2.2.2.20 Work test for PLP
Introduction
The claimant must establish that they have or had a genuine attachment to the labour force to be eligible for PLP.
PLP work test period
The work test period (1.1.W.40) for the PLP work test is the 392 day period (i.e. a period of approximately 13 months) for claimants other than COVID-19 affected claimants, and the 600-day period (i.e. a period of approximately 20 months) for COVID-19 affected claimants, prior to the expected or actual DOB or placement of the child for adoption, or the date the person became the primary carer of the child.
Initial eligibility determinations
For the purposes of making an initial eligibility determination (1.1.I.70) (a pre-birth claim), the primary claimant's eligibility in relation to the work test is established by examining the work performed within the 392 day period prior to the expected DOB or adoption.
Eligibility determinations
For the purposes of making an eligibility determination (where the decision is made after birth), the primary claimant's work test period is established by examining the work performed within the 392 day period prior to the child's actual DOB or placement of the child for adoption. If the primary claimant is unable to meet the work test based on the actual date of DOB or placement of the adoption, and the child was born or placed after the expected DOB or placement, the work test may be applied to the 392 days prior to the expected DOB or placement. The work test period for a primary claimant in exceptional circumstances or a secondary claimant commences 392 days prior to the day the claimant became the primary carer of the child (note for secondary claimants this is the first time they become primary carer of the child).
If the Secretary is satisfied that a primary or secondary claimant meets the work test and income test requirements on the day a payability determination is made that the claimant is not payable, then the claimant is conditionally eligible for a flexible PPL day for the child (1.1.C.143).
Hazardous jobs for PLP
For a birth mother who does not meet the work test because they ceased work due to hazards connected to their work that posed a risk to their pregnancy, the work test period will be the 392 days prior to the day the claimant is no longer performing work in the hazardous job (2.2.2.25).
COVID-19 affected claimants
For the purposes of making an initial eligibility determination for a primary claimant who is a COVID-19 affected claimant (1.1.C.165), the work test period is the 600-day period prior to the expected date of birth or adoption.
For the purposes of making an eligibility determination for a primary claimant who is a COVID-19 affected claimant, the work test period is the 600-day period prior to the child's actual DOB or placement for adoption. If the primary claimant is unable to meet the work test based on the actual date of DOB or placement of the adoption, and the child was born or placed after the expected DOB or placement, the work test period is the 600-day period prior to the expected DOB or placement.
For secondary claimants who are COVID-19 affected claimants, the work test period is the 600-day period before the day the person first becomes the child's primary carer.
Qualifying period
For the purposes of the work test, a qualifying period is a period of 295 consecutive days (approximately 10 months) in a person's work test period that are days:
- on which the person has performed qualifying work (2.2.2.40), or
- that fall within a permissible break (2.2.2.50).
Days on which a person has not performed qualifying work that do not fall within a permissible break cannot be considered when calculating if the person has a 295 consecutive day qualifying period.
Qualifying work
In addition to meeting the requirements of the 295-day qualifying period, a person must have performed at least 330 hours of qualifying work within the qualifying period.
A person performs qualifying work on a day if they perform at least one hour of paid work on the day or if they take a period of paid leave of at least one hour on a day.
It is not necessary for work to have been performed with a single employer. Work performed with more than one employer in the work test period may count towards the work test. From 1 March 2014, a person can count the days in a PPL and/or DAPP period for a previous child as qualifying work for a new claim. From 1 July 2020, a person can also count flexible PPL days (1.1.F.70) for a previous child as qualifying work for a new claim.
Both PLP and DAPP days or periods that occur in the work test period can count as qualifying work for eligibility for either payment. For example, a person's previous PPL period and any flexible PPL days that occurred in the work test period for a new DAPP claim, may count as qualifying work for the DAPP work test for the new claim and vice versa, for a subsequent child.
A PPL period and any flexible PPL days will not count towards the work test for a DAPP claim for the same child because a person who meets the work test for PLP will also meet the work test for DAPP for that child. Similarly, a DAPP period will not count towards the work test for a PLP claim for the same child.
From 30 March 2020, a day on which a person is entitled to jobkeeper payment can count as a day of qualifying work for the purposes of the work test for PLP or DAPP.
For claims made on or after 4 September 2021, a day on which a person is entitled to the COVID-19 disaster payment from 3 June 2021 can count as a day of qualifying work for the purposes of the work test for PLP or DAPP.
