Explanatory Memorandum
(Circulated by the authority of the Minister for Family and Community Services, Senator the Hon Kay Patterson)Outline and financial impact statement
Outline
This Bill gives effect to a measure announced in the 2005 Budget to provide extra assistance to carers.
The Bill will provide three one-off payments that will generally be paid in June 2005:
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- A one-off payment of $1000 to recipients of carer payment on Budget night 2005 (10 May 2005).
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- A one-off payment of $1000 to recipients of carer service pension on Budget night 2005, 10 May 2005 (these are people whose entitlement to carer service pension was preserved under savings and transitional provisions under subclause 8(2) or (4) of Schedule 5 of the Veterans' Entitlements Act 1986).
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- A one-off payment to recipients of carer allowance on Budget night (10 May 2005), generally payable as an amount of $600 for each person being cared for who attracts carer allowance.
The Bill also contains provisions to enable an administrative scheme to be established. In broad terms, the purpose of the administrative scheme will be to provide payments in circumstances where the statutory one-off payments regime does not produce an appropriate result. The Minister for Family and Community Services will determine the details of the scheme by legislative disallowable instrument.
The Bill commences on Royal Assent.
Financial impact statement
The financial cost of the one-off payments to carers is $313.700m for in 2004-05 and $3.2m10m in 2005-06.