Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2019-2020-2021-2022
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SOCIAL SECURITY AMENDMENT
(IMPROVED CHILD TO ADULT TRANSFER FOR CARER PAYMENT AND
CARER ALLOWANCE) BILL 2022
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Families and Social Services, Senator the Hon Anne Ruston)
SOCIAL SECURITY AMENDMENT
SOCIAL SECURITY AMENDMENT
(IMPROVED CHILD TO ADULT TRANSFER FOR CARER PAYMENT AND
CARER ALLOWANCE) BILL 2022
OUTLINE
This Bill amends the Social Security Act 1991 to give effect to the 'Improvements to
the Child to Adult Transfer Process for Carer Payment and Carer Allowance
Qualification' measure announced in the 2021-2022 Mid-Year Economic and Fiscal
Outlook (MYEFO).
From 1 January 2023, all Carer Payment and Carer Allowance recipients will remain
qualified for payments under child-related qualification provisions, until the care
receiver reaches 16 years and 3 months of age. Some carers will be eligible for
qualification continuity until the care receiver has been assessed under the Adult
Disability Assessment Tool assessment process.
Extended qualification for carer payment and carer allowance
This Bill will remove an anomaly in the legislation that currently means some carers
who have their care receiver assessed under the Adult Disability Assessment Tool
lose payment when their care receiver reaches age 16 or soon after, while others who
do not apply for assessment under the Adult Disability Assessment Tool continue to
receive payment until their care receiver turns 16 years and three months. The Bill will
also provide continuity of payment for carers who have submitted the required
information and documentation necessary for an Adult Disability Assessment Tool
assessment prior to the care receiver's 16th birthday. This continuity of payment to the
carers of children will extend to the later of the child turning 16 years and 3 months or
to the end of the day before an Adult Disability Assessment Tool score is completed
by Services Australia.
Extended qualification for carer allowance (Health Care Card Only)
This Bill will provide continuity of qualification for carers in receipt of Carer Allowance
- Health Care Card Only. Currently, carers who are qualified for Carer Allowance -
Health Care Card Only lose access to their health care cards when the care receiver
turns 16 years of age. This Bill will provide for continuity of access to health care cards
for all carers until the child turns 16 years and 3 months.
Extended qualification for carer payment in respect of a child with a terminal
condition
This Bill will provide continuity of access to carer payment for carers of children over
16 years with a terminal condition, until the later of the care receiver turning 18 or until
an Adult Disability Assessment Tool assessment has been completed by Services
Australia. The Bill will only provide this continuity of payment for carers who have
submitted the required information and documentation prior to the care receiver's 18th
birthday.
Financial impact statement
MEASURE FINANCIAL IMPACT OVER THE FORWARD
ESTIMATES
Schedule 1 - Improvements to the $7.6 million
Child to Adult Transfer Process
for Carer Payment and
Carer Allowance Qualification
• The measures in this Bill are part of a 2021-2022 MYEFO measure of which
the legislative component has financial impact as follows: $7.6 million over four
years from 2021-22 (and $2.0 million per year ongoing) to simplify processes
when a care receiver transitions from child to adult for the purposes of Carer
Payment and Carer Allowance.
• This financial impact includes impacts for the Department of Social Services in
relation to amendments to the Social Security Act 1991 and Services Australia's
implementation costs.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
The statement of compatibility with human rights appears at the end of this explanatory
memorandum.
SOCIAL SECURITY AMENDMENT
(IMPROVED CHILD TO ADULT TRANSFER FOR CARER PAYMENT AND
CARER ALLOWANCE) BILL 2022
NOTES ON CLAUSES
Abbreviations and acronyms used in this explanatory memorandum
• Social Security Act means the Social Security Act 1991;
Clause 1 sets out how the new Act is to be cited, that is, as the Social Security
Amendment (Improved Child to Adult Transfer for Carer Payment and Carer
Allowance) Act 2022
Clause 2 provides a table setting out the commencement date for the whole of the
amendment to the Social Security Act 1991. The whole of the Act commences the day
after this Act receives Royal Assent
Clause 3 provides that each Act that is specified in a Schedule is amended or repealed
as set out in that Schedule, and any other item in a Schedule to the Act has effect
according to its terms.
Schedule 1 - Amendments
Summary
This Schedule amends the Social Security Act to enable all carers in respect of a
child or children to continue to receive Carer Payment and/or Carer Allowance until
the care receiver turns 16 years and 3 months. Carers who submit the relevant
documentation on or prior to the care receiver turning 16 will be able to receive the
relevant payment and/or allowance to the later of the care receiver reaching 16 and
3 months of age or until the care receiver's Adult Disability Assessment Tool
assessment has been completed by Services Australia.
