1. NT Pensioner and Carer Concession Scheme - Reform Implementation
Presentation to the Ministerial Advisory Council Senior Territorians
Currently the Government provides over $30 million every year in concessions to just under 20,000 Territorians. The Northern Territory Pensioner and Carer Concession Scheme is a highly valued scheme.
The current scheme was introduced in 1979 with the objectives of relieving cost of living pressures for low income older Territorians and keeping seniors in the Territory.
Over the years, there have been policy changes to the Scheme impacting eligibility to join the scheme.
Government made a commitment to review and reform the scheme.
Extensive public consultation process - largest in the NT.
Independent review of the NTPCSS by Deloitte
Ombudsman Report
Reference Group
Treasury input
Petition
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2. New Schemes from 1 July 2018 | Objectives
On 8 November 2017, Government announced that the current NTPCCS would be reformed.
Two new schemes will commence on 1 July 2018.
Northern Territory Concession Scheme (NTCS): to support eligible means-tested concession recipients with costs of living in the NT
Northern Territory Seniors Recognition Scheme (NTSRS): to recognise the valuable contribution seniors make to the Territory
Government is investing an extra $4.9 million in , $7.183 million in and $ million from ongoing to fund the reforms.
Eight concession types: electricity, water, property rates, garbage, sewerage, motor vehicle registration, drivers licence and spectacles.
Travel payments will now be included in the NT Seniors Recognition Scheme.
Grandfathering – all persons, including those grandfathered in the original 2014 age-based scheme will be grandfathered unless they no longer receive the Centrelink benefit they were grandfathered under or are no longer NT residents.
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3. New Schemes | Challenges
Ageing population (currently seniors makes up 62% of the Scheme membership)
Fraud Protection
Remote membership and concessions
Cost of the Schemes
$32.8M
$29.61M
Administering two Schemes, distinct policy objectives
Projected population 65+ to be 23,370 in 2026 and 33,812 in 2041.
An increase over the next 20 years of 13,000 seniors is estimated to increase the cost of the Scheme to over $20 M per year.
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4. Eligibility to Join the Schemes
Both Schemes – Eligibility – Permanent NT Resident
Permanent Residents of the NT:
Residency is defined as ‘living in the Northern Territory for at least 183 days of the year’. (Aligned to ATO residency definition)
Days would not need to be consecutive i.e. a member can come and go, so long as they live in the Territory for a total of 183 days of the year’.
A member who are not in the NT for longer then 183 days will have their membership cancelled (exceptions process would apply i.e. interstate medical treatment)
A member can reapply to the scheme and the eligibility will be based on the requirements at the date of application.
A person who move to the Territory will be eligible to join the scheme immediately, so long as they declare their ‘intention to reside in the Territory for more than 183 days’.
Should they not stay in the Territory for this time, their membership will be cancelled.
If a member reside outside the NT for longer than 183 days, then their membership will be cancelled and concessions from that point will not be paid. They may be eligible for another states scheme.
If they return to the Territory, then they may be eligible to sign up to the schemes again, however they will no longer have benefits as a grandfathered member and will be subject to the eligibility requirements at date of application.
An exceptions process will be developed as part of the medical hardship provisions (still under development) allowing members with medical reasons for being absent from the NT for longer than 183 days to remain members, with access to concessions that are reasonable based on their circumstances.
Eligible categories of benefits (8 November 2017) - Age Pension, Disability Support Payment, Parenting Payment (Single), Carer Payment and DVA pensioners.
Grandfathering – all persons, including those grandfathered in the original 2014 age-based scheme will be grandfathered unless they lose the Centrelink benefit they were grandfathered under or are no longer NT residents.
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5. Eligibility to Join the Schemes
In addition to being an Australian Citizen or Permanent NT Resident:
NT Concession Scheme (NTCS)
Must hold an eligible Commonwealth means tested benefit.
NT Seniors Recognition Scheme (NTSRS)
Will become eligible in the year they turn 65 years from 1st July that year.
Eligible categories of benefits (8 November 2017) - Age Pension, Disability Support Payment, Parenting Payment (Single), Carer Payment and DVA pensioners.
Grandfathering – all persons, including those grandfathered in the original 2014 age-based scheme will be grandfathered unless they lose the Centrelink benefit they were grandfathered under or are no longer NT residents.
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6. Signing up for the New Schemes
New members can sign up to the NT Seniors Recognition Scheme (NTSRS) in May 2018.
Existing 65+ members will be mapped to the NTSRS but will need to contact the Concessions Unit confirm their details and nominate their payment preferences.
Existing NTPCCS members transitioning to the NT Concession Scheme (NTCS) will have until the 31 December 2018 to confirm their details.
Confirming details is very important to the integrity of the scheme and the safety of members. This is an opportunity for the Concession Unit to go through the eligibility criteria, update contact details and seek advice from the members regarding their SRS payment preferences.
