Home | DSS | PM&C | Education | Employment | AGD | Contact us
 
SS Guide Contents Using the Guide What's New 1 Key Terms & Principles 2 Claim Verification 3 Qualification & Payability 4 Income & Assets 5 Payment Rates 6 Reviews, Debts & Payment Recovery 7 Portability & CFP 8 Administration Act Provisions 9 Visas, Entitlements & Assurances of Support 10 Australian Social Security Agreements 11 Income Management Acronym List Keyword Index Act Section Index Site Map

Print this page Print this page    

3.15.1 CEA - Qualification & Payability

Qualification (1.1.Q.10) criteria

CEA payments to eligible government payment recipients ceased on 31 December 2013.

 

The CEA was paid until CES payments commenced (3.15.2).

 

To qualify for a CEA, a person must meet the criteria listed in the table below. If more detail about a criterion is required, the second column contains or indicates where you will find this. The CEA is generally a one-off lump sum payment.

 

A person must meet ALL of the following:

Criteria More detail
Be residing in Australia, AND SS Guide 3.1.1.10 Residence Requirements
Be in Australia on a determination day between 14 May 2012 and 30 June 2012 or during the advance period specified for the person's qualifying payment, AND See qualifying payments and advance periods below.

Be receiving greater than a nil rate of ONE of the following qualifying payments:

- List 1:

  • - age pension, OR
  • - DSP (aged 21 or over, or aged under 21 with dependent children), OR
  • - carer payment, OR
  • - wife pension, OR
  • - widow B pension, OR
  • - parenting payment (single), OR
  • - bereavement allowance, OR
  • - seniors supplement, OR
  • - newstart allowance, OR
  • - parenting payment (partnered), OR
  • - partner allowance, OR
  • - sickness allowance, OR
  • - SpB (whose rate is worked out as if the person were qualified for NSA), OR
  • - widow allowance, OR

- List 2:

  • - youth allowance, OR
  • - Austudy payment, OR
  • - DSP (aged under 21 without dependent children), OR
  • - SpB (whose rate is worked out as if the person were qualified for Austudy payment or YA).

This topic.

SS Guide 3.1.12 Employment Income Nil Rate

 

CEA payments made with respect to the 'List 1' qualifying payments represent assistance for the period from 1 July 2012 to 19 March 2013 inclusive - the 9 month 'CEA period'.

 

 

 

 

 

 

 

 

 

 

 

 

 

Two CEA payments will be made with respect to the 'List 2' qualifying payments. The first represents assistance for the period from 1 July 2012 to 30 June 2013 inclusive - the 12 month 'CEA period'. The second represents assistance for the period from 1 July 2013 to 31 December 2013 inclusive - the 6 month 'CEA period'.

 

Note: CEA payments may also be paid to qualified payment recipients under the following legislation and administrative schemes:

  • the Farm Household Support Act 1992,
  • the A New Tax System (Family Assistance) Act 1999,
  • the Veterans' Entitlements Act 1986,
  • the Military Rehabilitation and Compensation Act 2004,
  • the Veterans' Children Education Scheme,
  • the MRCA Education and Training Scheme, and
  • the ABSTUDY scheme.

 

SCV holders who are qualified for a one-off period of payment for up to 6 months of either SA, NSA or YA may also qualify for a CEA provided they meet all of the other CEA qualification criteria.

 

Act reference: SSAct section 914 Qualifying for clean energy advances, 914A Recipients of austudy, youth allowance, some disability support pensions and some special benefits, section 23(1)-'clean energy qualifying payment', section 23(1)-'clean energy advance period'

SS(Admin)Act section 47(1)(K) definition of a lump sum benefit

 

Duration of payment (CEA periods)

People receiving a qualifying government payment will receive assistance through a CEA, delivered from May 2012, before the carbon price starts on 1 July 2012. The lump sum CEAs will be followed by permanent, ongoing CES once the carbon price impact is reflected in the normal indexation of the person's qualifying payment.

 

The timing of the changeover from the CEA to the ongoing CES is set to coincide with normal indexation dates for qualifying payments. As indexation takes place at different times of the year for different payments, the period of time for which the CEA is expected to assist the recipient (the CEA period) will vary according to payment type. CEA periods corresponding to the various qualifying payments are shown in the qualification table above.

 

The amount of a person's CEA will be determined using the following calculation; the relevant 'CEA daily rate' multiplied by the number of days from the person's qualification day to the end of the person's relevant CEA period.

 

Note: If the person qualifies for the CEA before 1 July 2012, the number of days must be counted from 1 July 2012.

 

This means that people who qualify for a CEA on or before 1 July 2012 will receive a full CEA, calculated from 1 July 2012 to the end of the CEA period that corresponds to their qualifying payment. People who first become qualified for a CEA after 1 July 2012 will be paid a pro-rata CEA calculated from the day on which they first qualify for the CEA to the end of their CEA period.

 

There are 3 different CEA periods, depending upon the person's circumstances:

  • The CEA period for people in receipt of various social security pensions or benefits other than Austudy, YA or DSP for a person who is under 21 with no dependent children begins on 1 July 2012 and ends on 19 March 2013 - the 9 month CEA period.
  • The first of the 2 advance periods for people in receipt of Austudy, YA or DSP for a person who is under 21 without dependent children commences on 1 July 2012 and ends on 30 June 2013 - the 12 month CEA period.
  • The second of the 2 advance periods for people in receipt of Austudy, YA or DSP for a person who is under 21 without dependent children commences on 1 July 2013 and ends on 31 December 2013 - the 6 month CEA period.

 

Act reference: SSAct section 23(1)-'advance qualification day', section 23(1)-'clean energy advance period', section 914D Amount of a clean energy advance, section 914E Clean energy advance daily rate, section 914F Number of advance days

Policy reference: SS Guide 5.1.10.10 CEA - Current Rates

 

Claims

A person does not need to make a specific claim in order to qualify for a CEA or to qualify for a CEA top-up payment if their circumstances change. CEAs and top-ups will be paid automatically to people who qualify. Payments will begin to be made according to the following schedule for people who qualify before 1 July 2012:

  • FTB recipients - from 16 May 2012
  • Pension recipients - from 28 May 2012
  • Allowance recipients - from 11 June 2012
  • Seniors supplement recipients - from 23 June 2012

 

Act reference: SS(Admin)Act section 12K Clean energy advance

 

Overseas absences

A person will not receive a CEA while they are absent from Australia.

 

If a person normally resides in Australia and is receiving a qualifying payment while temporarily absent from Australia, they will be tested for qualification for a CEA upon their return to Australia. If, upon return to Australia, the person qualifies for a CEA and their absence from Australia was for a continuous period of no more than 13 weeks (6 weeks from 1 January 2013), they will qualify for a full CEA. If the person's absence from Australia was greater than 13 weeks (6 weeks from 1 January 2013), they will qualify for a pro-rata CEA calculated from the date of their return to the end of the relevant CEA period.

 

Act reference: SSAct section 914 Recipients of certain social security payments, section 914A Recipients of austudy, youth allowance, some disability support pensions and some special benefits

 

Nil rate of payment

Generally, people receiving a nil rate of social security payment will not qualify for a CEA until their rate returns to greater than nil. However, in certain circumstances a nil rate can be disregarded. These circumstances include where:

  • a person's rate is nil on the determination day only because they have elected to receive their pension supplement quarterly,
  • a person's rate is nil on the determination day only because they have been paid an advance of PhA, or
  • the person receives DFISA in addition to a nil rate of social security pension or benefit.

 

In these circumstances, the person's nil rate should be disregarded for determining eligibility for a CEA in respect of their social security payment.

 

Act reference: SSAct section 914B Disregard nil rate in certain circumstances

Policy reference: SS Guide 4.3.5.70 About DVA Defence Force Income Support Allowance (DFISA), 3.1.12 Employment Income Nil Rate Period, 1.1.Q.60 Quarterly pension supplement, 5.4.3 PhA Advance Payment

 

Duplicate payments (multiple qualification exclusion)

Generally, a person can qualify for only 1 CEA for a given CEA period (and for no more than 2 CEAs in total). However, a person can qualify for more than 1 CEA in the following circumstances:

  • a person who qualifies for a CEA as an FTB recipient may also qualify for a CEA as a recipient of another government payment,
  • a person who receives a social security qualifying payment as well as a DVA disability pension paid under Part II or Part IV of the VEA at a rate determined by Division 4 of Part II of that Act may receive a CEA in respect of their social security payment as well as a CEA in respect of their VEA payment,
  • a person who receives a social security qualifying payment as well as a permanent impairment payment or a SRDP paid under the MRCA may receive a CEA in respect of each payment,
  • a person may receive a 12 month CEA, followed by a 6 month CEA, or
  • a person may receive a 9 month CEA and subsequently qualify for a 6 month CEA following a change in circumstances.

 

A person cannot qualify for both the 9 month and the 12 month CEA. For example, if a person receives a 9 month CEA in respect of NSA and moves to Austudy on 1 February 2013, the person will not be eligible for a pro-rata CEA in respect of Austudy, but may be eligible for a top-up.

 

Multiple qualification exclusion criteria are contained in the Social Security (Clean Energy - Multiple Qualification Exclusion) (FaHCSIA) Determination 2012, Social Security (Clean Energy - Multiple Qualification Exclusion) (DEEWR) Determination 2012, Social Security (Clean Energy - Multiple Qualification Exclusion) (DIISRTE) Determination 2012 which are disallowable instruments made under SSAct section 918.

 

Act reference: SSAct section 914C Limits on qualifying for multiple advances, section 918 Multiple qualification exclusions

 

Change of circumstance (top-ups)

If a person has received a CEA and their circumstances change so that they become eligible for a higher rate of payment or a qualifying payment that has a longer CEA period, they may qualify for a top-up payment.

 

Example 1: A person moves from Age partnered to Age single.

The CEA daily rate for a person on a single rate of Age is higher than for a person on a partnered rate. This means that a person initially paid a CEA at the partnered rate may not be adequately assisted if they move to a single rate during the CEA period. A top-up may be paid to ensure that this person is appropriately assisted over the course of their advance period. The top-up will be calculated so that the total CEA amount the person receives will be equivalent to receiving a partnered CEA daily rate from their original payment start day to the day before they change to a single rate, and a single CEA daily rate from the change day to the end of the CEA period.

 

Example 2: A person moves from PPS to Austudy single with child.

The CEA period corresponding to PPS is 9 months, whilst the CEA period corresponding to Austudy (single with child) is 12 months. As a result, a CEA paid to a person who subsequently moves from PPS to Austudy may not provide assistance over the full course of their advance period(s). A top-up payment may be paid for a person moving from PPS to Austudy (single with child) to ensure that the person receives assistance appropriate to their circumstances over the course of the advance period(s) corresponding to their qualifying payments. The top-up will be calculated so that the total CEA amount the person receives will be equivalent to being paid a PPS CEA daily rate from their original payment start day to the day before they change payments, and an Austudy (single with child) CEA daily rate from the change day to the end of their new CEA period.

Note: a person cannot receive both a 9 and 12 month CEA.

 

The top-up will be determined and automatically paid as soon as practicable after the change of circumstances.

 

CEA top-up criteria are contained in the Social Security (Clean Energy Advance - Top-Up Payment) (FaHCSIA) Determination 2012, the Social Security (Clean Energy Advance - Top-Up Payment) (DEEWR) Determination 2012 and the Social Security (Clean Energy Advance - Top-Up Payment) (DIISRTE) Determination 2012 which are disallowable instruments made under SSAct section 914G.

 

Act reference: SSAct section 914G Top-up payments of clean energy advance

 

Payability

The CEA is payable as a single lump sum, from the day that the person is qualified for the payment. It will generally be paid as soon as is reasonably practicable.

 

It is not payable to a person who is known to have died.

 

Act reference: SS(Admin)Act section 47D Payment of clean energy advance

Policy reference: SS Guide 3.1.6.10 General Payability Provisions

 

Taxation

Clean energy payments paid under the SSAct, including CEAs, are exempt from income tax.

 

Act reference: SSAct section 23(1)-'clean energy payment'

Income Tax Assessment Act 1997 section 52-10 (IL) How much of a social security payment is exempt?

Policy reference: SS Guide 5.3.1.10 Taxation of Payments & PAYG Payment Summary - Individual Non-Business

 

Exempt Income

Clean energy payments (including CEAs) paid under the FAAct, VEA or the MRCA are not to be treated as income for the purposes of the SSAct.

 

Likewise, clean energy payments paid under the SSAct and the FAAct are exempt as income for the purpose of the VEA.

 

Act reference: SSAct section 8(8) Excluded amounts-general, see (jaa), (yha), (znb)

Veterans' Entitlements Act 1986 section 5H(8)(paa) exempts from the VEA income test any CEA payments under the FAA, section 5H(8)(h) exempts from the VEA income test any CEA payments under the SSA

 

Debts

If a person has received a CEA and it is subsequently found that the CEA (or part of the CEA) was paid because the person knowingly made a false or misleading statement or knowingly provided false information, the CEA (or part of the CEA) will be a debt due to the Commonwealth.

 

No other debt provisions apply to the CEA.

 

Act reference: SSAct section 1224 Debts relating to clean energy advances

Policy reference: SS Guide 6.7.1.10 Debts Due to the Commonwealth

 

CPS

A person who receives only the CPS is considered a person who receives 1 of the qualifying payments by virtue of section 1188H of the SSAct. These people will therefore meet the 'qualifying payment' criterion of the CEA. Provided that they meet the remaining qualification criteria, people in receipt of only the CPS should also receive the CEA.

 

Policy reference: SS Guide 3.8.10 CDEP CPS - Qualification & Payability

 

Compensation

The CEA is not a compensation affected payment.

 

Policy reference: SS Guide 1.1.C.250 Compensation affected payment

_______________________________________________________

Last reviewed: 2 January 2014


Previous
Previous
Top
Top
Next
Next





Page Url: ../../../ssg/ssguide-3/ssguide-3.15/ssguide-3.15.1.html
Last Edited: 04/12/2013 12:14:12 PM


© Commonwealth of Australia, 2014 All rights reserved