This Schedule will also consequentially extend the definitions of sole care child,
multiple care child and combined care child which determine the assets test for child
care receivers under these qualification provisions, in line with the extension of
payment qualification for their carers.
As well, this Schedule will enable recipients of Carer Allowance - Health Care Card
Only to maintain qualification for the card until the care receiver turns 16 years and 3
months.
Finally, this Schedule will enable continuity of payment for carers of children with a
terminal condition who are over the age of 18 until the care receiver's Adult Disability
Assessment Tool assessment has been completed by Services Australia. This
continuity only applies to carers who submit the relevant documentation on or before
the child care receiver with a terminal condition turning 18 years of age.
Background
Currently, those carers who do not apply for their child or children care receivers to
undergo an Adult Disability Assessment Tool assessment receive Carer Payment and
potentially also Carer Allowance until the child reaches 16 years and 3 months of age.
However, carers who apply for their child or children care receivers to undergo an
Adult Disability Assessment Tool assessment and are found ineligible will lose
qualification when Services Australia completes the assessment (which could be
before the child or children are 16 and 3 months). This results in inequity of treatment
amongst carers.
To fix this anomaly, these amendments will enable all carers to receive 3 month
continuity of payment, and those who submit the relevant documents on or before the
care receiver turns 16 will be guaranteed continuity of payment until the later of the
child turning 16 years and 3 months of age or until Services Australia completes the
Adult Disability Assessment Tool assessment.
The Health Care card provisions will enable qualification for Carer Allowance - Health
Care Card only to continue their qualification for the Health Care Card Only until the
child turns 16 years and 3 months.
The amendments to carer payment relating to children with terminal conditions will
extend qualification to their carers until such time as Services Australia completes an
Adult Disability Assessment Tool assessment, if all relevant materials are submitted
on or before the care receiver's 18th birthday.
Explanation of the changes
Social Security Act 1991
Part 1 - Carer Payment
Item 1 is a technical amendment that omits the reference to current subsections
197(2)(6) and (7) in subsection 197(2) and substitutes a reference to new subsections
(5A), (6) and (7).
Item 2 is consequential, and omits from subsection 197(3) reference to subsection (7)
and substitutes reference to subsection (3A) and (7).
Item 3 amends subsection 197(3) which contains the definition of 'sole care child' as
it applies to children with a terminal condition for the purposes of the care receiver
assets test. This amendment omits the words after "paragraphs 197E(1)(a) and (b)
apply in relation to the person as a care receiver". This amendment will prevent the
current operation of paragraph 197E(1)(a) operating to extend the definition of 'sole
care child' to someone over 16 as this will now be effected by a new subsection
inserted by item 4.
Item 4 adds new subsection 197(3A) after subsection 197(3). The new subsection will
extend the definition of 'sole care child' as it applies to children with a terminal condition
for the purposes of the care receiver assets test.
New subsection 197(3A) specifies that the definition of 'sole care child' continues to
apply to a care receiver after they have turned 16 until the later of two events. Under
paragraph 197(3A)(a) the definition will continue to apply until the day of the child
turning 18 years old. Under paragraph 197(3A)(b), if all necessary documents are
submitted on or before the child's 18th birthday, the definition continues to apply and
qualification can continue until the child is assessed under the Adult Disability
Assessment Tool.
Item 5 is a technical amendment to subsection 197(4) and (5) that omits reference to
subsections (6) and (7) and substitute reference to new subsections (5A), and (6) and
(7).
Item 6 adds new subsection 197(5A) after the heading to subsection 197(6). The new
subsection extends the definition of 'sole care child', 'combined care child' and multiple
care child' as it applies to care receivers whose carers receive payment under child
qualification provisions (other than children with a terminal condition) for the purposes
of the care receiver assets test. Subsection 197(5A) specifies that the definitions apply
to care receivers who turn 16 where their carer is qualified under the child qualification
provisions until the later of two events. Under paragraph 197(5A)(a) the definition will
continue to apply until the day of the child turning 16 years of age. Under paragraph
197(3A)(b), if all necessary documents are submitted on or before the child's 16th
birthday, qualification can continue until the child turns 16 years and three months, or
until the child is assessed by the Secretary under the Adult Disability Assessment Tool,
whichever is later.
Item 7 omits references to paragraphs 197B(1)(a) or 197C(1)(a) and subparagraph
197D(1)(a)(ii) from subsection 197(6), partially providing the definition of 'multiple care
child'. This will ensure that the definition of multiple care child will remain equivalent
with those qualified for carer payment under short term or episodic provisions as the
result of these amendments, and will not impact those qualified under other provisions.
