There are a number of concepts that are fundamental to the payment cycles initiatives. These are explained below.
All payments are made in respect of entitlement periods (1.1.E.125). Most entitlement periods will run for 14 days ending on a weekday, not a weekend. A customer's entitlement period is set in relation to their payment delivery day (1.1.D.55). For customers in receipt of a pension (section 23(1)-'social security pension'), FTB, PP or MOB their entitlement period will end 2 working days before their payment is made into their account (i.e., their payment delivery day). These 2 days fall into the customer's next entitlement period.
Customers in receipt of benefits (section 23(1)-'social security benefit'), other than benefit PPP will have as their payment delivery day the working day after their entitlement period ends.
Entitlement periods run consecutively without a break as long as the customer remains qualified (1.1.Q.10) for a social security payment (section 23(1)-'social security payment'). In some circumstances, the customer's entitlement period will be for a period of less than 14 days or the entitlement period may change as a result in a change in the customer's payment delivery day.
Act reference: SSAct section 23(1)-'social security pension', section 23(1)-'social security benefit', section 23(1)-'social security payment'
Policy reference: SS Guide 3.10.2 Entitlement Periods
To arrive at the amount to be paid to a particular customer for an entitlement period, the system adds together the amounts due for each day in the period including weekends. This will ensure customers receive payment for every day they are entitled.
Example: If a customer becomes entitled to a higher rate of payment on day 4 of their entitlement period, they will receive 3 days of payment at the lower rate and 11 days at the higher rate in their next instalment.
Transfers will be seamless. The customer will normally retain the same entitlement period.
Most customers will be able to choose a payment delivery day that is convenient for them, NOT weekends. Payment delivery days can be changed, but there will be no financial advantage to the customer in doing so. Customers who have restrictions on the choice of payment delivery days are:
FA Guide 1.2.1 Family Tax Benefit (FTB) - Description
Customers will be paid at the end of the entitlement period for the number of days in that entitlement period.
Last reviewed: 2 September 2002