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.

4.6.7.20 Effect of deprivation on eligibility & rate

Summary

The topic discusses the effect of deprivation on:

  • hardship eligibility, and
  • hardship payment rate.

Effect of deprivation on eligibility

The value of a person's deprived asset (1.1.D.110) is disregarded IF:

  • a person is in severe financial hardship (1.1.S.120), AND
  • the hardship is NOT a direct result of disposing of the asset (1.1.D.210), AND
  • the person would have qualified for hardship EVEN if they had NOT disposed of the asset.

Explanation: Deprived assets ARE included in the hardship rate calculations.

An income tested person is INELIGIBLE for hardship if:

  • they have substantial deprived assets, AND
  • the deemed income for the assets (1.1.A.290) caused the person to be income tested.

Effect of deprivation on rate

Notional income MAY be assessed IF:

  • a person disposes of an asset, AND
  • the disposed asset is disregarded under the hardship provisions.

Act reference: SSAct section 1129 Access to financial hardship rules—pensions, section 1130B Access to financial hardship rules—pension PP (single), section 1131 Access to financial hardship rules—benefits

Policy reference: SS Guide 4.1 Deprivation of income & assets, 4.6.7.80 Notional ordinary income - overview, 4.4 Deeming provisions

Last reviewed: