3.9.2.30 PCC extension rules

Introduction

In some circumstances, PCC holders may continue to use their PCC for a specified amount of time after their primary pension or income support payment, which attracted the PCC, ceases to be paid.

This topic provides information about:

• overview of PCC extension rules
• PCC continuation after a payment ceases to be payable
• interaction with an employment income nil rate period
• multiple 12-week continuations
• PCC continuation - start date and end date
• 2-year extension - Age
• 2-year extension - DSP
• 2-year extension - eligible partners of Age and DSP recipients with a 2 year extension
• 52-week extension - JSP and YA (job seeker) with partial capacity to work
• 52-week extension - PPS and PPP with partial capacity to work
• 26-week extension - PPS recipients and single principal carers receiving JSP or YA (job seeker) payments, and
• 26-week extension - long-term recipients of income support aged above 55 years old.

Note:

• Generally, income support recipients who lose payment because of increased employment income can retain their PCC for 12 weeks, unless an extension or continuation applies.
• PCC holders can continue to use their PCC while serving an 8-week non-payment period related to a participation failure required by their income support payment.

Overview of PCC extension rules

The PCC can be continued for a specified period while the cardholder is in Australia, if they cease receiving payment due to an increase in their or their partner's employment income. The period of extension is generally 12 weeks (employment income nil rate period), but can be greater depending on the payment and the cardholder’s circumstances.

PCC holders may qualify for one or a combination continuation and extension periods. Continuation and extension periods do not run consecutively, unless specifically noted.

Note: Concession cards generally have a limited non-cancellation period of 6 weeks while the cardholder is temporarily outside Australia. A person's qualification for the concession card is not affected by an absence within this period.

The following table provides an overview of the PCC continuation and extension provisions (including SSAct references).

PCC continuation during employment income nil rate period

A person is qualified to retain their PCC for 12 weeks after the end of the instalment period in which the payment ceases to be payable if:

• the person's rate of payment of the pension or benefit is worked out with regard to the income test module of a rate calculator in SSAct Chapter 3
• a payment ceases to be payable to the person because of the employment income of the person or their partner, and
• but for the employment income the person would have continued to be qualified for a PCC, because the payment would continue to be payable to the person.

Note: PP recipients (who were granted payment on or after 1 July 2006) who enter a 12-week employment nil rate period can retain the PCC for the 12 weeks provided the nil rate period is due to their employment income or that of their partner. In this case the person must remain qualified for PP, apart from the requirement to have a PP child.

Note: People who lose qualification for their payments due to their employment are not eligible for a 12-week PCC continuation.

Interaction with employment income nil rate period

It would frequently be the case that when a person qualifies to keep their PCC for 12 weeks, they will also qualify for an employment income nil rate period, during which time they can keep some supplementary benefits and get back on payment more easily. However, JSP and YA (job seeker) recipients cease to qualify for those payments when they enter ongoing full-time employment. In these circumstances, they do not have an employment income nil rate period but may still be entitled to concession cards for a period of time under concession card extension rules (as set out in the table above).

Multiple 12-week extensions

There is NO limit on the number of times the PCC can be extended, provided the eligibility criteria is met each time. For a cardholder to qualify for a second or subsequent PCC continuation they must have returned to their social security payment and again had employment income that makes their income support payment go to nil rate.

PCC continuation - start date & end date

The start date is the day after the recipient's social security pension or benefit reduces to nil. This means, if a recipient has working credits, the start date is after the working credits have run down to zero, not from the commencement or increase of employment income that caused their income support to go to nil rate. The end date of the extension period is 12 weeks after the end of the entitlement period in which the recipient's social security pension or benefit went to nil rate. In effect, the period that is referred to as 12 weeks could run for up to almost 14 weeks.

2-year extension - Age

A person can retain their PCC for up to 2 years when their rate of Age is nil due to income, as long as their income includes some income from employment in Australia.

2-year extension - DSP

PCC entitlement continues for 2 years from the date a person ceases to be qualified for DSP due to commencing work of at least 15 hours a week, or if DSP ceases to be payable due to an increase in the person's income from employment. Entitlement to the PCC during the 2-year extension period is NOT affected by any further increase in the income of the person or their partner (1.1.P.85). There is NO limit on the number of times the PCC can be extended.

2-year extension - partners of Age & DSP recipients

Where an Age or DSP recipient who has a 2-year extension of their PCC, is partnered to a person receiving Age, DSP or CP, the partner can also get a 2-year extension of their PCC.

52-week extension - JSP & YA (job seeker) with partial capacity to work

PCC entitlement continues for 52 weeks from the date a cardholder with partial capacity to work (1.1.P.65) ceases to be qualified for JSP or YA (job seeker) due to employment income.

52-week extension - PPS & PPP recipients with partial capacity to work

PPS or PPP recipients (who were granted payment on or after 1 July 2006) who have a partial capacity to work due to disability, and who lose qualification for payment due to an increase in the person's ordinary income from employment, can have a 52-week extension of the PCC as long as when the person would otherwise cease to qualify for the PCC they have a partial capacity to work.

Note: When a PP recipient with a partial capacity to work due to disability qualifies for a 12-week PCC continuation (during a nil rate period), that PCC continuation period will be concurrent with the 52-week PCC extension period.

26-week extension - PPS recipients & single principal carer JSP & YA (job seeker) recipients

PPS recipients and single principal carer JSP and YA (job seeker) recipients may be eligible for a concession card extension of up to 26 weeks when their payment ceases to be payable due to employment income. As the continuation and the extension both start from the date that PPS is no longer payable and run concurrently, it means that the person will have a PCC for the nil rate period and then a HCC for the remainder of the 26-week extension period.

Exception: If a PPS recipient loses qualification because they no longer have a dependent child in their care this event does not affect qualification for the 12-week PCC extension.

Note: If a PPS recipient loses qualification because their youngest child turns 14 years old, they can keep the PCC for 12 weeks. The extension will cease if the person moves permanently overseas or until they start to receive an income support payment for which a PCC is available.

26-week extension - long term recipients of income support aged above 55 years old

Long-term recipients of social security benefits (those who are aged 55 years or older and have been in continuous receipt of a social security benefit for at least the preceding 39 weeks) can retain their PCC for a further 26 weeks.

The 26 weeks starts:

• the day after the 12-week employment income nil rate period finishes, if the person's rate of payment is reduced to nil due to their, and/or their partner’s employment income, or
• the day after the person loses qualification for their payment because they commenced full-time employment.

Note: Residence requirements do not apply to people covered by the provisions of the reciprocal Social Security Agreement with New Zealand.