EXPLANATORY STATEMENT
Social Security (South Australian ‘Self-Managed Funding Initiative’) (DEEWR) Determination 2009 (No.1)
Summary
Section 35A of the Social Security Act 1991 (the Act) allows the Minister for Employment and Workplace Relations to determine that a scheme for the provision of personal care support is an ‘approved scheme’ for the purposes of the Act.
The effect of this Determination is that people with a disability who receive payments under Phase One of the South Australian ‘Self-Managed Funding Initiative’, and who also receive an Australian social security payment for which the Minister for Employment and Workplace Relations is responsible, will not have their payments under the Self-Managed Funding Initiative 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 counted as income. The only exceptions are items specifically exempted from the social security income test.
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 under paragraph 8(8)(zi) of the Act in relation to the person who is receiving care.
The Self-Managed Funding Initiative (the ‘Initiative’) has been established by the South Australian Department of Family and Communities. Phase One of the Initiative will allow clients of the Disability SA to move form the current system, whereby they receive disability support services instead of direct payments, to a new system whereby they receive payments form Disability SA and can choose and pay for their own arrangements, depending on their individual needs. These may include personal care, home support, respite, community access and community supports.
Explanation of the provisions
Section 1 of the Determination states the name of the Determination and shows how it is to be cited.
Section 2 states that the Determination commences on the day after registration with the Federal Register of Legislative Instruments.
Section 3 provides that Phase One of the Self-Managed Funding Initiative is an ‘approved scheme’ for the purposes of the Act and is exempt from the social security income test.
Consultation
Public consultation has not been undertaken as this instrument is of a purely beneficial character. Consultation was undertaken with the Department of Families, Housing, Community Services & Indigenous Affairs in relation to this instrument.
Regulatory Impact Statement
This Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure. The 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, as a result of this Determination, against the nine categories listed in the Business Compliance Cost Checklist contained in the Best Practice Regulation handbook prepared by the Office of Best Practice Regulation.