EXPLANATORY STATEMENT
Social Security (Personal Care Support – NSW Attendant Care Program Direct Funding Model) (FaHCSIA) Determination 2008
Summary
This determination provides that the scheme known as the Attendant Care Program (ACP) Direct Funding Model, that is administered by the New South Wales Department of Ageing, Disability and Home Care, is an “approved scheme” under section 35A of the Act.
The effect of this determination is that people who receive a payment under the ACP Direct Funding Model, and who also receive a social security payment, will not have their payments under the ACP Direct Funding Model taken into account for the purposes of the income test under social security law.
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, some items are specifically exempted under the social security law from the income test. 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 ACP Direct Funding Model as an ‘approved scheme’ under section 35A of the Act. This determination has effect in relation to social security income support payments for which the Minister for Families, Housing, Community Services and Indigenous Affairs has responsibility for under the Administrative Arrangements Order.
The New South Wales Department of Ageing, Disability and Home Care makes payments under the ACP Direct Funding Model to people with disabilities to pay specifically for their personal care support. Payments under the ACP Direct Funding Model 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 people who receive a payment under the ACP Direct Funding Model, and who also receive a social security payment, will not have their social security payments reduced because the payments received under the ACP Direct Funding Model will not be regarded as income.
Payments made under the ACP Direct Funding Model are only exempt in relation to the person receiving care. As payments made under approved schemes are not exempt in relation to the person providing care, payments made directly to a carer are not affected by this instrument.
Payments made under the ACP Direct Funding Model 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.
Commencement
This determination will commence on 25 August 2008.
Consultation
This determination was made in response to a request from the New South Wales Department of Ageing, Disability and Home Care.
The Commonwealth Department of Education, Employment and Workplace Relations were consulted to ensure a co-ordinated and consistent approach to the administration of payments made under the ACP Direct Funding Model, for all social security income support payments under the Act. It is expected that the Minister for Education, Employment and Workplace Relations will sign a corresponding determination.
This determination is beneficial to income support recipients because it exempts payments made under the ACP Direct Funding Model from the income test under the social security law. Public consultation was therefore seen as unnecessary.
Regulatory Impact
This determination does not require a Regulatory Impact Statement, as this determination is not regulatory in nature, does not impact on business activity and will have no, or minimal compliance costs.