House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Family and Community Services, Senator the Hon Jocelyn Newman)

Schedule 1-Carer payment

Schedule 1, Part 1 amends the Social Security Act 1991 to:

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introduce a new method of assessing an adult's disability-the Adult Disability Assessment Tool;

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extend qualification for carer payment to carers of disabled adults who have children under 16, where the carer provides care for both the adult and the child, and the child is either disabled or is under the age of 6;

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allow a person to qualify for carer payment for 63 days in a calendar year whilst the person being cared for is in hospital and the carer participates in the hospital care;

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extend qualification for carer payment bereavement payments on the death of a partner who was receiving a social security benefit; and

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apply the full carer payment qualification requirements in cases where the care receivers are 2 or more disabled children.

Schedule 1, Parts 2 to 4 include amendments to the Income Tax Assessment Act 1997 . Part 4 makes amendments that are consequential on the introduction of the measures specified above. Part 3 makes amendments that are consequential on the introduction, from 1 July 1998, of a new category of care receivers, 2 or more disabled children. Part 2 makes technical amendments correcting a drafting error relating to carer payment.

The costs of the introduction into carer payment of the Adult Disability Assessment Tool and the measure allowing a person to qualify for carer payment whilst the person being cared for is in hospital are included in the financial impact figures for carer allowance ( Schedule 2 ).

Schedule 2-Carer allowance

Schedule 2, Part 1 introduces, from 1 July 1999, a new social security payment, carer allowance, that replaces child disability allowance (currently in the family and community services portfolio) payable to carers of children with disabilities and domiciliary nursing care benefit (currently in the health and aged care portfolio) payable to carers of adults who would be eligible for entry to a nursing home.

Carer allowance represents a simpler and more consistent system of income supplement for carers of people with disabilities of all ages. Assessment of entitlement for carer allowance will utilise two new tools: the Child Disability Assessment Tool for the assessment of the child's disability, and the Adult Disability Assessment Tool for the assessment of the adult's disability.

Schedule 2, Parts 2 to 5 make consequential amendments to the Social Security Act 1991 , the National Health Act 1953 , the Income Tax Assessment Act 1936 , the Income Tax Assessment Act 1937 , the Child Care Payments Act 1997 , the Childcare Rebate Act 1993 , the Health Insurance Act 1973 , the Safety , Rehabilitation and Compensation Act 1988 , the Seafarers Rehabilitation and Compensation Act 1992 and the Veterans' Entitlements Act 1986 .

Schedule 3-Transitional provisions relating to carer payment and carer allowance

Schedule 3 provides for transitional arrangements relating to the carer payment and carer allowance measures introduced by Schedules 1 and 2 . This Schedule amends the Social Security Act 1991 and the National Health Act 1953 .