3.9.1.10 Qualification for HCC - automatic issue
Qualification (1.1.Q.10) criteria
HCCs are either automatic issue cards or claim required cards. This topic covers only the automatic issue HCCs.
To qualify for and obtain an automatic issue HCC, a person must:
- be receiving payments or be eligible for specific programs which automatically attract a HCC (see Table 1)
- be in an employment income nil rate period (see Table 2)
- have stopped receiving their social security pension or benefit because of commencing employment or increasing employment income and be qualified to keep their HCC for one or both of the allowable extension periods (that is, be an employment-affected person) (see Table 3), or
- have commenced NDIS participation and had their MOB cancelled as a result (see Table 4).
The 4 tables below set out who receives an automatic issue HCC, the act reference that applies and the period for which the card is issued.
Act reference: SSAct section 23(1)-'income support payment'
Table 1: Payments attracting HCC while person receiving income support
| Requirement | SSAct section | Period of issue |
|---|---|---|
| Be receiving: | ||
|
1061ZK(5)(a) 1061ZK(5)(b) 1061ZK(5)(c) 1061ZK(5)(f) 1061ZK(5)(h) 1061ZK(6) |
12 months 12 months 12 months 12 months 12 months 12 months |
|
|
1061ZK(4) 1061ZK(7) |
12 months 12 months |
|
1061ZK(3A) 1061ZK(2) 1061ZK(3) |
26 weeks 12 months 12 months |
|
Note: From 1 January 2019, a person receiving YA student or apprentice, Austudy or ABSTUDY living allowance qualifies for an automatic issue HCC.
Act reference: SSAct section 1061ZK Qualification: general rules
Table 2: Payments attracting HCC continuation while person has an employment income nil rate period
| Requirement | SSAct section | Period of issue |
|---|---|---|
|
Remain qualified for a payment listed below, although payment is not payable because of employment income:
|
1061ZMA Further extended qualification rule: loss of payment because of employment income |
up to 24 weeks |
|
Explanation: The 24-week continuation during the employment income nil rate period aims to provide an incentive for recipients to take up work. JSP and YA (job seeker) recipients who are single principal carers or with partial capacity to work remain qualified for PCC during employment income nil rate periods. *Note: ABSTUDY living allowance is not a social security pension or benefit and does not have a 24-week income nil rate period. However, for the purposes of an automatic HCC, a person whose ABSTUDY living allowance is reduced to nil due to employment income is regarded as receiving an amount of ABSTUDY living allowance for a period of 24 weeks starting on the date that their living allowance is reduced to nil. |
||
Policy reference: SS Guide 3.1.12 Employment income nil rate period
ABSTUDY Policy Manual Chapter 72 ABSTUDY Living Allowance Rates
Table 3: Payments attracting HCC extension for employment-affected persons
| Requirement | SSAct section | Period of issue |
|---|---|---|
|
Be a qualified recipient of an income support payment listed below, and a qualified recipient for a continuous period of 52 weeks, who becomes non-payable through commencement of employment by self or partner OR though an increase in employment income of self or partner:
|
1061ZM Qualification for HCC: employment-affected person 1061ZMA General qualification rules |
26 weeks |
|
Explanation: The 26-week extension aims to provide an incentive for long-term income support recipients to take up work. * Note: PPS recipients who qualify for an employment income nil rate period retain their PCC during the 24-week nil rate period and qualify for a HCC for 2 weeks following the end of the PCC extension period. |
||
Table 4: MOB HCC continuation for certain NDIS participants
| Requirement | Act references | Period of issue |
|---|---|---|
|
The MOB HCC can be retained where a person:
|
SSAct section 1061ZK(7) … on that day, the person is receiving MOB, section 1038 MOB not payable when person is NDIS participant National Disability Insurance Scheme Legislation Amendment Act 2013 Schedule 2 item 17 |
Reissued every 52 weeks, subject to ongoing eligibility. |
Qualification - HCC during an 8-week non-payment period
Income support recipients serving an 8-week non-payment period due to a serious participation failure or multiple participation failures retain access to their HCC during the non-payment period.
