5.2.3 DAPP payment - general
DAPP is funded by the Australian Government out of consolidated revenue. DAPP is taxable income and counts as income for family assistance purposes. DAPP is also counted as income for income support payments for children born or entrusted into a person's care on or after 1 October 2016. DAPP is not to be taken into account for the purposes of workers compensation or accident compensation.
A DAPP payment is protected from sale, assignment, charge, execution and bankruptcy or otherwise by making it inalienable. However, this protection is subject to a deduction for PAYG withholding - see 22.214.171.124.
In addition, from 1 October 2016, the Secretary may deduct an amount from DAPP to avoid overpayment of an income support payment due to the assessment of DAPP under the income support income test.
There are no other amounts that can be deducted by the Secretary or employer from a DAPP payment.
See 126.96.36.199 for information relating to protection from garnishee for an account into which a DAPP payment is paid.
When DAPP is paid to a claimant, Centrelink is required to provide the person with a record of payment.
The PPL Rules prescribe that Centrelink is to give a person the following information at the time of making the DAPP payment or as soon as possible after that date:
- a statement to the effect that the payment is made by Centrelink and is a DAPP payment
- the name of the person (claimant) to whom the DAPP payment is made
- the period to which the DAPP payment applies
- the date on which the DAPP payment is paid
- the gross amount of the DAPP payment
- the net amount of the DAPP payment, and
- the total amount of income tax withheld from the gross DAPP payment amount.
If, after Centrelink pays DAPP, Centrelink makes a variation to the payability determination (5.1.5) that a higher amount of DAPP is payable to the person, then this amount will be paid by Centrelink as soon as practicable after the decision has been made.
If, after Centrelink pays DAPP, the total amount of DAPP paid to the person for the child exceeds the total amount that is payable to the person for their claim, then the excess amount is a debt due to the Commonwealth by the person.
Act reference: PPLAct section 115EE Giving person record of payment, section 115EF Effect of extending DAPP period after review, section 115EG Protection of payment, section 115EH Deductions for PAYG withholding, section 115EI Deductions to avoid overpayment of income support payment, section 115EJ No other deductions, section 115EK Effect of garnishee etc. order, section 115EL Exemption from operation of workers' compensation and accident compensation laws
SSAct section 8(1A) Income test definitions
PPL Rules section 51 Record of payment
Policy reference: PPL Guide 2.3 DAPP eligibility, 188.8.131.52 Protection of instalment of PLP, 184.108.40.206 Deductions from PLP for PAYG withholding, 220.127.116.11 Deductions from PLP to avoid overpayment of ISP, 5.1.5 Withdrawal or variation of a claim for DAPP