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7. Annual member confirmation and declaration process
Both Schemes
All members would be required to validate their details annually. This will include declarations such as:
• I have resided in the Territory for at least 183 days;
• I remain entitled to receive concessions (reference the eligibility criteria);
• Payments or concessions provided are for my benefit only and are not being provided to other persons; and
• Payments or concessions are not being consumed for commercial purposes.
Efforts would be made to contact members prior to cancelling membership.
If a member does not validate between the specified time period (1 July and by 31 December 2018), then membership will be cancelled.
If a member was grandfathered, then this entitlement will cease on cancellation of their membership.
All attempts to contact members will be made prior to cancelling a membership, however the ultimate decision where a member cannot be contacted will remain with Territory Families.
Members who will be travelling during the specified time period will be able to validate at an alternative time prior to the commencement of the validation period (not afterwards).
Exceptional circumstances will be reviewed on a case-by-case basis, however given the member will be provided with an opportunity to validate at an alternative date prior when travelling, and that all efforts will be made to contact the member during the validation period prior to cancelling membership, it is not considered that many exceptions will be valid reasons to waive a cancellation.
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8. Senior Recognition Scheme – Payment Allocation Preference
Eligible members of the NT Seniors Recognition Scheme will receive a payment of $500 each financial year.
Members can elect to use this payment for travel and/or utilities. Members can allocate their payment in one of three ways.
These are:
1. 100% to travel;
2. 100% to utilities; or
3. 50% to travel and 50% to utilities.
No other options will be provided as doing so would be too difficult to administer.
Travel payments will not accrue between years
Unused travel can be converted by the member to utilities prior to 31 May
Utilities cannot be converted to travel once processed.
If a member elects to allocate 50% or 100% of their entitlement to travel, and then does not use this, they may convert this to utilities, so long as they apply to do so prior to 31 May of the same financial year.
This is to ensure there is four weeks processing time allowed for Territory Families to convert payments prior to the new financial year.
Any utilities payments made to the Power and Water Corporation or Jacana Energy will not be redeemable for cash, transferable to another person or convertible to travel after allocation.
The payment will however carry over financial years if not fully used. This is because it will be a cash payment against their power account, not a concession paid on power consumption (as is the case with the NT Concession Scheme). The account must be in the name of the member receiving the payment.
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9. Transitioning travel entitlements into the Seniors Recognition Scheme
Existing members with a current travel entitlement will not lose it.
Travel must be booked before 30 June 2018, and taken and claimed before 30 September
If not used then the travel entitlement will not rollover to the new scheme.
Members of the SRS will be able to access $500 for travel from 1 July 2018.
These transitional arrangements provide a great amount of flexibility for members who are now planning and paying for travel but not travelling till after 30 June 2018 but before 30 September 2018.
The new entitlement commences in from 1 July 2018 and can be accessed from then to book travel. This may mean that some members may have two subsidised travel events in , however provides the greatest level of flexibility, whilst remaining financially sensible.
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10. Grandfathering
Existing members of the NTPCCS will be grandfathered under the new NT Concession Scheme
Grandfathering means they will continue to receive concessions as they currently do (with introduced caps to power and water).
The travel entitlement under the current scheme will move to the NT Seniors Recognition Scheme and will be available each financial year to members of the NT Seniors Recognition Scheme.
Grandfathered members will remain eligible whilst their circumstances remain as they were on 8 November 2017.
That is a person must:
• Continue to be a resident of the Northern Territory (under the proposed 183 day rule); and/or
• Remain on the same Centrelink or Department of Veteran Affairs payments as they did on 8 November 2017.
If you entered the scheme pre 2014 as a senior (age based eligibility) you will be grandfathered across the new scheme/s, as your age will not change, your membership will only cease if you are no longer an NT Resident.
If either of the above criteria changes, then the person will no longer be eligible for grandfathered arrangements. Should the nature of the change mean that they still qualify for the scheme/s, then their membership can continue, but no longer as a grandfathered member.
For example:
Should a member leave the Territory to live in another jurisdiction for longer than 183 days, then they will no longer be a grandfathered member. If they return to the Territory and wish to apply for the scheme/s, then new eligibility criteria will apply; or
2. Should a member on carers allowance, cease to meet the criteria for this payment from Centrelink (no longer a carer), then they will no longer be a grandfathered member. Should they requalify for this payment at a future date, then they will not be eligible for the scheme as this benefit is no longer a eligible benefit.
This rule will impact members as follows:
•Senior women who are not yet 65 if they leave the Territory. Should they return, then they will be required to wait till 65 to join the Seniors Recognition Scheme. They will be eligible to join the Northern Territory Concession Scheme if they are in receipt of the aged pension;
•Independent retirees who leave the Territory. Should they return, then they will no longer be entitled to the Northern Territory Concession Scheme, however they will be able to join the Seniors Recognition Scheme; and
•Carers in recipients of carers allowance if they either leave the Territory, or if their eligibility for the Carers Allowance cease. They will no longer be eligible for the NT Concession Scheme, however if they are 65 or over, they will be eligible for the Seniors Recognition Scheme.
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11. Timeframes for claiming Concessions
Backdated concession restrictions will apply
Concession are applicable only from the date membership is approved
Concessions and payments must be claimed within 6 months or within the same financial year, whichever is greater.
It is the member’s responsibility to claim entitlements, even where arrangements are made through a third party, such as a retirement village or body corporate.
We are making claiming concessions easier.
It is current practice that some members seek manual concessions reimbursement for multiple years. This situation means that a future year’s budget must meet these costs which is not financially sustainable.
Members are responsible to submit timely applications and cannot expect payment for a previous financial year.
Territory Families are making timely submissions easier by working with retirement villages and body corporates to improve administration and by making contact with us easier.
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12. What is a Concession – NT Concession Scheme
A concession is:
An offset applied to a cost of living expenses of an eligible member
Concessions cannot be applied to costs that are the legal responsibility of another person
A concession can only be used by the member, is not transferable to another person and cannot be applied for the benefit of another person:
Exception dependents (spectacles) - current scheme and NTCS
Exception family or friends (travel) – current scheme and NTSRS
The NTCS does not provide payments – costs must exist to receive on offset.
Only certain costs, listed by the NT Concession Scheme will be offset through a concession.
In contrast, the Seniors Recognition Scheme will make a payment of $500 per annum to members, allocated towards their choice of travel and/or utilities. Although the $500 is limited for use to travel and/or utilities providers, these payments are not concessions, and the benefit may be made available to the member prior to costs being incurred (e.g. credit on a utilities account)
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13. Payments under the NT Seniors Recognition Scheme
In contrast to a concession, the NT Seniors Recognition Scheme will make a payment of $500 per annum to members.
Members can elect to allocate this payment towards their choice of travel and/or utilities (power or water).
If a member elects to use their payment for water and/or power they must be the account holder
Although the $500 is limited for use to travel and/or utilities providers, these payments are not regarded as concessions.
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14. Caps on Water and Electricity
A monetary cap is being provided to power and water.
Up to $1,200 for power.
Up to $800 for water.
This will be applied using same rates of concessions but will stop being applied when the cap is reached.
For example: Electricity includes two concessions being a fixed daily rate (infrastructure) of $1.274 per day and $0.091 per kW hour used (consumption).
Once the combined total of these concession values reach the cap ($1200 for electricity), concessions will stop being applied to the members account.
Caps will be reset each financial year.
Medical Hardship exceptions will apply.
Territory Families is working with Jacana Energy and PWC to make sure people impacted by the caps are contacted and assisted to reduce their consumption.
Capping of electricity up $1,200 based on 8000kW and $800 based on 471KL concessions (with medical hardship provisions)
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15. Concessions
All NT Concession Scheme concessions now have a monetary cap.
These are:
Up to $1,200 per annum for electricity (8000kW)
Up to $800 per annum for water (471kL)
Up to $ per annum for sewerage (based on fixed daily concession of $1.332)
Up to $200 per annum for Council Rates
Up to $150 per annum for garbage (various between regions)
Up to $154 per annum for vehicle registration ($77 for 6 month for NT Vehicle registration).
Up to $162 per annum for cost of a NT Drivers Licence (varies depending on licence period elected)
Up to $ every two years for member and their registered dependants for spectacles (Note: value of concession depends on spectacle combination)
Capping assist to ensure financial sustainability and combat misuse.
Upper limits of concessions listed. Concessions vary for some categories depending on members choice e.g. licence period, spectacle combination selected.
Spectacles – If a members eyesight has a significant change to their eyesight and can provide supporting evidence from qualified optometrist they may be given a waiver of the 2 year interval to receive this concession (Section 3)
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16. Communicating to Members
Community Engagement Program, includes partnership with key organisations supporting seniors
Public presentations at seniors gatherings and locations i.e. seniors events and retirement villages
Show Circuit and Seniors Expo
Advertisements, print and television to market the schemes enrolment dates
Distribution through key stakeholder publications and circulations (e.g. MACST)
Direct contact with existing members ( , postal)
Employment of New Membership team and extra customer service resources.
Seniors will be able to register an event where they would like a representative to come and talk with them about the new schemes and bring forms to sign them up.
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17. Seniors Discount Card – Transfer to COTA (NT)
Council on the Ageing NT (COTA NT) administers the Northern Territory Seniors Card program on behalf of Territory Families.
NT Seniors Card is available to all permanent NT residents aged 60 years and older.
NT Seniors Card is issued free and provides access to discounts from participating businesses.
NT Seniors Card holders also travel free on the public bus network in Alice Springs and Darwin and receive a $55 discount on annual motor vehicle registration.
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18. Questions and More Information
Phone:
Book a time for us to come and talk with your group
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