Centrelink payments and allowances

ABSTUDY

ABSTUDY is available to Australian Aboriginal and Torres Strait Islanders who are undertaking qualifying studying or training full-time and to full-time Australian Apprentices.

Please refer to the ‘Financial assistance’ section in Chapter 3 for further information on ABSTUDY.

Phone: Freecall™ 1800 132 317 (ABSTUDY)
13 36 33 (Payments for Australian Apprentices)

Website: Department of Human Services at www.humanservices.gov.au/abstudy

Advance payments

Advance payments give customers flexibility in how they receive their income support payment, and provide assistance with budgeting for major expenses. An advance payment is not an additional payment; it is an advance of your future income support entitlement and has to be repaid to the Department of Human Services. Eligible partnered customers may be each entitled to an advance payment.

You may be eligible for an advance payment if you receive the following pensions or allowances:
Age Pension - Newstart Allowance
Disability Support Pension - Youth Allowance
Wife Pension - Austudy
Carer Payment - Widow Allowance
Parenting Payment - single - Parenting Payment - partnered
Widow B Pension

NOTE: Service Pensioners, Disability Pensioners, War Widow(er)s and Income Support Supplement Recipients may be eligible for lump sum advance payments through the Department of Veterans' Affairs.

You may qualify for an advance payment if you:

have been receiving one (or a combination) of any of the payments listed above for a continuous period of three months immediately before applying for the advance
are in Australia when the application is made
are not repaying a previous advance payment (not including Family Tax Benefit, Pharmaceutical Allowance or Mobility Allowance advance payments)
do not owe any money to the Australian Government that is being recovered (or may be recovered) from your Centrelink services payment
are able to repay the advance without suffering financial hardship.
The advance will generally be repaid over 13 fortnights (six months).

For the listed benefit/allowance and Parenting Payment single income support recipients, the minimum amount of advance payment is $250 and the maximum amount is $500. You can be paid one advance in a 12-month period.
Changes to the way advance payments are paid to pensioners (excluding Parenting Payment single) were introduced on 1 July 2010.

The maximum pension advance payment amount has been increased and the amount available is dependent on your payment rate. The maximum and minimum amounts will increase in line with pension rate increases.

You will be able to receive more than one advance payment each year if you wish. Generally, you will be able to request an advance payment as you need it and take only as much as you need (within the minimum and maximum limits). Advances will continue to be repaid over six months by direct deductions from pension payments.

Phone: 13 23 00 (Centrelink services)

Website: Department of Human Services at www.humanservices.gov.au

Age Pension

The objective of the Age Pension is to provide income support payments to senior Australians who need financial assistance, and to encourage senior Australians to maximise their total retirement income.

The Age Pension is paid by the Department of Human Services to people who meet age and residency requirements. The rate of payment you receive depends upon your level of income and assets.

A pensioner can have up to a specified threshold level of income and assets to receive the maximum rate of Age Pension. If your income and assets exceed the threshold, the rate of Age Pension reduces on a sliding scale. For age pensioners who choose to work, the Work Bonus enables employment earnings to be treated concessionally under the pension income test.

There is a rate of payment for single people and a rate of payment for couples. If separated because of illness, a couple may each be paid the single pension rate.

If Age Pension is payable, pensioners automatically receive the Pensioner Concession Card and a Pension Supplement.* They may also be eligible for Rent Assistance if they rent privately.

The current qualifying age for Age Pension is 65 for men and 64.5 for women. The pension age for women will be the same as men from 1 July 2013.

From 1 July 2017, the pension age will rise to 65.5 years for everyone; gradually increasing to 67 years by 2023.
*For pensioners overseas, there are different rules.

Phone: 13 23 00 (Centrelink services)

Website: Department of Human Services at www.humanservices.gov.au/agepension
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Asset hardship provisions

These provisions can assist people who are in severe financial hardship and who do not qualify for the maximum rate of pension or Service Pension (Department of Veterans' Affairs) because of the assets test. You may qualify for a pension or an increase in the rate of pension under these provisions if the following criteria apply:

your pension is reduced under the assets test
either you or your partner have an asset or assets which you cannot sell (or cannot be reasonably expected to sell)
you are, or could be, in severe financial hardship if the hardship rules were not applied
there is no other course of action you could reasonably be expected to take to improve your financial position.
A special income and assets test is used to work out the rate of pension.

