1.1.C.250 Compensation affected payment
This definition applies to all payments.
A CAP is a social security payment that can be affected by the receipt of:
- a lump sum compensation payment, and/or
- periodic compensation payments (either paid periodically or as a lump sum).
A CAP can be:
- not paid if appropriate compensation action is not taken
- subject to a preclusion (non-payment period) if a lump sum compensation payment is received
- reduced on a dollar for dollar basis (direct deduction) if periodic compensation payments are received, or
- in certain circumstances, reduced by periodic compensation payments assessed as ordinary income.
The rate of a CAP can include the following additional payments:
- approved program of work (WFD)
- bereavement payment
- Coronavirus supplement
- energy supplement
- language, literacy and numeracy supplement
- pension supplement
- pharmaceutical allowance
- remote area allowance, and
- rent assistance.
Act reference: SSAct section 1064 Rate of age and disability support pensions and CP (people who are not blind), section 1065 Rate of age and disability support pension (blind people), section 23(1)-'social security payment'
List of CAPs directly included in legislation
The table below lists all CAPs and when they became a CAP.
|Age pension (including blind)||20/03/1997||Provisional commencement day or start day rather than date of claim.|
|Carer payment||01/01/1993||Prior to this date carer pension was a CAP if:
- the compensation was received before this date, AND
- the pension was claimed or received by the compensation recipient's partner, AND
- the partner was getting pension for caring for the compensation recipient.
|CDEP supplement||01/07/2004||Was abolished 1 July 2015.|
|Energy supplement||20/03/2013||ES is a compensation affected payment only if the underlying qualifying payment is a CAP.|
|DSP (including blind)||01/05/1987||Including special needs DSP, disability wage supplement and rehabilitation allowance.|
|Education entry payment||01/07/2004||-|
|Employment entry payment (EEP)||01/07/2004||Was abolished 1 July 2008.|
|Farm household allowance||01/07/2014||Under the Farm Household Support Act 2014 subsection 90 and subsection 93(1) items 1 and 2, the farm household allowance is treated as JSP and YA payments are treated under the SSAct.|
|Jobseeker payment||01/05/1987||Including NSA, unemployment benefit (UB) and job search allowance.|
|Mature age allowance||20/03/1994||Closed to new recipients from 20 September 2003 and completely phased out from 19 September 2008.|
|Mature age partner allowance||20/03/1994||Closed to new recipients in 1995, and no recipients since July 2001.|
|Parenting payment||20/03/1992||Including sole parent pension and parenting allowance.|
|Partner allowance||20/09/1994||Was abolished 1 January 2022.|
|Pensioner education supplement||01/07/2004||-|
|Rehabilitation allowance (in lieu of SA)||Paid at any time||-|
|Sickness allowance||Paid at any time||
This payment ceased on 20 September 2020.
Including sickness benefit (SB).
|Telephone allowance||01/07/2004||Other than that paid to the holder of a CSHC.|
|Widow allowance||01/01/1995||Was abolished 1 January 2022.|
|Wife (disability support) pension||01/05/1987||
Was abolished 20 March 2020.
Including special needs disability support wife's pension, disability wage supplement wife's pension.
Note: Age (blind) and DSP (blind) recipients are paid free of the income and assets test but are affected by the compensation provisions of the SSAct.
Note: EEP was abolished 1 July 2008. From that date claims can only be made in respect of employment events occurring before 1 July 2008.
Note: A temporary EdEP supplement of $950 was paid to EdEP recipients during the period 1 January 2009 to 30 June 2010. The EdEP supplement was part of the EdEP and may be recovered under the compensation provisions.
Note: Payments exempt from the compensation provisions are the wife (age) pension (abolished 20 March 2020), WidB (abolished 20 March 2020), BVA (closed to new entrants 20 March 2020), mature age allowance (closed to new recipients from 20 September 2003 and completely phased out from 19 September 2008), mature age partner allowance (closed to new recipients in 1995, and no recipients since July 2001), and disability pensions paid from DVA.
The definition of compensation does not include payments such as victims of crime schemes (including criminal injury compensation and death benefits), compensation for discrimination, and disability pensions from DVA.
Other payments from DVA are not affected by the compensation provisions as they are compensatory type payments, although some are affected by DVA compensation offsetting rules.