Social Security (South Australian 'Self-Managed Funding Initiative') (DEEWR) Determination 2009 (No. 1)

Overview

The Social Security (South Australian ‘Self-Managed Funding Initiative’) (DEEWR) Determination 2009 (No. 1), enacted by the Minister for Employment and Workplace Relations under the authority of Section 35A of the Social Security Act 1991, addresses the issue of ensuring that disability support recipients in South Australia, who transition to the Self-Managed Funding Initiative (Phase One), are not disadvantaged under the social security income test. This initiative, established by the South Australian Department of Family and Communities, allows Disability SA clients to move from receiving disability support services directly to receiving payments from Disability SA, enabling them to choose and pay for their own care arrangements according to their individual needs. The primary policy objective of this Determination is to exempt payments made under the approved scheme from the social security income test, thus protecting the recipients' social security benefits. This legislative instrument, which does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, was developed in consultation with the Department of Families, Housing, Community Services and Indigenous Affairs and is not expected to incur any significant compliance costs or impact on business activities.

Scope and Application

The Social Security (South Australian ‘Self-Managed Funding Initiative’) (DEEWR) Determination 2009 (No. 1) applies to individuals with disabilities who are participating in Phase One of the South Australian Self-Managed Funding Initiative and are also recipients of Australian social security payments managed by the Minister for Employment and Workplace Relations. This Determination exempts payments made under the approved scheme from the social security income test, ensuring that these payments do not negatively affect the social security benefits of the recipients. The exemption is grounded in Section 35A of the Social Security Act 1991, which allows the Minister to classify certain personal care support schemes as 'approved schemes'. This legislative instrument operates within the Commonwealth jurisdiction, impacting the interaction between federal social security laws and state-managed disability support schemes. There are no exclusions or exemptions specified within the text of this Determination, which directly affects the interplay between the Self-Managed Funding Initiative and federal social security income tests.

Key Provisions

The Social Security (South Australian ‘Self-Managed Funding Initiative’) (DEEWR) Determination 2009 (No.1) includes several key provisions as outlined in sections 1 to 3. Section 1 names the Determination and specifies how it should be cited. Section 2 indicates that the Determination commences on the day after it is registered with the Federal Register of Legislative Instruments. Most importantly, Section 3 identifies Phase One of the Self-Managed Funding Initiative as an ‘approved scheme’ for the purposes of the Social Security Act 1991 (the Act) and exempts it from the social security income test. This means that individuals with a disability who receive payments under Phase One of the Initiative and also receive Australian social security payments will not have their Initiative payments considered in the social security income test. The Act imposes obligations and requirements on parties involved with the Self-Managed Funding Initiative. Under Section 35A, the Minister for Employment and Workplace Relations is responsible for determining that the Initiative qualifies as an ‘approved scheme’. Once determined, payments made under this scheme are exempt from the income test, as specified in paragraph 8(8)(zi) of the Act. This exemption applies to the person receiving care, ensuring that their social security payments are not adversely affected by the Initiative payments. The Determination outlines consequences for non-compliance, although specific offences are not detailed within the text. However, the exemption provided under Section 3 implies that any deviation from the approved scheme requirements could result in the loss of the income test exemption. This could potentially lead to the Initiative payments being considered in the social security income test, thereby affecting the financial status of the recipients. Although no maximum penalties are explicitly stated in the text, any breach of the Determination could lead to reassessment of the social security payments, which could have financial repercussions for the recipients. Overall, the Determination aims to protect the income of individuals with disabilities who participate in the Self-Managed Funding Initiative by ensuring their payments are not counted towards the social security income test. This legislative measure seeks to facilitate a smoother transition from the previous system to a self-managed funding model without compromising the financial support these individuals receive.