1.2.2.40 Other matters impacted by PLP

Income maintenance period

In applying the income maintenance period, which affects DSP, youth allowance, austudy payment, jobseeker payment and parenting payment, PLP is not considered to be a 'leave payment'; however, for the purposes of the severe financial hardship provisions applying to the income maintenance period, PLP is included in consideration of a person's or a couple's liquid assets.

Income management

PLP is not subject to income management.

Child support deductions from PLP

Child Support (CS) has the ability to intercept PLP and deduct child support liabilities and debts from PLP whether paid by an employer or by Services Australia. The deduction rules for employer paid and Services Australia PLP are the same except where CS is seeking deductions in respect of child support debt alone from an employer. In all cases apart from this, the Protected Earnings Amount (PEA) must be left after tax and child support are deducted, that is, if the person is receiving less parental leave pay than PEA, then no child support can be withheld from the payment. Where deductions are sought by CS from an employer in respect of child support debt alone, CS's policies as to the amount of deduction will apply.

Deductions authorised by a person

An employer or Services Australia may make a deduction from PLP if the person authorises the deduction, and if the deduction is principally for the person's benefit.

Recovery of PLP debts

PLP debts can be recovered from the debtor's social security payments or from a third party's social security payments, with their consent, and from Veterans' income support payments, with consent. These debts can also be recovered by deductions from the debtor's instalments of FTB or from their entitlement to family assistance or from a third party's instalment of FTB or entitlement to family assistance with their consent. However, the restrictions relating to recovery for PLP debts from CCS entitlements and payments will remain.