Transfer to Age Pension 065-03010020
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Age Pension versus current paymentPayment changes when a customer reaches Age Pension age
This table describes expected changes to the customer's current payment as they reach Age Pension age and transfer to Age Pension or choose not to transfer to Age Pension.
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Austudy If a transfer to Age Pension is not submitted online, via ACC, or the Transfer to Age Pension (SA383) is not returned by the customer's Age Pension eligibility date, their (and their partner's) current payment will be suspended. Indigenous customers will not have their payments suspended in this case. Age Pension payment is a higher amount than Austudy and has access to a Pensioner Concession Card (PCC). Once an Austudy customer reaches Age Pension age they will no longer receive additional payments of Telephone Allowance, Pharmaceutical Allowance or Utilities Allowance as these will be rolled into the Pension Supplement. This will be paid automatically when they reach Age Pension age. As Austudy has no upper age limit they can choose to transfer to Age Pension or stay on Austudy. |
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Carer Payment (CP) If a transfer to Age Pension is not submitted online, via ACC or the Transfer to Age Pension (SA383) is not returned by the customer's Age Pension eligibility date, their current payment will be suspended. Identified Indigenous customers will not have their payments suspended in this case. CP becomes taxable income when they reach Age Pension age. Once a CP customer reaches Age Pension age, they have access to the Work Bonus whether they remain on CP or transfer to Age Pension. As CP has no upper age limit, they can choose to transfer to Age Pension or stay on CP. Age Pension does not have the same type of reviews generated as CP. Note: if the CP customer is within a 14 week bereavement period consider not transferring the customer from CP to Age Pension until after this date. If the Transfer to Age Pension is lodged around 1 July, Service Officers should wait until after 1 July to transfer to Age Pension. This makes sure the carer is paid the annual Carer Supplement (CS) payment. This also applies if they are in the 14 week extension of CP when the care receiver has permanently entered an institution. |
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Disability Support Pension (DSP) DSP has no upper age limit if claimed before reaching Age Pension age. DSP cannot be claimed once Age Pension age is reached as stated in section 28 of Social Security (Administration) Act 1999. If a customer has returned temporarily to Australia following an extended absence, staff should make sure there is a conversation to determine if they are likely to return overseas within the next 2 years. This should help inform the decision to stay on DSP or to transfer to Age Pension. If a transfer to Age Pension is not submitted online, via ACC or the Transfer to Age Pension (SA383) is not returned by the customer's Age Pension eligibility date, their (and their partner's) current payment will be suspended. Identified Indigenous customers, with the exception of single DSP customers in receipt of Rent Assistance, will not have their payments suspended in this case. Once a person transferred to Age Pension, a customer cannot be transferred back to DSP unless there is a review of decision requested. Note: if transferred back to DSP following a review of the decision to transfer to Age Pension, they will retain their previous status (for example, DSP grandfathered group/DSP transition group). DSP becomes taxable when they reach Age Pension age. Once a DSP customer reaches Age Pension age, they have access to the Work Bonus whether they remain on DSP or transfer to Age Pension. Payment rates remain the same for DSP/AGE, but there are some additional ‘add on’ payments that are different. For example: Pensioner Education Supplement (PES), change in Rent Assistance (RA) rate due to sharer provisions. DSP (Blind) customers These customers are not required to provide any medical documentation to transfer to Age Pension (Blind). If the Pension Disability Information (PDI) screen shows Y in the Means not Disclosed Ind: field, the customer is exempt from the income and asset test and does not have to advise of their income and assets. Customers who are currently receiving DSP (Blind) free of the means test will be issued a modified version of the SA383 without the superannuation question. If the customer has a partner who is on or applying for an income support payment (other than Blind), details of the customer's superannuation are needed to determine their partner's eligibility. |
