188.8.131.52 Centrelink provision of PPL funding amounts to employers
Where Centrelink has made an employer determination for a person and their employer, and a determination has been made that the person is payable, Centrelink generally will provide fortnightly PPL funding amounts (1.1.P.180) to the employer in advance of the pay roll cut-off for the instalment of PLP that is to be provided to the person. However, employers can elect to receive the PPL funds for the person in just 3 PPL funding amounts rather than fortnightly.
When does Centrelink provide PPL funding amounts to the employer?
An employer is required to provide PLP to their eligible employee if an employer determination has come into force for the employer and the person, and if the employer has been paid enough (1.1.P.10) by Centrelink to fund the instalment.
Centrelink transfers PPL funding amounts to the employer in either fortnightly or 6-weekly funding amounts irrespective of the employee's pay cycle (i.e. weekly, fortnightly, or monthly). The first transfer of funding amount to an employer could include multiple fortnightly or 6-weekly funding amounts if there is a component of arrears owing to the person.
Examples: If the employee is usually paid 1 month in arrears, Centrelink will make fortnightly payments of PPL funding amounts to the employer in a manner that enables the required number of PPL funding amounts to reach the employer before the usual pay cycle cut-off day, so that the correct amount can be paid to the employee 1 month in arrears on the employee's usual pay day.
If the employer has requested PPL funding amounts be provided in 3 payments and the employee is paid monthly, a fortnight in arrears and a fortnight in advance, Centrelink will provide adequate PPL funding amounts before the usual pay cycle cut-off to fund the usual monthly payment. Each payment may include no more than 6 weeks' advance of the employee's instalments.
Obligations on Centrelink when an employer provides the PLP
Where an employer is required to provide PLP to an employee Centrelink must give the employer written notice of PPL funding amounts each time a PPL funding amount is deposited to their business' bank account. The notice must name the employee for whom the PPL funding amount has been paid, the amount of the PPL funding amount, the PPL days (1.1.P 170) covered by the amount and the daily amount of PLP payable for each of the PPL days. If the employer has several employees receiving PLP, Centrelink provides details of the PPL funding amount deposited to the employer's account for each employee.
Centrelink may require a person (including an employer) to provide information or produce a document for the purposes of:
- determining whether a person is or was eligible or initially eligible for PLP - this might include information to verify claims of both primary and secondary claimants,
- determining whether PLP is or was payable to a person,
- determining whether PLP should be paid by an employer or Centrelink and, if through an employer, which employer, or
- ensuring compliance by an employer with their obligations under the PPLAct, or
- any inquiry or investigation into a matter listed above.
In relation to debts owed to the Commonwealth under the PPLAct, Centrelink can require the debtor, including an employer, to provide information or produce a document relevant to the debtor's financial circumstances or can require a person to provide information or produce a document that would help locate the debtor or that is relevant to the debtor's financial circumstances.
Centrelink may also require a person, including a representative of an employer, to attend an interview to give the required information.