1.1.C.250 Compensation affected payment

Usage

This definition applies to all payments.

Definition

A CAP is a social security payment that can be affected by the receipt of:

  • a lump sum compensation payment, and/or
  • periodic compensation payments (either paid periodically or as a lump sum).

A CAP can be:

  • not paid if appropriate compensation action is not taken,
  • subject to a preclusion (non-payment period) if a lump sum compensation payment is received,
  • reduced on a dollar for dollar basis (direct deduction) if periodic compensation payments are received, or
  • in certain circumstances, reduced by periodic compensation payments assessed as ordinary income.

A CAP may also be a 'SCAP' (1.1.S.42).

The rate of a CAP can include the following additional payments:

  • approved program of work (WFD),
  • bereavement payment,
  • energy supplement,
  • language, literacy and numeracy supplement,
  • pension supplement,
  • pharmaceutical allowance,
  • remote area allowance,
  • rent assistance,
  • training supplement, and
  • national green jobs corps supplement.

Note: The training supplement and national green jobs corps supplement were time-limited payments and are no longer available.

Act reference: SSAct section 1064 Rate of age, disability support, wife pensions and CP (people who are not blind), section 1065 Rate of age and disability support pension (blind people), section 23(1)-'social security payment'

List of CAPs directly included in legislation

The table below lists all CAPs and when they became a CAP.

Payment Date Additional information
Age pension (including blind) 20/03/1997 Provisional commencement day or start day rather than date of claim.
Austudy payment 01/07/1998 -
Carer payment 01/01/1993 Prior to this date carer pension was a CAP if:
- the compensation was received before this date, AND
- the pension was claimed or received by the compensation recipient's partner, AND
- the partner was getting pension for caring for the compensation recipient.
CDEP supplement 01/07/2004 Was abolished 1 July 2015.
Energy supplement 20/03/2013 ES is a compensation affected payment only if the underlying qualifying payment is a CAP.
DSP (including blind) 01/05/1987 Including special needs DSP, disability wage supplement and rehabilitation allowance.
Education entry payment 01/07/2004 -
Employment entry payment (EEP) 01/07/2004 Was abolished 1 July 2008.
Fares allowance 01/07/2004 -
Farm household allowance 01/07/2014 Under the Farm Household Support Act 2014 subsection 90 and subsection 93(1) items 1 and 2, the farm household allowance is treated as NSA and YA payments are treated under the SSAct.
Newstart allowance 01/05/1987 Including unemployment benefit (UB) and job search allowance.
Mature age allowance 20/03/1994 -
Mature age partner allowance 20/03/1994 -
Parenting payment 20/03/1992 Including sole parent pension and parenting allowance.
Partner allowance 20/09/1994 -
Pensioner education supplement 01/07/2004 -
Pension supplement 20/09/2009 -
PhA advance 01/07/2004 -
Rehabilitation allowance (in lieu of SA) Paid at any time -
Sickness allowance Paid at any time Including sickness benefit (SB).
Special benefit 01/05/1987 -
Telephone allowance 01/07/2004 Other than that paid to the holder of a CSHC.
Widow allowance 01/01/1995 -
Wife (disability support) pension 01/05/1987 Including special needs disability support wife's pension, disability wage supplement wife's pension.
Note: For debt recovery, certain conditions apply. Refer to 6.4.1.
Youth allowance 01/07/1998 -

Note: Age (blind) and DSP (blind) recipients are paid free of the income and assets test but are affected by the compensation provisions of the SSAct.

Note: EEP was abolished 1 July 2008. From that date claims can only be made in respect of employment events occurring before 1 July 2008.

Note: A temporary EdEP supplement of $950 was paid to EdEP recipients during the period 1 January 2009 to 30 June 2010. The EdEP supplement was part of the EdEP and may be recovered under the compensation provisions.

Note: Payments exempt from the compensation provisions are the wife (age) pension, widow pension, BVA, and disability pensions paid from DVA.

The definition of compensation does not include payments such as victims of crime schemes (including criminal injury compensation and death benefits), compensation for discrimination, and disability pensions from DVA.

Other payments from DVA are not affected by the compensation provisions as they are compensatory type payments, although some are affected by DVA compensation offsetting rules.

Act reference: SSAct section 17(1) Compensation recovery definitions, section 23(1)-'social security payment', Part 3.14 Compensation recovery

Policy reference: SS Guide 3.1.9 Compensation Provisions, 4.13 Compensation, 6.4 Compensation Recovery

Last reviewed: 3 July 2017