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.

8.6.3 Date of effect of favourable determinations (not involving working credit or student income bank)

Introduction

This section outlines the application of the provisions of SS(Admin)Act relating to the date of effect of favourable determinations, in particular, sections 109 and 110. For favourable determinations as a result of decreased or ceased employment income see 'Favourable determinations relating to employment income'.

Act reference: SS(Admin)Act section 109 Date of effect of favourable determination resulting from review, section 110 Date of effect of favourable determination

Policy reference: SS Guide 8.6.6 Summary of rules for date of effect - determinations not involving working credit or student income bank

Applying section 109

If a decision is made to reduce a person's rate or cancel or suspend their payment, the person seeks review of that decision and a favourable determination to increase or resume the payment is made, the date of effect of that favourable determination should be determined in accordance with the following table.

If a notice advising of a decision in relation to a person's social security payment … and the application to review the original decision is … then the date of effect of the determination is … SS(Admin)Act reference
HAS been given to the person lodged WITHIN 13 weeks after the notice is given to them the day the original decision took effect. subsection 109(1)
HAS been given to the person lodged MORE THAN 13 weeks after the notice is given to them the day the application was made for review. subsection 109(2)
HAS been given to the person NOT lodged, but the Secretary reviews the decision and makes a favourable determination WITHIN 13 weeks of the person receiving notice of the original decision the day the original decision took effect. subsection 109(4)
HAS been given to the person NOT lodged, but the Secretary reviews the decision and makes a favourable determination MORE THAN 13 weeks after notice of the original decision was given to the person the day the review was begun by the Secretary. subsection 109(5)
HAS NOT been given to the person at any time the day the original decision was made. -

Note: These SS(Admin)Act section 109 rules do not apply to favourable determinations concerning resumption of payment after suspensions relating to non-compliance (see section 110A).

Applying section 110

The general rule is that the date of effect of a favourable determination made after the person has informed Centrelink of the occurrence of an event or change of circumstances (in accordance with a section 68 notice) is the LATER of the following dates:

This general rule does NOT apply in a range of circumstances set out in SS(Admin)Act sections 110(1A) to 110(11).

Section 110(2) provides that if a favourable determination is made after Centrelink has required a person to provide a statement about a matter that affects their payment, and the person has done so within the required timeframe (that is, in accordance with a section 67 or section 68 notice), the date of effect of the favourable determination is the date the matter arose.

Exception: When the favourable determination is a result of a change in employment income. In this case section 110(2A) applies, see 'Favourable determinations relating to employment income'.

Section 110(3) applies where a person and their partner are both receiving a social security payment and the partner provides a statement to Centrelink (in accordance with a section 68 notice) about a matter than affects the partner's payment during a specified period. If a favourable determination is made as a result of this statement, the date of effect of that determination is the date the matter arose.

Exception: When the partner has not reached pension age and their employment income has reduced or ceased in the instalment period. In this case section 110(3A) applies, see 'Favourable determinations relating to employment income'.

The SS(Admin)Act sections governing other exceptions to the general rule are set out in the following table.

Determination decision SS(Admin)Act reference
Favourable determination follows death of partner. subsection 110(4) or 110(5)
Favourable determinations associated with refusal of or lack of qualification for prescribed educational scheme. subsection 110(9), 110(10) or 110(11)

Act reference: SS(Admin)Act section 67 Person who has made a claim, section 68 Person receiving social security payment or holding concession card, section 108 Definition, section 110 Date of effect of favourable determination

Policy reference: SS Guide 8.6.1 Date of effect of determinations - summary of legislation, 8.6.6 Summary of rules for date of effect - determinations not involving working credit or student income bank

Indexation or adjustment

The date of effect of a rate increase determination made as a result of an amount being indexed or adjusted (through the operation of SSAct Part 3.16) is the day on which the indexation or adjustment occurred.

Act reference: SS(Admin)Act section 111 Date of effect of section 78 determination resulting from indexation or adjustment

Policy reference: SS Guide 8.6.1 Date of effect of determinations - summary of legislation

Other favourable determinations

Where a favourable determination is made (under section 85) to resume payment after a suspension relating to non-compliance, the date of effect is the day after the end of the period for which the payment is not payable.

Note: This rule only applies to suspensions made under section 80 to certain types of social security payments (PP, YA, Austudy, JSP and SpB).

If none of sections 109, 110 or 110A apply then the date of effect of the favourable determination may be:

  • the day on which the determination is made, or
  • another day specified in the determination, which may be
    • later than the day the determination is made, or
    • not earlier than 13 weeks before the day the determination is made.

