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.

3.7.4.10 Qualification for CrP - general provisions

Summary

This topic explains the following qualifications/issues relating to extreme circumstances (domestic, family violence and other), remaining in the home after domestic or family violence, prison release, humanitarian entrant and the national health emergency categories of CrP:

  • residence requirements
  • a social security pension or benefit is payable
  • severe financial hardship
  • claim in Australia (1.1.A.320)
  • assurance of support
  • treatment of CDP participants, and
  • recovery of CrP.

Residence requirements

On the day on which a claim for CrP is made, or is taken to be made, the person must be an Australian resident, an SCV holder or the holder of a specified sub-class of visa that qualifies the person for SpB (3.7.1.10).

Act reference: SSAct section 23(1)-'social security payment'

SS(Admin)Act section 29 General rule, section 30 Residence requirements for claimants for SpB, section 30A Exclusion from section 29 residence requirements of CrP claimants holding certain visas

A social security pension or benefit is payable

On the day on which the claim for CrP is made, or taken to be made, a social security pension or benefit must be payable to qualify a person for CrP.

Act reference: SSAct section 1061JG(1)(c)(i) Qualification—release from gaol or psychiatric confinement, section 1061JH(1)(f)(i) Qualification—extreme circumstances forcing departure from home, section 1061JHA(1)(g)(ii) Qualification—remaining in home after removal of family member due to domestic or family violence, section 1061JI(1)(d)(ii) Qualification—humanitarian entrant to Australia, section 1061JIA Qualification—national health emergency, section 23(1) Dictionary

SS(Admin)Act section 16 How to make a claim, section 42 Start day, section 29 General rule

Severe financial hardship

To qualify for CrP, the person must be in severe financial hardship on the day on which the claim for CrP is made. (Hardship is applicable to the date of claim, not date of interview.) For the purposes of CrP, an applicant who is:

  • not a member of a couple is in severe financial hardship if the value of the applicant's liquid assets (1.1.L.50) is less than the fortnightly amount at the maximum payment rate of the social security pension or benefit that is payable to the person, or
  • a member of a couple is in severe financial hardship if the value of the applicant's liquid assets is less than twice the fortnightly amount at the maximum payment rate of the social security pension or benefit that is payable to the person.

Explanation: When assessing hardship all cash and readily realisable assets should be taken into account, including money in the bank and earnings due. Where a person has funds in their income management account, these funds should be regarded as liquid assets as they can usually be accessed for emergency purposes such as accommodation and travel costs. In the event that a person's income management funds cannot be accessed, these funds should not be regarded as liquid assets.

Note: The maximum payment rate includes the maximum basic rate, ES and, if applicable, RA, PhA and pension supplement. The maximum payment rate is the amount calculated before the income test is applied, and does not include other supplements.

Act reference: SSAct section 19D Severe financial hardship-CrP definition, section 14A(1) to 14A(2) Social security benefit liquid assets test definitions

Claim in Australia

A claim for CrP must be made in Australia. For information on the allowable period in which to claim CrP, refer to the specific category of CrP, that is:

  • 3.7.4.20 Qualification for CrP - extreme circumstances (domestic & family violence) forcing departure from home
  • 3.7.4.25 Qualification for CrP - remaining in the home after removal of family member due to domestic or family violence
  • 3.7.4.30 Qualification for CrP - extreme circumstances (other)
  • 3.7.4.35 Qualification for CrP - humanitarian entrant
  • 3.7.4.40 Qualification for CrP - released prisoners
  • 3.7.4.45 Qualification for CrP - national health emergency (NHE)

Act reference: SS(Admin)Act section 16 How to make a claim, section 29 General rule

AoS

An applicant is not qualified for CrP if the Secretary is satisfied that an AoS is in force, the assurer is prepared to provide an adequate level of support to the assuree, and it is reasonable for the assuree to accept that support. If it is not reasonable for the assuree to accept that support, CrP may be payable, providing all other qualifications are met, and would be recoverable from the assurer where the assuree's primary payment is recoverable.

Act reference: SSAct section 1061JK CrP not payable if assurance of support in force

Policy reference: SS Guide 1.1.A.310 Assuree, assurer, assurance of support, assurance of support security

Treatment of CDP participants

A person who is participating in the CDP and is in receipt of an income support payment may qualify for a CrP if they meet the eligibility criteria.

Act reference: SSAct section 28 Approved programs of work for income support payment

Recovery of CrP

CrP is a one-off payment. A person who meets all eligible criteria can receive CrP in addition to their regular payment. As CrP is an extra payment, unlike advance loans and anticipated payments, it is not recovered from future entitlements. Payment of CrP can, however, be recovered as a debt if it is found that the recipient was not qualified at the time payment was made.

Act reference: SSAct section 1223 Debts arising from lack of qualification, overpayment etc.

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