The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. TheĀ 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.

4.3.5.30 Employer required to notify Centrelink if certain events happen in relation to PLP

Introduction

If Centrelink makes an employer determination for a person and an employer, then the employer is required to notify Centrelink if one of the events listed below occurs:

  • the employer's bank account details change
  • the person's instalment period (1.1.I.80) changes
  • the person's pay day changes
  • the payroll cut-off for instalments payable to the person changes
  • the employer becomes aware that they (the employer) is ceasing, or is likely to cease, to carry on a business
  • the person performs more than one hour of paid work for the employer at any time during the personā€™s continuous flexible period
  • the person ceases to be employed by the employer before the end of the person's continuous flexible period
  • the employer does not pay an instalment the employer is required to pay to the person
  • the employer is not paid enough to fund a particular instalment at the payroll cut-off for the instalment
  • the employer is not paid the agreed PPL funding amount
  • a PPL funding amount paid to the employer is for a greater amount than it should be for the number of days for which the PPL funding amount has been paid, or
  • the sum of the funding amounts paid to the employer for the person is more than the sum of amounts of the instalments that are payable by the employer to the person.

These events are relevant:

  • to whether the employer is required to pay an instalment
  • to the payment of PPL funding amounts (1.1.P.180)
  • to the payment by the employer of instalments of PLP, and
  • to whether an instalment of PLP is payable to the person.

A notice, in a manner approved by Centrelink, must be given as soon as practicable after the employer becomes aware that the event has happened. In the case of ceasing, or being likely to cease, to carry on a business, notice must occur as soon as practicable, but, not more than 30 days before the event.

A failure by an employer to comply with these notification provisions may result in a financial penalty.

An employer's obligation to notify of the events listed above ceases to apply if the event happens on or after the earliest of the following days:

  • if the employer determination comes into force and
    • is not revoked - the day after the person's continuous flexible period ends, or
    • is revoked - the day the revocation comes into force.
  • if the employer determination never comes into force, the day Centrelink, instead of the employer, becomes required to pay instalments to the person.

Act reference: PPLAct section 82 Notifying Secretary if certain events happen

Policy reference: PPL Guide 4.3.8 Rules for paying instalments of PLP, 5.1 Employer determinations for PLP, 6.2 Compliance

Last reviewed: