Calculating weekly payments 103-05010030

The Week 1 payment may be different to the Week 2 payment.

Calculate Week 1 payment

• Gross: work out their gross rate for the fortnight
• Apply the relevant income and assets test
• Net: work out their net rate for the fortnight
• Subtract all deductions in priority order
• Subtract add-ons that cannot be paid weekly
• Adjusted Net: add add-ons that can be paid weekly

Week 1 payment = Adjusted Net x 0.5, plus add-ons that cannot be paid weekly

The first weekly payment will be paid to the customer 14 days after their previous EPED, once the payment has been stimulated (that is, if the customer is required to report, payment will not be issued until reporting is actioned). All future week one payments will be issued once payment is stimulated.

Calculate Week 2 payment

Week 2 payment = Adjusted Net x 0.5

This pays to the customer 7 days after the Week 1 payment (this payment is issued automatically if customer is eligible).

See the Resources page for examples.

Go to Step 5.

Customers can only change their EPED in some situations.

Is the customer eligible to change their EPED?

• Yes:
• Work out the gross daily payment
• Work out the amount for the new period from Day I to EPED inclusive
  Gross daily rate x number of days
• If the new period is less than or equal to 7 days, go to Step 3
• If the new period is more than 7 days, go to Step 4
• No, advise the customer. Procedure ends here

If there are no changes, the customer's next payment will be less than their usual Day 7 payment.

They will get an immediate payment on the later of:

• the new EPED
• the day they notified

They will get their next weekly payment as already scheduled.

Their weekly payments will continue from the next EPED.

See the Resources page for examples.

Go to Step 5.

The instalment period is between 8-13 days.

If the customer requests the change to weekly payments:

• before the new EPED
• on the new EPED they will get for the new period Adjusted Net x 0.5, plus add-ons that cannot be paid weekly
• 7 days later they will get Adjusted Net x 0.5
• after the new EPED
• on the day they notify they will get an immediate payment for the new period of Adjusted Net x 0.5, plus add-ons that cannot be paid weekly
• 7 days after the new EPED, they will get Adjusted Net x 0.5

See the Resources page for examples.

See Assessing and coding weekly payments.

If the customer wants a manual calculation of their weekly payments and is :

• not changing their Entitlement Period End Date (EPED), go to Step 2
• changing their EPED, go to Step 3

If the customer does not need a manual calculation, see Assessing and coding weekly payments.

The Week 1 payment may be different to the Week 2 payment.

Calculate Week 1 payment

• Gross: work out their gross rate for the fortnight
• Apply the relevant income and assets test
• Net: work out their net rate for the fortnight
• Subtract all deductions in priority order
• Subtract add-ons that cannot be paid weekly
• Adjusted Net: add add-ons that can be paid weekly

Week 1 payment = Adjusted Net x 0.5

Calculate Week 2 payment

• Net rate for the fortnight (as worked out for week 1 calculation)
• Plus add-ons that cannot be paid weekly
• Less Week 1 payment

Procedure ends here.

Customers can only change their EPED in some situations.

Is the customer eligible to change their EPED?

• Yes:
• Calculate their gross daily payment
• Work out the amount for the new period from Day 1 to EPED inclusive
  Gross daily rate x number of days
• If new EPED falls before Day 7, go to Step 4
• If new EPED falls after Day 7, go to Step 5
• No, advise the customer of the decision. Procedure ends here

The new EPED is between Day 1 and Day 6.

If there are no changes, the customer's next payment will be less than their usual Day 7 payment.

As the carryover amount is greater than the gross payment for the period, this creates a shortfall.

Recover this shortfall in the next instalment period after the EPED change.

See Assessing and coding weekly payments.

Procedure ends here.

The new EPED is between Day 8 and Day 13.

If there are no changes, the customer's next payment will be more than their usual Day 7 payment.

As the carryover amount is less than the gross payment for the period, there is no shortfall.

Payment for Day 8 to new EPED:

• Net rate for the new period
• Plus add-ons that cannot be paid weekly
• Less the weekly payment (carryover) made for Day 1 to Day 7

See Assessing and coding weekly payments.