Phone: 13 23 00 (Centrelink services)

Website: Department of Human Services at www.humanservices.gov.au

Austudy Payment

Austudy is available to people aged 25 and over who are studying or training full-time, or who are full-time Australian Apprentices. Some students undertaking a concessional study load may also be eligible.

Please refer to the ‘Financial assistance’ section in Chapter 3 for further information on Austudy.

Phone: 13 24 90 (Austudy)
13 36 33 (Payments for Australian Apprentices)

Website: Department of Human Services at www.humanservices.gov.au/austudy

Disability Support Pension

Disability Support Pension (DSP) is an income support payment for people who have a physical, intellectual or psychiatric impairment assessed at 20 points or more under the DSP Impairment Tables, and who are unable to work for at least 15 hours a week at or above the relevant minimum wage (or be re-skilled for work) within the next two years.

A person may be eligible to claim DSP if he or she is aged between 16 and Age Pension age. However, a person receiving DSP may elect to continue to receive it when they reach Age Pension age.

Generally, a person must have lived in Australia for at least 10 years as a permanent Australian resident to be eligible for DSP, unless their inability to work occurs while they are an Australian resident.

DSP is income and assets tested, and paid at the same rate as other social security pensions. DSP is non-taxable for people below Age Pension age and taxable for people over Age Pension age.

People who are permanently blind and aged between 16 and Age Pension age are automatically eligible for DSP without the need for a work capacity assessment. DSP is generally not subject to income or assets testing for people who are permanently blind.

DSP recipients are eligible for a Pensioner Concession Card*. DSP recipients may also be eligible for Rent Assistance, Mobility Allowance, the Pensioner Education Supplement and an Education Entry Payment. DSP recipients also receive the Pension Supplement to assist with household expenses.*

Pensioners of Age Pension age have access to the Work Bonus. The Work Bonus provides a mechanism to support older Australians who wish to work to supplement their pension.

Working age DSP recipients have access to the Working Credit.

Note: DSP recipients under 21 who do not have children are paid at youth rates.
*For pensioners overseas, there are different rules.

Phone: 13 27 17 (Centrelink services)

Website: Department of Human Services at www.humanservices.gov.au/dsp

Mobility Allowance

You may qualify for Mobility Allowance if you are undertaking an approved activity and cannot use public transport without substantial assistance because of your disability. Approved activities include paid work, voluntary work, job search or vocational training (this includes secondary, technical, university and independent living skills/life skills programs).

You do not have to be receiving an income support payment to qualify for the standard rate of Mobility Allowance. It is not subject to an income and assets test.

There are two rates of Mobility Allowance. The standard rate is payable to people who are undertaking approved activities such as job seeking or any combination of paid employment, voluntary work, vocational training and independent living/life skills training for at least 32 hours every four weeks on a continuing basis. The higher rate is paid to income support recipients of Disability Support Pension, Newstart Allowance, Parenting Payment, Youth Allowance (other) who are:

working 15 hours or more a week in the open labour market for wages at or above the relevant minimum wage
working 15 hours or more a week in the open labour market for productivity-based wages set in accordance with the Supported Wage System
looking for such work for 15 hours or more a week under an agreement with an employment service provider.

Phone: 13 27 17 (Centrelink services)

Website: Department of Human Services at www.humanservices.gov.au/mobilityallowance

Newstart Allowance

You may be eligible for a Newstart Allowance if you are unemployed and aged between 22 and age pension age. Please refer to the ‘Financial assistance’ section in Chapter 3 for further information on Newstart Allowance.

Phone: 13 28 50 (Centrelink services)

Website: Department of Human Services at www.humanservices.gov.au

Partner Allowance

Access to Partner Allowance has been closed to new customers since September 2003.

