8.6.4 Date of effect of adverse determinations & automatic cancellations & variations (not involving working credit or student income bank)
This section outlines the application of the provisions of the SS(Admin)Act relating to the date of effect of non-automatic adverse determinations as well as the automatic cancellation and variation provisions.
Adverse determinations (non-automatic)
A non-automatic adverse determination is either a decision to reduce a person's rate made under SS(Admin)Act section 79, or a decision to cancel or suspend a person's payment under sections 80, 81 or 82. The date of effect of these determinations is determined in accordance with section 118 (Part 3 Division 9).
For more information on non-automatic adverse determinations, see 126.96.36.199.
Act reference: SS(Admin)Act section 79 Rate reduction determination, section 80 Cancellation or suspension determination, section 81 Cancellation or suspension for non-compliance with certain notices, section 81A Rate reduction determination for non-compliance with notice relating to RA, section 82 Cancellation or suspension for failure to take action to obtain foreign payment, section 117 Definition, section 118 Date of effect of adverse determinations-general rules
An automatic determination will either automatically reduce a person's rate, or automatically cancel their payment (or perhaps suspend a DSP payment). The provisions relating to automatic determinations are found in Part 3 Division 8. If one of these automatic provisions apply, it is NOT necessary to refer to section 118.
Explanation: Each automatic provision provides the relevant date of effect.
One common situation which may result in an automatic rate reduction or automatic cancellation being made is where the person does not tell Centrelink about an event or change of circumstances, as required by a subsection 68(2) notice, and that event or change results in a rate reduction or cancellation being required (sections 94 and 100).
For more information on automatic cancellations and variations, see 188.8.131.52.
Whether a non-automatic adverse determination or an automatic cancellation or variation will be made will depend on the particular situation. Therefore, although BOTH types of provisions should be considered in working out which one will apply, it is worth noting that if one of the automatic provisions apply, it is not necessary to refer to section 118.
Note: Neither a non-automatic rate reduction under section 79 nor a non-automatic cancellation or suspension under section 80 can be made if the person's rate would be reduced, or the payment would be cancelled or suspended, by the operation of an automatic provision (or another provision of the social security law) AND the non-automatic determination would take effect AT or AFTER the time at which the automatic determination would take effect. In this situation the automatic (or other) provision would apply.
Act reference: SS(Admin)Act section 68(2) The Secretary may give a person to whom this subsection applies a notice that requires the person to do any or all of the following …, section 79 Rate reduction determination, section 80 Cancellation or suspension determination, section 94 Automatic cancellation-recipient not complying with subsection 68(2) notice, section 100 Automatic rate reduction-recipient not complying with subsection 68(2) notice
Policy reference: SS Guide 8.6.6 Summary of rules for date of effect - determinations not involving working credit or student income bank