Bills Digest No. 47 2002-03
Family and Community Services Legislation Amendment
(Budget Initiatives and Other Measures) Bill 2002
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage History
Family and Community Services
Legislation Amendment (Budget Initiatives and Other Measures) Bill
2002
Date Introduced:
26 September 2002
House: House of Representatives
Portfolio: Family and Community
Services
Commencement:
Schedules 1 and 2
commence on 1 July 2003 and the remaining provisions on the day on
which the Act receives Royal Assent.
Purpose
The Bill proposes
to replace the current nominee provisions in the Social Security
Law with more comprehensive provisions that cover matters presently
dealt with administratively.
The Bill also streamlines the provisions
relating to access to Carer Payment for the carers of profoundly
disabled children, to allow more people caring for terminally ill
children to qualify.
In certain situations Social Security payments
are paid to someone else on behalf of the person entitled to the
payment. This occurs in cases where:
-
- the entitled person is incapable of managing their own
financial affairs
-
- another person has a power of attorney for them
-
- they are employed by a Supported Employment Agency (formerly
called a sheltered workshop), or
-
- they are entitled to Youth Allowance as an under 18 year old
dependent.
There are also situations where the payment
continues to be paid to the entitled person, but someone else
undertakes to deal with their correspondence with Centrelink. In
this case the entitled person continues to sign any forms or
notifications of changed circumstances.
These nominees are expected to keep records of
how the money they receive is spent in case allegations of misuse
are made. Nominees handling correspondence must be aware of the
implications if Centrelink is not informed of changes of
circumstances.
Often nominees are family members acting for
elderly, disabled or dependent relatives. In other cases they are
corporate bodies such as Supported Employment Agencies, Nursing
Homes or drug and alcohol rehabilitation facilities. Sometimes they
are people with less direct connection to the entitled person such
as a manager of a boarding house. In all cases where incapacity to
manage their own affairs is the reason for appointing a nominee,
sufficient evidence of the need for a nominee is required. A formal
guardianship arrangement may be in place or medical or social
worker reports are available.
At present nominee arrangements where payment is
made to a nominee are covered by the legislation, but
correspondence nominees are not. The proposed changes would provide
a more comprehensive set of provisions that distinguish between
payment and correspondence nominees set out the duties of nominees
and include present administrative practices.
The financial impact of the changes is expected
to be negligible according to the Explanatory Memorandum to the
Bill.
Eligibility for Carer payment was extended to
those caring for profoundly disabled children in July 1998. These
children were those who required the most intensive care. A review
of the operation of the measure was undertaken drawing on the views
of interested community groups and a report was published by the
Department of Family and Community Service (F&CS) in December
1999. The Review of the Measure to Extend Carer Payment
Eligibility to Carers of Children with a Profound Disability: Final
Report contained a number of recommendations for change to the
measure. The Government response to the report (7 March 2000)
accepted some of these recommendations including one relating to
terminally ill children. The Report recommended that:
the terminally ill criteria be amended to
recognise those children who continue to receive active treatment
up to the time of their death and to reduce the intrusiveness of
the application process.(1)
This recommendation was made because the
existing legislation limiting access to carers of terminally ill
children who no longer receive active care but receive only
palliative care is too restrictive and may prevent payment to
carers of some terminally ill children. Also the present
requirements are potentially intrusive and traumatic for the child
and the family.(2)
The financial impact of the changes is expected
to be about $1.3 million per annum according to the Explanatory
Memorandum to the Bill.
Item 9 of Schedule 1 inserts a
new Part 3A into the Social Security
(Administration) Act 1999 concerning nominees. The terms
'correspondence nominee' and 'payment nominee' are defined
(proposed section 123A).
Proposed Division 2 includes
provisions relating to appointment of nominees by the Secretary,
and revocation of appointments where changed circumstances affect
the ability of nominees to act as nominees.
Proposed Division 4 sets out
the functions and responsibilities of nominees.
Proposed Division 5 protects
both the nominee and the principal from liability for the actions
of the other. The duties of the nominee towards the principal are
also set out.
Item 12 of Schedule 2 inserts a
new Part 8B into the A New Tax System (Family
Assistance) (Administration) Act 1999 along the same lines as
the changes in Schedule 1.
Item 3 of Schedule 3 inserts a
new subsection (2A) after subsection 197(2) of the
Social Security Act 1991. This provision provides an
alternative avenue for the carer of a terminally ill child to
qualify for Carer Payment to that provided in subparagraph
197(2)(c)(vi). The issue of palliative or active care is avoided
and the life expectancy and care needs of the child are the main
considerations.
In terms of the proposed amendments to the SSA
for nominee arrangements, the Bill is largely formalising into
legislation what has been conducted administratively up to now. The
proposed amendments to carer payment are beneficial.
-
- The Review of the Measure to Extend Carer Payment
Eligibility to Carers of Children with a Profound Disability:
Final Report, Department of Family and Community Services, December
1999, p. 3.
- ibid., pp. 10 11.
Dale Daniels
14 October 2002
Bills Digest Service
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ISSN 1328-8091
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