Item 8 repeals and substitutes subsection 197E(2) that extends qualification for the
carer of a child with a terminal condition under 16, to extend the qualification to such
time as the child turns 18 or has been assessed as an adult under the Adult Disability
Assessment Tool based upon all relevant materials being provided prior to the child
turning 18.
Item 9 is a technical amendment that omits "for up to 3 months" from the heading of
section 197K, enabling carers to remain qualified after a child care receiver turns 16.
Item 10 repeals paragraphs 197K(1)(b) and (c) and substitutes new paragraph
197K(1)(b). The new paragraph omits reference to the child not having been assessed
and rated and given a score under the Adult Disability Assessment Tool to extend
qualification to the care receiver turning 16 and 3 months unconditionally.
Item 11 repeals and substitutes subsection 197K(2). The new subsection provides
that where a carer payment recipient would otherwise remain qualified under various
carer payment qualification provisions, the carer can remain qualified until the later of
two events. This qualification applies to a carer for a child or two or more children with
a severe disability or medical condition, or a disabled adult and one or more children
each with a disability or medical condition, or a care receiver who themselves cares
for a child with a severe disability.
Paragraph 197K(2)(a) provides that carer payment qualification can continue until the
end of 3 months after the child or children care receiver turns 16.
Paragraph 197(K(2)(b) provides that carer payment qualification can continue until the
care receiver is given a score under an Adult Disability Assessment Tool if all relevant
information is provided to the Secretary for assessment and a score to be given, on or
before the care receiver turns 16.
Item 12 provides for the application of the amendments. The amendments of
subsection 197(3), and the insertion of subsection 197(3A), of the Social Security Act
by this Part apply in relation to a person if paragraphs 197E(1)(a) and (b) of that Act
apply in relation to the person as a care receiver; and the person then turns 16 years
of age on or after 1 January 2023, whether the statements, information and other
materials referred to in paragraph 197(3A)(b) of that Act (as inserted by this Part) are
given to the Secretary before, on or after 1 January 2023.
The amendments of subsections 197(2), (4) and (5), the insertion of subsection
197(5A), and the amendment of subsection 197(6) of the Social Security Act by this
Part apply in relation to a person if paragraph 197B(1)(a) or 197C(1)(a), or
subparagraph 197D(1)(a)(ii), of that Act applies in relation to the person as a care
receiver; and the person then turns 16 years of age on or after 1 January 2023,
whether the statements, information and other materials referred to in paragraph
197(5A)(b) of that Act (as inserted by this Part) are given to the Secretary before, on
or after 1 January 2023.
The repeal and substitution of subsection 197E(2) of the Social Security Act by this
Part applies in relation to a care receiver who turns 16 years of age on or after 1
January 2023, whether the statements, information and other materials referred to in
paragraph 197E(2)(e) of that Act (as substituted by this Part) are given to the
Secretary before, on or after 1 January 2023.
The amendments of section 197K of the Social Security Act by this Part apply in
relation to a care receiver who turns 16 years of age on or after 1 January 2023,
whether the statements, information and other materials referred to in paragraph
197K(2)(b) of that Act (as substituted by this Part) are given to the Secretary before,
on or after 1 January 2023.
Part 2--Carer allowance
Item 13 is a technical amendment that omits the words "up to 3 months" from the
heading of section 953A.
Item 14 amends subsection 953A(1) to insert the words "the later of the following".
This will enable carers qualified for Carer Allowance to continue their qualification in
respect of a single child until the later of an event described in the subsequent
paragraphs.
Item 15 repeals and substitutes paragraphs 953A(1)(d) and (e) to provide two
events, the later of which determines that a carer in respect of a single child can
remain qualified for Carer Allowance under section 953A(1).
Paragraph 953A(1)(d) provides that Carer Allowance qualification can continue
under subsection 953A(1) until the end of 3 months after the care receiver turns 16.
Paragraph 953A(1)(e) provides that Carer Allowance qualification can continue under
subsection 953A(1) until the care receiver is given a score under an Adult Disability
Assessment Tool if all relevant information is provided to the Secretary for assessment
and a score to be given, on or before the care receiver turns 16.
Item16 amends subsection 953A(2) to insert the words "the later of the following".
This will enable carers qualified for Carer Allowance to continue their qualification in
respect of two children until the later of an event inserted by item 17.
Item 17 repeals and substitutes paragraphs 953A(2)(d) and (e) to provide two
events, the later of which determines that a carer in respect of two children can
remain qualified for Carer Allowance under section 953A(2).
Paragraph 953A(2)(d) provides that Carer Allowance qualification can continue
under subsection 953A(1) until the end of 3 months after either or both the children
turn 16.