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DSP is suspended due to returning to work These DSP customers are eligible to claim Age Pension using the online transfer, via ACC or Transfer to Age Pension (SA383). As their DSP can be suspended for up to 2 years they must be contacted to check all details on their record are still current and a reporting regime considered for employment income. As qualification and/or pay ability of DSP and Age Pension is not overlapping or continuous in these cases, the transfer provisions of section 12 of the Social Security (Administration) Act (SSAA) 1999 do not apply to backdating of up to 13 weeks. Where lodgement is after the Age Pension qualification date, the start day must be determined in accordance with the start day rules for new claims. The References page contains links to the relevant section of the SSAA. |
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JobSeeker Payment JSP will cancel as eligibility ceases when the customer reaches Age Pension age. A Transfer to Age Pension must be submitted online, via ACC or the Transfer to Age Pension (SA383) returned before the agency can determine if the customer is qualified for Age Pension. If a customer does not qualify for Age Pension, consider offering the customer an alternative income support payment where eligible. Payment and Service Finder on the Services Australia website can be used to determine any support the customer may be eligible for. |
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Parenting Payment Partnered (PPP) Age Pension payment is a higher amount than PPP and has access to a Pensioner Concession Card (PCC). If a transfer to Age Pension is not submitted online or the Transfer to Age Pension (SA383) is not returned by the customer's Age Pension eligibility date, their (and their partner's) current payment will be suspended. Identified Indigenous customers will not have their payments suspended in this case. As PPP has no upper age limit, they can choose to transfer to Age Pension or stay on PPP. Once a PPP customer reaches Age Pension age, they will no longer receive separate additional payments of Telephone Allowance (TAL), Pharmaceutical Allowance (PhA) and/or Utilities Allowance (UA) as these will be rolled into the Pension Supplement. This will be paid automatically when they reach Age Pension age. |
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7 |
Parenting Payment Single (PPS) Age Pension payment is in most circumstances is a higher amount than PPS. If a transfer to Age Pension is not submitted online, via ACC, or the Transfer to Age Pension (SA383) is not returned by the customer's Age Pension eligibility date, their (and their partner's) current payment will be suspended. Identified Indigenous customers will not have their payments suspended in this case. Once a PPS customer reaches Age Pension age, they will no longer receive separate additional payments of TAL, PhA and/or UA as these will be rolled into the Pension Supplement. This will be paid automatically when they reach Age Pension age. As PPS has no upper age limit, they can choose to transfer to Age Pension or stay on PPS. |
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Special Benefit (SpB) If a transfer to Age Pension is not submitted online, or the Transfer to Age Pension (SA383) is not returned by the customer's Age Pension eligibility date, their (and their partner's) current payment will be suspended. Identified Indigenous customers will not have their payments suspended in this case. Once a SpB customer reaches Age Pension age, they will no longer receive separate additional payments of TAL, PhA and/or UA as these will be rolled into the Pension Supplement. This will be paid automatically when they reach Age Pension age. SpB cannot be paid to people who are eligible to receive another income support payment. As the customer has now reached Age Pension age, they must complete and return the SA383 to see if they are eligible for Age Pension. If there is no eligibility to Age Pension they may continue to be paid SpB. Note: SpB with TPD or TPP visa type will cancel at Age Pension age as SpB with these visa types is age-limited. (This processing is unrelated to the transfer to Age Pension process.) |
Calculating a customer's Age Pension age transfer date
Due to their date of birth, for the following customers the date that is 6 months after their birthday has to be calculated:
- People born before 1 July 1955 have reached Age Pension age
- People born between 1 July 1955 and 31 December 1956 will be eligible at age 66.5
- People born on or after 1 January 1957 will be eligible at age 67
Months have between 28 and 31 days, so if a customer has a birth date at the end of certain months, the first day of the following month must be used.
Use the following dates as date of grant of Age Pension for customers born on these days, whose Aged Pension aged is a half year:
- for 31 March, use 1 October (as September has only 30 days)
- for 29 August, use 1 March, or 29 February if it is a leap year (as February has 29 days in a leap year, and 28 days for all other years)
- for 30 and 31 August, use 1 March (as February has a maximum of 29 days)
- for 31 October, use 1 May (as April has only 30 days)
- for 31 December, use 1 July (as June has only 30 days)
Note: to check if a year is a leap year, divide the year by 4. If the answer is a whole number it is a leap year. As 2004 is divisible by 4, it is a leap year.
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