3.5.1.90 Payability summary for PP
Summary
Even though a person is qualified, PP may not be payable to the claimant in the circumstances listed in the following table. If more detail about the circumstance is required, the second column indicates where you will find this.
| Circumstances | More detail |
|---|---|
| PP MAY NOT be payable | |
|
When the claimant is serving: |
3.1.2.40 Newly arrived resident's waiting period (NARWP) 3.1.2.70 Exemptions from waiting periods 4.3.4 Income maintenance period 3.1.7 Seasonal work preclusion period 3.1.2.50 Ordinary waiting period |
| Before the start day. | 8.3 Start days |
| If the person's PP rate would be nil. | SSAct section 500I PP not payable if payment rate nil |
| Due to application of the general payability provisions. | 3.1.6.10 General payability provisions |
| If another social security income support payment or a pension under the VEA becomes payable. | This topic. |
To a SINGLE claimant/recipient:
|
3.5.1.100 Payability of PP - single rate |
To a PARTNERED claimant/recipient:
|
3.5.1.110 Payability of PP - partnered rate |
Multiple entitlement exclusions
PP is NOT payable to a claimant who is already receiving:
- a service pension, OR
- a social security benefit or social security pension, OR
- youth allowance, OR
- a widow or widower pension under the VEA, as a person whose deceased partner was a veteran, a member of the defence forces, or a member of a peacekeeping force.
PP also CEASES to be payable if any of these payments BECOME payable to the recipient.
Example: Because the person has claimed it.
Act reference: SSAct section 23(1)-'service pension', section 23(1) -'social security benefit', section 23(1)-'social security pension', section 500I PP not payable …, section 500S Multiple entitlement exclusion
Policy reference: SS Guide 3.5.1.100 Payability of PP - single rate, 3.5.1.110 Payability of PP - partnered rate
Income & assets tests
PPS is payable under the 'PPS' income test, but uses the 'benefits' assets test. PPP is payable under the benefits assets and income tests.
Policy reference: SS Guide 4.2.4 PP means tests & limits, 3.5.1.100 Payability of PP - single rate, 3.5.1.110 Payability of PP - partnered rate, 4.2.4.20 PPP income & assets tests & limits, 4.3.1.40 Determining the rate of income for PP
Employment income nil rate period - an incentive to take up work
A PP recipient who loses payment because of ordinary income (1.1.O.30), made up entirely or partly of employment income (1.1.E.102), may qualify for an employment income nil rate period. To assess qualification for an employment income nil rate period see 3.1.12.
During the employment income nil rate period a PP recipient can:
- be paid certain supplementary benefits see 3.1.12, and
- retain their HCC or PCC, and
- have their payment resumed if they report a fall in income sufficient for PP to be payable again.
Explanation: This policy provides incentives for PP recipients to take up work, particularly casual or short-term work.
Act reference: SSAct section 23(4A) Despite subsection (4) …, section 23(4AA) For the purposes of subsection (4A) …, section 1061ZEA Further extended qualification rule: loss of payment because of employment income, section 1061ZMA Further extended qualification rule: loss of payment because of employment income
Policy reference: SS Guide 3.1.12 Employment income nil rate period, 3.9.1.10 Qualification for HCC - automatic issue, 3.9.2.30 PCC extension rules
NARWP
From 1 January 2019 changes were made to the NARWP for PP. A person who is granted a permanent visa on or after 1 January 2019 is subject to a 208 week NARWP for PP. A person who was a holder of a permanent visa before 1 January 2019 is not subject to a 104 week NARWP, but is still subject to the 104 week qualifying residence requirements (3.5.1.70).
Note: Different payments have different waiting periods. The length of the NARWP depends on a person's situation and payment type. A person who has fully served a NARWP for one payment may still be serving a NARWP for other payments. Refer to specific payment guide topics for individual rules.
Exemptions for the NARWP
There are a number of exemptions from the NARWP for PP, and situations where a NARWP does not apply (see 3.1.2.70 for details). This includes:
- Australian citizens
- refugee, former refugee or a family member of a refugee
- people who become a lone parent after becoming an Australian resident (PPS only).
Note: A person who has a QRE for PP will receive an exemption to the NARWP for PP.
There are also other exemptions specific to other payment types (see 3.1.2.70, FA Guide 2.2.1.10 and PPL Guide 2.4.3).
Example: Abdul, Shireen and their daughter, Mina, are granted permanent visas under the Skilled stream in January 2019 and are subject to a 104 week qualifying residence period and 208 week NARWP for relevant social security payments. Three years later, Abdul and Shireen separate and Shireen retains full-time care of Mina who is 4 years old. Shireen claims PPS as she is the principal carer of Mina. She has served her 104 week qualifying residence period and she is granted an exemption from the NARWP for PPS because she became a lone parent after becoming an Australian resident. As she is receiving an income support payment (PPS), Shireen is also exempt from the NARWP for FTB and is able to receive this additional assistance with the costs of raising Mina.