Social Security (South Australian ‘Phase One: Self-managed Funding Initiative’) (FaHCSIA) Determination 2009

Overview

The Social Security (South Australian ‘Phase One: Self-managed Funding Initiative’) (FaHCSIA) Determination 2009 was introduced to address a gap in the Social Security Act 1991 by allowing the Minister for Families, Housing, Community Services and Indigenous Affairs to designate the South Australian ‘Phase One: Self-managed Funding Initiative’ as an ‘approved scheme’. This exemption from the social security income test ensures that individuals with disabilities who are receiving payments under this initiative and are also beneficiaries of Australian social security payments overseen by the Minister, will not have their Self-managed Funding Initiative payments considered in the social security income test. The determination was enacted by the Department of Families, Housing, Community Services and Indigenous Affairs, with a policy objective to provide more flexible and personalised care arrangements for individuals with disabilities, transitioning them from a system of receiving disability support services to one where they receive payments and manage their own care arrangements based on individual needs.

Scope and Application

The Social Security (South Australian ‘Phase One: Self-managed Funding Initiative’) (FaHCSIA) Determination 2009 applies to individuals with disabilities who participate in Phase One of the South Australian Self-managed Funding Initiative and concurrently receive Australian social security payments for which the Minister for Families, Housing, Community Services and Indigenous Affairs is responsible. This Determination ensures that payments made under the approved scheme are exempt from the social security income test. The exemption under Section 35A of the Social Security Act 1991 is specifically designed to facilitate a transition from the traditional disability support services model to a self-managed funding model, allowing individuals to choose and pay for their own care arrangements. The geographic reach of this Determination is confined to South Australia, as it pertains to a state-specific initiative. The Determination does not impose any regulatory burdens, compliance costs, or competition impacts, as it primarily serves to clarify the scope of the approved scheme in relation to social security payments.

Key Provisions

The key operative sections of the FaHCSIA Determination revolve around the approval of the South Australian Self-managed Funding Initiative as an approved scheme under Section 35A of the Social Security Act 1991. Specifically, section 3 of the Determination (section 3) declares that Phase One of the Initiative qualifies as an approved scheme, exempting it from the social security income test. This means that payments made under this scheme will not be counted as income for the purposes of assessing eligibility for social security benefits (section 35A). The commencement of the Determination is outlined in section 2 (section 2), which states that it takes effect on the day following its registration with the Federal Register of Legislative Instruments. This Determination imposes specific obligations on the parties involved. The Minister for Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) is responsible for ensuring that the Self-managed Funding Initiative meets the criteria to be recognised as an approved scheme. This involves verifying that the Initiative provides personal care support and that it operates in a manner consistent with the objectives of the Social Security Act 1991. The South Australian Department for Families and Communities must ensure that the Initiative is administered effectively, providing eligible individuals with the opportunity to manage their own care arrangements. Furthermore, Disability SA, as the implementing agency, must ensure that payments under the Initiative are made in accordance with the terms of the Determination and that they serve the intended purpose of supporting individuals with disabilities. In terms of potential breaches and consequences, the Determination itself does not explicitly detail offences or penalties. However, under the broader framework of the Social Security Act 1991, non-compliance with the terms of an approved scheme could lead to the scheme losing its approved status, thereby affecting the income test outcomes for participants. This could potentially result in individuals being reassessed for social security benefits, which might lead to a reduction or cessation of their payments. Additionally, any failure to adhere to the provisions of the Determination could be subject to review and action by FaHCSIA, potentially leading to administrative or legal consequences for the involved parties. Overall, the Determination seeks to provide clarity and certainty regarding the treatment of payments under the South Australian Self-managed Funding Initiative within the social security framework. By exempting these payments from the income test, it aims to support individuals with disabilities in managing their own care arrangements without impacting their social security benefits. The obligations and potential consequences outlined within the Determination and the Act ensure that the scheme operates in a manner that aligns with the broader objectives of social security support.