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SOCIAL SECURITY LEGISLATION AMENDMENT (IMPROVED SUPPORT FOR CARERS) BILL 2009


2008-2009





               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA





                          HOUSE OF REPRESENTATIVES











  SOCIAL SECURITY LEGISLATION AMENDMENT (IMPROVED SUPPORT FOR CARERS) BILL
                                    2009





                           EXPLANATORY MEMORANDUM












                     (Circulated by the authority of the
           Minister for Families, Housing, Community Services and
                Indigenous Affairs, the Hon Jenny Macklin MP)
  SOCIAL SECURITY LEGISLATION AMENDMENT (IMPROVED SUPPORT FOR CARERS) BILL
                                    2009


OUTLINE

This bill provides part of the Government's response to the  report  of  the
Carer Payment (child) Review Taskforce and  gives  effect  to  a  number  of
measures aimed at improving assistance to carers from 1 July 2009.

The qualification criteria and assessment  process  for  carer  payment  for
care provided to children with disability or a  medical  condition  will  be
changed to provide a fairer and more equitable process, based on  the  level
of care required, rather than the rigid medical criteria used currently.

A person who  qualifies  for  a  carer  payment  under  the  new  provisions
inserted by this bill will automatically qualify for carer allowance.

The  provisions  in  the  Social  Security  Act  1991   that   provide   for
qualification for carer payment and carer allowance while  a  care  receiver
is in hospital,  or  continued  qualification  if  a  care  receiver  enters
hospital, will be amended to allow a person to qualify or  remain  qualified
for carer payment while a care receiver who is a child is  in  hospital  for
an unlimited number of days per calendar year.

Financial impact statement

The measures in this bill are part of a 2008 Budget  measure  of  which  the
legislative component has financial impact as follows:

Total resourcing - all portfolios
|2008-09          |$15.5 m          |
|2009-10          |$72.8 m          |
|2010-11          |$89.9 m          |
|2011-12          |$93.3 m          |

  SOCIAL SECURITY LEGISLATION AMENDMENT (IMPROVED SUPPORT FOR CARERS) BILL
                                    2009


NOTES ON CLAUSES

Clause 1 sets out how the Act is to be citied, that is, the Social  Security
Legislation Amendment (Improved Support for Carers) Act 2009.

Clause 2 provides that the Act commences on 1 July 2009.

Clause 3 provides that each Act that is specified in a Schedule  is  amended
or repealed as set out in that Schedule.

Abbreviations

This explanatory memorandum uses the following abbreviations:

    . 'Social Security Act' means the Social Security Act 1991; and


    .  'Social  Security  Administration  Act'  means  the  Social  Security
      (Administration) Act 1999.
           Schedule 1 - Amendment of the Social Security Act 1991

                                   Summary

This Schedule provides part of the Government's response to  the  report  of
the Carer Payment (child) Review Taskforce (the Taskforce) and gives  effect
to a number of  measures  aimed  at  improving  assistance  to  carers  from
1 July 2009.

The qualification criteria and assessment  process  for  carer  payment  for
care provided to children with disability or a  medical  condition  will  be
changed to provide a fairer and more equitable process, based on  the  level
of care required, rather than the rigid medical criteria used currently.

A person who  qualifies  for  a  carer  payment  under  the  new  provisions
inserted by this bill will automatically qualify for carer allowance.

The provisions in the Social Security Act  that  provide  for  qualification
for carer payment and carer allowance while a care receiver is in  hospital,
or continued qualification if a  care  receiver  enters  hospital,  will  be
amended to allow a person to qualify or remain qualified for  carer  payment
while a care receiver who is a child is in hospital for an unlimited  number
of days per calendar year.

                                 Background

Carer payment provides income support to people who, because of the  demands
of their caring role, are unable to support themselves  through  substantial
workforce participation.  Carer payment is subject to an income  and  assets
test and is paid at the same rate as other social security pensions.


In  the  2008-09  Budget,  the  Government  announced  measures  to   expand
qualification for carer payment paid in respect of  a  child.   As  part  of
this measure, the  Government  announced  that  it  would  implement  a  new
assessment process to determine qualification  for  carer  payment  paid  in
respect of a child, based on the amount of care required  by  a  child  with
disability or two or more children with disability, rather  than  the  rigid
medical criteria currently used to assess  qualification  for  the  payment.
The Government also announced that  carers  of  children  will  be  able  to
access carer payment on a 'short  term'  or  'per  episode'  basis  and  the
transition from carer payment paid in respect of a child with  a  disability
to carer payment paid in respect of an adult  with  a  disability  would  be
streamlined.


The Budget measure is part of the Government's response  to  the  report  of
the carer payment (child) Review Taskforce (the Taskforce).   The  Taskforce
was established in March 2007 to  examine  the  qualification  criteria  for
carer payment and to consider the effectiveness of the payment in  providing
a safety net for children with  a  profound  disability  or  severe  medical
condition.[1]  The Taskforce's recommendations  are  set  out  in  a  report
entitled Carer Payment (child):  A New Approach.  The measures contained  in
this bill implement recommendations of the Taskforce.


A new test that assesses the level of  care  a  child  requires  because  of
their disability or medical condition is introduced.  This  test  is  to  be
known as the Disability Care Load  Assessment  (Child)  Determination.   The
current legislative requirement that  a  child  be  a  'profoundly  disabled
child' is considered to be too restrictive and  inflexible.   The  new  test
will provide a fairer and more objective method of assessing  the  level  of
care required by a child.   A  person  who  currently  qualifies  for  carer
payment for care provided to a profoundly disabled child  will  continue  to
do so and will not be required to complete the  new  test.   Any  beneficial
changes made by this bill will apply to new claimants for carer  payment  as
well as people who are currently receiving carer payment for  care  provided
to a profoundly disabled child  or  two  or  more  disabled  children.   The
amendments made by this bill will not apply to carers who  provide  care  to
higher Adult Disability Assessment Tool (ADAT) score adults.


The new test will be used for carers of one child or multiple  children  and
will be a step in the process of determining whether one or more carers  are
qualified for each child.  The new test will also be used for carers of  one
or two children who are  also  providing  care  for  a  disabled  adult  or,
alternatively, in cases where there is care provided to more than one  child
with a disability at the same time.  Qualification for  carer  payment  will
also be available to separated or divorced parents who exchange the care  of
two or more children with disability or medical conditions.   Carer  payment
will also be available for care provided on a short term or  episodic  basis
for children who will require care for more than three months but less  than
six months.

Carer allowance is an income supplement  available  to  people  who  provide
daily care  and  attention  to  an  adult  or  child  who  has  a  physical,
intellectual or psychiatric disability which is permanent and is  likely  to
affect the person for an extended period.  Currently, to qualify  for  carer
allowance for care provided to a disabled child  or  two  or  more  disabled
children, a person must meet the requirements of section 953 of  the  Social
Security Act.  One of these requirements  is  that  the  child's  disability
appears on the List of Recognised Disabilities or that the  child  has  been
assessed and rated under the Child Disability Assessment Tool (CDAT).

The amendments made by this Schedule will also allow a person who  qualifies
for carer payment under new section 197B, 197C, 197D, 197E,  197G  or  197H,
or is taken to qualify under one of those provisions  by  the  operation  of
section 197F, for care provided  to  a  child  with  disability  or  medical
condition to qualify automatically for carer allowance.  Such a person  will
not have to complete the CDAT in relation to the child or children for  whom
they qualify for carer payment.  A person who is currently  receiving  carer
payment for care provided to a profoundly disabled  child  or  two  or  more
disabled children, and is not receiving carer allowance in respect  of  that
child or children, will also automatically qualify for carer  allowance  for
the care receiver or care receivers.

If a person lodges a claim for carer payment and that claim is  refused  and
the person then lodges a claim  for  carer  allowance  within  28 days,  the
person's claim for carer allowance will be deemed to  have  been  made  when
they made the claim for carer payment.  Also,  a  person  who  is  receiving
carer payment that is suspended or cancelled will be able to  make  a  claim
for carer allowance and have their claim backdated to the date that  payment
of carer payment was suspended or cancelled.

This Schedule commences on 1 July 2009.

                         Explanation of the changes

Item 1 is consequential to item  2  and  omits  the  current  definition  of
parenting order from subsection 23(1) of the Social Security Act.

Item 2 inserts a new definition of parenting order in  subsection  23(1)  of
the Social Security Act.  Parenting order is given the same  meaning  as  is
given by section 64B of the Family Law Act 1975.

Item 3 inserts new sections 38E and 38F into the Social Security  Act.   The
new qualifying provisions introduced into the Social Security  Act  by  this
Schedule require, as part of the qualification criteria, that a  care  giver
be given a qualifying rating of  intense  under  the  Disability  Care  Load
Assessment (Child)  Determination.   The  Disability  Care  Load  Assessment
(Child) Determination  will  be  subject  to  Parliamentary  scrutiny  under
section 42 of the Legislative Instruments Act 2003.

