18.104.22.168 Treatment of PLP & DAPP
PLP and DAPP are counted as income for social security purposes where the payment is in respect of a child who was born on or after 1 October 2016 or a child who became entrusted to the care of the person on or after 1 October 2016. PLP and DAPP are counted as ordinary income. PLP and DAPP are not treated as employment income.
Act reference: SSAct section 8(1)-'income amount', section 8(1A)-'employment income', section 1072 General meaning of ordinary income
The gross rate of PLP and DAPP is assessed as income for the period that the entitlement relates to.
Example: If a person is entitled to PLP of $672.60 a week for an 18 week period from 5 January 2017 till 10 May 2017, then it is assessed as income for social security purposes at that rate for that same period.
Deductions from PLP or DAPP to avoid overpayments
Because PLP and DAPP are assessed as income for the period that the entitlement relates to, overpayments of social security payments may occur when PLP and DAPP is granted after the eligibility commencement date and arrears are paid.
Where this has occurred, deductions may be made from PLP and DAPP arrears instalments equal to the amount of social security payment that would be overpaid.
Act reference: PPLAct section 69A Deductions to avoid overpayment of an income support payment