Act reference: SS(Admin)Act section 108 Definition, section 110A Date of effect of favourable determinations resuming payment after suspensions relating to non-compliance, section 114 Date of effect of other favourable determinations

Policy reference: SS Guide 8.6.1 Date of effect of determinations - summary of legislation

Favourable determinations relating to employment income

The following provision relates to favourable determinations due to a change in employment income, that is, a rate increase or resumption of payment triggered by a decrease in employment income or cessation of employment.

Section 110(1A) applies to a notification reporter (1.1.N.126) who has not reached pension age and provides that the date of effect for a favourable determination because employment income has decreased or ceased is the later of:

  • the start of the instalment period in which the event occurred, or
  • the start of the instalment period in which the person advised the change.

Example: Ellie receives PPS and has a part-time employment contract for 3 months and is paid $500 every fortnight. She is a notification reporter. On day 5 of her instalment period her employment contract ceases, however she does not advise Centrelink until day 12 of the following instalment period, which is outside her 14 day notification period. The date of effect of the favourable determination is day 1 of the instalment period in which she advised the change (that is, the instalment period after her employment ceased).

Section 110(2A) applies to a person who provides a statement (1.1.S.350) advising their employment income has reduced or ceased. In this case the date of effect of the favourable determination is the start of the instalment period in which the event occurred.

Example: Jeffrey receives JSP and has had casual employment of $300 per fortnight for the past 4 weeks. In his current instalment period his income is reduced to $250. He advises this change via his preferred reporting channel. The date of effect of the increase in his payment is day 1 of the instalment period.

In his following instalment period, Jeffrey's employment ceases on day 7 of the instalment period. The date of effect for the favourable determination is day 1 of the instalment period and his income from day 1 up to and including day 7 are spread over the full instalment period.

Section 110(3A) applies where:

  • the person and the person's partner both receive a social security payment
  • the person's partner is under pension age
  • the person's partner is required to give the department a statement in respect of an instalment period, and
  • the person's partner gives the department a statement about the partner's employment income in the instalment period (for a favourable determination, this will mean that the partner's employment income has reduced or ceased in the instalment period).

If, following this, a favourable determination is made in relation to the person's social security payment because the partner's employment income has reduced or ceased, the date of effect of the person's favourable determination is the first day of the PARTNER'S instalment period in which the event occurred. This applies whether the person's instalment period and the partner's instalment period are aligned or not.

Example: Luke and his partner Linda are both receiving a social security payment (1.1.S.210). Linda is a statement reporter and is under age pension age. Linda has been working casually and on day 8 of her instalment period her employment ceases and Linda provides this information in her statement. The date of effect of the favourable determination for Luke is the first day of Linda's instalment period (because of the operation of section 110(3A)). The date of effect of the favourable determination for Linda is the first day of her instalment period (because of the operation of section 110(2A)). Any employment income paid to Linda during the instalment period (in this case from day 1 up to and including day 7 of the period) is spread over the full instalment period.

Favourable determinations relating to concession cards

If a decision is made that a person is not qualified for a concession card, the person seeks review of that decision and a favourable determination to resume the person's qualification is made, the date of effect of that favourable determination should be worked out in accordance with the following table.

If a notice advising of the original decision … and the person lodges an application for review of original decision … then the date of effect of the favourable determination is … SS(Admin)Act reference
HAS been given to the person WITHIN 13 weeks after the notice is given to them the day the original decision took effect. subsection 116(1)
HAS been given to the person MORE THAN 13 weeks after the notice is given to them the day they sought the review. subsection 116(2)
HAS NOT been given to the person at any time the day the original decision took effect. subsection 116(3)
HAS been given to the person NOT lodged, but the Secretary reviews the decision and makes a favourable determination MORE THAN 13 weeks after the notice is given to them the day the original decision took effect. subsection 116(4)

If a decision is made that a person is not qualified for a concession card, and the person is given notice of the decision and does not appeal, but the delegate decides that the person is qualified for the concession card, the date of effect of the new, favourable determination is the date of effect of the original decision.

Act reference: SS(Admin)Act section 115 Definition, section 116 Date of effect of favourable determination resulting from review—concession cards

Policy reference: SS Guide 8.6.1 Date of effect of determinations - summary of legislation, 8.6.6 Summary of rules for date of effect - determinations not involving working credit or student income bank

Last reviewed: