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FAQ

See the Resources page of Advances for the following:

  • FAQs - applying for an advance
  • Tax status, payment options and eligibility questions
  • Debts and repayments of advance payments - FAQs
  • FAQs regarding repayment of advance payments

EPED system limitation

There is a known system limitation for advance payments of pensions that arises when an advance payment was granted on the customer's Entitlement Period End Date (EPED).

Where an advance payment was granted to a customer on their EPED, the final repayment will be deducted on the 13th EPED following the date of grant. This is also the date that is calculated as the 'next available date' for a further advance payment. However, the final repayment may not update on the customer's record until the following day. This means that although the required number of days since the previous advance payment has lapsed, and the advance payment has been fully repaid, the system will not recognise this until the following day.

Customer contacting on their EPED

For customers contacting on their Entitlement Period End Date (EPED) to apply for a new pension advance payment:

  • Check if the customer was granted their previous advance payment on their EPED
  • If yes, check if the final repayment is due to be made today
  • If this is the 13th EPED from the date of grant of the advance payment, the final repayment will not update until the day after the EPED

Customers in this situation will need to be advised to wait until the day after the EPED to apply for an advance payment.

Next eligibility date for advance payment

Customers should be informed that any advice provided about their future eligibility for an advance payment is indicative only and that the only accurate assessment is on the day of application.

To calculate the next available date manually

  • Identify oldest advance granted within the last 26 weeks/13 fortnights that has not yet been repaid
  • Find the customer's Entitlement Period End Day (EPED) code on the Entitlement Delivery (RAD) page
  • Using the Centrelink Calendar (OS035) count forward 13 EPEDS from the entitlement period that the advance was granted in (inclusive) and add one day. Example: customer is granted an advance on 10 February 2022 (EPEDC '5'), however their standard entitlement period EPED is EPED code (EPEDC) 'B' on 15 February 2022. 13 x EPED code 'B' = 2 August 2022 = 1 day = 3 August 2022. Customer would be eligible for the next advance on 26 July 2022

If the outstanding advance was granted on the Entitlement Period End Date (EPED) for the customer, the next advance will not be available until 13 EPEDs plus 14 days from when the advance was granted. This is because the recovery is not commenced within the fortnight the advance is paid. Example: Customer applies for an advance on 19 January 2022. This is EPEDC 'C'. It is also the customer's Entitlement Period End date (EPED). As no recovery of the advance can be made in this fortnight, the customer will not be eligible for their next advance until 3 August 2022 (13 EPEDs + 14 days).

Example - Weekly payments

Table 1: This table describes where a customer declares excess income that does not correlate with their prior history. Rates correct at 1 July 2022

Item

Scenario

1

Customer declares excess income that does not correlate with their prior history

Dino is on Disability Support Pension (DSP) and contacts the smart centre to request an advance payment of $1000.00. Dino is on weekly payments due to a history of requesting urgent payments for food, medication or accommodation.

Dino's weekly net rate of payment is $493.80pw ($987.60pf) as there are no deductions. Dino advises that at the end of each fortnight there is $380.00 left. Repayments will be $77.00 per fortnight.

The Service Officer should ask Dino:

  • 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 Dino has a history of needing urgent payments, it is unlikely the amount stated would be available at the end of each fortnight. Dino considers the declared amount would qualify for an advance payment. However, by granting Dino an advance of $1000.00, it may cause further financial hardship.

Example - Single pension customers - calculating advance payment entitlement

Table 2: This table describes examples of how entitlement to an advance payment for single pension customers is calculated. Rates correct at 1 July 2022.

These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.

Note: whenever possible the Manage Advances service in Process Direct is to be used to determine the customer's entitlement.

Item

Example

1

Single maximum rate pensioner, or being paid single rate based on relationship status, qualified for advance payment, who has never received a previous advance payment:

  • 3/52 of Advance Payment Qualifying Amount (APQA) is $1401.60
  • 1/52 of APQA is $467.20
  • The customer has stated they can afford to repay $90 per fortnight
  • Repayments for maximum is $107.82 per fortnight, therefore the customer cannot be offered the full $1401.60
  • The customer states they will reduce the amount to $1110.00, where repayments are $85.40 per fortnight
  • The money will be paid into the customer's usual bank account in 2 working days
  • Repayments of $85.40 will commence from the next income support payment

Advance Payment Qualifying Amount (APQA) is

  • The maximum basic pension rate ($900.80) plus
  • Pension supplement minus the minimum pension supplement ($72.70 - $39.10 = $33.60)
  • Multiplied by 26 to get an annual rate

Calculation

  1. $900.80 + $33.60 = $934.40
  2. $934.40 x 26 = $24924.40
  3. $24924.40/52 = 467.20
  4. 3/52 = $467.20 x 3 = $1401.60
  5. 1/52 = $467.20

Fortnightly repayment amount = advance amount divided by 13

  • $1401.60/13 = $107.82
  • $1110/13 = $85.40

2

Single pensioner paying fortnightly

Single maximum rate pensioner, or being paid single rate based on relationship status, qualified for advance payment, who received an advance payment of $500 within the last 13 fortnights and is already repaying $38.50 per fortnight:

  • 3/52 of APQA is $1401.60
  • 1/52 of APQA is $467.20
  • Because of the earlier $500 advance the maximum amount is reduced by this amount
  • The maximum amount is $901.60
  • The customer has stated they can afford to repay a further $50 per fortnight
  • Repayments for $650.00 is $50.00, therefore the customer can be offered $650.00
  • The money will be paid into the customer's usual bank account in 2 working days
  • The total fortnightly repayments will increase to $88.50* from the next income support payment
  • This is the sum of the repayments of the new advance and the earlier advance. $50.00 + $38.50 = $88.50

*Final payment deduction, is adjusted to ensure only the amount of the advance is recovered.

3

Single transitional rate customer qualified for advance payment who had not received an advance payment in last 12 months

Transitional rate customer, customer is single, or being paid single rate based on relationship status, who had not received an advance payment in last 12 months:

  • 3/52 of APQA is $1401.60
  • 1/52 of APQA is $467.20
  • Customer has income and maximum amount is reduced to $650 due to the comparison with 7.5% of payment rate on last pay day
  • Customer has stated they can only afford to repay $45 per fortnight

This means the customer can be offered $585 ($45 x 13) not $650

4

Single maximum rate pensioner not qualified for advance payment as entitlement below minimum amount

Not qualified due to entitlement being below the minimum amount, customer is single maximum rate pensioner or being paid single rate based on relationship status:

  • 3/52 of APQA is $1401.60
  • 1/52 of APQA is $467.20
  • The customer has stated they can afford to repay $20 per fortnight
  • The amount required to repay the minimum advance over 13 fortnights is $35.95

The application is rejected because the customer cannot afford to repay the minimum amount. Rejection code is HAR (hardship).

5

Single 20 year old independent DSP pensioner without a dependent child, qualified for an advance payment:

  • 3/52 of APQA is $1401.60
  • 1/52 of APQA is $467.20
  • Customer receives the under 21 independent, without dependent child rate of DSP ($666.90 pf) therefore the maximum advance payment amount is reduced to $1300.45due to the comparison with 7.5% of payment rate on last pay day
  • $666.90 x 26 = $17339.40 pa
  • 7.5% of $17339.40 = $1300.45
  • The customer has stated they can afford to repay $100 per fortnight
  • Repayments for $1300.00 is $100.00, therefore the customer can be offered $1300.00

Note: only the maximum amount is reduced because of the comparison with the payment rate. The minimum amount remains at 1/52 of the APQA.

6

Single 20 year old dependent DSP customer qualified for an advance payment:

  • 3/52 of APQA is $1401.60
  • 1/52 of APQA is $467.20
  • Customer receives the under 21 dependent rate of DSP ($503.50 pf)therefore the maximum advance payment amount is reduced to $981.82 due to the comparison with 7.5% of payment rate on last pay day
  • $503.50 x 26 = $13091.00
  • $13091.00 x 7.5% = $981.82
  • The customer has stated they can afford to repay $20 per fortnight
  • The amount required to repay the minimum advance over 13 fortnights is $35.94
  • The application is rejected because the customer cannot afford to repay the minimum amount. Rejection code is HAR (hardship)

Note: only the maximum amount is reduced because of the comparison with the payment rate. The minimum amount remains at 1/52 of the APQA.

Example - Partnered pension customers - calculating advance payment entitlement

Table 3: This table describes examples of how entitlement to an advance payment for partnered pension customers is calculated. Rates correct at 1 July 2022.

These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.

Note: whenever possible the Manage Advances service in Process Direct is to be used to determine the customer's entitlement.

Item

Example

1

Partnered maximum rate pensioner qualified for advance payment, customer has never received any previous advance payments:

  • 3/52 of APQA is $1056.45
  • 1/52 of APQA is $352.15
  • The customer has stated they can afford to repay $65 per fortnight which is less than the required fortnightly repayment amount for the maximum amount ($81.26)
  • Customer can be offered the maximum reduced amount of $845.00
  • The money will be paid into the customer's usual bank account within 3 working days
  • Repayments of $65.00 will commence from the next income support payment

2

Partnered maximum rate pensioner not qualified due to previous and outstanding advance payments

Customer received an advance payment of $350.00 8 months ago and is repaying $26.92 per fortnight.

  • Customer also received an advance payment of $380.00 2 months (4 fortnights) ago and is repaying $29.23 per fortnight
  • The total repayment is $56.15 per fortnight
  • 3/52 of APQA is $1056.45
  • 1/52 of APQA is $352.15
  • Because of the earlier advance payments, the maximum amount is reduced by the combined total of both advance payments ($350 + $380 = $730)
  • The maximum amount is reduced to $326.45 which is less than the minimum available
  • The application is rejected because the minimum amount is not available to be advanced. Rejection code is LMA (less than minimum)

Note: if the customer was to repay the outstanding balance of the earliest advance (as this was granted more than 6 months ago), the amount available would be $676.45 and could be paid if the customer is qualified and can afford the repayments for the existing and new advance payments. Alternatively, the customer's partner may qualify for an advance payment.

Example - Calculating the next available advance payment date

Table 4: This table describes examples of calculations of the next available date for an advance payment for pension customers. Rates correct at 1 July 2022

These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.

Item

Example

1

Single customer who has received 1 advance payment in the last 13 fortnights

Customer received 1 advance payment in the previous 13 fortnights which was $1074.90 on 14 March 2022. The customer's entitlement Period End Date is 16 March 2022 (EPED Code 'C').

Using the Centrelink calendar:

  • find 16 March 2022 (EPED 'C')
  • and count forward 13 EPED 'C's inclusive
  • add 1 day

The earliest possible available date is 15 September 2022, subject to all other criteria being met.

2

Partnered customer who has received 3 advance payments in the last 13 fortnights

Customer previously received 3 advance payments over the previous 13 fortnights. These are:

  • $270.10 on 15 March 2022
  • $270.10 on 19 March 2022
  • $272.55 on 27 March 2022

Customer's EPED code is 'A'.

Using the Centrelink calendar:

  • find the date of grant of the earliest advance payment in the previous 13 fortnights, that is, Thursday 15 March 2022
  • find the next EPED code 'A' after the advance was granted (28 March 2022)
  • count forward 13 EPED 'A's inclusive (12 September 2022)

The earliest possible available date is 13 September 2022, subject to all other criteria being met.

3

Single customer who has received 2 advance payments in the last 13 fortnights

Customer has received 2 advance payments over the previous 13 fortnights. These are:

  • $574.90 on 10 January 2022
  • $500 on 10 May 2022

Customer's EPED code is 'D'

Using the Centrelink calendar:

  • find the date of grant of the earliest advance payment in the previous 13 fortnights, for instance 10 January 2022
  • find the next EPED 'D' after the advance was granted (20 January 2022)
  • count forward 13 EPED 'D's inclusive
  • add 1 day

The earliest possible available date is 8 July 2022, subject to all other criteria being met.

4

Partnered customer repaying an advance payment granted more than 13 fortnights ago

Customer previously received an advance payment more than 6 months ago and it has not yet been repaid, as well as another advance payment within the last 13 fortnights. These are:

  • $500 on 29 August 2021
  • $320.00 on 8 January 2022

Customer's EPED code is 'B'

Using the Centrelink calendar:

  • find the date of grant of the earliest advance payment, for instance 29 August 2021
  • find the next EPED 'B' and count forward 13 EPED 'B's inclusive (15 February 2022)
  • add 1 day

The earliest possible available date would have been 16 February 2022 however in this example the customer is not eligible. This is because the outstanding advance payment that is more than 13 fortnights old has reduced the maximum amount down ($1037.70 - $850.00) to $187.70, which is less than the minimum amount of $352.15 that applied at the time the application was made.

The next advance payment will not be available until full recovery has been completed for the advance payment made more than 13 fortnights ago, subject to all other criteria being met.

Rates used were correct at 1 July 2022

5

Single customer where there has been an increase to the consumer price index (CPI) since receiving last advance

Changes to the CPI can impact on a customer's entitlement to the advance payment due to the increasing minimum and maximum rates. For a single customer receiving the maximum rate of pension, the advance entitlement would be calculated as follows:

  • Minimum rate for the period September 2021 to March 2022 $457.55
  • Maximum rate for the period September 2021 to March 2022 $1372.65

and

  • Minimum rate for the period March 2022 to September 2022 $467.20
  • Maximum rate for the period March 2022 to September 2022 $1401.60

On 10 November 2021, a customer takes an advance at the minimum rate of $425.00.

On 8 April 2022 (after the March 2022 CPI increase) the customer applies for and is granted the remaining allowable amount of $976.60.

On 12 May 2022 the customer wishes to test their eligibility for an advance payment. The minimum amount is now $467.20.

Summary

On 12 May 2022, as 13 fortnights have elapsed since 10 November 2021, the earlier of the customer's 2 advances has now been repaid and has no effect on the calculation.

However, the advance for $976.60 is still relevant to the calculation and is deducted from the new maximum rate of $1401.60.

This leaves $425.00 allowed. But as this is less than the new minimum since the March CPI of $467.20, the customer is ineligible for an advance and will need to wait until 13 fortnights have elapsed from the 8 April advance before again being able to test their eligibility for another advance payment.

Advance payment rejection reasons

Table 5: This table shows the main rejection codes for pension advance payments.

REJ Code

Literal

Reason

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

NRA

Not in Australia on date of claim

Customer must be in Australia to claim 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