New section 38E provides that the Disability Care  Load  Assessment  (Child)
Determination may provide a method for  giving  a  qualifying  rating  to  a
person who is a carer that takes into  account  the  care  provided  by  the
carer to the child  and  the  assessment  completed  by  a  treating  health
professional.  As a part of the process in providing the qualifying  rating,
the Secretary may devise  a  test  for  assessing  the  functional  ability,
behaviour and special care needs of a person aged under 16 and a method  for
rating the care needs of the child.  The test is to  include  an  assessment
that must be completed by a treating health professional.

If the carer who is caring for a child is also providing  care  for  one  or
more other people, whether it is other children or  a  disabled  adult,  the
Disability Care Load Assessment (Child) Determination may provide  a  method
for giving a qualifying rating to the carer  that  takes  into  account  the
care provided for the child by the carer and  the  assessment  completed  by
the treating health professional and the care  provided  by  the  carer  for
each other person.  That is, the instrument may  provide  for  a  method  to
rate the care the carer gives to all care receivers.

New section 38F provides that the Secretary may, by legislative  instrument,
determine that a person, or any person in a class of persons, is a  treating
health professional for the  purposes  of  the  Social  Security  Act.   The
definition of treating health professional  contained  in  this  legislative
instrument does not apply for the purposes of the ADAT or the CDAT.

Item 4 amends the definition of care receiver in subsection  197(1)  of  the
Social Security Act.  The amendment to the definition of  care  receiver  is
consequential to item 10, which inserts new  subsections  197B(1),  197C(1),
197D(1),  197E(1),  197G(1)  and  197H(1),  all   of   which   include   new
circumstances in which a child can be considered to be a care receiver.

Item 5 inserts a definition  of  Disability  Care  Load  Assessment  (Child)
Determination into subsection 197(1) of the Social Security  Act.   For  the
purposes of Part 2.5 of  the  Social  Security  Act,  Disability  Care  Load
Assessment (Child) Determination  is  given  the  same  meaning  as  in  new
subsection 38E(1).

Item 6 is consequential to item 10, which inserts new section 197D into  the
Social Security Act.  Item 6 expands the  definition  of  lower  ADAT  score
adult in subsection 197(1) of the Social Security Act to include a  disabled
adult  who  is  a  care  receiver  because  new   subparagraph 197D(1)(a)(i)
applies.

Item  8  inserts  a  definition  of  treating   health   professional   into
subsection 197(1) of the Social Security Act.  For the purposes of Part  2.5
of the Social Security Act, a treating health professional  means  a  person
who is determined by the Secretary under new section 38F to  be  a  treating
health professional.

Item 10 inserts new sections 197A,  197B,  197C,  197D,  197E,  197F,  197G,
197H, 197J, and  197K  into  the  Social  Security  Act.   New  section 197A
contains an overview of the sections under which a person may qualify for  a
carer payment.  Subsection 197A(1) provides that a person  qualifies  for  a
carer payment if they meet the requirements of:

      . section 197B (child with a  severe  disability  or  severe  medical
        condition);

      . section 197C (2 or more children each with a disability or  medical
        condition);

      . section 197D (disabled adult and one or more children each  with  a
        disability or medical condition);

      . section 197E (child with a terminal condition);

      . section 197F (exchanged care of children);

      . section 197G (short term or episodic care of children)

      .  section 197H  (extension  of  short  term  or  episodic  care   of
        children);

      . section 198 (disabled adult or disabled adult and dependent child);
        or

      . section 198AA (hospitalisation).

New subsection 197A(2)  provides  that  sections 198AB  and  198AC  allow  a
person to continue to qualify for a carer payment during certain short  term
circumstances, that is, an absence from Australia or cessation of  care  for
a temporary period.  This  clarifies  the  current  legislative  provisions,
which enable a person to qualify under  section  198  or  198AA  and  remain
qualified in situations where constant care is not being  provided  (section
198AC) or where constant care is not being provided in the residence of  the
care receiver (section 198AB).

Qualification - child with a severe disability or severe medical condition

The criteria for qualification for a carer payment for care provided to  one
child with a severe disability or a severe medical condition are set out  in
new  section 197B.   The  terms  'severe  disability'  and  'severe  medical
condition' are not defined in the Social Security Act and are to take  their
ordinary meaning.  Subsection 197B(1) provides that a  person  is  qualified
for a carer payment under section 197B if:

    . the person  personally  provides  constant  care  for  a  person  aged
      under 16 years with a severe disability or  severe  medical  condition
      (the care receiver) (paragraph 197B(1)(a)); and

    . the person has been given a qualifying rating  of  intense  under  the
      Disability Care Load Assessment (Child) Determination for  caring  for
      the care receiver (paragraph 197B(1)(b)); and

    . a treating health professional, whether or  not  it  is  the  treating
      health professional who completed the assessment under the  Disability
      Care Load Assessment (Child) Determination, has certified  in  writing
      that, because of the disability or medical condition  from  which  the
      child suffers:

         o the child will need personal care for a period of six months  or
           more (subparagraph 197B(1)(c)(i)); and

         o the personal care is required to  be  provided  by  a  specified
           number of people.  If a treating  health  professional  has  not
           certified that more than one carer is required to  provide  care
           to the child, then only one person can qualify for carer payment
           in respect of that child (subparagraph 197B(1)(c)(ii)); and

    . the provision of constant care by the person  must  severely  restrict
      the    person's    capacity    to    undertake     paid     employment
      (paragraph 197B(1)(d)); and

    . the requirements of subsections (2), (3) and (4) are met.

The constant care provided by the person  must  be  provided  in  a  private
residence that is the home of the care receiver  (new  subsection  197B(2)).
The person must be an Australian resident (new subsection 197B(3)).

New subsection 197B(4) sets out certain requirements to apply  to  the  care
receiver.   Paragraph  197B(4)(a)  provides  that  the  care  receiver  must
require constant care.  It is not enough to satisfy this requirement that  a
person is providing constant care to a child.  To satisfy  this  requirement
the child must require the constant  care  that  the  person  is  providing.
Further, the care receiver must be an Australian resident,  pass  an  income
test, and pass an assets test or be exempted from the assets test under  the
rules set out in section 198N.

The following examples illustrate a situation  in  which  a  person  may  be
considered to be severely restricted from undertaking paid employment and  a
situation  in  which  a  person  will  not  be  considered  to  be  severely
restricted from undertaking paid employment.

      Examples


      Person's capacity to undertake paid employment severely restricted


      Cristina makes a claim for carer payment on  the  basis  that  she  is
      personally providing  constant  care  to  her  child  with  a  medical
      condition.  The provision of that care has  been  assessed  under  the
      Disability Care Load Assessment (Child) Determination and has received
      a qualifying rating of intense.  A treating  health  professional  has
      also certified that the child will need care for six  months  or  more
      and that care is to be provided by the mother.


      The child attends a special class within a school between the hours of
      8:30am and 4:00pm, five days a week.  In order to  get  the  child  to
      school, Cristina must begin bathing and feeding the  child  at  5:00am
      and drive the child to school at 8am.   She  picks  the  child  up  at
      4:00pm each school day and, upon returning home,  the  child  must  be
      constantly supervised and cared for.  The  child  often  has  seizures
      during the night, requiring the mother to be alert  during  the  night
      and she supervises  the  child  with  the  use  of  patient  monitors.
      Cristina is also required to attend school in order to  care  for  the
      child three days a week, and is often  called  in  to  the  school  to
      assist on the other days of the  week.   Although  the  child  attends
      school five days a week, the provision of care outside  the  schooling
      hours, together with attendance  with  the  child  at  school,  causes
      Cristina to be severely restricted from undertaking  paid  employment.
      Provided the requirements of subsections 197B(2), (3) and (4) are met,
      Cristina will qualify for a carer payment.


      Person's capacity to undertake paid employment not severely restricted


      Reginald makes a claim for carer payment  on  the  basis  that  he  is
      personally providing care to Morey, who has a behavioural  disability.
      Morey attends a special class at school between the  hours  of  8:30am
      and 4:00pm, five days a week.   In  the  class,  teachers'  aides  are
      employed to supervise the children in  the  class  and  help  them  in
      taking medication.  Morey continues to require a level of  supervision
      outside of school.


      However, Morey  only  requires  a  moderate  level  of  assistance  in
      dressing, bathing and feeding, and he only needs  to  be  attended  to
      occasionally during the night by Reginald.  That is, the level of care
      required by Morey is not substantially more than any  other  child  of
      his age and the provision  of  care  by  Reginald  for  Morey  is  not
      substantially greater than that of a child of the same age who attends
      school  but  does  not  have  a  behavioural  disability.   Reginald's
      capacity to undertake paid employment is not severely restricted as he
      would be able to work when the child attends  school.   Reginald  does
      not qualify for a carer payment as he does not meet the requirement of
      paragraph 197B(1)(d).

