EXPLANATORY STATEMENT
Social Security (Personal Care Support Scheme – NSW Department of Ageing, Disability and Home Care (DADHC) Direct Payment Pilot Project) (DEWR) Determination 2006
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 Payment Pilot Project (the Pilot Project), 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 Pilot Project payment, and who also receive an Australian social security payment, will not have their Pilot Project 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. The only exceptions are items specifically exempted under the social security law. 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 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, fifteen schemes have been approved for the purposes of section 35A.
Explanation of the instrument
This instrument approves the Pilot Project as an “approved scheme” under section 35A of the Act.
The NSW government makes payments under the Pilot Project to people with disabilities to pay specifically for their personal care support. Pilot Project payments 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 instrument is that these customers will not have their social security payments reduced because of the Pilot Project 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 made under approved personal care support schemes 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.
Commencement
This determination will take effect on 24 March 2006.
Consultation
This instrument was made in response to a request from the NSW Department of Ageing, Disability and Home Care.
The Commonwealth Department of Families, Community Services and Indigenous Affairs and the Commonwealth Department of Education, Science and Training were also consulted to ensure a co-ordinated and consistent approach to the administration of Pilot Project payments for all social security payments under the Act.
This instrument is beneficial to customers because it exempts these Pilot Project payments from the social security income test. Public consultation was therefore seen as unnecessary.