The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

3.1.11.50 Working credit opening balances & carryovers

Introduction

This topic covers the rules for a recipient's opening working credit balance and the circumstances for carryovers.

Working credit opening balance

A working credit opening balance is nil, except when a carryover occurs.

Carryovers

There are 6 types of carryover:

  • working credit carried over to working credit (other than YA job seeker),
  • working credit carried over to YA job seeker working credit,
  • YA job seeker working credit carried over to working credit,
  • working credit carried over to student/Australian Apprentice income bank,
  • student/Australian Apprentice income bank carried over to working credit (except YA job seeker working credit), and
  • student/Australian Apprentice income bank carried over to YA job seeker working credit.

Note: Student income bank cannot be carried over to student income bank.

These 6 types of carryover occur in the case of transfers between payment and in the case of a recipient who recommences a social security pension or benefit (either the same payment as they were or a different one) after a break of up to 12 months.

The maximum carryover amount is 1,000 working credits (except YA job seeker).

The maximum carryover amount is 3,500 working credits for a YA job seeker.

1 working credit = $1 student income bank.

The following table lists all the possible carryovers situations:

Recipient situations

Carryover

From To
A recipient transfers from one social security pension or benefit (other than YA job seeker) that has access to working credit to another payment that has access to working credit. Unused working credit becomes new working credit opening balance.
A recipient transfers from one social security pension or benefit (other than YA job seeker) that has access to working credit to YA as a job seeker. Unused working credit becomes new working credit opening balance.
A recipient transfers from YA job seeker to another social security pension or benefit that has access to working credit. Unused YA job seeker working credit becomes new working credit opening balance, up to maximum of 1,000 working credits.
A recipient ceases a social security pension or benefit (other than YA job seeker) that has access to working credit, and after a break of no more than 12 months, recommences that payment or another that has access to working credit. Unused working credit becomes new working credit opening balance.
A recipient ceases YA as a job seeker, and after a break of no more than 12 months, recommences that payment. Unused working credit becomes new working credit opening balance.
A recipient ceases YA as a job seeker, and after a break of no more than 12 months, recommences on another social security pension or benefit that has access to working credit. Unused YA job seeker working credit becomes new working credit opening balance, up to maximum of 1,000 working credits.
A recipient transfers from a social security pension or benefit that has access to working credit to YA (full-time student or full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) that has access to student/Australian Apprentice income bank. Unused working credit becomes new student/Australian Apprentice income bank opening balance.
A recipient ceases a social security pension or benefit that has access to working credit and after a break of no more than 12 months commences YA (full-time student or full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) that has access to student/full-time Australian Apprentice income bank. Unused working credit becomes new student/Australian Apprentice income bank opening balance.
A YA (full-time student/full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) recipient transfers to a non-student social security pension or benefit (other than YA job seeker) that has access to working credit. Unused student/full-time Australian Apprentice income bank becomes new working credit opening balance, up to maximum of 1,000 working credits.
A YA (full-time student/full-time Australian Apprentice recipient transfers to YA as a job seeker. Unused student/full-time Australian Apprentice income bank becomes new working credit opening balance, up to maximum of 3,500 working credits.
A YA (full-time student/full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) recipient ceases payment and after a break of no more than 12 months commences a social security pension or benefit (other than YA job seeker) that has access to working credit. Unused student income/Australian Apprentice bank becomes new working credit opening balance, up to a maximum of 1,000 working credits.
A YA (full-time student/full-time Australian Apprentice) recipient ceases payment and after a break of no more than 12 months commences YA as a job seeker. Unused student/full-time Australian Apprentice income bank becomes new working credit opening balance, up to maximum of 3,500 working credits.

Note: These rules also apply to ABSTUDY.

The day a carryover is available

A recipient becomes eligible for working credit from the day they start receiving their social security pension or benefit. Therefore a carryover amount is available for use from that day.

Act reference: SSAct section 1073E Opening balance, section 1067G-J7 Opening balance following cancellation of another social security pension or benefit (YA), section 1067L-E6 Opening balance following cancellation of another social security pension or benefit (Austudy)

Policy reference: SS Guide 3.1.11.10 Recipients eligible for working credit, 4.2.8.50 Full-time students - personal income test, limits & student income bank, 1.1.Y.20 Youth allowance job seeker

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