Transfers from Parenting Payment (PP) and effect on participation 102-17010070
This document outlines the effect on mutual obligation requirements when a customer transfers from Parenting Payment (PP) to a different payment.
When a customer transfers from PP partnered or single to another payment, they may have different mutual obligation requirements.
Assessing a customer's employment capabilities
As part of the Online Participation Workflow, a customer's job readiness and capability to look for and accept work will be determined. This will result in an appropriate job readiness pathway being identified for the job seeker. This may include an appointment with a Service Officer or specialist officer (for example, Social Worker).
Transferring to a payment with mutual obligation requirements
Customers transferring to a payment with mutual obligation requirements (for example, JobSeeker Payment (JSP) or Youth Allowance (job seeker)) are advised of their new obligations during the new claim interview. If a customer is assessed as having a partial capacity to work, they may have reduced mutual obligation requirements.
If the customer already has a current compulsory Job Plan and they are Centrelink managed, consideration must be given to whether the activities in the plan are still relevant, given their change in circumstances. If one or more of the compulsory activities are no longer appropriate, the customer must be asked to negotiate a new Job Plan.
Relationship status changes
A change in relationship status may affect eligibility for PP. In some cases, the customer will still be eligible for PP as a new claimant, or may be required to test their eligibility for another income support payment. Depending upon the age of the customer's youngest child, the customer may need to transfer to another suitable payment such as JSP.
Transfers between PP partnered and PP single may affect mutual obligation requirements depending upon the age of the customer's youngest child. Due to the change in the customer's circumstances, if they are Centrelink managed, they may require a new Job Plan to be negotiated. The level of financial assistance available to the customer may change, for example, only PP single customers are entitled to a Pensioner Education Supplement (PES) and Pensioner Concession Card (PCC) and there are different income tests and rates of PP.
JSP (single principal carers) qualifies as a PES attracting income support payment. This means those PPS customers who transfer to JSP (single principal carer) will continue to be able to qualify for PES at any point in time (where all other qualifications are met) and are not required to be continuing in the same course of study to retain access to PES.
Customers may lose entitlement to certain add-on payments or services if they are not transferring to another eligible payment, and the Service Officer may need to consider if the customer must be referred to an Employment Services Provider or whether they are entitled to:
- volunteer to participate with Workforce Australia
- volunteer to participate with Community Development Program (CDP)
- an Education Entry Payment (EdEP)
- Pensioner Education Supplement (PES) for customers transferring from PP single
Customers eligible for Working Credit must be advised of the incentives to work force participation such as working credits and the employment income nil rate provisions.
Related links
Mutual obligation requirements for principal carers
Identifying the most beneficial payment for trainees or Australian Apprentices
Initial contact by a customer who is ill, injured or has a disability
First Contact Service Offer workflow
Community Development Program (CDP)
Initial contact with students claiming Pensioner Education Supplement (PES) and ABSTUDY PES