Bills Digest No.
48, 2021–22
PDF version [292KB]
Carol Ey
Social Policy Section
4
March 2022
Contents
Purpose of the Bill
Structure of
the Bill
Background
Committee
consideration
Policy
position of non-government parties/independents
Position of
major interest groups
Financial
implications
Statement of
Compatibility with Human Rights
Key issues
and provisions
Date introduced: 10
February 2022
House: House of
Representatives
Portfolio: Social
Services
Commencement: The day
after Royal Assent.
Links: The links to the Bill,
its Explanatory Memorandum and second reading speech can be found on the
Bill’s home page, or through the Australian
Parliament website.
When Bills have been passed and have received Royal Assent, they
become Acts, which can be found at the Federal
Register of Legislation website.
All hyperlinks in this Bills Digest are correct as at
March 2022.
Purpose of
the Bill
The purpose of the Social
Security Amendment (Improved Child to Adult Transfer for Carer Payment and
Carer Allowance) Bill 2022 (the Bill) is to amend the Social Security Act
1991 (the Act) to simplify the Child to Adult transfer process for
Carer Payment and Carer Allowance.
Structure of
the Bill
The Bill consists of one Schedule with three Parts:
- Part
1 ensures that all recipients of Carer Payment (child) continue to receive
payment until the care recipient reaches at least 16 years and 3 months of age.
It also provides that if the appropriate documentation for assessment for Carer
Payment (adult) has been received prior to the care receiver’s relevant
birthday and a determination is not made at the time payment would currently be
cancelled, payment is continued until a determination is made
- Part
2 proposes the same provisions for Carer Allowance
- Part
3 extends eligibility for Health Care Card to align with the provisions for
Carer Allowance.
Background
This Bill proposes minor changes to the arrangements for
those who are receiving Carer
Payment (CP) (child) and Carer Allowance
(CA) when the care recipient child reaches the age of 16 (or 18 if they have a
terminal illness). Carer Payment is an income support payment, payable at the
rate of the Age Pension, available to those providing constant care to someone
with a severe disability or illness. Carer Allowance is an income supplement
for those who provide additional daily care to someone with a disability or
medical condition.
The intent of the new arrangements is to ensure that those
carers who submit the necessary documents for assessment for transfer to CP
(adult) or CA (adult) prior to their child reaching the relevant age are
not disadvantaged if their assessment is rejected, compared to those who do not
apply for transfer.
In addition, if the determination process in these cases
continues beyond the normal cancellation date, the proposed amendments mean the
carer will continue to receive payment until a determination is made. This
ensures that there is no gap in payment receipt for those who are subsequently
determined to be eligible for CP (adult) or CA (adult) due to assessment
delays.
This measure was announced in the Mid-Year
Economic and Fiscal Outlook 2021–22.[1]
Committee
consideration
Senate Community Affairs
Legislation Committee
The Bill has been referred to the Senate
Community Affairs Legislation Committee for inquiry and report by 24 March
2022. Details of the inquiry are at the inquiry
homepage.
Senate Standing Committee for the
Scrutiny of Bills
The Scrutiny of Bills Committee has not reported on the
Bill at the time of writing.
Policy
position of non-government parties/independents
Non-government parties and independents do not appear to
have commented publicly on the Bill to date.
Position of
major interest groups
In noting that the Bill had been introduced, Carers
Australia reported that the Minister had met with carers and their representatives
in September 2021 to discuss the issues in transferring to Carer Payment
(adult) and Carer Allowance (over 16 years) when care recipients turned 16:
While the Bill has yet to pass through Parliament and the
start date for the new rules is unfortunately not until 1 January 2023, it is
gratifying that the Minister listened to carers and took some action.[2]
Financial
implications
This measure is estimated to cost $7.6 million over four
years from 2021-22 (and $2.0 million per year ongoing).[3]
Statement of Compatibility with Human Rights
As required under Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed the
Bill’s compatibility with the human rights and freedoms recognised or declared
in the international instruments listed in section 3 of that Act. The
Government considers that the Bill is compatible.[4]
Parliamentary Joint Committee on
Human Rights
The Parliamentary Joint Committee on Human Rights has not
reported on this Bill at the time of writing.
Key issues
and provisions
In order for a carer to transfer from CP (child) to CP
(adult) the care receiver must be assessed, rated and scored under the Adult
Disability Assessment Tool (ADAT), which is given legislative force by the Adult Disability
Assessment Determination 2018. Under current arrangements, if the child is
assessed, rated and scored before they turn 16, and is not given a qualifying
score for CP (adult), the CP (child) payment is cancelled on the child’s 16th
birthday.[5]
However, if the care receiver is not assessed, rated and scored at 16 years and
3 months, the CP (child) payment is cancelled at that point.[6]
Hence a carer who provides the necessary documentation and
receives a negative assessment prior to the care receiver turning 16 is
disadvantaged over a carer who does not submit any documentation.
In addition, if there is a delay in the assessment process
and a determination is not made until after the child turn 16 years and 3
months, the payment is cancelled. If a favourable determination is made by the
delegate after that time, normal date of effect rules apply.[7]
This may mean a gap between the cancellation of CP (child) and the commencement
of CP (adult).[8]
Similar provisions apply for Carer Allowance
(CA) when the care receiver turns 16.[9]
Slightly different arrangements apply where the care
receiver is a child with a terminal illness. In this case, CP (child) is
payable until the child turns 18. If the carer applies for CP (adult) and the
child is assessed, rated and is given a qualifying score prior to turning 18,
the carer transitions to CP (adult) on the child’s birthday.[10]
However, if the determination is not made prior to the child turning 18, there
is again a possibility of a gap between the cancellation of CP (child) and the
receipt of CP (adult).
Recipients of Carer Allowance, where the care recipient is
aged under 16 years, may also be eligible for a Health Care Card,
which provides cheaper access to medicines.
Provisions relating to Carer
Payment
Part 1 of the Bill covers the amendments relating to
recipients of CP (child).
Subsection 197(3) of the Act provides that where a CP
(child) recipient is caring for a child with a terminal condition, they may continue
to receive CP (child) until the child turns 18. Under Item 4 of the Bill,
new subsection 197(3A) is inserted to continue payment to the later of:
- when
the child turns 18 or
- up
until a score under the ADAT is received if the carer ‘ensures that, on or
before the day the care receiver turns 18, the Secretary is given all the
information, statements and other materials that are needed in order for the
care receiver to be assessed and rated and given a score’.
This removes the situation where there is a gap between
the receipt of CP (child) and CP (adult) due to delays in processing.
Item 8 proposes a consequential amendment to subsection
197E(2), which specifies the qualification for CP for a child with a terminal
condition.
Subsection 197(6) provides for continuation of CP (child)
payment beyond the age of 16 years only if the care receiver has not been given
a score under ADAT. Item 6 proposes to insert new subsection 197(5A)
so that payment can continue to be received until the later of the child
turning 16 years and 3 months or when an ADAT score is received if the necessary
documentation has been supplied prior to the child turning 16. Item 11 proposes
similar amendments to subsection 197K(2), which specifies the conditions
under which CP (child) can be extended until the care receiver is 16 years and
3 months.
These provisions ensure that all CP (child) recipients who
are determined not to be eligible for CP (adult) are treated equitably, and
that the gap between receipt of CP (child) and CP (adult) is removed for
eligible recipients due to a delay in processing.
If the Bill is enacted, these proposed amendments will
apply where the care receiver turns 16 on or after 1 January 2023 (Item 12).
This means that the changed arrangements for those caring for a terminally ill
child will not take effect until 1 January 2025, as they do not come into
effect until the care receiver turns 18.
Provisions relating to Carer
Allowance and Health Care Card
Part 2 of the Bill proposes amendments to subsection 953A
of the Act, which sets out the conditions under which CA can continue to be
paid when a care recipient turns 16. The proposed amendments are consistent
with those proposed in relation to CP (child); that is, qualification for CA
continues until the child turns 16 years and 3 months or, where the necessary
documentation has been provided prior to the child turning 16, up until a score
under ADAT is received.
These amendments are also proposed to apply where the care
receiver turns 16 on or after 1 January 2023 (Item 18).
Proposed amendments to align eligibility for a Health Care
Card to qualification for CA are contained in Part 3 of the Bill. Item 21
amends the definition of a disabled child under subsection 1061ZK(8) from
‘under 16 years’ to ‘under 16 years and 3 months’. Again, these provisions are
scheduled to apply where the care receiver turns 16 on or after 1 January 2023
(Item 22).
[1]. Josh Frydenberg (Treasurer) and Simon
Birmingham (Minister for Finance), Mid-Year
Economic and Fiscal Outlook 2021–22, 294.
[2]. ‘Easing
the Transition from Child to Adult Carer Payment and Carer Allowance’, Carers
Australia, n.d.
[3]. Explanatory
Memorandum, Social Security Amendment (Improved Child to Adult Transfer for
Carer Payment and Carer Allowance) Bill 2022, 3.
[4]. The Statement of Compatibility with
Human Rights can be found at pages 10–11 of the Explanatory Memorandum to the
Bill.
[5]. Department of
Social Security (DSS), ‘3.6.4.34
Qualification for CP (Child) - Transition (Turning 16 years of Age) from CP
(Child) to CP (Adult)’, Social Security Guide, 15 August 2016.
[6]. DSS, 3.6.4.34 Qualification for CP
(Child).
[7]. DSS, 3.6.4.34 Qualification for CP
(Child).
[8]. Social Security
(Administration) Act 1999 (Cth), Section 114.
[9]. DSS, ‘3.6.7.42
Qualification for CA (Child) - Transition (Turning 16 years of Age) from CA
(Child) to CA (Adult)’, Social Security Guide, 3 January 2017.
[10]. DSS, 3.6.4.34 Qualification
for CP (Child), 15 August 2016.
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