Qualification - two or more children each having  a  disability  or  medical
condition

The criteria for qualification for a carer payment for care provided to  two
or more children, each of whom have disability or a medical  condition,  are
set out in new section 197C.  Subsection 197C(1) provides that a  person  is
qualified for a carer payment if:

    . the person personally provides constant care for two  or  more  people
      (care receivers) aged under 16 with a disability or medical  condition
      (paragraph 197C(1)(a)); and

    . the person has been given a qualifying rating  of  intense  under  the
      Disability Care Load Assessment (Child) Determination for  caring  for
      the care receivers (paragraph 197C(1)(b)); and

    . a treating health professional, whether or  not  it  is  the  treating
      health professional who completed the assessment under the  Disability
      Care Load Assessment (Child) Determination, has certified  in  writing
      that, because of the disability or medical condition from  which  each
      care receiver suffers:

         o each care receiver will need  personal  care  for  a  period  of
           six months or more (subparagraph 197C(1)(c)(i)); and

         o the personal care is required to  be  provided  by  a  specified
           number of people.  If a treating  health  professional  has  not
           certified that more than one carer is required to  provide  care
           to the care receivers, then only  one  person  can  qualify  for
           carer   payment   in   respect    of    the    care    receivers
           (subparagraph 197C(1)(c)(ii)); and

    . the provision of constant care by the person  must  severely  restrict
      the    person's    capacity    to    undertake     paid     employment
      (paragraph 197C(1)(d)); and

    .  the  requirements  of  subsections  (2),  (3)   and   (4)   are   met
      (paragraph 197C(1)(e)).

The constant care provided by the person  must  be  provided  in  a  private
residence that is the home of the care receivers  (new  subsection 197C(2)).
The person must be an Australian resident (new subsection 197C(3)).

New subsection 197C(4) sets out certain requirements that apply to the  care
receivers.  Paragraph 197C(4)(a)  provides  that  the  care  receivers  must
require constant care.  It is not enough to satisfy this requirement that  a
person is providing constant care to the care receivers.   To  satisfy  this
requirement the care receivers must  require  the  constant  care  that  the
person is providing.  Further,  each  of  the  care  receivers  must  be  an
Australian resident, pass an income test, and pass  an  assets  test  or  be
exempted from the assets test under the rules set out in section 198N.

The following example illustrates a situation in which a person can  qualify
for care provided to two children with disability.

      Example


      Nathalie cares for  her  two  children,  each  with  disability.   The
      provision of care in respect of the combination of  the  two  children
      severely restricts Nathalie's capacity to undertake  paid  employment.
      Nathalie is not qualified for a carer payment under  section  197B  as
      neither child has a severe disability or severe medical condition.  It
      is only when their care load is combined that a qualifying  rating  of
      intense is achieved under the Disability Care Load Assessment  (Child)
      Determination.  A treating health professional has certified that  the
      children both need care for six months or more and that care is to  be
      provided by one person.  Provided Nathalie meets the  requirements  in
      subsections 197C(2) and (3) and the children meet the requirements  of
      subsection 197C(4), Nathalie qualifies for a carer payment.

Qualification - disabled adult and  one  or  more  children  each  having  a
disability or medical condition

The criteria for qualification for a carer payment for care  provided  to  a
disabled adult and one or more children, each with a disability  or  medical
condition, are set out in new section 197D.  The amendment made by  item  12
means   that,   if   new   section 197D   applies   to   a   person,    then
paragraph 198(2)(d)  cannot  apply.   Subsection 197D(1)  provides  that   a
person qualifies for carer payment if:

    . the person personally provides constant care to both  or  all  of  the
      following care receivers:

         o a disabled adult who has been assessed and rated under the  ADAT
           and given a score under that Tool of at least 20, being a  score
           calculated on the basis of a  total  professional  questionnaire
           score of at least eight (subparagraph 197D(1)(a)(i));

         o one or more children who  each  have  a  disability  or  medical
           condition (subparagraph 197D(1)(a)(ii)); and

    . the person has been given a qualifying rating  of  intense  under  the
      Disability Care Load Assessment (Child) Determination for  caring  for
      the care receivers (paragraph 197D(1)(b)); and

    . a treating health professional, whether or  not  it  is  the  treating
      health professional who completed the assessment under the  Disability
      Care Load Assessment (Child) Determination, has certified  in  writing
      that, because of the disability or medical condition from  which  each
      care receiver who is a child suffers:

         o the care receiver will  need  personal  care  for  a  period  of
           six months or more (subparagraph 197D(1)(c)(i)); and

         o the personal care is required to  be  provided  by  a  specified
           number of people.  If a treating  health  professional  has  not
           certified that more than one carer is required to  provide  care
           to the care receivers who are children, then only one person can
           qualify for carer payment  in  respect  of  the  care  receivers
           (subparagraph 197D(1)(c)(ii)); and

    . the provision of constant care by the person  must  severely  restrict
      the    person's    capacity    to    undertake     paid     employment
      (paragraph 197D(1)(d)); and

    . the person is not qualified under  paragraph  198(2)(a)  for  a  carer
      payment (if the disabled adult for whom the person is  providing  care
      has been given a score under the ADAT of at least 25, based on a total
      professional questionnaire  score  of  at  least  10  and  the  person
      qualifies under section 198, then the person cannot also qualify under
      section 197D) (paragraph 197D(1)(e)); and

    .  the  requirements  of  subsections  (2),  (3)   and   (4)   are   met
      (paragraph 197D(1)(f)).

The constant care provided by the person  must  be  provided  in  a  private
residence  that   is   the   home   of   all   the   care   receivers   (new
subsection 197D(2)).   The  person  must  be  an  Australian  resident  (new
subsection 197D(3)).

New subsection 197D(4) sets out certain requirements to apply  to  the  care
receivers.  Paragraph 197D(4)(a)  provides  that  the  care  receivers  must
require constant care.  It is not enough to satisfy this requirement that  a
person is providing constant care to the care receivers.   To  satisfy  this
requirement the care receivers must  require  the  constant  care  that  the
person is providing.  Further,  each  of  the  care  receivers  must  be  an
Australian resident, pass an income test, and pass  an  assets  test  or  be
exempted from the assets test under the rules set out in section 198N.

The following example illustrates  a  situation  where  a  person  would  be
qualified for carer payment for care provided to a disabled  adult  and  two
children, each with disability.

      Example


      Caring for a disabled adult and two children, each with disability


      Esmay is caring for her two children, each of whom have a  disability.
      Esmay is also caring for her mother.  Esmay, her mother, and  her  two
      children all live in the same house.  The care that Esmay provides  to
      all of the care receivers severely restricts her capacity to undertake
      paid employment.  None of the care receivers qualifies Esmay for carer
      payment in their  own  right.   However,  when  the  care  that  Esmay
      provides to her two children  is  combined  with  the  care  that  she
      provides to her mother, a qualifying rating  of  intense  is  achieved
      under the  Disability  Care  Load  Assessment  (Child)  Determination.
      Provided the other requirements of subsection 197D(1), as well as  the
      requirements of subsections 197D(2), (3) and (4), are met, then  Esmay
      qualifies for a carer payment.

Qualification - child who has a terminal condition

The criteria for qualification for a carer payment with respect to  a  child
with a terminal condition are set out in new section 197E.

New subsection 197E(1) provides that a  person  is  qualified  for  a  carer
payment if:

    . the person personally provides constant care for a person  (the  care
      receiver) aged under 16 (paragraph 197E(1)(a)); and

    . a medical practitioner has certified in relation to the care receiver
      that:

          o    the    care    receiver    has    a    terminal     condition
            (subparagraph 197E(1)(b)(i)); and

          o the average life expectancy for a  child  with  the  same  or  a
            similar condition is not substantially  longer  than  24  months
            (subparagraph 197E(1)(b)(ii)); and

          o because of the condition, the care receiver will need continuous
            personal  care  for  the  remainder   of   his   or   her   life
            (subparagraph 197E(1)(b)(iii)); and

          o the personal care is required to  be  provided  by  a  specified
            number of people (subparagraph 197E(1)(b)(iv)); and

    . the provision of constant care by the person must  severely  restrict
      the    person's    capacity    to    undertake    paid     employment
      (paragraph 197E(1)(c)); and

    .  the  requirements  of  subsections  (3),  (4)  and   (5)   are   met
      (paragraph 197E(1)(d)).

New subsection 197E(2) provides that, if a person has qualified for a  carer
payment under subsection 197E(1) and the care receiver turns 16, the  person
will remain qualified for a carer payment under new section 197E  until  the
earlier of the following:

    . the person no longer qualifies for a carer payment (for  example,  the
      child recovers from the terminal condition); or

    . the care receiver turns 18.

The constant care provided by the person  must  be  provided  in  a  private
residence that is the home of the care receiver  (subsection 197E(3)).   The
person must be an Australian resident (subsection 197E(4)).

New subsection 197E(5) sets out certain requirements to apply  to  the  care
receiver.   Paragraph 197E(5)(a)  provides  that  the  care  receiver   must
require constant care.  It is not enough to satisfy this requirement that  a
person is providing constant care to the care  receiver.   To  satisfy  this
requirement the care receiver  must  require  the  constant  care  that  the
person is providing.  Further, the  care  receiver  must  be  an  Australian
resident, pass an income test, and pass an assets test or be  exempted  from
the assets test under the rules set out in section 198N.

