Parenting Payment Single (PPS) income and assets tests 108-01010150

This procedure applies to Parenting Payment Single (PPS) customers only.

PPS customers are subject to the PPS Income Test and the benefits Assets Test (also known as the allowance Assets Test).

Are the customer's assets less than the allowance assets thresholds? For the Allowance assets threshold, see Assets test - Allowance (Independent).

• Yes, go to Step 2
• No, there is no entitlement to PPS. Investigate if the customer is entitled to a different payment or may be eligible to be considered under the assets hardship rules. Procedure ends here

Has the customer been in receipt of Age Pension, Carer Payment (CP), Disability Support Pension (DSP) or Wife Pension (WP) on or prior to 20 March 1995 as well as being in receipt of Department of Veterans' Affairs (DVA) War Widows and Widowers Pension since 20 March 1995?

• Yes, see Completing Department of Veterans' Affairs (DVA) clearances and income coding. Procedure ends here
• No, go to Step 3

Calculate the customer's assessable income before tax:

• A summary of income and asset details the customer has previously advised will be displayed on the Pensions Income and Asset Summary (PIAS) screen
• Note: Parental Leave Pay (PPL) for children born or entrusted into care on or after 1 October 2016 is counted as ordinary income. Check with the customer to ensure these details are correct
• Update any changes advised by the customer
• Calculate the total gross ordinary income from the details on the PIAS screen taking into account any corrected balances as advised by the customer

Do not include any direct deduction income amount. To check for direct deductions:

• On the PIAS screen, see if the Forgn Pension: field or Compensation: field contains income amounts
• On the Pensions Rate Calculation (PRC) screen check if the foreign pension or compensation amounts are direct deduction amounts. If so these should not be included in assessing the effect of ordinary income on the customer's rate of payment
• Monies received from the National Disability Insurance Scheme (NDIS), whether received periodically or as a lump sum, are exempt from the Income and Assets Tests. Monies received from the NDIS that are placed in a bank account will be exempt from deeming

Is the customer workforce age and do they have employment income?

• Yes, go to Step 4
• No, go to Step 5

If the customer has employment income, calculate entitlement to any Working Credit they may have.

Check the WC Balance Summary (WCBS) screen to see if the customer has accrued a Working Credit balance. If there is a number greater than zero in the Balance: field, calculate the adjusted total ordinary income to be used in the rate calculation.

For more information on Working Credit, see Working credits.

For each child there is an additional allowable income area. Income received by or on behalf of a child may reduce a customer's additional free area for the child.

A reduction to the customer's additional free area due to income received by or on behalf of a child should be coded on the Pensions Additional Assessment (PAA) screen unless it is exempt child income. For more information on exempt child income, see Exempt Income.

Do not include income which is coded on the Pensions/Annuities Summary (SUPS) screen or Foreign income received for the child which should be coded on the Foreign Income/Assets/Pensions summary (FIPS) screen.

Is the customer's assessable income less than or equal to the income free area plus the additional allowable income area per child? For the income free area, see Parenting Payment (PP) - income test.

• Yes, there is no effect on the rate of payment under the Income Test and the maximum rate of PPS is payable, go to Step 7
• No, go to Step 6

If the adjusted income is more than the income free area limit, determine the affecting income on an annual basis:

• affecting income per annum for the customer = (annual assessable income - income free area limit x 0.40
• to get a daily amount of affecting income, divide result by 364 (not 365)

Determine the amount payable (including Pharmaceutical Allowance (PhA) and, if eligible, Rent Assistance (RA)).

Amount payable = (maximum rate - direct deduction income amount) - affecting income.

If the amount payable is more than nil but equal to or less than the full PhA, then the amount payable will be the full PhA.

Advise details of employment income nil rate period if the customer is affected by the Income Test and:

• will receive nil rate due to the Income Test, and
• some of that income is employment income

Record details of assessment on a DOC.