1.2.2.20 PLP & impacts on social security & other payments
Note: On 1 October 2016, changes to the SSAct definition of 'ordinary income' came into effect. These changes mean that PLP is considered as income, which may reduce the amount of an income support or other payments that are payable to a person and/or their partner. This topic describes how these changes apply to associated government assistance payments.
Income support
From 1 October 2016, PLP is included as income for all income support payments (for example, parenting payment (single and partnered), jobseeker payment/youth allowance and DSP). This applies to claimants with children born or entrusted into their care on or after 1 October 2016, whether or not a claim for PLP was made before, on or after 1 October 2016.
Similarly, from 1 October 2016, PLP affects the rate of a person's service pension, veteran payment or income support supplement payable under the Veterans' Entitlements Act 1986 including the exceptional circumstances relief payment and farm help income support provided through the Farm Household Support Act 2014.
In addition, where a person is eligible for PLP and is also on income support, from 1 October 2016, Services Australia will make PLP payments directly to that person in place of their employer (5.1.1).
Note: According to the SSAct section 23(1) 'veteran payment' means a veteran payment made under an instrument made under section 45SB of the Veterans' Entitlements Act.
Act reference: SSAct section 8(1) Income test definitions, section 23(1)-'income support payment', section 23(1)-'veteran payment'
Veterans' Entitlements Act 1986 section 5H Income test definitions
Policy reference: PPL Guide 5.1.1 Making employer determinations for PLP
ABSTUDY
PLP paid in respect of children born or entrusted into care on or after 1 October 2016, is considered income for the purposes of the ABSTUDY personal and partner income tests. For the parental income test, PLP is taxable income and is therefore included in a person's ATI (1.1.A.40) in assessing entitlement to dependent ABSTUDY.
Policy reference: ABSTUDY Policy Manual Chapter 58 Parental Income Test and Reduction for Parental Income, Chapter 60 Partner Income Tests and Limits, Chapter 61 Personal Income Test, Limits and Student or Australian Apprentice Income Bank
Assistance for Isolated Children (AIC) Scheme
PLP is included in assessing entitlement to means tested Additional Boarding Allowance.
Child support
PLP is taxable income and is therefore included in a person's ATI for purposes of assessing the annual rate of child support payable for a child or children.
Act reference: Child Support (Assessment) Act 1989 section 43 Working out parent's adjusted taxable income
Family assistance
PLP is taxable income and is therefore included in a person's ATI (FA Guide 1.1.A.20) for purposes of applying the relevant income tests.
Act reference: FAAct Schedule 3 Adjusted taxable income
Policy reference: FA Guide 3.2.1 Adjusted taxable income - general provisions
Health care cards
PLP is included as income for the purposes of the Commonwealth seniors' health card, claim based (low income) health care card, and the veterans' seniors' health care card.
Act reference: SSAct section 1071A-4 Health Care Card Income Test Calculator - Definitions
Youth allowance
For the parental income test, PLP is taxable income and are therefore included in a person's ATI in assessing entitlement to dependent youth allowance.