Qualification - exchanged care of children

New section 197F allows a person to qualify  for  carer  payment  under  new
section 197B, 197C, 197D, 197E, 197G or 197H,  despite  the  fact  that  the
person is not providing constant care to the  same  care  receiver  or  same
care receivers (new subsection 197F(1)).

New subsection 197F(2) provides that section 197F applies to a person if:

    . the  person  is  a  parent  of  two  or  more  people  aged  under  16
      (paragraph 197F(2)(a)); and

    . the person (the carer) is personally providing care for at  least  two
      of those people (the care receivers) (paragraph 197F(2)(b)); and

    . the care receivers would qualify the carer for a carer  payment  under
      section 197B, 197C, 197D, 197E, 197G or 197H, apart from:

         o the fact that the person is not  personally  providing  constant
           care for the care receivers; and

         o the fact that each of the care receivers has or  may  have  more
           than one home (paragraph 197F(2)(c)); and

    . the circumstances in subsection (3) apply in relation to each  of  the
      care receivers (paragraph 197F(2)(d)).

New subsection 197F(3) provides that the circumstances that  must  apply  to
each care receiver for section 197F to apply are:

    . under one or more  registered  parenting  plans,  parenting  plans  or
      parenting orders that are in force, the care receiver is to live with,
      or spend time with, the person and the care  receiver's  other  parent
      (whether or not the care receiver is to live with, or spend time with,
      someone else) (paragraph 197F(3)(a)); and

    . the length or percentage of time that the care  receiver  is  to  live
      with, or spend time with, the person and the other parent is specified
      in,  or  worked  out  in  accordance  with,  the   plans   or   orders
      (paragraph 197F(3)(b)); and

    . the person personally provides constant care  for  the  care  receiver
      when the care receiver is living with,  or  spending  time  with,  the
      person (paragraph 197F(3)(c)); and

    . the person does not personally provide  constant  care  for  the  care
      receiver only because the terms of the plans  or  orders  require  the
      care receiver to live with, or spend time with, the  other  parent  or
      someone else (paragraph 197F(3)(d)); and

    . when the  person  is  not  personally  providing  care  for  the  care
      receiver, the person is personally providing  care  for  one  or  more
      other care receivers in relation to whom this subsection also  applies
      (paragraph 197F(3)(e)).

If this section applies to a person, the person is  taken  to  be  qualified
for a carer payment under section 197B, 197C, 197D, 197E, 197G or  197H,  or
a combination of them, for caring for the care receivers or for  people  who
include the care receivers, as the case requires (subsection 197F(4)).   For
example, in a week  when  a  person  is  caring  for  a  child  with  severe
disability, they are taken to qualify under section 197B, and  in  the  next
week, when they are caring for two children with disability, they are  taken
to qualify under section 197C, despite the fact that they are not  providing
constant care to the same child or same children constantly.

The following examples illustrate situations in which a person may be  taken
to be qualified for a carer payment because of the  application  of  section
197F.

      Examples


      Separated  parents  caring  for  two  children,  each  with  a  severe
      disability or a severe medical condition


      Georgie and Blain, the parents of two children (Jacalin and Rose) each
      of whom have a severe disability, separate.  Georgie and Blain draw up
      a parenting plan, which provides that Jacalin and  Rose  are  to  live
      with each of them on a week-about basis.  That is, in any given  week,
      Georgie will have one child and  Blain  will  have  the  other.   Both
      Georgie and Blain make claims for carer payment and the care that each
      of them provides to Jacalin, combined with the assessment of the level
      of care  required  by  Jacalin  by  a  treating  health  professional,
      receives a qualifying rating of intense on the  Disability  Care  Load
      Assessment (Child) Determination.  The care that they provide to Rose,
      combined with the assessment of the level of care required by Rose  by
      a treating  health  professional,  receives  a  qualifying  rating  of
      intense.  A treating health professional has certified that each child
      requires care to  be  provided  by  one  person.   Additionally,  both
      Jacalin and Rose require constant care and the care that  Georgie  and
      Blain provide to the children severely  restricts  their  capacity  to
      undertake paid employment.


      Therefore, if Georgie or Blain were providing constant care to  either
      Jacalin  or  Rose  they  would  qualify  for   carer   payment   under
      section 197B.  However, Georgie and Blain are not  providing  constant
      care to either of their children  because  of  the  operation  of  the
      parenting plan.  The operation of  section  197F  allows  Georgie  and
      Blain to qualify for a carer payment under section 197B.


      Separated  parents  caring  for  two  children,  each  with  a  severe
      disability or a severe medical condition, one parent sharing the  care
      with the children's grandparents


      In the example above, if the parenting plan were to state that Jacalin
      and Rose are to live with Blain on a week-about basis  and  spend  the
      week that they are not with Blain living with Georgie  for  four  days
      and their grandparents for three days, Blain would be able to rely  on
      section 197F to qualify for carer payment and Georgie would not.   The
      grandparents of the children would be  unable  to  qualify  for  carer
      payment by relying on section 197F as they are not, in  this  example,
      parents of the children.



      Separated parents caring for  one  child  with  severe  disability  or
      severe medical condition and two children,  each  with  disability  or
      medical condition


      Molly and Jaxson are the parents of three children:  Whitney, who  has
      a severe medical condition, and Bernice and  Charline,  both  of  whom
      have disability.  Molly  and  Jaxson  separate  and  they  draw  up  a
      parenting plan, which provides that Jaxson will have care  of  Whitney
      while Molly has care  of  Bernice  and  Charline.   The  parents  will
      exchange the care of the children on a  fortnightly  basis  such  that
      Bernice and Charline will always remain together.


      Jaxson makes a claim for carer payment.  The care that he provides  to
      Whitney achieves a qualifying rating of intense on the Disability Care
      Load Assessment (Child) Determination.  Additionally,  the  care  that
      Jaxson provides to Bernice and Charline (when he has them in his care)
      achieves a qualifying rating of intense.   If  Jaxson  were  providing
      constant care to Whitney, he would qualify  for  carer  payment  under
      section 197B.  If Jaxson were providing constant care to  Bernice  and
      Charline, he would qualify  for  carer  payment  under  section  197C.
      Because of the parenting plan that Jaxson has made with Molly,  Jaxson
      is providing constant care, but he is not providing constant  care  to
      either Whitney, or the combination of Bernice and Charline.   Provided
      that Jaxson meets  the  other  requirements  set  out  in  subsections
      197B(2) and (3)  and  197C(2)  and  (3)  and  the  children  meet  the
      requirements of subsections 197B(4) and 197C(4), the effect of section
      197F is that Jaxson is  taken  to  qualify  for  carer  payment  under
      sections 197B and 197C.


      Parent  caring  for  two  children  with  severe  disability  born  to
      different former spouses


      Wade and Maxine are the parents of Wadine who has  severe  disability.
      Wade and Maxine separate and create a parenting  plan  providing  that
      Wadine is to spend equal time with each parent.   Maxine  has  another
      child, Bayne, who also has severe disability, with another partner and
      they separate.  Maxine and Bayne's father  create  a  parenting  plan,
      which states that Bayne is to  spend  equal  time  with  each  parent.
      Maxine has the care of Bayne when she does not have care of Wadine.


      Maxine lodges a claim for carer payment and the care that she provides
      to Wadine, combined with the assessment of care needed by Wadine by  a
      treating health professional achieves a qualifying rating of  intense.
      The care that Maxine provides to Bayne, combined with  the  assessment
      by a treating health  professional  of  care  needed  by  Bayne,  also
      achieves a qualifying rating of intense.


      If Maxine were providing constant care to either Wadine or Bayne,  she
      would satisfy the requirements of section 197B.  However,  because  of
      the parenting plans that she has with the children's fathers, she does
      not provide constant care to either child.  Nevertheless, Maxine  does
      have the care of one of the children  at  all  times  and,  therefore,
      because of the operation of section 197F, Maxine is taken  to  qualify
      for carer payment under section 197B.

Qualification - short term or episodic care of children

New section 197G provides that a person may qualify for a carer payment  for
short term or episodic care.  Short term care refers to care provided  to  a
care receiver aged under 16 for a one-off incident (for example, a child  is
involved in an accident and sustains injuries that will require care  for  a
period of five months).  Episodic care refers to care  provided  to  a  care
recipient aged under 16 on a recurring or episodic basis where each  episode
is expected to last for at least three months and less than six months  (for
example, a child has leukaemia and will require  at  least  two  courses  of
chemotherapy, each of which will mean that the child will  require  constant
care for a period of three months).

