Advance payment for non-pension customers 103-05040010

Item

Description

1

Customer advises excess income when applying for advance

Franklin is on JobSeeker Payment (JSP) and contacts by phone to request an advance payment of $500. Franklin is on weekly payments due to a history of requesting urgent payments for food, medication or accommodation.

Franklin's weekly net rate of payment is $248.50 as there are no deductions. Franklin advises that at the end of each fortnight there is $380.00 left.

The Service Officer should ask Franklin:

• how much money is spent on accommodation
• how much money is spent on food
• how much money is spent on medication
• any other expenses

As Franklin has a history of needing urgent payments, it is unlikely the amount stated would be available at the end of each fortnight. Franklin considers the declared amount would qualify for receiving an advance payment. However, by granting Franklin an advance of $500, it may cause further financial hardship.

Item

Description

1

Question: How is an advance payment for Parenting Payment single calculated?

Answer: PPS customers would receive the smallest of the following amounts:

• The amount requested, OR
• 6% of the person's annual payment rate, OR
• $500.00 (legislated maximum amount)

Note: the minimum amount that can be paid is $250. If the lowest amount is less than $250, customer is not eligible for an advance payment.

The annual payment rate is the rate of PPS payable on the last payment delivery day before the person applies for an advance. The rate includes Rent Assistance, Energy Supplement, Pension supplement or Pharmaceutical Allowance and is the rate after the income test has been applied. The rate does not include Remote Area Allowance.

Customer has requested $700 advance payment

Rate of payment is (customer is under Age Pension age and has income):

• Base rate of payment - $855.00
• Energy Supplement - $12.00
• Pension Supplement - $25.20

Total fortnightly payment = $ 892.20 or $23197.20 per annum

Advance payable is the lesser of

• Amount requested $700,
• 6% of $23197.20 = $1391.83
• Legislated maximum amount $500

Customer would be eligible for a maximum advance of $500

Rates as at 1 July 2022.

2

Question: How is an advance payment for JSP, PPP, YA or Austudy calculated?

Answer: JSP, PPP. YA or Austudy customers would receive the lowest of the following amounts

• The amount requested, or
• 7% of the persons 'last full fortnightly benefit rate' x 26, or
• $500.00 (maximum legislated amount)

Note: the minimum amount that can be paid is $250. If the lowest amount is less than $250, customer is not eligible for an advance payment.

The fortnightly benefit rate is the rate of payment payable on the last full payment delivery day before the person applies for an advance. The rate includes Rent Assistance, Energy Supplement, pension supplement or Pharmaceutical Allowance and is the rate after the income test and parental means test has been applied. The rate does not include Remote Area Allowance.

A JSP customer applies for an advance of $350.

The last fortnightly rate of JSP (single customer over 22 with no children) was

• Base rate of payment - $642.70
• Rent Assistance - $145.80

Total fortnightly payment $788.50

Advance payable is the lesser of

• Amount requested $350
• 7% of $788.50 x 26 ($55.20 x 26) = $1435.20
• $500 (maximum legislated amount)

Customer would be eligible for an advance of the requested amount $350.

Rates as of 1 July 2022.

Rej Code

Literal

Reason

ADV

Repaying an earlier advance

Customer is repaying an earlier advance. Customer cannot have more than one advance payment at one time.

APY

Advance paid in last 12 months

Customer can only receive one Income Support payment advance in 12 months. Customer has already received advance.

AQP

Not receiving qualifying payment

Customer is not on a qualifying payment for an advance payment.

BOA

Student is a boarder

Not eligible for an advance as customer is boarding at a school or hostel.

HAR

Cannot afford repayments

The funds the customer has remaining will not meet the repayments.

LMA

Less than minimum amount

The available advance amount is less than the minimum amount that can be issued.

LTM

Allowable or requested advance amount less than $250

Minimum advance amount cannot be less than $250.

NRA

Not in Australia on date of claim

Customer must be in Australia to claim an advance payment.

NQP

Not receiving a qualifying payment

Customer is not receiving a qualifying Income Support payment for an advance payment.

OTH

Other

POD

Person has overpayment/debt

Customer cannot be paid an advance if they owe money to the Commonwealth.

ROA

Repaying an advance granted more than 12 months ago

A new advance cannot be granted if the customer is still repaying an advance that was granted more than 12 months ago.

SSE

Less than 3 months continuity

Customer must be on qualifying payment for at least 3 months.

WDR

Claim withdrawn

Customer has withdrawn application.