3.1.11.50 Working credit opening balances & carryovers
Introduction
This topic covers the rules for a recipient's opening working credit balance and the circumstances for carryovers.
Working credit opening balance
A working credit opening balance is nil, except when a carryover occurs.
Carryovers
There are 6 types of carryover:
- working credit carried over to working credit (other than YA job seeker),
- working credit carried over to YA job seeker working credit,
- YA job seeker working credit carried over to working credit,
- working credit carried over to student/Australian Apprentice income bank,
- student/Australian Apprentice income bank carried over to working credit (except YA job seeker working credit), and
- student/Australian Apprentice income bank carried over to YA job seeker working credit.
Note: Student income bank cannot be carried over to student income bank.
These 6 types of carryover occur in the case of transfers between payment and in the case of a recipient who recommences a social security pension or benefit (either the same payment as they were or a different one) after a break of up to 12 months.
The maximum carryover amount is 1,000 working credits (except YA job seeker).
The maximum carryover amount is 3,500 working credits for a YA job seeker.
1 working credit = $1 student income bank.
The following table lists all the possible carryovers situations:
Recipient situations |
Carryover From To |
---|---|
A recipient transfers from one social security pension or benefit (other than YA job seeker) that has access to working credit to another payment that has access to working credit. | Unused working credit becomes new working credit opening balance. |
A recipient transfers from one social security pension or benefit (other than YA job seeker) that has access to working credit to YA as a job seeker. | Unused working credit becomes new working credit opening balance. |
A recipient transfers from YA job seeker to another social security pension or benefit that has access to working credit. | Unused YA job seeker working credit becomes new working credit opening balance, up to maximum of 1,000 working credits. |
A recipient ceases a social security pension or benefit (other than YA job seeker) that has access to working credit, and after a break of no more than 12 months, recommences that payment or another that has access to working credit. | Unused working credit becomes new working credit opening balance. |
A recipient ceases YA as a job seeker, and after a break of no more than 12 months, recommences that payment. | Unused working credit becomes new working credit opening balance. |
A recipient ceases YA as a job seeker, and after a break of no more than 12 months, recommences on another social security pension or benefit that has access to working credit. | Unused YA job seeker working credit becomes new working credit opening balance, up to maximum of 1,000 working credits. |
A recipient transfers from a social security pension or benefit that has access to working credit to YA (full-time student or full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) that has access to student/Australian Apprentice income bank. | Unused working credit becomes new student/Australian Apprentice income bank opening balance. |
A recipient ceases a social security pension or benefit that has access to working credit and after a break of no more than 12 months commences YA (full-time student or full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) that has access to student/full-time Australian Apprentice income bank. | Unused working credit becomes new student/Australian Apprentice income bank opening balance. |
A YA (full-time student/full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) recipient transfers to a non-student social security pension or benefit (other than YA job seeker) that has access to working credit. | Unused student/full-time Australian Apprentice income bank becomes new working credit opening balance, up to maximum of 1,000 working credits. |
A YA (full-time student/full-time Australian Apprentice recipient transfers to YA as a job seeker. | Unused student/full-time Australian Apprentice income bank becomes new working credit opening balance, up to maximum of 3,500 working credits. |
A YA (full-time student/full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) recipient ceases payment and after a break of no more than 12 months commences a social security pension or benefit (other than YA job seeker) that has access to working credit. | Unused student income/Australian Apprentice bank becomes new working credit opening balance, up to a maximum of 1,000 working credits. |
A YA (full-time student/full-time Australian Apprentice) recipient ceases payment and after a break of no more than 12 months commences YA as a job seeker. | Unused student/full-time Australian Apprentice income bank becomes new working credit opening balance, up to maximum of 3,500 working credits. |
Note: These rules also apply to ABSTUDY.
The day a carryover is available
A recipient becomes eligible for working credit from the day they start receiving their social security pension or benefit. Therefore a carryover amount is available for use from that day.
Act reference: SSAct section 1073E Opening balance, section 1067G-J7 Opening balance following cancellation of another social security pension or benefit (YA), section 1067L-E6 Opening balance following cancellation of another social security pension or benefit (Austudy)
Policy reference: SS Guide 3.1.11.10 Recipients eligible for working credit, 4.2.8.50 Full-time students - personal income test, limits & student income bank, 1.1.Y.20 Youth allowance job seeker