Qualification - HCC during employment income nil rate period
A person is qualified to START a 24-week HCC continuation if they:
- stop receiving their social security pension or benefit or ABSTUDY living allowance because of ordinary income, made up entirely or partly of employment income (1.1.E.102), and
- have a rate of payment of pension or benefit that is worked out with regard to the income test module of a rate calculator in Chapter 3 of the SSAct, or
- have a rate of payment of ABSTUDY living allowance that is worked out with regard to the personal income test in Chapter 61 and the partner income test in Chapter 60 (if applicable) of the ABSTUDY Policy Manual, and
- have and are qualified for a HCC when their payment ceases, and would have been qualified for the HCC but for the employment income or the combined income.
Example: Skye is a JSP recipient who takes up a casual job that is expected to last for 4 weeks, but could be extended. In the first fortnight that she is paid income from the job her JSP is reduced to nil rate. None of Skye's other circumstances change, so if she had not received the employment income she would have continued to receive JSP and be entitled to the HCC. Skye is qualified to start the 24-week HCC continuation, and provided her other circumstances do not change she will remain qualified for it until the job finishes and she goes back on JSP, or the end of 24 weeks, whichever is the earlier.
A person is qualified for the HCC continuation for 24 weeks if they continue to qualify for their income support payment but for their employment income, or such income combined with other income.
Example: Catriona is a JSP recipient who starts a casual job. In the first fortnight she receives employment income over the income cut-out point, so she commences a HCC continuation for 24 weeks. In the next fortnight she accepts a permanent full-time job. As she had been receiving payment for a continuous period of 52 weeks prior to the cancellation of her payment, she is eligible for the 26-week HCC extension. The 26-week extension starts the day after the 24 weeks continuation finishes.
Example: Lacey is a YA student recipient who starts a casual part-time job that pays over the income cut-out-point. Because of this she commences a HCC continuation. After 6 weeks she ceases study, which makes her ineligible for the HCC continuation. However, due to her income, Lacey may be eligible for a LIC.
Start date - HCC 24-week continuation during employment income nil rate period
The 24-week HCC continuation starts on the date the recipient's rate reduces to nil (that is, after any working credit balance has been used), and finishes 24 weeks after the end of the instalment period in which the person ceased to receive the income support payment. In effect, the period that is referred to as 24 weeks could run for up to almost 26 weeks.
HCC kept for a 26-week extension - employment-affected persons
Income support recipients (as listed in the Table 3 above) can keep their HCC for a 26-week extension if they:
- have been in receipt of income support payments for a continuous period of 52 weeks immediately prior to cancellation and have employment or employment income that precludes their payment, OR
- have been in receipt of income support payments for a continuous period of 52 weeks immediately prior to cancellation (this can include the period the recipient has been on an employment income nil rate period), have had a 24-week HCC continuation and are still employed at the end of the employment income nil rate period.
Explanation: This provision aims to encourage long term unemployed people to take up work by allowing them to retain their HCC for an extended period after they start a job.
Start date for 26-week HCC extension - employment-affected persons
If the cardholder has been on the 24-week HCC continuation and is eligible for the 26-week HCC extension, the extension starts on the day after the 24-week continuation finishes.
If the cardholder has not been on the 24-week HCC continuation, the 26-week HCC extension starts the day after the person's social security pension or benefit is cancelled (after any working credit balance has been used).
Act reference: SSAct section 1061ZM Qualification for HCC: employment-affected person, section 1061ZMA Further extended qualification rule: loss of payment because of employment income, section 1061ZEA Further extended qualification rule: loss of payment because of employment income
Policy reference: SS Guide 3.1.11.30 Working credit depletion
Interaction of HCC 24-week continuation & 26-week HCC extension - employment-affected persons
A cardholder can be qualified for both the 24-week continuation and the 26-week extension or for either one of them.
If the cardholder is qualified for both the continuation and the extension, the 24-week continuation runs first, then the 26-week extension. The time the cardholder spends on the 24-week HCC continuation counts towards the qualifying period of receipt requirement for the 26-week extension.
Cardholders travelling overseas
From 1 January 2013, concession cards generally have a limited non-cancellation period of 6 weeks if the holder departs Australia temporarily. Therefore, all auto-issue HCCs will remain current if the holder departs Australia temporarily (for no more than 6 weeks).