving care under paragraph 8(8)(zi) 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 Direct Payments Project as an ‘approved scheme’ under section 35A of the Act.

The Victorian Department of Human Services makes payments under the Direct Payments Project to people with disabilities to pay specifically for their personal care support.   Payments under the Direct Payments Project do not provide income support for people with disabilities.  Instead, these payments help these people to live independent lives outside of a public institution by contributing toward the cost of their long-term personal care support.

The effect of this determination is that these customers will not have their social security payments reduced because the payments, in relation to the person who is receiving care under the Direct Payments Project, will not be regarded as income.

Payments made under the Direct Payments Project are similar to personal care support payments made by other State and Territories, including Western Australia, Queensland, Victoria and the Northern Territory, which have already been exempted from the social security income test under similar determinations. 

Payments made under approved personal care support schemes are only exempt when the funds are those of the person with a disability, paid either to the person with the disability or to a person they have agreed can administer the payments for them. 

Commencement

This determination will take effect the day after its registration with the Federal Register of Legislative Instruments.

Consultation

This determination was made in response to a request from the Victorian Department of Human Services.

The Commonwealth Families, Community Services and Indigenous Affairs and the Commonwealth Department of Employment and Workplace Relations were also consulted to ensure a co-ordinated and consistent approach to the administration of Direct Payments Project payments for all social security payments under the Act. Each of these Departments’ Ministers will sign corresponding determinations.

This determination is beneficial to customers because it exempts these Direct Payment Project payments from the social security income test.  Public consultation was therefore seen as unnecessary.

Business Cost Calculator

This determination does not require a Regulatory Impact Statement (RIS) and/or a Business Cost Calculator Figure.  This determination is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.  It is not expected that any compliance costs will be incurred by business against the nine categories listed as a result of this determination.

 

 

Overview

The Social Security (Personal Care Support– Direct Payments Project) (DEST) Determination 2007 was enacted to address a gap in the social security income test by providing an exemption for personal care support payments. This determination, introduced by the Australian Government, was made in response to a request from the Victorian Department of Human Services and after consultation with relevant Commonwealth departments to ensure consistency in the administration of the Direct Payments Project payments. The policy objective of this determination is to exempt payments made under the Direct Payments Project from the social security income test, thereby ensuring that recipients of these payments do not experience a reduction in their social security payments due to these care-related funds. This approach is designed to support people with disabilities to live independent lives by covering the costs of their personal care support without impacting their social security benefits.

Scope and Application

The Social Security (Personal Care Support– Direct Payments Project) (DEST) Determination 2007 applies to individuals who receive payments under the Direct Payments Project, which is administered by the Victorian Department of Human Services. These payments are specifically designated for personal care support for people with disabilities, aiming to assist them in living independent lives outside public institutions by contributing to the cost of their long-term personal care. This determination ensures that such payments are exempt from the social security income test, meaning they do not reduce the social security payments of recipients. The exemption applies only when the funds are those of the person with a disability, paid either directly to them or to an agreed administrator. This determination is applicable at the Commonwealth level and is aligned with similar determinations made in other states and territories. There are no stated exclusions or exemptions within the determination itself, but it operates under the principles set out in the Social Security Act 1991. This determination does not extend or restrict application through subordinate instruments, as it is a direct ministerial action under section 35A of the Act.

Key Provisions

The Social Security (Personal Care Support– Direct Payments Project) (DEST) Determination 2007, under section 35A of the Social Security Act 1991, specifies that the Direct Payments Project, administered by the Victorian Department of Human Services, is an approved scheme. This means that payments made under this project for personal care support are exempt from the social security income test for individuals receiving these payments alongside other social security benefits (s. 35A). This exemption is significant because it prevents the reduction of social security payments for beneficiaries who receive personal care support payments through this project. The obligations under this determination primarily rest on the Victorian Department of Human Services, which is responsible for administering the Direct Payments Project. The department must ensure that payments are made directly to individuals with disabilities or to a person they have authorised to manage these payments on their behalf. This ensures that the payments remain exempt from the social security income test, as stipulated by the Act. The department must also comply with any guidelines or requirements set by the relevant Commonwealth departments to maintain the integrity and coordination of the scheme. Failure to comply with the provisions of this determination could result in the loss of the exemption for the Direct Payments Project payments, potentially affecting the income status of beneficiaries. While the determination itself does not explicitly outline specific offences or penalties, any breach of the Social Security Act 1991 could lead to civil or criminal consequences. Under the Social Security Act, penalties for non-compliance can include fines and, in some cases, imprisonment, depending on the severity and intent of the breach. The maximum penalties are determined by the specific provisions of the Act that are contravened.

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Area of Law
Social Security Law
Instrument
Determination
Concepts
Definitions & Interpretation
Exemptions & Exclusions
Reporting & Disclosure Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.