1.1.G.58 Grandfathering arrangements (NSA) pre 1 July 2012

Note: There are no longer any grandfathered NSA recipients as of 1 July 2013. The following information is for historical purposes only.

Definition

For the purposes of NSA, grandfathering arrangements refer to arrangements which allow a previous payment status, obtained under pre 1 July 2012 qualification provisions, to be maintained on or after 1 July 2012.

There are 3 circumstances under which these arrangements apply:

  • person who was aged 21 years on 30 June 2012 and in receipt of NSA or suspended from payment immediately before 1 July 2012, or
  • person who was aged 21 years who had lodged a claim for NSA before 1 July 2012 and is subsequently granted NSA for that claim, or
  • person who was aged 21 years who had lodged claim for NSA before 1 July 2012 and is subject to a waiting or exclusion period which takes their start date past 1 July 2012.

Person who was aged 21 years & in receipt of NSA on 01/07/2012

The pre 1 July 2012 provisions will continue to apply to unemployed people aged 21 years on 30 June 2012 who qualify for NSA under the pre 1 July 2012 qualification provisions AND were in receipt of payment OR suspended from payment immediately before 1 July 2012 until the person's NSA is cancelled.

Person who was aged 21 years who lodged a claim for NSA before 01/07/2012 & is subsequently granted NSA for that claim

The pre 1 July 2012 provisions will continue to apply to unemployed people aged 21 years who had lodged a claim for NSA before 1 July 2012 and subsequently have that claim granted post 1 July 2012 until the person's NSA is cancelled.

If the claim is not granted, the person cannot be considered to be grandfathered under the pre 1 July 2012 qualification provisions.

Example: Lachlan is aged 21 years and lodges a claim for NSA on 25 June 2012. He had to provide an Employment Separation Certificate which he lodged with Centrelink on 4 July 2012. Lachlan's claim for NSA is granted on 7 July 2012 with a start date of 28 June 2012. Lachlan is considered to be grandfathered under the pre 1 July 2012 qualification provisions.

Person who was aged 21 has lodged a claim for NSA before 01/07/2012 & is subject to a LAWP, IMP, or exclusion period which takes start date past 01/07/2012

The pre 1 July 2012 provisions will continue to apply to unemployed people aged 21 years who:

  • lodge a claim for NSA before 1 July 2012 but are serving a LAWP on 1 July 2012, or
  • have had their claim for NSA granted before 1 July 2012 but an IMP applies to the person on 1 July 2012, or
  • have had their claim for NSA granted before 1 July 2012 but who are subject to an exclusion period which takes their start date to or past 1 July 2012

until the person's NSA is cancelled.

Example: Alice is aged 21 years and lodges a claim for NSA on 25 June 2012 and it is granted on 29 June 2012. Alice is subject to an OWP of one week as she has $600 in her bank account. Her start date for NSA is 2 July 2012. Alice is considered to be grandfathered under the pre 1 July 2012 qualification provisions.

Act reference: SSAct section 14A Social security benefit liquid assets test definitions, section 1068-G7AG to 1068-G7AR Income maintenance period for NSA

SS(Admin)Act Schedule 2 clause 3 Start day-general rule, Schedule 2 clause 5 Effect of exclusion period

Social Security and Other Legislation Amendment (Income Support and Other Measures) Act 2012 (No. 52, 2012) Schedule 1 clause 16 Application-NSA

Last reviewed: 8 May 2017