Paragraph 953A(2)(e) provides that Carer Allowance qualification can continue under
subsection 953A(2) until the care receiver is given a score under an Adult Disability
Assessment Tool if all relevant information is provided to the Secretary for assessment
and a score to be given, on or before the care receiver turns 16.
Item 18 provides for the application of the amendments in Part 2. The amendments
of subsection 953A(1) of the Social Security Act made by this Part apply in relation to
a disabled child referred to in paragraph 953A(1)(a) of that Act who turns 16 years of
age on or after 1 January 2023, whether the statements, information and other
materials referred to in paragraph 953A(1)(e) of that Act (as substituted by this Part)
are given to the Secretary before, on or after 1 January 2023.
The amendments of subsection 953A(2) of the Social Security Act made by this Part
apply in relation to disabled children referred to in paragraph 953A(2)(a) of that Act if
neither of the children turn 16 years of age before 1 January 2023, whether the
statements, information and other materials referred to in paragraph 953A(2)(e) of
that Act (as substituted by this Part) are given to the Secretary before, on or after 1
January 2023.
Part 3--Health care card
Item 19 adds a note at the end of subsection 1061ZK(3) to alert the reader to
subsection (8) providing the definition of disabled child as it applies to subsection
1061ZK(3).
Item 20 is a technical amendment that omits the words "this section" and substitutes
"subsection (3)" to clarify the application of the definition of disabled child only
applies to that subsection.
Item 21 amends the definition of disabled child in subsection 1061ZK(8) to insert the
words "years and 3 months". This addition of these words will enable those qualified
for a Health Care Card under subsection 1061ZK(3) to retain qualification for the
Health Care Card until the disabled child they receive the Health Care Card in
respect of turns 16 and 3 months.
Item 22 provides for the application of the amendments in Part 3. The amendments
of section 1061ZK of the Social Security Act 1991 made by this Part apply in relation
to a person who turns 16 years of age on or after 1 January 2023..
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
SOCIAL SECURITY AMENDMENT
(IMPROVED CHILD TO ADULT TRANSFER FOR CARER PAYMENTS) BILL 2022
This Bill is compatible with the human rights and freedoms recognised or declared in
the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
The purpose of this Bill is to ensure all carers retain equal access to Carer Payment
and Carer Allowance until their care receiver turns 16 years and 3 months, at which
time they can transfer to the adult stream of payment if they are assessed as eligible.
Carers who submit their claim documentation for the adult stream before the care
receiver turns 16 years but have not been assessed by the time the care receiver turns
16 years and 3 months will remain eligible for payment until their claim is assessed.
This Bill also ensures carers of children with a terminal condition who submit their
claim documentation for the adult stream before their care receiver turns 18 years, but
have not been assessed by the time their care receiver turns 18, will remain eligible
for payment until their claim is assessed.
Under this Bill, qualification for the stand-alone Health Care Card would align with
Carer Allowance, meaning all stand-alone Carer Allowance Health Care Card's will
continue until the care receiver turns 16 years and 3 months of age.
Human rights implications
Right to social security
This instrument engages the right to social security under Article 9 of the International
Covenant on Economic, Social and Cultural Rights (ICESCR). The right to social
security requires that a system be established under domestic law, and that public
authorities must take responsibility for the effective administration of the
system. The social security scheme must provide a minimum essential level of
benefits to all individuals and families that will enable them to acquire at least essential
health care, basic shelter and housing, water and sanitation, foodstuffs, and the most
basic forms of education.
This Bill ensures equal access to payment for all carers and guarantees payment
continuation when the carer provides all relevant documentation as part of the
transition from the child to adult stream until Services Australia completes the
assessment. This Bill is therefore compatible with the right to social security.
Right to privacy and reputation
This instrument engages with the right to privacy and reputation under Article 17 of the
International Covenant on Civil and Political Rights (ICCPR). The right to privacy and
reputation provides that '[n]o one shall be subjected to arbitrary or unlawful
interference with his privacy, family, home or correspondence, nor to unlawful attacks
on his honour and reputation.'
This Bill does not change the authority to collect information for the purposes of
determining the qualification under the adult stream for, and payability of, Carer
Payment and Carer Allowance in accordance with the Social Security Act 1991. This
Bill will also operate in conjunction with the privacy requirements of Division 3 of Part
5 of the Social Security (Administration) Act 1999 and the Privacy Act 1988. This
instrument is therefore compatible with the right to privacy and reputation.
Conclusion
This Bill is compatible with human rights as it ensures fairness for a person accessing
social security in the form of the Carer Payment and Carer Allowance and provides
the appropriate protection to a person's privacy with the collection of information.
[Circulated by the authority of the Minister for Families and Social Services,
Senator the Hon Anne Ruston]