3.6.4.70 Changes to carer situation - effect on CP qualification
Note: Ex WP CP recipients are not subject to the 100 hours over 4 weeks cessation of care restrictions to undertake employment that apply for general CP qualification (3.6.4.55).
Carer (1.1.C.40) attending educational institution/training course
Participation in education or training does NOT impact on the carer's qualification for CP, as long as the carer continues to provide constant care to the care receiver in addition to the education or training activities they undertake.
Example: Paula lives with and cares for her mother, but also attends university (face to face) for 35 hours each week as she studies to become a medical practitioner. Paula provides care to her mother for around 8 hours each day, which they fit around Paula’s study schedule. The hours Paula attends university do not impact her eligibility for CP, as Paula continues to provide constant care.
Example: Paul receives CP for care he provides to his son, and works for 3 hours each morning. Paul advises he has returned to full time study (in person classes) for 30 hours each week, which he combines with the work he undertakes. It is established that, due to his increased study commitments, Paul only provides care to Shay for around 5 hours on most days, and much of Shay’s care now falls to Paul’s partner. As Paul is no longer providing constant care to Shay his CP is cancelled. If Paul’s work or study commitments decrease and Paul again provides constant care for Shay, a new claim would be required.
Where study requires the carer to absent from the caring role for more than 24 hours continuously (midnight to midnight), temporary cessation of care days (1.1.T.60) can be used to cover these periods.
Example: Kimberly cares for her father full time in the family home. Kimberly is undertaking an online university degree which she does when not providing care to her father. The course requirements necessitate her to attend classes twice a year, where she resides on campus for 10 days. Kimberly can utilise temporary cessation of care provisions to attend these sessions, and will remain qualified for CP as long as she does not exceed 63 temporary cessation of care days in the calendar year.
The carer may qualify for an EdEP depending on their circumstances (3.8.6.20).
Employment participation – 100 hour rule
A carer can remain qualified for CP while participating in employment, for up to 100 hours over a 4-week period. Assessing the hours over 4 weeks provides flexibility for carers to manage their work and care arrangements in a way that best suits their needs. Income earned is subject to the pensions income and assets tests and may affect the rate of payment.
Example: Jo is a CP recipient who cares for her son Jake. She works at a local store and during the holiday period was offered overtime. Jo had worked 20 hours in each of the first 3 weeks in her 4-week period. This means Jo could work up to 40 hours for the final week and still not exceed the 100 hour limit.
Note: Employment in the home around the care situation does not count towards the 100 hours.
Example: Jane cares for her aunt in her aunt's home and has set up a business assessing security clearance applications for a large company. Jane attends to her business when she is not providing care for her aunt and can stop at any time her aunt needs her. Although Jane spends around 30 hours each week on her business, because she is constantly with her aunt and has the flexibility to attend to her aunt’s needs as they arise, the work hours do not count towards the 100 hour limit.
Employment in excess of 100 hours over a 4-week period
If employment participation exceeds 100 hours over a 4-week period, the carer can elect to use one or more of their 63 temporary cessation of care days to cover the excess hours and continue to receive CP.
One temporary cessation of care day is required to cover up to 8 hours above the 100 hour limit, 2 days for up to 16 hours, etc (See table at 3.6.4.40).
Example: Raj worked for 118 hours over his 4-week period. Rather than have his CP suspended he chose to use 3 temporary cessation of care days. He continued to receive a reduced rate of CP (due to the pensions income and assets tests) without a break in payment.
If the carer has exhausted their 63 temporary cessation of care days for the calendar year or chooses not to use them to cover excess hours, CP can be suspended for up to 26 weeks. CP can be restored without the need for a new claim if the work hours decrease to below the 100 hour limit within the 26 week suspension period, and it is established constant care is being provided. If the carer continues to work above 100 hours while suspended, at the end of 26 weeks CP will automatically cancel and new claim would be required if they wish to reapply for CP.
Working over 100 hours for 3 consecutive 4-week periods
If a carer works in excess of 100 hours for 3 consecutive 4-week periods, a discussion should be had with the carer to establish if the excess employment is to be an ongoing arrangement. If the carer intends to continue working more than 100 hours over 4 weeks CP should be suspended. CP will automatically cancel 26 weeks from the date of suspension unless, within that time frame:
- the carer advises employment hours over 4 weeks have decreased below the 100-hour limit, and
- it is established that constant care is being provided.
