8.6.7 Summary of rules for date of effect - determinations involving working credit or student income bank
Introduction
This section deals with situations where a person's claim for a social security payment has already been granted and a change in the person's circumstances affects the continuation of the payment or the rate of payment to which the person is entitled.
The table below sets out the date of effect rules related to the conditions required to distinguish one rule from another, together with references to the authorising legislative provisions. The legislation is organised by the types of determination, which the Secretary makes in response to changes in a person's circumstances. To work out the category of determination, you need to decide:
- whether the determination is 'favourable' or 'adverse'
- whether the determination is 'automatic' or 'manual', and
- whether the person is a 'notification reporter' or a 'statement reporter'.
This table applies to all working credit recipients under age pension age for all determinations involving employment income and all student income bank recipients for all determinations involving ordinary income.
The table uses a number of terms and abbreviations to assist in the presentation of the complex legislative provisions, which apply to working credit and student income bank date of effect provisions. When the following terms or abbreviations are used in the table below, they must be read as having the definitions which follow:
- Date of effect (DOE) - the first day on which the person's payment increases, decreases or ceases, as a result of a determination.
- Working credit (WC).
- Student income bank (SIB).
- Event - abbreviation for 'event or change in circumstances' as used in the SS(Admin)Act.
- Ordinary income (OI) - all income earned, derived or received or taken to be earned, derived or received by a person except maintenance income: SSAct section 8(1) other than an amount excluded under sections 8(4), 8(5) or 8(8).
- Employment income (EI) - a subset of OI, defined in SSAct section 8(1A).
- Notification period - the period within which a person subject to paragraph 68(2)(a) requirements must notify the department of an event: this is 14 days for all information other than information that a person becomes aware he or she has received or is about to receive a compensation payment, where it is 7 days: SS(Admin)Act section 72(3).
- Social security payment (SSP) - a periodic social security pension or a social security benefit.
- Instalment period (IP) - periodic social security payments are paid by instalments in arrears, and instalment periods must not exceed 14 days: SS(Admin)Act section 43(1).
- Event instalment period (EIP) - the IP in which an event occurs.
- Nil instalment period (NIP) - the IP in which a person's WC/SIB balance reduces to nil.
| Determination category | Conditions | Date of effect (including SS(Admin)Act references) |
|---|---|---|
| Adverse, automatic, notification |
(a) Person informs department of event (which occurs in EIP) within notification period AND because of the event, WC/SIB balance reduces to nil in the NIP AND the NIP is an IP which is the same as or later than the EIP AND because of the WC/SIB balance reduces to nil or WC/SIB balance is already nil, the SSP should cease or reduce AND the SSP is not cancelled, suspended or reduced before the end of the NIP. |
Cancellation or suspension - section 93(2) Reduction - section 99(2) |
| Case 1: The payment is cancelled, suspended or reduced in the instalment period following the NIP: | ||
| - (A) Cancellation, suspension or reduction attributable to WC/SIB balance reduces to nil: | ||
|
First day of IP following EIP. Cancellation or suspension - section 93(3)(a)(ii) Reduction - section 99(3)(a)(ii) |
|
|
The day on which WC/SIB balance reduces to nil. Cancellation or suspension - section 93(3)(a)(i) Reduction - section 99(3)(a)(i) |
|
| - (B) Cancellation, suspension or reduction attributable to WC/SIB balance is already nil: | ||
|
First day of IP following EIP. Cancellation or suspension - section 93(3)(b)(ii) Reduction - section 99(3)(b)(ii) |
|
|
First day on which WC/SIB balance is already nil. Cancellation or suspension - section 93(3)(b)(i) Reduction - section 99(3)(b)(i) |
|
| Case 2: The payment is cancelled, suspended or reduced in an IP after the instalment period following the NIP: | ||
| - (A) Cancellation, suspension or reduction attributable to WC/SIB balance reduces to nil. The later of: |
(i) Day on which WC/SIB balance reduces to nil. Cancellation or suspension - section 93(3)(c)(i) Reduction - section 99(3)(c)(i)
(ii) First day following the notification period. Cancellation or suspension - section 93(3)(c)(ii) Reduction - section 99(3)(c)(ii) |
|
| - (B) Cancellation, suspension or reduction attributable to WC/SIB balance is already nil. The later of: |
(i) First day on which WC/SIB balance is already nil. Cancellation or suspension - section 93(3)(d)(i) Reduction - section 99(3)(d)(i)
(ii) First day following the notification period. Cancellation or suspension - section 93(3)(d)(ii) Reduction - section 99(3)(d)(ii) |
|
| (b) Person does not inform department of event (which occurs in EIP) within notification period AND because of the event, WC/SIB balance reduces to nil in the NIP AND the NIP is an IP which is the same as or later than the EIP AND because of the WC/SIB balance reduces to nil or WC/SIB balance is already nil, the SSP should cease or reduce. |
Cancellation or suspension - section 94(2) Reduction - section 100(2) |
|
| Case 1: Cancellation, suspension or reduction attributable to WC/SIB balance reduces to nil. |
Day on which WC/SIB balance reduces to nil. Cancellation or suspension - section 94(2)(g) Reduction - section 100(2)(g) |
|
| Case 2: Cancellation, suspension or reduction attributable to WC/SIB balance is already nil. |
First day on which WC/SIB balance is already nil. Cancellation or suspension - section 94(2)(h) Reduction - section 100(2)(h) |
|
| Adverse, manual, notification |
(a) Person informs department of event AND person has EI in an IP ('the IP') PROVIDED person not paid an SSP instalment after the DOE in cases 1, 2, or 3 below and before determination made. Payment is cancelled, suspended or reduced. | |
| Case 1: WC/SIB balance reduces to nil during the IP and cancellation, suspension or reduction attributable to WC/SIB balance reduces to nil. | Day on which WC/SIB balance reduces to nil. section 118(2A)(c) |
|
| Case 2: WC/SIB balance is already nil during the IP and cancellation, suspension or reduction attributable to WC/SIB balance is already nil. | First day on which WC/SIB balance is already nil. section 118(2A)(d) |
|
| Case 3: Any other case (i.e. WC/SIB already nil at start of the IP). | First day of the IP. section 118(2A)(e) |
|
| (b) Person informs department of event AND person's SIB balance reduces to nil in an IP ('the IP') AND person EITHER has OI other than EI in the IP OR person is of age pension age and has EI in the IP, PROVIDED person not paid an SSP instalment after the DOE in Case 1 or 2 below and before determination made. Payment is cancelled, suspended or reduced. | ||
| Case 1: SIB balance reduces to nil during the IP and cancellation, suspension or reduction attributable to SIB balance reduces to nil. | Day SIB balance reduces to nil. section 118(2B)(d) |
|
| Case 2: SIB balance is already nil during the IP and cancellation, suspension or reduction attributable to WC/SIB balance is already nil. | First day on which SIB balance is already nil. section 118(2B)(e) |
|
| Adverse, manual, statement |
(a) Person informs department of event in statement in respect of an IP ('the IP') AND has EI in the IP. Payment is cancelled, suspended or reduced. | |
| Case 1: WC/SIB balance reduces to nil during the IP and cancellation, suspension or reduction attributable to WC/SIB balance reduces to nil. | Day on which WC/SIB balance reduces to nil. section 118(5A)(c) |
|
| Case 2: WC/SIB balance is already nil during the IP and cancellation, suspension or reduction attributable to WC/SIB balance is already nil. | First day on which WC/SIB balance is already nil. section 118(5A)(d) |
|
| Case 3: Any other case (i.e. WC/SIB already nil at start of the IP). | First day of the IP. section 118(5A)(e) |
|
| (b) Person informs department of event in statement in respect of an IP ('the IP') AND person EITHER has OI other than EI in the IP OR person is of age pension age and has EI in the IP. Payment is cancelled, suspended or reduced. | ||
| Case 1: SIB balance reduces to nil during the IP and cancellation, suspension or reduction attributable to SIB balance reduces to nil. | Day on which SIB balance reduces to nil. section 118(5B)(d) |
|
| Case 2: SIB balance is already nil during the IP and cancellation, suspension or reduction attributable to SIB balance is already nil. | First day on which SIB balance is already nil. section 118(5B)(e) |
|
| Favourable, manual, notification |
Person informs department of event and person's EI has ceased or decreased in an IP ('the IP'). Payment is increased or resumed. | |
| Case 1: Department informed after end of the IP. | First day of the IP in which department informed. section 110(1A) |
|
| Case 2: Department informed before end of instalment period in which event occurs. | First day of the IP. | |
| Favourable, manual, statement |
Person informs department of event in a statement in respect of an IP ('the IP') and person's EI has ceased or decreased in the IP. | First day of the IP. section 110(2A) |
| Adverse, automatic, partner income |
Person receives SSP AND partner starts to receive SSP or service pension AND as a result, person's WC/SIB balance reduces to nil AND because of WC/SIB balance reduces to nil or WC/SIB balance is already nil, person's SSP to be reduced. Payment is reduced. | |
| Case 1: Reduction attributable to WC/SIB balance reduces to nil. | Day on which WC/SIB balance reduces to nil. section 98(2)(e) |
|
| Case 2: Reduction attributable to WC/SIB balance is already nil. | First day on which WC/SIB balance is already nil. section 98(2)(f) |
|
| Adverse, manual, partner income |
(a) Person and partner both receive SSP AND partner under age pension age AND partner is required to provide statement in respect of an IP ('the IP') AND partner informs department of event in IP in a statement relates as required AND following this, adverse determination made to person's SSP because partner has EI in the IP. Payment is cancelled, suspended or reduced. | |
| Case 1: WC/SIB balance reduces to nil during the IP and cancellation, suspension or reduction attributable to WC/SIB balance reduces to nil. | Day on which partner's WC/SIB balance reduces to nil. section 118(6A)(h) |
|
| Case 2: WC/SIB balance is already nil during the IP and cancellation, suspension or reduction attributable to WC/SIB balance is already nil. | First day on which partner's WC/SIB balance is already nil. section 118(6A)(i) |
|
| Case 3: Any other case. | First day of the IP. section 118(6A)(j) |
|
| (b) Person and partner both receive SSP AND partner is required to provide statement in respect of an IP ('the IP') AND partner informs department of event in the IP in a statement as required AND partner's SIB balance reduces to nil in the IP AND following this, adverse determination made to person's SSP because either the partner has OI other than EI in the IP or the partner is of age pension age and has EI in the IP. Payment is cancelled, suspended or reduced. | ||
| Case 1: Partner's SIB balance reduces to nil during the IP and cancellation, suspension or reduction attributable to partner's SIB balance reduces to nil. | Day on which partner's SIB balance reduces to nil. section 118(6B)(h) |
|
| Case 2: Partner's SIB balance is already nil during the IP and cancellation, suspension or reduction attributable to partner's SIB balance is already nil. | First day on which partner's SIB balance is already nil. section 118(6B)(i) |
|
| Favourable, manual, partner income |
Person and partner both receive SSP AND partner under age pension age AND partner is required to provide statement in respect of an IP ('the IP') AND partner informs department of event in IP in a statement as required AND following this, favourable determination made to person's SSP because partner's EI has decreased or ceased in the IP. Payment is increased or resumed. | First day of the IP. section 110(3A) |