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.

4.3.9.90 Treatment of PLP

Introduction

These rules apply to the assessment of income from PLP.

General information

PLP is counted as income for social security purposes where the payment is in respect of a child who was born on or after 1 October 2016 or a child who became entrusted to the care of the person on or after 1 October 2016. PLP is counted as ordinary income. PLP is not treated as employment income.

Act reference: SSAct section 8(1)-'income amount', section 8(1A)-'employment income', section 1072 General meaning of ordinary income

Assessment period

The gross rate of PLP is assessed as income for the period that the entitlement relates to.

Deductions from PLP to avoid overpayments

Because PLP is assessed as income for the period that the entitlement relates to, overpayments of social security payments may occur when PLP is granted after the eligibility date and arrears are paid.

Where this has occurred, deductions may be made from PLP arrears instalments equal to the amount of social security payment that would be overpaid.

Act reference: PPLAct section 69A Deductions to avoid overpayment of income support payment

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