6.1.1 Making employer determinations for PLP
Note: From 1 October 2016, Centrelink must not make an employer determination for PLP for a person receiving an income support payment. This change means Centrelink will administer instalments for PLP claimants.
Centrelink is required to make an employer determination (1.1.E.60) (that the person's employer is required to pay instalments) if Centrelink is satisfied of all of the following matters:
- a payability determination that PLP is payable to the person or an initial eligibility determination for the person is in force, and
- instalments are likely, if the determination is made, to be payable by the employer to the person for at least 40 consecutive PPL days (1.1.P.170) that are week days, (i.e. the person is expected to receive at least 8 weeks of PLP), and
- the person has, or will have been, employed by the employer (or by the Commonwealth) for at least 12 months immediately before:
- the expected DOB (or placement) of the person's child where the person claims before the birth, or
- the later of the expected DOB (or placement) and the day the child was born where the person claims after the birth, and
- the person is likely to be an Australian-based employee (1.1.A.90) of the employer for the person's PPL period where a payability determination has been made, or for the period of days for which instalments are likely to be payable in any other case.
- That the employer has an ABN.
- Exception: the requirement for an employer ABN does not apply to employers of law enforcement officers and defence force members.
If the person has more than one employer who satisfies the required criteria, then the person must nominate in their claim the employer they would like to pay their instalments.
Exception: Where the person's employer has elected to pay the person their instalments, and the person has consented in the claim to the employer paying their instalments, the following requirements for the making of an employer determination do not have to be met:
- PLP is payable by the employer for at least 40 consecutive PPL days, and
- the person has or will have been employed by the employer or by the Commonwealth) for at least 12 months prior to the expected or actual DOB (or placement).
Centrelink cannot make an employer determination unless Centrelink is satisfied of the matters referred to above and the employer determination is made on or before the day the payability determination is made.
Exception: If the payability determination is made following a review, the employer determination can be made after the day of the payability determination (6.2.2).
Centrelink may decide not to make an employer determination where:
- the person's PPL period (1.1.P.200) has ended,
- the person is a tertiary claimant,
- the child in respect of whom PLP is payable is stillborn or has died,
- the primary claimant owes a debt in relation to an instalment paid in relation to a child and the person is a secondary claimant for the same child, or
- the employer is not a fit and proper person.
Matters that Centrelink may take into account in determining whether an employer is a fit and proper person include:
- whether the employer is insolvent,
- whether the employer has, or is alleged to have, contravened a civil penalty provision of the PPLAct,
- whether a matter relating to a contravention by the employer has been referred to the FWO,
- whether the employer has, or is alleged to have, contravened a provision of an industrial law,
- whether the employer has been convicted of certain criminal offences involving fraud or dishonesty, misapplication of money, management of affairs of a body (whether or not incorporated), and
- any other matter Centrelink considers relevant.
In deciding whether to make an employer determination, Centrelink may assume that the state of affairs known at that time will remain unchanged.
Act reference: PPLAct section 101 Making employer determinations, section 106 Effect of decision on review that PLP is payable, section 109 Election by employer to pay instalments
PPL Rules Part 6-3 Extension of Act to persons who are not employees and employers
Policy reference: PP Guide 6.1.6 Making an employer determination after review of decision that PLP is payable