The criteria for qualification for  a  carer  payment  in  respect  of  care
provided to a child or children on a short term or episodic  basis  are  set
out  in  new  section 197G.   New  subsection  197G(1)  provides  that   the
Secretary may determine that a person is qualified for a carer  payment  for
a period  in  respect  of  a  child  or  children  (care  receiver  or  care
receivers) if:

    . the person personally provides constant care to the care  receiver  or
      care receivers, each with :

         o a severe disability or severe medical condition; or

         o a disability or medical condition; and

    . each care receiver is aged under 16 at the start of the period; and

    . a treating health professional, in relation to each care receiver, has
      certified in writing that, because of the severe disability or  severe
      medical condition or the disability or medical condition:

         o each carer receiver will need personal care for a period  of  at
           least three months but less than six months; and

         o the care is required to be provided by  a  specified  number  of
           people.  If a treating health  professional  has  not  certified
           that more than one carer is required to provide care to the care
           receivers who are children, then only one person can qualify for
           carer payment in respect of the care receivers; and

    . apart from the fact that the care receiver, or  care  receivers,  will
      need personal care for less than six months, the person would  qualify
      for a carer payment:

         o  under  section  197B  or  197C  (whether  or  not  because   of
           section 197F)  for  caring  for  the  care  receiver   or   care
           receivers; or

         o under section 197D  (whether or not because of section 197F) for
           caring for the care receiver or care receivers.

The period that the person is determined to be qualified for  carer  payment
must be three months or more and less than six months and is  not  to  begin
before the person's start date determined under section 41  and  Schedule  2
to the Social Security Administration  Act  (new  subsection  197G(2)).   If
carer payment is not payable  to  a  person  who  is  qualified  under  this
section for a period of three months or more from  their  start  date,  then
the Secretary cannot determine the person is qualified under section 197G.

A person will remain qualified until the end of  the  period  determined  by
the Secretary under new subsection 197G(1), even if  the  care  receiver  or
care receivers turn  16  before  the  end  of  the  period  (new  subsection
197G(3)).  That is, if a person is qualified for carer  payment  under  this
section for a period of four months for a  care  receiver  who  is,  at  the
start of  the  period,  aged  15  and 10  months,  the  person  will  remain
qualified for carer payment until the end of the  four-month  period.   This
is despite the fact that, two months into  the  period,  the  care  receiver
will turn 16.

The following examples illustrate situations in which a person  may  qualify
for carer payment for care provided on a short term or episodic basis.

      Examples


      Short term care for one child with a severe medical condition


      Gregor sustains severe injuries in an accident and requires  a  number
      of surgeries over a period of  five  months.   The  care  required  by
      Gregor, who is aged 14, severely restricts the capacity of his  father
      to undertake paid employment for that  five-month  period  and  it  is
      expected that, after  that  period,  Gregor  will  recover.   Gregor's
      father makes a  claim  for  carer  payment.   The  provision  of  care
      provided by his father is given a qualifying rating of  intense  under
      the Disability Care Load Assessment (Child) Determination.  A treating
      health professional has certified that Gregor requires  personal  care
      for a five-month period and, provided that his  father  satisfies  the
      requirements of subsections 197B(2)  and  (3)  and  Gregor  meets  the
      requirements of subsection 197B(4), the Secretary may  determine  that
      Gregor's father is qualified for carer payment for a  period  of  five
      months.



      Episodic care for one child with a severe medical condition


      Cacee has leukaemia and requires chemotherapy.  Cacee has severe  side
      effects from the chemotherapy and requires constant personal care  for
      a period of four months.  The nature of leukaemia is that it is likely
      that Cacee will require chemotherapy again in the future for a similar
      period of time.  The provision of  care  by  Cacee's  father,  Lynden,
      severely restricts his capacity to undertake paid employment.


      Lynden makes a claim for carer payment.   The  provision  of  care  by
      Lynden is given a qualifying rating of intense.  Apart from  the  fact
      that Cacee only requires care for four  months,  the  requirements  of
      section 197B are met and Lynden  qualifies  for  carer  payment  under
      section 197G.  The Secretary then makes a determination that Lynden is
      qualified for a carer payment for a specified period.  At the  end  of
      the period, Cacee no longer requires constant personal  care  and  the
      payment of carer payment to Lynden is automatically cancelled.


      A few months after the first round of chemotherapy, Cacee  requires  a
      second round of chemotherapy and will require constant  personal  care
      for  a  period  of  four  and  a  half  months.   Provided  that   the
      requirements of section 197B are met (apart from the fact  that  Cacee
      requires care for less than six months), Lynden will again qualify for
      carer payment under section 197G.  This time, the period  that  Lynden
      is qualified for carer payment  is  determined  by  the  Secretary  to
      be four and a half months.


      Parent caring for a disabled adult and two children with disability


      Gade has two children, Maddox and Shiloh.  Gade also provides care for
      her mother, Alma.  Maddox does not have  a  disability  or  a  medical
      condition.  The care that Gade provides to Shiloh and  Alma  does  not
      achieve a qualifying rating of intense  (despite  the  fact  that  the
      elderly mother has an ADAT score of  20  with  a  health  professional
      score of eight).


      Maddox is involved in an accident and will require care  for  a  four-
      month period.  When the care that Gade provides to Maddox is  combined
      with the care that Gade provides to  Shiloh  and  Alma,  a  qualifying
      rating of intense is achieved.


      If Maddox were to require care for six  months  or  more,  Gade  would
      qualify for carer payment under section 197D.  That is,  her  capacity
      to undertake paid employment is severely restricted by the  care  that
      she provides, the care is provided in a private residence that is  the
      home of the care receivers, the mother is an Australian resident,  and
      the care  receivers  meet  the  requirements  set  out  in  subsection
      197D(4).  As Maddox only requires care for four months, Gade does  not
      qualify under section 197D.  However, the Secretary may determine that
      Gade is qualified for carer payment for a period of four months  under
      section 197G.

Qualification - extension of short term or episodic care

A person who has qualified for a carer payment under new  section  197G  for
care provided to a care receiver or  care  receivers  on  a  short  term  or
episodic basis, and who finds that the  reason  for  the  care  will  extend
beyond the period determined by the Secretary, may apply  for  an  extension
of the period.  New section 197H will apply if:

    . a person is qualified for a carer payment for one or more people  (the
      care receiver or care receivers)  aged under 16 for a period:

         o under section 197G; or

         o if section 197H has previously applied to  the  person  and  the
           care  receiver  or  care  receivers  -  under  the  most  recent
           application of section 197H (that is, the person has already had
           one or more extensions of the current short term care); and

    . in relation to each care receiver, before the end of the  period  last
      determined by the Secretary and  before  the  care  receiver  or  care
      receivers  turn  16,  the  person  provides  the  Secretary   with   a
      certificate from a treating health professional certifying that:

         o because the care receiver's severe disability or severe  medical
           condition,  or  the  care  receiver's  disability   or   medical
           condition, the care receiver/s will need  personal  care  for  a
           period of less than three months, starting immediately after the
           end of the preceding period; and

         o the severe disability or severe medical condition, or disability
           or condition,  is  the  same  as,  or  related  to,  the  severe
           disability or severe medical condition, or disability or medical
           condition, that necessitated the personal care for the preceding
           period; and

         o the care is required to be provided by  a  specified  number  of
           people.  If a treating health  professional  has  not  certified
           that more than one carer is required to provide care to the care
           receivers who is a child, then only one person can  qualify  for
           carer payment in respect of the care receivers.

New subsection 197H(2) provides that a person is  qualified  for  a  further
period if:

    . apart from the fact that the care receiver or care receivers will need
      personal care for less than six months, the person would qualify for a
      carer payment:

         o  under  section  197B  or  197C  (whether  or  not  because   of
           section 197F)  for  caring  for  the  care  receiver   or   care
           receivers; or

         o under section 197D  (whether or not because of section 197F) for
           caring for the care receiver and another person; and

    . the Secretary determines that a carer payment should be granted to the
      person for the period.

The Secretary may extend the period  under  new  subsection  197H(2)  for  a
period that ends not later than six months after the start  date  for  carer
payment determined under section 197G (new subsection  197H(3)).   That  is,
each individual period of short  term  or  episodic  care  cannot  last  for
longer than six months.

A person will remain qualified under this  section  if,  during  the  period
determined by the Secretary under new subsection 197H(2), the care  receiver
or carer receivers turn 16 (new subsection 197H(4)).

      Example


      In the example above in relation to qualification under section  197G,
      before the end of the period determined by the Secretary,  Gade  finds
      out Maddox will require further surgery and will require  care  for  a
      month after the end of the initial period.  Gade gives the Secretary a
      certificate signed by a treating health professional that states  that
      Maddox will require care for a further period of a  month  because  of
      surgery associated with the same condition.  Therefore, the  Secretary
      may determine that Gade is qualified for carer payment for  a  further
      month.  Gade would be able to obtain further extensions, of  at  least
      one day per extension, for a period of up to six months from the start
      date of carer payment in relation to the medical  condition/disability
      if, before the end of each period, she provides a certificate  from  a
      treating health professional, stating that Maddox requires care for  a
      further period.

