5.2.1.40 CCS & ACCS - change in activity/income
Summary
An individual (1.1.I.90) is required to notify Centrelink when they experience a change in circumstances that affects their CCS or ACCS entitlement (1.1.E.30) as soon as practicable. This topic covers:
Change in combined annual estimated ATI
A change in the combined annual estimated ATI for an individual and their partner (1.1.P.30), if they have one, affects the individual's CCS applicable percentage (1.1.A.70). An individual must notify Centrelink if their combined annual estimated ATI changes.
When an individual provides a new combined annual estimated ATI, it will be applied from the beginning of the next CCS fortnight (1.1.C.10). If an individual's income changes (e.g. they start a new job or reduce their work hours), they should update their combined annual ATI estimate as soon as practicable to ensure future payments are calculated based on up to date information (and reduce the risk of debt (1.1.D.60)). If an individual reports a change to their combined annual estimated ATI after the change occurred, a review of entitlement is not undertaken, as actual CCS or ACCS entitlement based on actual ATI is confirmed at reconciliation (1.1.R.10).
Act reference: FAAct Schedule 3 Adjusted taxable income
FA(Admin)Act section 67DB Determinations when adjusted taxable income is not known, section 67FB Notice of change of circumstances: individuals
Policy reference: FA Guide 3.2.3 Adjusted fringe benefits total, 3.2.6 Tax free pensions or benefits, 3.2.7 Deductible child maintenance expenditure, 3.5.1 CCS - combined annual ATI, 5.2.1.10 Change of circumstances - general provisions, 5.2.1.20 Change of eligibility circumstances
Change in recognised activity
A change in an individual's activity, and their partner's activity if they have one, can affect the hours of subsidised care the individual is entitled to per fortnight. An individual must notify Centrelink, as soon as practicable, if there is a change in the recognised activity the individual is participating in, that would cause them to move to a different step of the activity test. An individual must also notify Centrelink, as soon as practicable, if there is a change in their circumstances that would mean they are no longer eligible for an exemption to the activity test, or would now be eligible for an exemption to the activity test.
Example: Charlotte had reported she was undertaking 40 hours of unpaid work experience per fortnight and 10 hours of paid work per fortnight - a total of 50 hours of recognised activity per fortnight. When Charlotte finishes the unpaid work experience, she must report this change as it will cause her to move from step 3 of the activity test (100 hours of subsidised care per fortnight) to step 1 of the activity test (36 hours of subsidised care per fortnight).
If an individual reports a change in activity in advance of the change occurring, the new activity test result will take effect from the beginning of the CCS fortnight after the change occurred.
If the individual reports a change in activity after the change occurred, the change will take effect from the beginning of the CCS fortnight after the change was notified. When an individual reports a change in activity after the change occurred, a review of entitlement will usually be undertaken.
Act reference: FAAct Schedule 2 section 12(7) Changes in the number of hours of recognised activity
FA(Admin)Act section 67FB Notice of change of circumstances: individuals, section 105C Review of entitlement to be paid CCS or ACCS-taking account of changes of circumstances etc.
Policy reference: FA Guide 3.5.2 CCS - activity test , 5.2.1.10 Change of circumstances - general provisions, 5.2.1.20 Change of eligibility circumstances, 6.2 Internal reviews