The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

3.5.1.100 Payability of PP - single rate

Summary

This topic explains the following payability issues that relate uniquely to PPS claimants/recipients regarding:

  • income and assets tests
  • waiting periods
  • receipt of ABSTUDY
  • temporary absences in New Zealand for some recipients
  • compliance penalties, and
  • failure to enter into an EPP.

Income & assets tests

For PPS recipients, income up to the relevant threshold has no effect on the rate of payment. Income in excess of the threshold reduces the fortnightly rate of payment by 40c in the dollar.

PPS claimants whose assets exceed the assets value limit are not eligible for payment.

Claimants in severe financial hardship (1.1.S.120) because of the application of the assets test may still qualify for some financial assistance by accessing the special hardship provisions.

Act reference: SSAct section 500Q Assets test - payment not payable if assets value limit exceeded, section 1130B Access to financial hardship rules - pension PP (single), section 1130C Application of financial hardship rules - pension PP (single)

Policy reference: SS Guide 3.5.1.110 Payability of PP - partnered rate, 4.2.4.10 PPS income & assets tests & limits, 4.6.7 Asset hardship rules

Waiting periods

New claimants of PPS may be required to serve an OWP (3.1.2.50) before they can receive payment. Depending on their circumstances, PPS claimants may also be subject to other waiting or preclusion periods. The OWP cannot be served concurrently with any other waiting or preclusion periods and starts on the day after all applicable waiting periods have ended.

PPS claimants who have received leave or redundancy payments may be required to serve an IMP (1.1.I.60) before they can receive payment. If a new claimant has been engaged in seasonal or intermittent work in the 6 months prior to lodging the claim, they may be required to serve an SWPP (1.1.S.455).

Act reference: SSAct section 500Z(1) Seasonal workers-preclusion period

Policy reference: SS Guide 3.1.7.10 Who is affected by the SWPP, 4.3.4 Income maintenance period, 3.1.2.50 Ordinary waiting period

Receipt of ABSTUDY

The full rate of ABSTUDY cannot be paid to a PPS recipient. However, the person may be paid PES under the ABSTUDY scheme as well as their PPS.

Explanation: This preclusion is contained in the ABSTUDY regulations.

Some recipients in New Zealand - temporary absence

A PPS recipient paid by virtue of the 1995 social security agreement with New Zealand can only be paid PP for the first 4 weeks of a temporary absence in New Zealand.

Policy reference: SS Guide 7.1.3.10 Portability provisions for recipients paid under the 1995 Agreement with New Zealand going to New Zealand or to another country

PP compliance failure

PP may not be payable to a recipient who commits a PP compliance failure.

Failure to enter into an EPP

PP recipients with participation obligations must comply with the requirement to enter into an EPP (1.1.J.25). Failure to comply with this requirement may result in a connection failure.

Act reference: SS(Admin)Act Part 3 Division 3A Compliance with participation payment obligations …

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