3.2.8.20 Estimate Following Cancellation of Income Support Payment or Conclusion of Employment Income Nil Rate Period

Summary

This topic covers information relating to income support individuals and includes the following:

  • income support individuals - FTB,
  • income support individuals - CCB,
  • income support payment cancelled,
  • employment income nil rate period, and
  • impact on CCB entitlement of cancellation of income support payments (1.1.I.50).

Note: This topic is not relevant to SBP.

Income support individuals - FTB

If the individual or their partner (1.1.P.30) receive an income support payment, or are in an employment income nil rate period, they are not subject to the income test for FTB Part A. They are eligible for the maximum rate of FTB Part A, subject to the maintenance income test (1.1.M.10) and maintenance action test.

Act reference: FAAct Schedule 1 clause 38L Application of income test to pension and benefit recipients and their partners

Income support individuals - CCB

If an individual or their partner receive an income support payment or are in an employment income nil rate period, they do not have to provide an estimate of income when claiming CCB. These individuals are eligible for the maximum rate of CCB.

Income support payment cancelled

If both the individual and their partner lose eligibility for the pension or benefit, their eligibility for FTB must be reassessed and the income test applied. Their CCB entitlement will also be reassessed.

The individual and their partner must provide an estimate of their ATI (1.1.A.20) for the current financial year. For FTB, the income test must be applied to work out their new rate of FTB. For CCB, the income estimate will be used to calculate the new rate of entitlement.

Employment income nil rate period

An income support recipient or their partner in an employment income nil rate period must provide an estimate of their ATI for the current financial year before the end of the nil rate period. At week 8 of the nil rate period the income support recipient should be sent a notice advising them to provide Centrelink with an estimate of their income by the end of week 12.

For FTB Part A the estimate is stored and actioned at the end of week 12. For FTB Part B the new estimate is actioned as soon as it is received.

Policy reference: FA Guide 4.4.4 Reassessment of FTB - Income Support Cancelled

SS Guide 3.1.12 Employment Income Nil Rate Period

Impact on CCB entitlement of income support loss

Individuals will be asked to provide an income estimate within 14 days of notification. If they do not lodge an estimate, their CCB entitlement will reduce to the zero rate. Individuals will have to claim any CCB entitlement that is not paid during this period at the end of the financial year, through direct payment or as a lump sum.

Last reviewed: 1 July 2016