Social security claims

Contributed by Danny Shaw and Dianne Anagnos and current to 1 September 2005

LEGISLATION

Most federal financial assistance is provided through Centrelink under:

• the Social Security Act 1991 (Cth)
• the Social Security (Administration) Act 1999 (Cth)
• the Social Security (International Agreements) Act 1999 (Cth)
• the Family Assistance Act 1999 (Cth)
• the Family Assistance (Administration) Act 1999 (Cth)
• the Student Assistance Act 1973 (Cth)

The Social Security Act

The Social Security Act is the main Act discussed in this chapter. The Act establishes:

• payments that provide a basic income; and
• payments that supplement income.

HOW MUCH CAN A PERSON BE PAID?

How much a person can be paid may depend on:

• whether the person is single or has a partner;
• whether they have any dependent children;
• their age;
• their children’s ages;
• whether, in the case of a young person, they live at home or are independent;
• their income and assets;
• their partner’s income and assets; and
• for a young person considered to be dependent, their parents’ income and assets.

RATES OF PAYMENT AND THRESHOLDS

This chapter does not set out rates of payment, or income and assets test thresholds – there are regular changes to both. There are also various add-ons to social security payments, as well as payments designed to supplement other forms of income. Refer to Centrelink’s guide to payments.

INCOME AND ASSETS TESTS

Most pensions and allowances are subject to income and assets tests. The only exceptions are:

• disability support and age pensions paid to blind people; and
• carer allowance.

Which test applies?

Centrelink calculates the rate payable under both the income test and the assets test. Whichever test produces the lower rate of payment becomes the basis of assessing the person’s current pension, allowance or family tax benefit entitlement.

Different income and assets tests apply for pensions, allowances and payments.

Certain types of assets and forms of income are excluded from the general income and assets tests, and some are assessed under different rules.

RENT ASSISTANCE

Rent assistance can be paid to people who pay rent (other than government rent, defined in s.13(1) of the Act) over certain amounts. Rates of payment and rent thresholds are determined by:

• the amount of rent;
• whether the person is single or has a partner; and
• the number of dependent children.

People sharing accommodation

For most payments, single people sharing accommodation are only entitled to two-thirds of the maximum rate.

Young people

People between 16 and 24 can get rent assistance if:

• they are getting the living away from home rate of youth allowance; or
• they are considered independent and are living away from their parents’ home.

LODGING CLAIMS

All social security payments require a claim to be lodged with Centrelink.

When to lodge a claim

Most payments cannot be made for any period before the date on which the claim is lodged. It is essential that people do not delay lodging a claim even if they are still collecting supporting documentation such as proof of identity or residence, or details of employment termination payments. This material can be supplied to Centrelink later.

Terminology: pensions, benefits and family assistance

Different terms apply to the different forms of assistance available. Generally, they can be categorised as pensions, benefits and family assistance. This chapter uses the terms listed below.

Pensions:

• age pension
• disability support pension
• carer payment
• parenting payment (single)
• bereavement allowance

Family assistance:

• family tax benefit
• maternity payment
• multiple- birth allowance
• double orphan pension
• maternity immunisation allowance
• child care benefit

Benefits:

• newstart allowance
• youth allowance
• austudy payment
• sickness allowance
• parenting payment (partnered)
• mature age allowance
• partner allowance
• widow allowance
• special benefit,
• supplementary payments (carer allowance, mobility allowance)

If you are not sure what to claim

The array of different social security payments available can be confusing. Anyone who is unsure, but believes they qualify for a payment, should not leave a Centrelink office without lodging a claim form for something, especially if they do not have adequate income.

Under the Social Security (Administration) Act 1999 (Cth) (s.15), most claims for one kind of payment can be treated as a claim for a different payment. Even if the claim that was lodged turns out to be the wrong one, lodging an inappropriate claim (rather than no claim) ensures that, once eligibility is sorted out, payment can be dated from the time the first claim was made.

Obligation to notify Centrelink

People who receive social security payments are obliged to notify Centrelink of changes in income, assets and other circumstances. This obligation is stated on letters sent to clients, usually pre-printed on the reverse side of Centrelink correspondence.