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Cancellation and Period of Grace for Mobility Allowance (MOB) 008-05070030



This document outlines how to assess a customer's eligibility for continued payment of MOB, when the period of grace (POG) applies and how to action a cancellation or reduction in the rate of payment.

Date of cancellation

Cancellation of MOB should occur when a customer:

The date of cessation depends on the cancellation reason.

Payment of MOB can continue at the same rate for a POG after a disqualifying event. The length of this period also depends on the customer's circumstances. The rules that govern the customer's POG are the same for a reduction in the rate of payment and a cancellation of payment.

MOB payment stops immediately

Payment of MOB stops immediately if the customer:

  • is in prison or psychiatric confinement
  • starts receiving a funded package of support under the National Disability Insurance Scheme (NDIS). Note:
    • NDIS participants who have had their MOB payment cancelled, stay eligible for a Health Care Card (HCC). The HCC continues to reissue to the customer unless the National Disability Insurance Agency (NDIA) advises the customer is no longer a participant with the NDIS
    • My Way participants in Western Australia continue to qualify for MOB
  • the customer voluntarily cancels their payment

Two week POG

A 2 week POG applies where the customer:

  • dies
  • can now use public transport without substantial help
  • no longer meets the travel test
  • is provided with a 'gift' car from the Department of Veterans' Affairs (DVA) through the DVA Vehicle Assistance Scheme or Motor Vehicle Compensation Scheme. Note: this includes the initial car provided to the customer and any replacement cars if they get a grant to help with the purchase
  • leaves Australia permanently
  • is exempt from their mutual obligation requirements while in receipt of JobSeeker Payment (JSP) and Youth Allowance (YA) (job seeker), or
  • stops getting JSP, YA (job seeker) or Austudy payment due to the failure to satisfy their mutual obligation requirements

Twelve week POG

A 12 week POG applies for customers who get the standard rate when they stop:

  • participating in gainful employment, vocational training, voluntary work or a combination of these activities for at least 32 hours every 4 week period
  • getting JobSeeker Payment (JSP), Youth Allowance (YA) (job seeker) or Austudy for reasons other than the failure to satisfy their mutual obligation requirements or Activity test requirements, or
  • job search activities Including under an agreement with a government funded employment services provider including Disability Employment Services (DES) - Employment Support Service, or
  • activities with their Disability Employment Services (DES) - Disability Management Service provider

A 12 week POG applies for customers who get the higher rate when they stop:

  • working 15 hours or more per week at or above the relevant minimum wage and are in receipt of Disability Support Pension (DSP), JSP, YA (job seeker) and Parenting Payment (PP)
  • working 15 hours or more per week for wages determined under the Supported Wage Scheme (SWS) and are in receipt of DSP, JSP, YA (job seeker) and PP
  • looking for work for 15 hours or more per week under an agreement with an employment services provider and have compulsory mutual obligation or participation requirements
  • looking voluntarily for work for 15 hours or more per week under an agreement with a Government funded employment services provider and have no compulsory mutual obligation or participation requirements

When a customer is no longer eligible for the higher rate of MOB and they enter into a POG, at the end of the POG they will:

  • revert to the standard rate if they remain qualified for that rate, or
  • have their payment cancelled

Volunteer job seekers with Workforce Australia

MOB job seekers who register as a volunteer with Workforce Australia receive a total of 12 months employment assistance and can be paid MOB if they stay registered and have a current Voluntary Job Plan.

When the 12 months with Workforce Australia ends the job seekers cannot re-register with a Workforce Australia provider unless there is a change in circumstances. For example, they are registered as a fully eligible participant.

To continue to be paid MOB after the 12 months with Workforce Australia ends, the customer needs to be registered as a fully eligible participant or start another qualifying activity for MOB.

The current 12 week POG rules automatically apply to these job seekers when (whichever event occurs first):

  • the 12 months with Workforce Australia ends
  • their Job Plan ends, or
  • their registration ends before the 12 month total is reached

Job seekers who have compulsory mutual obligation or Participation Requirements from 8 December 2019 and receive MOB are not affected by this 12 month servicing limit.

MOB is cancelled immediately during a 12 week POG

MOB is cancelled immediately if the customer is in a 12 week POG and they:

  • become a participant with the National Disability Insurance Scheme (NDIS)
  • leave Australia permanently
  • die
  • can use public transport without substantial help
  • are provided with a 'gift' car from Department of Veterans Affairs' (DVA), or
  • get a sales tax exemption on the purchase of a car

Temporary overseas departures

MOB is portable for up to 6 weeks:

  • if the customer is overseas temporarily, and
  • they continue to meet the qualification provisions for MOB

For example, customer goes overseas during an employment/training holiday period.

The portability period may be for less than the maximum 6 weeks.

For example, their MOB portability is restricted to the same period if their:

  • period of leave is only 4 weeks, or
  • portability for JobSeeker Payment (JSP) is for 2 weeks

The Resources page contains:

  • tables to clarify the various POG applicable to MOB
  • links to forms

Eligibility for Mobility Allowance (MOB)

Cancellation, suspension and rejection codes for Mobility Allowance (MOB) including Period of Grace reasons

Restoration of Mobility Allowance (MOB)

Mobility Allowance (MOB) customer going overseas

Recording and correcting employment income details