Partner Allowance recipients who are under age pension age receive Utilities Allowance and may receive Pharmaceutical Allowance and Telephone Allowance if they meet particular criteria.

Partner Allowance recipients who have reached age pension age may receive a Pension Supplement to assist with household expenses.

Phone: 13 27 17 (Department of Human Services)

Website: Department of Human Services at www.humanservices.gov.au

Pension Loans Scheme

The amount of your pension payment is based on your income (the ‘income test’) and your assets (the ‘assets test’). The actual rate of payment is based on the test that results in the lower rate. It is possible to borrow all or some of the difference between the rate you are entitled to receive and the maximum rate of Age Pension or Service Pension (Department of Veterans' Affairs) under the Pension Loans Scheme.

To qualify for a loan you must:

be of pension age or the partner of a person who is of Age Pension age
have sufficient property in Australia that can be offered as security for the loan
be receiving or be qualified for payment
be entitled to less than the maximum rate of pension because of the income test or the assets test.

You may be eligible to receive a loan amount that tops up your current payment to the maximum amount of pension that applies to your circumstances. The total amount you can borrow depends on the value of the property you have offered as security. Interest is calculated fortnightly and the rate of interest is reviewed periodically. The interest on the loan accumulates over time. The loan may be repaid at an agreed time or on the sale of the secured asset, or be recovered from your estate.

Phone: 13 23 00 (Centrelink services)
13 32 54 (veterans—capital city callers)
1800 555 254 (veterans—regional callers)

Websites: Department of Human Services at www.humanservices.gov.au/pensionloan
Department of Veterans' Affairs at www.dva.gov.au
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Pension Supplement

The Pension Supplement is a fortnightly payment made automatically by the Department of Human Services as part of your pension payment.

The Pension Supplement is paid to recipients of Age Pension, Disability Support Pension (except those aged under 21 without dependent children), Wife Pension, Widow B Pension, Carer Payment, Department of Veterans’ Affairs (DVA) Service Pension and Income Support

Supplement. It is also paid to income support recipients who are over Age Pension age.

You may choose to receive some of your Pension Supplement on a quarterly basis.

Phone: 13 23 00 (Centrelink services)

Website: Department of Human Services at www.humanservices.gov.au/pensionsupplement

Sickness Allowance

Sickness Allowance is a payment made to a person aged 21 or over but under Age Pension age who:

is temporarily unable to carry out their usual work or study, due to illness, injury or disability
has a job to return to or intend to resume studying (full-time and aged 25 or over on Austudy payment or aged 21, or over on ABSTUDY payment) when fit to do so
meets the income and assets tests
is an Australian resident
has been in Australia as an Australian resident for at least 104 weeks and is in Australia when they claim.

A medical certificate from a qualified medical practitioner must be supplied. The commencement date for Sickness Allowance is affected by the payment of sick leave, annual leave and other leave payments made by the employer.

Phone: 13 27 17 (Centrelink services)

Website: Department of Human Services at www.humanservices.gov.au/sicknessallowance

Widow Allowance

You may qualify for a Widow Allowance if you are a woman who was born on or before 1 July 1955 and:

have turned 50 years of age
are not a member of a couple
have become widowed, divorced or separated since turning 40 years of age
have no recent workforce experience.

You must also take reasonable action to obtain any comparable foreign payment that may be available to you from any country, or show reason why a claim would be unsuccessful.

This allowance is subject to an income and assets test. Special compensation rules also apply. It is not activity tested so you do not have to look for work or undertake training. You can, however, get help to improve your job prospects, learn new skills or become involved in your community.

Widow Allowance recipients who are under age pension age receive Utilities Allowance, and may receive Pharmaceutical Allowance and Telephone Allowance if they meet particular criteria.

Widow Allowance recipients who have reached age pension age may receive a Pension Supplement to assist with household expenses.

Phone: 13 28 50 (Centrelink services)

Website: Department of Human Services at www.humanservices.gov.au/widow

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