5.4.1.30 Formula for calculating certain benefits & PPS advance payments
Summary
This topic outlines the calculation of advance payment amounts for the following payments:
- jobseeker payment
- parenting payment (single)
- parenting payment (partnered)
- youth allowance, and
- austudy payment.
Minimum advance payable
The minimum amount payable as an advance social security entitlement is $250.
Act reference: SSAct section 23(1)-'social security entitlement', section 1061ED Amount of advance payment—pension PP (single), section 1061EE Amount of advance payment—certain other social security payments
Parenting payment (single) (1.1.P.51)
Applicants who are receiving PPS would receive the smallest of the following amounts:
- the amount requested
- 6% of the person's annual payment rate, OR
- $500.00.
The annual payment rate is generally the rate of PPS payable under the PPS rate calculator on the last payment delivery day (1.1.D.55) before the person applied for the advance. It takes into account any RA, ES, pension supplement or PhA payable and the application of the income test. The rate doesn't include RAA amounts.
A PPS recipient applying for an advance within 28 days of ceasing to be a member of a couple (1.1.M.120) may not have received a PPS payment. In these cases the annual payment rate is the rate payable on the PPS payment delivery day after applying.
Example: A PPS recipient applies for an advance of $400.00 and meets the advances qualification criteria. The recipient's annual rate of payment is $8,733.40. The recipient is entitled to the smallest of the following amounts:
- amount requested = $400.00
- 6% × $8,733.40 = $524.00, OR
- $500.00.
In this example, the recipient would be paid an advance of $400.00.
Act reference: SSAct section 1061ED Amount of advance payment—pension PP (single), section 1068A-A1 Pension PP (Single) Rate Calculator
JSP, PPP, YA & Austudy
Applicants who are receiving JSP, PPP, YA and Austudy would receive the lowest of the following amounts:
- the amount requested
- 7% of the person's 'last full fortnightly benefit rate' × 26, OR
- $500.00.
The fortnightly benefit rate is the rate payable under the relevant rate calculator on the last full payment delivery day immediately before the person applied for the advance. It takes into account any RA, ES, pension supplement or PhA payable and the application of the income test and parental means test (1.1.P.45), but does not include RAA amounts.
When calculating the fortnightly rate, use the recipient's gross payment rate. Disregard repayments of:
- an earlier benefit advance, if the last repayment was made on the most recent payment delivery day, and
- any current, non-benefit advance.
Example: An JSP recipient applies for an advance of $450.00 and meets the qualification criteria for an advance. The person's last fortnightly rate of JSP was $300.00. The recipient is entitled to the lowest of the following amounts:
- Amount requested = $450.00
- 7% × $300 × 26 = 546.00, OR
- $500.00.
In this example, the recipient would be paid an advance of $450.00.
Act reference: SSAct section 1061EE Amount of advance payment-certain other social security payments, section 1061EE(1) Amount of advance payment—certain other social security payments (Application), section 1061EE(4) Formula for maximum amount of advance: benefit PP (partnered), YA, Austudy or JSP, section 1067G-A1 YA Rate Calculator, section 1067L-A1 Austudy Rate Calculator, section 1068-A1 Benefit Rate Calculator B, section 1068B-A1 Benefit PP (Partnered) Rate Calculator