Effect of Deprivation on Eligibility & Rate


The topic discusses the effect of deprivation on:

  • hardship eligibility, and
  • hardship payment rate.

Effect of deprivation on eligibility

The value of a person's deprived asset (1.1.D.110) is disregarded IF:

  • a person is in severe financial hardship (1.1.S.120), AND
  • the hardship is NOT a direct result of disposing of the asset (1.1.D.210), AND
  • the person would have qualified for hardship EVEN if they had NOT disposed of the asset.

Explanation: Deprived assets ARE included in the hardship rate calculations.

An income tested person is INELIGIBLE for hardship if:

  • they have substantial deprived assets, AND
  • the deemed income for the assets (1.1.A.290) caused the person to be income tested.

Effect of deprivation on rate

Notional income MAY be assessed IF:

  • a person disposes of an asset, AND
  • the disposed asset is disregarded under the hardship provisions.

Act reference: SSAct section 1129 Access to financial hardship rules - pensions, section 1130B Access to financial hardship rules - pension PP (single), section 1131 Access to financial hardship rules - benefits

Policy reference: SS Guide 4.1 Deprivation of income & assets, Notional Ordinary Income - Overview, 4.4 Deeming Provisions

Last reviewed: 10 November 2014