3.8.5.30 Qualification for EEP - PP Recipients

Cessation of EEP

Eligibility for EEP ceased 1 July 2008 as part of the 2008-09 Federal Budget. The following information is for historical purposes only.

Where employment starts on or after 1 July 2008, EEP will not be paid, unless a claim for an advance payment of EEP is made before 1 July 2008.

A person has at least 28 days to lodge a claim for EEP from the start of the employment in respect of which the claim is made. Some principal carer parents, partial capacity to work and PP recipients have 56 days from the start of their employment to lodge their claim. This means that EEP payments will be made up to 56 days after 1 July 2008.

Summary

This topic explains the qualification criteria for PP recipients and the following related issues:

• income and assets testing,
• need for a proper claim, and
• the effect of a recipient resigning or being dismissed.

EEP qualification for:

• YA, NSA, MAA, PA and WA recipients is explained in 3.8.5.10, and
• EEP qualification for CP, WidB, SpB and DSP is explained in 3.8.5.20.

Qualification (1.1.Q.10) criteria

To qualify for EEP, a PP recipient must meet the criteria listed in the following table. If more detail about a criterion is required, the second column indicates where you will find this. An EEP is payable to a person serving an 8 week non-payment period.

Example 1: Joanna has been receiving PPP for over 12 months and gains employment of 15 hours per week at award wages. Joanna has not received an EEP in the past 12 months. She is eligible for a $104 EEP when the work has continued for 4 consecutive weeks.

Example 2: Sally claims PPS when her partner is killed in a car accident. She had been working part-time but 2 months after being granted PPS she commences working extra hours and increases her income so that is exceeds the threshold amount. It is likely that her income will exceed the threshold amount for more than 4 week. Sally has not claimed EEP within the past 12 months. She qualifies for an EEP of $104 even though she has not been receiving income support for a continuous period of 12 months.

Example 3: Bruce has been receiving PPS for 12 months when his 2 year old child gains a suitable creche place and he commences part-time work of 30 hours a fortnight at award wages as a gardener. He is paid EEP 4 weeks after commencing work. Twelve months later, the creche is able to offer Bruce's child a full-time place which he accepts so that he can work as a gardener full-time. His income from gardening then commences to exceed the threshold amount and is expected to continue at this rate for more than 4 weeks, so he is again entitled to receive an EEP.

Example 4: Roger is a PPS recipient who works part-time for 16 hours a week each November and December as a Santa Clause at David Jones. He can be paid an EEP every year in respect of this job as the relationship under which he is employed is for a fixed term and he enters a new employment relationship each time he commences the work.

Employment qualification

A PP recipient's employment is verified:

• on a random sampling basis, OR
• when EEP is claimed in advance, OR
• where the claimant is a CDEP participant, with the CDEP grantee organisation in relation to the source of funding of top-up wages.

Explanation: A person who enters a CDEP scheme as a CDEP scheme participant, does not become eligible for an EEP by taking up CDEP work. This is because work under a CDEP scheme paid from the CDEP wages funded component grant cannot be taken to be employment. This funding is paid to CDEP as an offset against income support payments.

However, a recipient who leaves a CDEP scheme for other employment, or a recipient who takes up employment on a CDEP that is paid for from the recurrent or other funding from the CDEP grantee organisation, can be paid an EEP under normal eligibility rules for the payment that they are on.

This policy intent is that CDEP participants, in receipt of CDEP wages only, are to be treated as income support recipients, eligible for the range of supplementary assistance available to other income support recipients. They are not considered to be taking up employment as such for the purposes of EEP payment. CDEP participants who are in receipt of top-up wages (in addition to CDEP wages) can be considered to be employed for EEP purposes.

A PP recipient who is self-employed is eligible for EEP if they make a declarations of earnings that meet the criteria.

Claim time limit

A PP recipient MUST claim EEP within 28 days of sustaining employment or increasing hours for 4 consecutive weeks.

Previous EEP payments

A PP recipient cannot qualify for EEP unless a delegate verifies that the person did NOT receive EEP in the previous 12 months.

Policy reference: SS Guide 2.2.13.10 Supplementary Benefits - Verification Required, 5.4.4 EEP Advance Payment

More than one EEP payment in respect of the same employment relationship

A PP recipient cannot qualify for a second EEP payment in respect of the same employment relationship of at least 15 hours a week and/or 30 hours a fortnight, 12 months after initially receiving EEP for that employment, merely by increasing the hours of employment. However, a second EEP would be payable in respect of the same employment relationship, after a 12 month interval, where the claimant's income from the employment increases and exceeds the threshold amount (see examples 3 and 4 above). Note that when the employment relationship (that is, the relationship under which a person is employed) ends depends on a number of factors such as the type of employment relationship that the person was employed under (i.e. fixed term, casual, permanent) and the regularity of the person's employment.

Impact of working credit on timing of EEP

Working credit will not impact on the timing of an EEP, and eligible recipients will receive their EEP as if they did not have a working credit balance.

A PPS recipient who qualifies for EEP because of income exceeding the threshold amount, and who has a working credit balance, will receive their EEP at the point their income goes over the threshold. They will then be able to run down any remaining working credit.

Act reference: SSAct section 665AA Existence of working credit does not prevent payments under this part

Policy reference: SS Guide 3.1.11.30 Working Credit Depletion

Income & assets test

EEP is NOT income or assets tested.

Proper claims must be lodged

A PP recipient must lodge a proper claim before EEP can be granted.

Act reference: SS(Admin)Act section 11 A need for a claim

Policy reference: SS Guide 8.1.1.20 Claim Lodgement - General Provisions

Recipient resigns or is dismissed

If a PPS recipient, who qualifies for an EEP because of income exceeding the threshold amount, is employed for a few days and resigns or is dismissed, EEP is not automatically recovered. EEP is only recovered if a recipient:

• misrepresents their employment circumstances, OR
• makes a fraudulent claim.

Legislation

The following table lists the references for qualification for EEP on the SSAct.

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Last reviewed: 1 July 2008