Explanatory Memorandum
(Circulated by the authority of the Minister for Family and Community Services, Senator the Hon Kay Patterson)Schedule 3 - Carer payment
Summary
This measure will amend section 198AC of the Social Security Act to give effect to an election commitment to provide additional support to carers participating in work, training or study.
Background
At the present time, people caring for an adult or a child with a disability, and who receive carer payment under Part 2.5 of the Social Security Act, do not lose qualification for that payment if they temporarily cease providing care in order to undertake training, education, unpaid voluntary work or paid employment (subsections 198AC(4) and 198AC(5) of the Social Security Act). However, the maximum length of time that a carer may temporarily cease providing care in order to undertake any of these activities, and still retain their qualification for carer payment under these provisions, is 20 hours per week (paragraphs 198AC(4)(c) and 198AC(5)(c)).
Explanation of changes
Item 1 increases the 20 hour limit referred to in paragraphs 198AC(4)(c) and 198AC(5)(c) to 25 hours. This means that carers may temporarily cease providing care in order to undertake training, education, unpaid voluntary work or paid employment for up to 25 hours per week, without losing their qualification for carer payment. This is intended to provide more opportunities and flexibility for carers to combine caring with work, training or study. This will allow carers to have increased involvement in these activities, to assist their participation in the workforce, and to provide more of a break from caring, without affecting their eligibility for carer payment.
Item 2 is an application provision which clarifies how the amendments made by item 1 are to be applied after their commencement. Item 2 provides that the item 1 amendments to paragraphs 198AC(4)(c) and 198AC(5)(c) will allow a carer payment recipient who undertakes training, education, unpaid voluntary work or paid employment for up to 25 hours in any seven-day period to remain qualified for carer payment, as long as the seven-day period (or 'week') in which those activities are undertaken commences on or after the commencement of item 1, that is, on or after 1 April 2005.