Qualification following qualification for short term or episodic care

The purpose of section  197J  is  to  treat  a  person  as  qualified  under
section 197B, 197C or 197D, or because of 197F, if the person was  qualified
for a carer payment under section 197G or 197H and if the care  receiver  or
care receivers who are aged under 16  require  care  for  a  period  of  six
months of more.  That is, if a person is qualified for a carer  payment  for
care provided on a short term or episodic basis and, during  the  period  in
which they are qualified, a treating health professional certifies that  the
care receiver or care receivers will require care for six  months  or  more,
the person will qualify for carer payment under whichever of sections  197B,
197C and 197D applies (whether or not it applies because of the  application
of section 197F).  The six months or more includes any preceding short  term
or episodic periods under section 197G or 197H (paragraph 197J(5)(a)).

Subsection 197J(2) provides that a person is taken  to  be  qualified  under
section 197B, 197C or  197D  for  caring  for  the  care  receiver  or  care
receivers or for people who include at least one of them if:

    . a person is qualified for a carer payment for caring for one  or  more
      care receivers aged under 16 for a period (the preceding period):

         o under section 197G; or

         o if section 197H has applied to the person and the care  receiver
           or care receivers - under the most recent  application  of  that
           section; and

    . before the end of the preceding period, and before the  care  receiver
      (or  any  of  them)  turns  16,  the  person  gives  the  Secretary  a
      certificate in relation to each of them as required  by  whichever  of
      subsection (3) or (4) applies; and

    . apart from paragraph  197B(1)(c)  or  197C(1)(c)  or  197D(1)(c),  the
      person would be qualified (whether or not because of section 197F) for
      caring for the care receiver or care  receivers  or  for  persons  who
      include one of them.  That is, the person meets all of the criteria to
      qualify for carer payment except for the requirement  for  a  treating
      health  professional  to  certify  that  the  care  receiver  or  care
      receivers will need personal care for six months or more.

If the person was qualified under section 197G or  197H  for  caring  for  a
care receiver with a severe disability or severe medical condition, for  the
person to be deemed to be qualified under section 197B,  a  treating  health
professional must certify that:

    . because of  a  severe  disability  or  severe  medical  condition  the
      duration of the personal care needed by the care receiver is 6  months
      or more; and

    . the severe disability or severe medical condition is the same  as,  or
      related to, the severe disability or  severe  medical  condition  that
      necessitated the care for the preceding period; and

    . the care is required to be provided by a specified number of persons.

If the person was qualified under section 197G or 197H for  caring  for  one
or more care receivers aged under 16, each  with  a  disability  or  medical
condition, for the  person  to  be  deemed  to  be  qualified  under  either
section 197C or 197D, there must be a certificate in relation to  each  care
receiver from a treating health professional certifying that:

    . because of a disability or medical  condition,  the  duration  of  the
      personal care needed by the care receiver is six months or more; and

    . the disability or condition  is  the  same  as,  or  related  to,  the
      disability or condition that necessitated the care for  the  preceding
      period; and

    . the care is required to be provide by a specified number of people.

The duration of the personal care needed by the care receiver  includes  any
preceding periods under section 197G or 197H.   Additionally,  it  does  not
matter if the treating health professional  who  certified  that  the  child
needs care  for  greater  than  six  months  is  the  same  treating  health
professional who initially gave a certificate in relation to the child.

Remaining qualified for up to three months after child turns 16

New subsection 197K(2) provides that a person is able  to  remain  qualified
for a carer payment for a period up to three months after  a  care  receiver
who is a child turns 16 if the criteria set out  in  new  subsection 197K(1)
are satisfied.  The criteria in new subsection 198K(1) are as follows:

    . the person is qualified for a carer payment under:

         o  section  197B,  197C  or  197D  (whether  or  not  because   of
           section 197F); or

         o paragraph 198(2)(d); and

    . the care receiver or one of the care receivers turns 16; and

    . the care receiver has not been assessed and rated and  given  a  score
      under the ADAT.

This provision will allow a person a longer period of time to  complete  the
ADAT and lodge the tool with the Secretary.  This provision does  not  apply
to a person who is qualified for carer  payment  under  section  197E,  197G
or 197H.

      Example


      Mikel qualifies for carer payment for his son Frederik.   Due  to  his
      caring commitments, Mikel is unable to  complete  the  ADAT  prior  to
      Frederik turning 16.  Mikel lodges a competed ADAT  two  months  after
      Frederik's birthday.  Mikel remains qualified for carer payment  under
      section 197B until Frederik is given  a  score  under  the  ADAT.   If
      Frederik receives a score of at least 25 calculated on the basis of  a
      professional questionnaire score of  at  least  10,  then  Mikel  will
      remain qualified for carer payment (although he will now be  qualified
      under  paragraph  198(2)(a)).   If  Frederik  does  not  receive   the
      requisite score on the ADAT, then  Mikel's  carer  payment  should  be
      cancelled as of the date the Secretary calculates Frederik's score.


      If, in the above example, Mikel  did  not  provide  a  new  claim  for
      Frederik prior to the date three  months  after  Frederik's  birthday,
      Mikel's carer payment would be cancelled on that date.

Item 11 repeals paragraphs 198(2)(b) and (c).

Paragraph 198(2)(b) provides that a person may  qualify  for  carer  payment
for   constant   care   provided   to   a   profoundly    disabled    child.
Subsection 197(1) provides that profoundly disabled child  has  the  meaning
given by subsections 197(2), (2AA) and (2A).  The definition  of  profoundly
disabled child  found  in  subsection 197(1)  is  repealed  by  item  7  and
subsections 197(2),   (2AA)   and   (2A)    are    repealed    by    item 9.
Subsection 198(10) applies to carers of children who are  considered  to  be
profoundly  disabled  under  subsection 197(2AA).    Subsection 198(10)   is
repealed by item 15.

The qualification provision for  care  provided  to  a  profoundly  disabled
child  is  replaced  by  new  section 197B  (which  makes  use  of  the  new
Disability Care Load Assessment (Child) Determination) and new  section 197E
(which provides for qualification for  care  provided  to  a  child  with  a
terminal condition).

Paragraph 198(2)(c) enables a person to  qualify  for  a  carer  payment  in
respect of constant care of two  or  more  disabled  children  provided,  in
accordance with subsection 198(8), if the children require a level  of  care
that is at least equivalent to the level of care required  by  a  profoundly
disabled child.  Subsection 198(8) is repealed by item 15.

The qualification provision for  care  provided  to  two  or  more  disabled
children is replaced by new section 197C, which provides  for  qualification
for carer payment for care provided to two or more children whose  level  of
care is  assessed  by  the  new  Disability  Care  Load  Assessment  (Child)
Determination.

Item 12  inserts  new  subparagraph 198(2)(d)(iv).   This  new  subparagraph
provides that paragraph 198(2)(d) applies where the person is not  qualified
for carer payment under section 197D for caring  for  care  receivers.   The
effect of this provision is  that,  if  a  person  is  qualified  for  carer
payment under new section 197D, then paragraph  198(2)(d)  cannot  apply  to
them and they can only qualify for carer payment under section  197D,  which
is a more beneficial provision.

Item 13 repeals notes 1 and 2 found in subsection 198(2) and  replaces  them
with a single note, which is the same as the previous note  2.   The  repeal
of note 1 is consequential upon item 15.

Item 14 repeals paragraph 198(5)(a).  Item 14 is consequential to  item  10,
which   inserts   new   paragraphs   197B(4)(a),   197C(4)(a),    197D(4)(a)
and 197E(5)(a) into the Social Security Act.

Item 16 repeals  section  198AA  and  inserts  a  new  section  198AA.   New
subsection 198AA(1) provides for qualification  for  carer  payment  when  a
person is participating in the care of a person in hospital when the  person
is not qualified under  section  197G  or  197H.   New  subsection  198AA(1)
provides that a person (the carer) is qualified for a carer payment if:

    . the carer is participating in the care, in hospital, of one  or  more
      of the following people (the hospitalised person):

          o a disabled adult;

          o a child with a severe disability or medical condition;

          o a child with a disability or medical condition;

          o a child who has a terminal condition; or

          o a dependent child of a disabled adult; and

    . it is reasonable to assume that, if the hospitalised person were  not
      in hospital, the carer would qualify, except under  section  197G  or
      197H (whether or not because of section 197F), for  a  carer  payment
      for the hospitalised person or the hospitalised  person  and  another
      person or persons; and

    . a requirement in subsection (2) is met.  That  is,  the  hospitalised
      person is terminally ill or it is reasonable to expect that, when the
      person leaves hospital, the hospitalised  person  will  reside  in  a
      private residence that is the home of the hospitalised person.

However, if the carer is participating in the care of a  disabled  adult  in
hospital, the period, or sum of the periods, for  which  the  carer  can  be
qualified under subsection 198AA(1) is limited to 63 days  in  any  calendar
year (subsection 198AA(3)).  The note to  subsection  198AA(3)  directs  the
reader to the fact that there is no limit on hospital admission  days  under
subsection 198AA(1) for a hospitalised person who is a child.

