The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

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.

Last reviewed: