3.8.5.20 Qualification for EEP - CP, WidB, SpB & DSP 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.

Summary

This topic explains the qualification criteria for CP, WidB, SpB and DSP recipients, as well as the following related issues:

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

EEP qualification for:

• NSA, YA, MAA, PA and WA recipients is explained in 3.8.5.10, and
• PP recipients is explained in 3.8.5.30.

Qualification (1.1.Q.10) criteria

To qualify for EEP, WidB, SpB, CP or DSP recipients 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.

Act reference: SSAct section 664C Sole parent pension recipients, section 664HA Carer pension recipients, section 664E Widow B pension recipients, section 664G Carer pension recipients

Early payment of EEP

People who have entered an agreement under which they are to be employed may be paid an EEP, up to 14 days for WidB, CP and SpB, or up to 28 days for DSP, prior to commencing employment or receiving a rise in their income from employment.

Act reference: SSAct section 664A(2) EEP-Pension PP (single) recipients, section 664A(3) The time determined..., section 664C(2) EEP-DSP recipients, section 664C(3) The time determined..., section 664E(2) EEP-WidB recipients, section 664E(3) The time determined..., section 664HA(2) EEP-CP recipients, section 664HA(3) The time determined...

Employment qualification

A WidB, CP, SpB or DSP 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 is relation to the source of funding top-up wages.

Explanation: Earnings under a CDEP scheme paid from the CDEP wages funded component grant is not taken to be income for the purposes of calculating entitlement to an EEP. This funding is paid to CDEP as an offset against income support payments.

However, a person who leaves a CDEP scheme for other employment, or a person 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 payment purposes.

New enterprise incentive scheme

A DSP recipient who enters a NEIS scheme is eligible for an EEP. NEIS is a DEEWR programme that assists a person to start their own business. Participation in NEIS is accepted as employment.

A DSP recipient is NOT qualified for EEP if they start:

• an employment based training program, or
• sheltered employment (section 19-'sheltered employment').
• Explanation: The SSAct (section 664C(1)) specifically excludes sheltered employment as employment.

Act reference: SSAct section 19-'sheltered employment', section 32 Approval of sheltered employment - non-profit organisation, section 33 Approval of sheltered employment - supported employment, section 664C(1) Disability support pension recipients

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

Claim time limit

A WidB, SpB, CP or DSP recipient MUST claim EEP within 28 days of an increase in earnings in respect of which the claim was made. This increase may be the result of:

• a recipient entering employment, or
• the level of earnings in continuing employment increasing, so that the income is taken over the current threshold amount.

Previous EEP payments

A WidB, SpB, CP or DSP recipient cannot qualify for EEP unless a delegate verifies that the recipient 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

Income threshold amount

A WidB, SpB, CP or DSP recipient qualifies for EEP when their income increases from below the threshold amount to above the threshold amount. The threshold amount is the amount of ordinary income an NSA recipient can earn without reducing their payment to nil if they:

• are single, AND
• are OVER 21 years BUT UNDER 60 years, AND
• do not receive RA OR RAA, AND
• do NOT have a dependent child (1.1.D.70).

Policy reference: SS Guide 5.1.1.10 NSA - Current Rates

Impact of working credit on timing on 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 recipient of WidB, CP or DSP who qualifies for an EEP and has a working credit balance will receive their EEP at the point at which their income goes over the threshold amount. They will then be able to run down any remaining working credit.

Similarly, an EEP recipient who starts work for more than 30 hours per week will receive EEP at the point at which payability is lost, and then 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 tests

EEP is NOT income or assets tested.

Proper claims must be lodged

A WidB, SpB, CP or DSP recipient must lodge a proper claim before EEP can be granted.

Act reference: SS(Admin)Act section 11 General rule

Policy reference: SS Guide 8.1.1.20 Claim Lodgement - General Provisions

Person resigns or is dismissed

If a WidB, SpB, CP or DSP recipient 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.

Policy reference: SS Guide 6.3.6 Disability & Carer Overpayments

Legislation

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

_______________________________________________________

Last reviewed: 1 July 2008