1.2.2.40 Other Matters Impacted by PLP or DAPP

Income maintenance period

In applying the income maintenance period, which affects DSP, youth allowance, Austudy payment, newstart allowance, widow allowance, sickness allowance and parenting payment, PLP or DAPP are not considered to be a 'leave payment'; however, for the purposes of the severe financial hardship provisions applying to the income maintenance period, PLP and DAPP are included in consideration of a person's or a couple's liquid assets.

Income management

PLP and DAPP are not subject to income management.

Child support deductions from PLP

The Child Support Agency (CSA) has the ability to intercept PLP and deduct child support liabilities and debts from PLP whether paid by an employer or by Centrelink. The deduction rules for employer paid and Centrelink PLP are the same except where the CSA is seeking deductions in respect of child support debt alone from an employer. In all cases apart from this, the Protected Earnings Amount (PEA) must be left after tax and child support are deducted, i.e. if the person is receiving less parental leave pay than PEA, then no child support can be withheld from the payment. Where deductions are sought by the CSA from an employer in respect of child support debt alone, CSA's policies as to the amount of deduction will apply.

Act reference: PPLAct section 69 Deductions relating to child support

Deductions authorised by a person

An employer or Centrelink may make a deduction from PLP if the person authorises the deduction, and if the deduction is principally for the person's benefit.

Act reference: PPLAct section 67 Deductions authorised by person

Deductions from DAPP

Apart from PAYG, no other deductions may be made from DAPP.

Act reference: PPLAct section 115EJ No other deductions (DAPP)

Recovery of PLP debts

PLP debts can be recovered from the debtor's social security payments or from a third party's social security payments, with their consent, and from Veterans' income support payments, with consent. These debts can also be recovered by deductions from the debtor's instalments of FTB or from their entitlement to family assistance or from a third party's instalment of FTB or entitlement to family assistance with their consent. However, the restrictions relating to recovery for PLP debts from child care benefit (CCB) and child care rebate (CCR) entitlements and payments will remain. These restrictions will also apply to the new CCS. CCB and CCR were replaced by CCS on 2 July 2018.

Act reference: PPLAct section 67 Deductions authorised by person, section 69 Deductions relating to child support, section 115EJ No other deductions (DAPP)

Policy reference: PPL Guide 7.3.4 Methods of Debt Recovery

Last reviewed: 2 July 2018