Hours of qualifying work on a day in a PPL or DAPP period
For children born or entrusted to care as part of an adoption process on or after 1 March 2014, a person can count the days in their PPL and/or DAPP period for a previous child as qualifying work for a new claim. From 1 July 2020, any flexible PPL days for a previous child can also count as qualifying work for a new claim.
If a person did not perform paid work or take paid leave during their PPL and/or DAPP period for a previous child, the hours of work the person is taken to have performed on that day is:
- 7.6 if the day is a weekday, and
- no hours if the day is a Saturday or Sunday.
If a person did not perform paid work or take paid leave on a flexible PPL day for a previous child, the person is taken to have performed 7.6 hours of work on that day, including weekends.
If a person performed at least one hour of paid work on a day during their PPL and/or DAPP period for a previous child (where a person takes PLP at the same time as performing work for a permissible purpose (1.1.P.140)), the hours of work the person is taken to have performed on that day is the greater of:
- 7.6 hours of PLP and/or DAPP if the day is a weekday, and
- the actual number of hours of paid work performed by the person on that day.
If a person performed at least one hour of paid work on a day on a flexible PPL day for a previous child, the hours of work the person is taken to have performed on that day is the greater of 7.6 hours of PLP (if the day is a weekday or a weekend), and the actual number of hours of paid work performed by the person on that day.
Example: A person may have performed 2 hours of paid work for a permissible purpose (such as a keeping in touch day) on a weekday in their PPL period. In this circumstance, the person will be taken to have performed 7.6 hours of qualifying work.
If a person takes paid leave of at least one hour during their PPL period for a previous child, the hours of work the person is taken to have performed on the day is the greater of:
- 7.6 hours of PLP if the day is a weekday, and
- the number of hours of paid leave taken by the person on that day.
If the person takes paid leave of at least one hour on a flexible PPL day for a previous child, the hours of work the person is taken to have performed on that day is the greater of 7.6 hours of PLP (if the day is a weekday or a weekend), and the actual number of hours of paid leave taken by the person on that day.
Example 1: A person may be taking 8 hours of paid leave on a weekday during their PPL period. In this circumstance, the person will be taken to have performed 8 hours of qualifying work on that day.
Example 2: A person may be taking 3 hours of paid leave on a flexible PPL day. In this circumstance, the person will be taken to have performed 7.6 hours of qualifying work on that day, whether or not the day is a weekday or weekend.
A person in receipt of the jobkeeper payment or COVID-19 disaster payment will be taken to have performed 7.6 hours of qualifying work for the purposes of the work test for PLP for each weekday (no hours for a Saturday or Sunday) during a period/s of jobkeeper payment or COVID-19 disaster payment.
Where a person has performed at least one hour of paid work or received at least one hour of paid leave on a day during a jobkeeper payment period or COVID-19 disaster payment period, the person will be taken to have performed qualifying work for the greater of 7.6 hours or the number of hours actually worked or number of hours of paid leave received.
Where a person performs at least one hour of paid work on a day and the day is a Saturday or Sunday that falls in a jobkeeper payment period or COVID-19 disaster payment period, the person will be taken to have worked the hours actually performed on that day (instead of no hours).
Example 3: Sarah performs 9 hours of work on a Monday that is in a jobkeeper payment period because she is required to work overtime. However, on Tuesday her hours are reduced to 4 hours due to a decrease in demand, and on Wednesday reduced to nil hours. It would be unfair to determine that on Monday, when she was required to work overtime due to the constantly fluctuating nature of the current work environment, she be taken to have performed 7.6 hours of work because she was working during a jobkeeper payment period. Therefore, the greater of the 2 should be taken into account when applying the PLP work test. In Sarah's case, the 9 hours actually worked would be counted for Monday not 7.6 hours. Sarah would be taken to have performed 7.6 hours of work on Tuesday, Wednesday.
Act reference: PPLAct Part 2-3 Division 3 The work test, section 14 Determination on primary and secondary claims made jointly-claimants sharing PLP, section 33 The work test period-claimants other than COVID-19 affected claimants, section 33A The work test period-COVID-19 affected claimants, section 34 When a person performs qualifying work, section 35A Hours of qualifying work on a day in a PPL or DAPP period, 35B Hours of qualifying work on a day in a jobkeeper payment period, 35C Hours of qualifying work on a day in a COVID-19 Australian Government payment period
PPL Rules Part 2 Division 3 Matters relating to the work test
Policy reference: PPL Guide 2.2.1 PLP eligibility overview, 2.2.2.27 Work test period for COVID-19 affected claimants for PLP