Calculating weekly payments 103-05010030

When a customer starts on weekly payments, the system calculates and issues the weekly payment.

Use this procedure to:

• explain to a customer who may benefit from weekly payments how much they will get each week
• understand the 2 models used to calculate and deliver weekly payments
• ensure the system is paying the correct amount to the customer

Customers must be eligible for weekly payments.

The customer's correct rate for the fortnight is confirmed before issuing weekly payments. This reduces the risk of overpayment. It gives a more consistent weekly rate.

When weekly payments start

The customer's last fortnightly payment needs to last them for 14 days. On their next payday, they will then get their first weekly payment. This is half the amount they would be entitled to in a fortnight. They get the second half 7 days later.

Week 1 payment

• Issued at the end of the instalment period, once the customer reports if required
• Half their gross payment for the previous fortnight less any deductions, plus add-ons that cannot be paid weekly

Week 2 payment

• Issued on Day 7 of the instalment period
• Their actual payment for the fortnight, less their Week 1 payment

If not entitled for the full 14 days, the weekly payment is still half the amount for the fortnight.

When weekly payments stop

The customer will get one more weekly payment. They will start getting fortnightly payments 7 days later.

Reassessments

These are taken into account when calculating weekly payments at the end of the instalment period.

Arrears

Arrears from a new claim, restoration or pay day change are paid in full on the date of assessment.

Weekly payments continue under this model until the customer:

• transfers to the new model. Do not encourage customers to change unless they become Income Managed. Income Managed customers cannot be paid under the Legacy model
• chooses fortnightly payments in their online task to review weekly payments
• goes off weekly payments for a period of greater than 8 weeks
• has any earned income (customer and/or partner), or
• reclaims payment after it cancels, whether or not there is a gap

Week 1 payment

• Issued on Day 7 of the instalment period
• Half their gross rate for the fortnight less any deductions This is before confirming their correct rate for the fortnight, before they report if required

Week 2 payment

• Issued at the end of the instalment period, once the customer reports if required
• Their actual payment for the fortnight, less their Week 1 payment

If not entitled for the full 14 days, the weekly payment is still half the amount for the fortnight.

Shortfall and carryover

If a change reduces the customer's rate after their Week 1 payment, their fortnightly rate may not meet their Week 1 payment or their ongoing deductions.

• This overpayment or shortfall will carry over to the next fortnight
• If it cannot be recovered from their next payment, it is recorded as a debt