Where these conditions are met CP can be restored without the need for a new claim.
Example: Finn is a CP recipient who cares for his wife Jill who has paraplegia. He established his own landscaping business which has grown substantially in recent times, although he still provides care to Jill each morning and night. He has worked for more than 100 hours over the last 3 of his 4-week periods and used his temporary cessation of care days to remain qualified for CP.
Finn advises his intent to keep working the additional hours and building up his business. Finn’s CP is suspended for up to 26 weeks, which will allow streamlined access back onto CP should his work hours decrease below the 100 hour limit. Finn’s CP will automatically cancel after 26 weeks unless he advises this has occurred.
Act reference: SSAct section 198AC Effect of cessation of care etc. on CP, section 198AD Qualification—WP and CA recipient, section 665ZFA Payment to a CP recipient
SS(Admin)Act section 95CA CP—suspension instead of cancellation under section 93 or 94
Policy reference: SS Guide 3.6.4.40 Qualification for CP during temporary cessation of care, 3.6.4.150 Continuation, variation or termination of CP
Carer ceases to participate in the care of a care receiver who is in hospital
A carer qualifies for CP for a care receiver who is in hospital provided the carer continues to participate in the care receiver's care, AND continues to meet all other qualification criteria.
If the carer cannot participate in the care of the care receiver while they are in hospital they may use the balance of their 63 day temporary cessation of care entitlement to remain qualified for CP. This temporary cessation of care entitlement may be extended in special circumstances - see 3.6.4.40 for further information.
If the allowable days are exhausted in the calendar year, CP may be suspended for up to 26 weeks. If the care receiver returns to the home within the 26 week period and the carer recommences constant care, CP can be restored without the need for a new claim. However, further hospitalisation days or temporary cessation of care days are not available for use for the remainder of that calendar year.
Act reference: SSAct section 198AA Qualification for CP—hospitalisation
Policy reference: SS Guide 3.6.4.40 Qualification for CP during temporary cessation of care, 3.6.4.50 Qualification for CP during temporary absence from the private home - hospitalisation
Carer ceases to have a care receiver or a combination of care receivers in their care in an exchanged care situation
For exchanged care (1.1.E.162), a carer must have a parenting plan or parenting order, which outlines which care receiver or combination of care receivers (which may include a disabled adult) they should have in their care. The carer must have a care receiver or a combination of care receivers for which they are qualified for CP in their care at all times. If a carer no longer has a care receiver or a combination of care receivers for which they are qualified for CP in their care they no longer qualify for CP, unless they are utilising the temporary cessation of care provisions. Payment may be suspended for up to 26 weeks and can be restored within this timeframe if the carer resumes care for a care receiver or a combination of care receivers for which they were initially qualified.
Act reference: SSAct section 197F Qualification—exchanged care of children
Policy reference: SS Guide 3.6.4.37 Qualification for CP (child) - exchanged care
Working credit participants
A CP recipient who has a working credit balance and who ceases to provide constant care for more than 100 hours over a 4-week period to participate in employment, is treated as still being qualified for the period it takes to run down their working credit balance.
This treatment will continue until the earliest of:
- their working credit balance is reduced to nil
- qualification (other than related to the employment) is lost, or
- payability (other than related to employment income) is lost.
Act reference: SSAct section 1073J Working credit balance prevents loss of qualification in certain cases
Policy reference: SS Guide 3.1.11.30 Working credit depletion
Overseas travel
A carer can be paid CP during a temporary absence from Australia to travel overseas for up to 6 weeks. Carers travelling without the care receiver will need to use temporary cessation of care days to cover the period they are away. CP is suspended if the period of overseas absence exceeds 6 weeks or their temporary cessation of care days are exhausted. If the carer remains outside Australia for a further 13 weeks following the suspension, CP will be cancelled and the carer would need to reapply for payment on their return to Australia.
Note: Care receivers on certain income support payments may be paid for up to 6 weeks for temporary overseas absences. Care receivers on certain other payments such as Age may be paid indefinitely whilst overseas.