New subsection 198AA(4) provides  for  qualification  for  a  carer  payment
while a person (the carer) is participating in the care  of  a  hospitalised
person who is either a child with a severe disability or  medical  condition
or a child with a disability or medical condition who  requires  care  on  a
short term or episodic basis.  A person qualifies for  carer  payment  under
this section where, if the hospitalised person were  not  in  hospital,  the
carer would qualify for carer payment under section 197G  or  197H  (whether
or not because of the operation of section 197F) for  a  period  or  periods
for the hospitalised person or the hospitalised person  and  another  person
or persons (paragraph 198AA(4)(b).  Additionally, it must be  reasonable  to
assume that, upon leaving hospital, the hospitalised person will  reside  in
a private residence that is the home or a home of  the  hospitalised  person
(paragraph 198AA(4)(c)).  This subsection applies in a  situation  in  which
the carer was not qualified under section  197G  or  197H  before  the  care
receiver entered hospital.

New subsection 198AA(5) applies in a situation in which the  carer  was  not
qualified for carer payment under section 197G  or  197H   before  the  care
receiver went into hospital, but the carer would qualify under one of  these
two sections if the care receiver were not in hospital.

New subsection 198AA(5) provides that a  person  (the  carer)  continues  to
qualify for carer payment if the carer is  participating  in  the  care,  in
hospital, of either a child with a severe disability  or  medical  condition
or a child with a disability  or  medical  condition.   Subsection  198AA(4)
requires that, immediately before the carer began participating in the  care
of the hospitalised person, the carer was qualified under  section  197G  or
197H for a carer payment for a period for the  hospitalised  person  or  the
hospitalised person and another person or persons.   Additionally,  it  must
be reasonable to  assume  that,  upon  leaving  hospital,  the  hospitalised
person would reside in a private residence that is a home  or  the  home  of
the hospitalised person.

Subsection 198AA(4) allows a person to remain qualified under  section  197G
or 197H for the balance of the period determined by the Secretary.  It  does
not allow for a person's carer payment to be extended under either of  those
sections (if a person is qualified for  carer  payment  under  section  197G
or 197H, the period in which they are qualified can only be extended  by  an
application of section 197H or if they are  deemed  to  be  qualified  under
section 197B, 197C or 197D by the application of section 197K).

      Examples


      The following examples illustrate the situations in which a carer may
      qualify for carer payment under the new section 198AA.


      Carer caring for a child with severe disability - claim lodged  during
      period of hospitalisation


      The mother of a newly-born child with severe disability  claims  carer
      payment.  The child will require constant care for  the  rest  of  his
      life and cannot be released from hospital until the mother is able  to
      understand and cope with the child's care regime.  The mother  attends
      the hospital every day to participate in, and receive training in, the
      child's care.  It is not known for how long the  child  will  have  to
      remain in hospital.  Carer payment will be  granted  under  subsection
      198AA(3), provided all other  qualification  requirements  in  section
      197B are met (for example, the requirement for the care receiver to be
      an Australian resident and to pass an income and assets test).


      Carer caring for a disabled adult -  claim  lodged  during  period  of
      hospitalisation


      The partner of a person diagnosed with terminal cancer lodges a  carer
      payment claim shortly after the person is  hospitalised.   It  is  not
      expected that the person will live more than three months  and  it  is
      unlikely that the person  will  return  home.   The  person's  partner
      attends the hospital on a daily  basis  to  be  with  the  person  and
      participate in their  care.   Carer  payment  will  be  granted  under
      section 198AA,  provided  all  other  qualification  requirements  are
      satisfied.


      Carer caring for a disabled adult and a child with  disability  -  one
      party in hospital at time of claim lodgement


      Somma and Hadden have a child, Clayten, who has a  medical  condition.
      Somma is involved in a car accident.  Somma will be  hospitalised  for
      30 days until her condition is stabilised and she can be released into
      her partner, Hadden's, care.  Somma has a  permanent  condition  as  a
      result of injuries sustained in  the  accident.   Somma's  ADAT  score
      is 20 with a professional score of eight.  When  Somma  and  Clayten's
      care needs are  combined,  Hadden  achieves  a  qualifying  rating  of
      intense  under   the   Disability   Care   Load   Assessment   (Child)
      Determination.


      Since the accident, Hadden has taken extended leave from work to  care
      for Somma and Clayten.  Hadden attends to Somma's  needs  in  hospital
      and participates in her rehabilitation program.  He also continues  to
      care for Clayton.   On  Somma's  release,  Hadden  will  be  providing
      constant care for Somma and Clayten at home.  Carer  payment  will  be
      granted, provided all other qualification requirements are satisfied.

Item 20 repeals subsection 955(2) and substitutes a new  subsection  955(2).
Section 955 provides for qualification for carer allowance  for  carers  who
participate in the care of a disabled child or a disabled adult  who  is  in
hospital.  Currently, a person who is qualified for carer allowance  because
of the application of 955 can  only  remain  qualified  while  the  disabled
child or disabled adult is in hospital for 63 days in a calendar year.   New
subsection 955(2) limits the number of days that a person who is caring  for
a disabled adult in hospital can  qualify  or  remain  qualified  for  carer
allowance to 63 days.  The note to subsection 955(2) directs the  reader  to
the fact that there is no limit on the number of days  for  which  a  person
can qualify  or  remain  qualified  for  caring  for  a  disabled  child  in
hospital.

Item 17 amends section 952 by inserting at the  end  of  the  definition  of
care receiver the words 'and section 954B'.

Item 18 inserts new section 954B.

New section 954B provides that, while a person is receiving a carer  payment
and is not qualified for carer allowance except under new section 954B,  the
person is qualified for a carer allowance for a care receiver who is  not  a
disabled adult referred to in subparagraph 197D(1)(a)(i) or  198(2)(a),  nor
a disabled adult or a dependent child of the disabled adult referred  to  in
paragraph 198(2)(d).  New section 954B only applies to  care  receivers  who
are children who singularly, or combined with another  child  or  an  adult,
qualify the person for carer payment.

A note has been included to direct the  reader  to  sections  964  and  965.
Section 964 provides that carer allowance is not payable to two  people  for
the same care receiver or care receivers unless the  Secretary  has  made  a
declaration under section 981.  Section 965 provides  that  carer  allowance
is not payable to more than one member of a couple.

      Example


      Clarice qualifies for carer payment under section 197C for the care of
      her two children each with disability.  Clarice is not  qualified  for
      carer  allowance  under  section  953  for  either  of  the  children.
      Therefore, Clarice qualifies for  carer  allowance  for  each  of  the
      children under section 954B.


      However, Hannibal is qualified for carer  allowance  for  one  of  the
      children under section 953 and is receiving carer allowance  for  that
      child.  As Clarice and Hannibal are members of a couple,  section  965
      applies and carer allowance is not payable to Clarice.  The  Secretary
      makes a determination declaring that both  Clarice  and  Hannibal  are
      qualified for carer allowance and Hannibal is the member of the couple
      to whom carer allowance is payable in relation to that child.  Clarice
      receives carer allowance for the care she provides to the other child.

Items  19,  21  and  22  amend  paragraph   955(1)(b),   section   956   and
paragraph 957(1)(a) to clarify that those provisions only apply to a  person
who qualifies for carer allowance under section 953, 954 or 954A.   Item  19
inserts the  phrase  'under  section  953,  954  or  954A'  after  the  word
"qualify" in paragraph 955(1)(b).  Section 955  allows  a  person  to  claim
carer allowance while a care receiver is  in  hospital  or  to  continue  to
receive it while the care receiver is in hospital.  This provision will  not
apply to people who qualify for carer allowance under new  section  954B  as
the hospitalisation provisions found in section 198AA will apply to them.

Item 21 inserts the phrase 'under section 953, 954 and 954A' after the  word
'qualified' in section 956.  Section 956 allows for the continuation of  the
person's qualification for carer allowance during the  person's  or  a  care
receiver's absence from Australia.  The portability  provisions  in  section
198AB will apply to a person who is qualified for carer allowance under  new
section 954B.

Item 22 inserts in paragraph 957(1)(a) the phrase 'under  section  953,  954
and 954A'.  Section 957 deals with situations where there is a cessation  of
care.  Subsection 957(1) deals with the situation when  a  person  qualifies
for carer allowance because care and attention is provided on a daily  basis
and that care temporarily ceases to  be  provided.   Under  this  amendment,
subsection 957(1) will only apply to people who qualify under  the  existing
qualification provisions for carer allowance.  A person  who  qualifies  for
carer allowance under  new  section  954B  will  be  able  to  rely  on  the
temporary cessation of care provisions in section 198AC.

Item 23 inserts the words 'under  section  953'  into  paragraph  957(4)(a).
Subsection 957(4) allows a person who  qualifies  for  carer  allowance  for
care provided  to  a  child  or  children  to  remain  qualified  for  carer
allowance during periods of cessation of care during  which  the  child  (or
children)  are  receiving  education,  training  or  treatment  (other  than
treatment in hospital).  This section will not apply  to  a  person  who  is
qualified under  new  section  954B  as  the  rules  relating  to  temporary
cessation of care under section 198AC will  apply  to  them.   There  is  no
equivalent provision in relation to carer payment as, in such  a  situation,
the carer would not be providing constant care and could not  be  considered
to be qualified for carer payment.

