EXPLANATORY STATEMENT
Social Security (Personal Care Support Scheme – NSW Department of Ageing, Disability and Home Care (DADHC) Direct Funding Model) (DEEWR) Determination 2008
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 instrument determines that the Direct Funding Model, for the provision of personal care support, administered by the NSW Department of Ageing, Disability and Home Care under its Attendant Care Program, is an ‘approved scheme’ under section 35A.
The effect of this instrument is that people who receive a Direct Funding Model payment under the NSW Attendant Care Program, and who also receive an income-tested social security payment, will not have their Direct Funding Model payments 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 which may reduce the person’s income-tested social security payments. The only exceptions are items specifically exempted under the social security law. Specific provisions in the Act allow the Minister to exempt certain kinds of payments from the social security income test, within principles defined in the Act.
In particular, section 35A of the Act allows the Minister to determine that a scheme 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 under paragraph 8 (8) (zi) of the Act.
In 2006 a determination was made under section 35A of the Act declaring the pilot project to this scheme, the NSW Attendant Care Program Direct Payment Pilot Project, as an approved scheme for the purposes of the Act. The Direct Funding Model has resulted from the Direct Payment Pilot Project. People receiving payments under the Direct Payment Pilot Project will continue to do so until the Direct Funding Model is determined to be an ‘approved scheme.’
The NSW government will make payments under the Direct Funding Model directly to people with physical disabilities to pay for their own personal care support. Direct Funding Model payments do not provide income support for people with physical disabilities. Instead, these payments are provided to people to assist them with a range of daily personal care tasks and activities allowing 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 instrument is that these customers will not have their social security payments reduced because of the Direct Funding Model payments that they receive, because these payments will not be regarded as income in accordance with paragraph 8 (8) (zi) of the Act.
These payments are similar to personal care support payments made by various state and territory governments, including the governments of Western Australia, Queensland, Victoria and the Northern Territory, which have already been exempted from the social security income test under similar instruments.
Payments under the NSW Direct Funding Model commenced on 25 August 2008. The instrument commences retrospectively from that day, in order to ensure that payments under the Direct Funding Model made between 25 August and the date of registration of the instrument are not considered income for the purposes of the social security law. The instrument is of beneficial effect and does not adversely affect the rights of any person, nor impose a liability on any person, other than the Commonwealth.
Explanation of Provisions
Section 1 of the determination states the name of the determination.
Section 2 states that the determination is taken to have commenced on 25 August 2008. The determination commences on 25 August 2008 as this is the date that payments under the Direct Funding Model commenced and payment under the pilot ceased. The instrument will have retrospective application from 25 August 2008 so that any payments made under the Attendant Care Program Direct Funding Model will not be considered income for the purposes of the social security law.
Section 3 contains interpretation provisions.
Section 4 revokes the Social Security (Personal Care Support Scheme – NSW Department of Ageing, Disability and Home Care (DADHC) Direct Payment Pilot Project) (DEWR) Determination 2006.
Section 5 specifies that the scheme for the provision of personal care support administered by the NSW Department of Ageing, Disability and Home Care known as the Attendant Care Program Direct Funding Model is an approved scheme for the purposes of the Act.
Consultation
The Department of Families, Housing, Community Services and Indigenous Affairs was consulted during the preparation of this determination. This was done to ensure a co-ordinated and consistent approach to the income test treatment of Direct Funding Model Payments under the Act.
This instrument is beneficial to income support recipients because it exempts Direct Funding Model payments from the income test. Public consultation was therefore seen as unnecessary.
Regulatory Impact Analysis
There is no regulatory impact for business.