Welfare to Work – Information for fostercarers on income support paymentsThe <strong>Australian</strong> Government announced a seriesof changes in the 2005–06 Budget to increasethe participation of parents on income supportin employment. Called ‘Welfare to Work’, thepackage of measures includes a requirementfor principal carer parents on income supportpayments ― such as Parenting Payment orNewstart Allowance, with a youngest child agedsix or over ― to look for, or undertake, parttimework of at least 15 hours a week. Principalcarer parents with a youngest child aged undersix years do not have to look for or undertakeany paid work.Note: If you are a parent who is also afoster carer, either on Parenting Payment orNewstart Allowance, automatic exemptionsfrom participation requirements are availableif you are ‘registered and active’ ― for moreinformation see the section on ‘Welfare toWork participationrequirements andfoster carers’.For Welfare toWork purposes,‘registered andactive’ relative andkinship carers aretreated the sameas foster carers andincluded under the single title.Welfare to Work arrangements for peopleon Parenting PaymentOn Parenting Payment before 1 July 2006Principal carers who were on Parenting Payment(Single or Partnered) before 1 July 2006 canstay on their payment until their youngest childturns 16 years as long as they continue to meetthe payment’s eligibility requirements.However, these parents are required to lookfor, or undertake, part-time work of at least15 hours a week, as part of their participationrequirements from 1 July 2007, or when theiryoungest child turns seven (whichever is later).New claimants of income support on or after1 July 2006From 1 July 2006, single parents can claimParenting Payment (Single) if their youngestchild is aged under eight years.When their youngest child turns six, thesesingle parents have a participation requirementto look for part-time work of at least 15 hoursbut are able to stay on Parenting Payment untiltheir youngest child turns eight. When theiryoungest child turns eight, they will have tomove to another payment, usually NewstartAllowance, but will continue to have the sameparticipation requirements.Single parents whose youngest child is eightyears or older are not eligible for ParentingPayment (Single) and will generally need toapply for Newstart Allowance and will haveparticipation requirements.However, single principal carer parents onNewstart Allowance will still get the:• Pensioner Concession Card• Pharmaceutical Allowance, and• Telephone Allowance.Parents who claim Parenting Payment(Partnered) will generally move on to NewstartAllowance and be required to look for parttimework of at least 15 hours per week oncetheir youngest child turns six. As NewstartAllowance is theTo be eligible for an exemption, youneed to be ‘registered’ with yourrelevant state or territory authorityand prove that you are ‘actively’involved in providing foster care.same amount asParenting Payment(Partnered), themaximum rate ofincome support forthese carers willnot change.Partnered parentswhose youngestchild is six years or older are not eligiblefor Parenting Payment (Partnered) and willgenerally need to apply for Newstart Allowanceand will have participation requirements.Welfare to Work measures only affect parentswho are on an income support payment, suchas Parenting Payment or Newstart Allowance.The changes do not affect their Family TaxBenefit payments. Principal carer parents whodo not receive income support payments do nothave a participation requirement such as jobsearch and will continue to receive Family TaxBenefit payments.Welfare to Work participation requirementsand foster carersThe <strong>Australian</strong> Government recognises thevery great value of the work done by parentswho are also foster, relative and kinship carers.Because of this, you can get an automaticexemption from participation requirementswhich apply to principal carer parents onParenting Payment or Newstart Allowancewhen you are ‘registered and active’ carers. Tobe eligible for an exemption, you need to be‘registered’ with your relevant state or territoryauthority and prove that you are ‘actively’involved in providing care (see section on Whatis a ‘registered and active’ foster carer? below).10
Initial exemptions are for up to 12 months andare then reviewed.If you are a single principal carer parent onNewstart Allowance ― including if you havemoved from Parenting Payment (Single) toNewstart Allowance when your youngestchild turns eight, and you have an automaticexemption from participation requirementsbecause of caring responsibilities ― you willbe paid a higher rate of Newstart Allowanceequivalent to the Parenting Payment (Single)rate.This higher rate recognises that ‘foster carer’single parents take on a greater role thanparents caring for their own children, and thelikely extra costs involved. This higher rate ofNewstart Allowance is only paid if you are afoster carer singleparent who hasan automaticexemption.Note: Any extraincome youearn is subjectto the NewstartAllowance incometest.If you have anexemption, butyou chose to lookfor paid work,the Governmentwill provide youwith assistance― that is, you willhave the same access to government-fundedemployment services as other parents onincome support.What is a ‘ registered and active’ fostercarer?Registered and active foster carers are definedas:• a person who meets the requirements ofthe law of the state or territory in which theperson resides in order to be permitted toprovide foster care in that state or territory,and• the person is actively involved in providingfoster care in that state or territory.To be eligible for an automatic exemption fromparticipation requirements, you must alsohave a child which qualifies you as a ‘principalcarer parent’ for income support purposes.Principal carer parents are recognised as theprincipal carer of a dependent child under theage of 16 years and are eligible to receiveincome support payments in relation to thecare of that child. If you are a ‘registeredand active’ foster carer but not considereda principal carer parent and do not receiveincome support in relation to a child, you arenot eligible for an automatic exemption fromparticipation requirements.‘Registered and active’ foster carer includesprincipal carer parents who are kinshipor relative carers, as well as emergencyand respite carers who care for childrenintermittently or irregularly. You need to haveformal documents to give to Centrelink froman authorised foster care agency in your stateor territory (this can be both government ornon-government agencies) confirming that youare ‘registeredand active’.Note: Centrelinkwill usedocuments fromthe relevantstate or territoryauthority todecide if you area ‘registered andactive’ fostercarer.What happensto carerswho are notconsideredregistered andactive?Automatic exemptions from participationrequirements should apply to you once yourstatus as a ‘registered and active’ foster careris verified.If as a principal carer parent, you have had achild placed in your care with the knowledgeof the relevant government authority in yourstate or territory, but you are not considered tobe a ‘registered and active’ foster carer in yourstate or territory, you are not eligible for anautomatic exemption. However, when caringfor a foster child affects your ability to work orlook for work, and a relevant state or territorygovernment department can provide evidence(such as a formal letter) to substantiateyour claim, then you may be eligible for ashort term, case-by-case exemption fromparticipation requirements. Depending onthe circumstances, these exemptions can berenewed.Note: If you are a single parent in thiscategory, you are not eligible for the higher11