5.2.1.40 CCS & ACCS - change in activity/income
Summary
An individual (1.1.I.90) is required to notify Centrelink when there is a change in their circumstances and their partner's (1.1.P.30) if they have one, 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, if they have one, affects the individual's CCS applicable percentage (1.1.A.70). Updating their combined annual estimated ATI ensures future payments are calculated based on up to date information and reduces the risk of debt (1.1.D.60).
An individual must notify Centrelink, as soon as practicable, if there is a change in the individual's and/or their partner's, if they have one, income, for example when starting a new job or reducing their work hours.
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) after the change is notified.
If an individual reports a change to their combined annual estimated ATI after the change occurred, a review of the CCS applicable percentage paid for past periods is not undertaken until reconciliation (1.1.R.10) occurs.
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 recognised activity, and their partner's, if they have one, can affect the hours of subsidised care the individual is entitled to per fortnight. Updating their recognised activity ensures future payments are calculated based on up to date information and reduces the risk of debt (1.1.D.60).
An individual must notify Centrelink, as soon as practicable, if there is a change in their own or their partner's, if they have one, recognised activity that would cause their activity test result to change.
If an individual reports a change in their recognised activity, or their partner’s, if they have one, before the change has occurred, the new activity test result will take effect from the beginning of the next CCS fortnight after the change occurs.
If the individual reports a change in their recognised activity, or their partner’s, if they have one, after the change has occurred, the change will take effect from the beginning of the next CCS fortnight after the change was notified. A review of entitlement for the past period will usually be undertaken and the outcome will be held over until reconciliation occurs.
An individual must also notify Centrelink, as soon as practicable, if there is a change in their circumstances or their partner’s, if they have one, 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 (3.5.2.20).
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 activity test result to move from 100 hours of subsidised care per fortnight to 36 hours of subsidised care per fortnight.
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