Items 24 and 25 amend paragraph 965(2)(b)  so  that  subsection  965(2)  can
apply to a member of a couple who has  made  a  claim  for  carer  allowance
under section 953 or who is  automatically  qualified  for  carer  allowance
under section 954B.  New section 12F of the Social  Security  Administration
Act (inserted by item 1 of  Schedule  2)  provides  that  a  person  who  is
qualified for carer allowance under new section 954B does not have  to  make
a claim.  Subsection 965(2) deals with a situation where both members  of  a
couple qualify for carer allowance for  the  same  care  receiver/s.   Where
this happens, the Secretary must make a declaration that each member of  the
couple qualifies for carer allowance and name one of them as the  person  to
whom the allowance is payable.  In making the declaration, the Secretary  is
to continue to have regard to which member of  the  couple  is  the  primary
carer (subsection 965(5)).  Item 24 omits the  word  'each'  from  paragraph
965(2)(b) and inserts  the  phrase  'if  both  members  of  the  couple  are
qualified under section 953, 954 or 954A for carer allowance-each'.  Item 25
inserts new paragraph 965(2)(ba) which provides that  if  only  one  of  the
members of the couple is qualified under section 953, 954,  954A  for  carer
allowance that member has made a claim for carer allowance.

Item  26  omits  the  phrase  'qualified  for  carer  allowance  apart'   in
subsection 974(3) and inserts  the  phrase  'qualified  under  section  953,
apart'.  This is to clarify that the provision only applies to a person  who
is qualified for carer allowance under section 953.

Item 27 inserts 'or section 954B' in paragraphs 992J(1)(a)  and  992L(1)(a).
This clarifies that these provision only apply in relation to a  person  who
is qualified  for  carer  allowance  under  section  953.   The  bereavement
provisions in Part 2.5 of the Social Security Act will  apply  to  a  person
who is qualified under new section 954B.

Item    28    repeals    paragraph    992MB(1)(b)    and     inserts     new
paragraph 992MB(1)(b).  New paragraph 992MB(1)(b) provides that a person  is
entitled to child disability assistance  if  the  person  is  qualified  for
carer allowance because of care they provide to a disabled child or for  two
disabled children under new section 954B.

Item 29 adds to Schedule 1A to the  Social  Security  Act  new  savings  and
application provisions, in the form of new clauses 137,  138,  139  and 140,
relevant to the repeal of the  current  qualification  provisions  for  care
provided to a profoundly disabled child or two or more disabled child.

Clause 137 is a saving provision that applies to a person who was  receiving
carer  payment  immediately  before  1 July 2009  because  the  person   was
qualified for that payment under paragraph  198(2)(b)  (profoundly  disabled
child)   or   paragraph 198(2)(c)   (two   or   more   disabled   children).
Subclause 137(1) provides that, despite the repeal of  paragraphs  198(2)(b)
and (c), the Social Security Act as in force immediately before 1 July  2009
continues to apply to a person qualified under those paragraphs.

However, the beneficial changes to carer payment made by this Schedule  will
apply  to  a  person  who  is  qualified  for  carer  payment  under  either
paragraph 198(2)(b) or (c).  The changes to the  Social  Security  Act  that
will apply to a person who remains qualified under paragraphs  198(2)(b)  or
(c) are:

    . the person will be able to  rely  upon  new  paragraph  198K(1)(a)  to
      remain qualified for up to three months after the child or one of  the
      children for whom they are providing care turns 16 (subclause 137(2));



    . the person will be able to remain qualified for carer payment  if  the
      child is hospitalised for an unlimited number of days,  provided  they
      are participating in the care of the child in hospital (and they  meet
      the other requirements of new  subsection  198AA)  (subclause 137(3));
      and

    . the person will automatically qualify for carer  allowance  under  new
      section 954B (if they are not already qualified  for  carer  allowance
      under section 953 for the child or children) (subclause 137(4)).

If a person is receiving carer payment because clause 140 applies, then  the
Social Security Act as in force immediately before  1 July 2009  applies  to
the person.  The same beneficial changes outlined  above  that  apply  to  a
person  who  remains   qualified   for   carer   payment   under   paragraph
198(2)(b) or (c) apply.

Clause 140 applies to a person who was  receiving  carer  payment  for  care
provided to a profoundly disabled child or two or  more  disabled  children,
and  whose  carer  payment  was  cancelled  on  or  after  1 July 2008   and
before 1 July 2010.  If a person whose carer payment was  cancelled  between
1 July 2008 and 1 July 2010 makes a claim for carer payment for  caring  for
the same child or children, then the person's claim may be  assessed  as  if
paragraphs 198(2)(b) and (c) had not been repealed.  The person may also  be
assessed under the new provisions of the Social  Security  Act  inserted  by
this Schedule.  That is, the old or new rules in relation  to  qualification
for carer payment for care provided to a child or children  with  disability
may apply  to  a  person  who  was  receiving  carer  payment  on  or  after
1 July 2008 because they were qualified under paragraph 198(2)(b) or (c).

While the amendments made by this Schedule will generally  apply  to  claims
for carer payment  made  on  or  after  1 July 2009,  new  subclause  138(1)
provides that new subsections 198AA(1) and (2) will apply to  a  person  who
is receiving carer payment immediately before 1 July 2009 as well  as  to  a
person who makes  a  claim  for  carer  payment  on  or  after  1 July 2009.
Subsections 198AA(3) and (4) will apply to a person who makes  a  claim  for
carer payment on or after 1 July 2009.  Subsections 198AA(3)  and  (4)  only
apply in relation to a person who is qualified, or would be  qualified,  for
carer payment under new section 197F or 197G and, as such, cannot  apply  to
a person who is receiving carer payment immediately before 1 July 2009.

New subsection  955(2),  which  provides  that  qualification  or  continued
qualification for carer allowance while a care receiver is  hospitalised  is
only limited in relation to care provided to a disabled adult, applies to  a
person who is receiving carer allowance immediately  before  1 July 2009  or
makes a claim for carer allowance on or after 1 July 2009 (subclause 139).

  Schedule 2 - Amendment of the Social Security Act Administration Act 1999


                                   Summary

This Schedule amends the Social Security Administration Act in  relation  to
the administrative structure necessary for the  carer  allowance  amendments
made by Schedule 1.

                                 Background

The provisions in the Social Security Administration Act relating to  claims
for, and automatic suspension or cancellation of,  carer  allowance  require
amendment to reflect the changes made to carer  allowance.   A  transitional
provision in relation to carer allowance is included in the Schedule.

No equivalent amendments in relation to carer payment are included  in  this
Schedule.

Further amendments of  a  consequential  and  transitional  nature  will  be
introduced in a separate bill prior to commencement of this bill.

This Schedule commences on 1 July 2009.

                         Explanation of the changes

Item 1 inserts new section 12F,  which  provides  that  a  claim  for  carer
allowance is not required if a  person  is  qualified  for  carer  allowance
under section 954B.

Item 2 inserts new section 15A.  New subsection 15A(1) provides that,  if  a
person makes a claim for a carer payment which is rejected, the person  may,
within 28 days of being notified of the rejection, make a  claim  for  carer
allowance and, if the person is  subsequently  found  to  be  qualified  for
carer allowance under section 953, the Secretary  may  take  the  claim  for
carer allowance to have been made on the day that  the  claim  for  a  carer
payment was made.  This section will not apply  to  a  person  who  makes  a
claim for carer payment under paragraph  198(2)(a)  or  (d)  of  the  Social
Security Act.

New subsection 15A(2) provides that, if a person (the  carer)  is  receiving
carer payment for caring for one or more  people,  the  carer  is  qualified
other than under paragraph 198(2)(a) or (d), and the carer's  carer  payment
is suspended or cancelled, the person may, within 28 days of being  notified
of the suspension or cancellation, make a claim  for  carer  allowance.   If
the person is subsequently found to be qualified for carer  allowance  under
section 953, the Secretary may take the claim for carer  allowance  to  have
been made on the day that the claim for a carer  payment  was  suspended  or
cancelled.

Item  4  provides  that  new  subsection  15A(2)  of  the  Social   Security
Administration Act applies to a person who was qualified for  carer  payment
under paragraph 198(2)(b) or (c) of the Social Security Act and who  remains
qualified because of subclause 141(1) of Schedule 1A  to  that  Act  or  who
becomes qualified because of subclause 140(3) of Schedule 1A to that Act.

Item 3 inserts new section 95B.  New section 95B provides that, if a  person
is receiving carer allowance because they are qualified  under  new  section
954B and the person's carer payment is  suspended  or  cancelled,  then  the
person's carer allowance is suspended or cancelled on the same day.

-----------------------
[1] Executive Summary, Carer Payment (child): A New Approach - report of
the Carer Payment (child) Review Report, paragraph 1.

 


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