18.104.22.168 Recipients Eligible for Working Credit
This topic covers eligibility criteria for working credit, and explains the notion of daily eligibility for working credit.
Working credit applies to recipients (working credit participants) who:
- are below age pension age, and
- have their rate of payment of pension or benefit worked out with regard to the income test module of a rate calculator in Chapter 3 of the SSAct, and
- are not eligible for access to the student income bank, and
- are receiving one of the following social security pensions or social security benefits as defined in SSAct section 23(1):
- newstart allowance,
- DSP (including permanently blind recipients),
- sickness allowance,
- carer payment,
- YA (other than full-time student or Australian apprentice),
- parenting payment,
- wife pension,
- widow allowance,
- widow B pension,
- PA (other than where partner receives SpB),
- bereavement allowance,
- a social security pension or social security benefit, and be participating in a CDEP,
- CDEP participants aged below age pension age who receive CPS.
Exceptions: Recipients are NOT eligible for working credit if they:
- have reached age pension age (1.1.P.129) regardless of the social security pension or social security benefit they receive,
- receive Austudy, Austudy (Australian apprentice) or YA (student or Australian apprentice),
- Explanation: Recipients receiving student payments have access to the student income bank, a similar scheme to working credit. Recipients receiving YA or Austudy as an Australian apprentice have access to the Australian apprentice income bank.
- receive SpB,
- receive PA and have a partner receiving SpB.
- Explanation: Recipients receiving SpB (and their partners receiving PA) have a stricter income test in keeping with its status as a payment to people in hardship.
Note: Income support payments from another agency, e.g. DVA, DAFF, etc. are not eligible for working credit.
Act reference: SSAct section 23(1) General definitions, section 1073D To whom do working credit accrual and depletion rules apply?
Working credit eligibility is assessed on a daily basis so a person may begin to be, or cease to be eligible for working credit on any day of an instalment period. The daily approach is consistent with the working credit accrual and depletion rules that are applied for each separate day in an instalment period, which in turn is consistent with daily eligibility for a social security pension or benefit.
The day a person becomes eligible for working credit
A person becomes eligible for working credit on the day they start receiving their social security pension or benefit or 20 September 2003, whichever is the later. People serving waiting periods and not receiving a payment, become eligible for working credit only after the waiting period has been served.
Act reference: SSAct section 1073D To whom do working credit accrual and depletion rules apply?
Policy reference: SS Guide 3.1.11 Working Credit
Last reviewed: 20 September 2013