Energy Supplement 101-03090000

Example

Description

1

Fortnightly Energy Supplement payment and calculation

On 12 January 2020, Mandy calls Services Australia and speaks with Liz. Mandy noticed that when they reported, their Youth Allowance had increased.

Liz checks the Payment Summary (PS), and Energy Supplement Summary (CESSUM) screens and advises Mandy that they are now entitled to receive the Energy Supplement.

As Mandy's regular payment is fortnightly, the Energy Supplement payment frequency is also fortnightly. Liz advises Mandy that they will now receive ongoing Energy Supplement (Energy Supplement daily rate x 14) with their regular payments. Liz also advises Mandy that the Energy Supplement is subject to the income test so this amount could be less if they have earnings from employment.

2

Quarterly Energy Supplement payment and calculation

Bob is partnered and has received Age Pension since August 2020. He has elected to receive his minimum Pension Supplement quarterly. On 25 January 2021, Bob queries when he can expect to receive his next Energy Supplement payment.

As Bob receives his minimum Pension Supplement quarterly, his Energy Supplement is also paid quarterly. He has already received Energy Supplement quarterly payments with his Age Pension in September and December 2020.

Bob can expect to receive his next Energy Supplement quarterly payment with his first regular Age Pension payment after 20 March 2021 on 26 March 2021.

Bob's Energy Supplement category is Age Pension single.

The Energy Supplement amount is calculated on a daily rate and paid with the customer's first income support payment on or after the quarterly test date. As it is calculated at a daily rate, each quarterly payment will vary depending on the number of days in the quarter. The 20 March 2021 quarter runs from 20 December 2020 - 19 March 2021, a total of 90 days.

Bob became partnered on 20 January 2021. So, his payments are calculated at the single daily rate up until that date, and from 20 January at the partnered daily rate.

On 20 March 2021, the system will automatically calculate Bob's Energy Supplement:

• Age Pension single Energy Supplement daily rate x 31 days (20 December - 19 January) = A
• Age Pension partnered Energy Supplement daily rate x 59 days (20 January - 19 March) = B
• A + B = quarterly Energy Supplement payable

3

Change in Energy Supplement payment frequency and calculation

Quarterly Pension Supplement payments start or cease upon notification from the customer.

When the customer asks to start Energy Supplement quarterly payments:

• with their next regular income support payment, they will receive the daily Energy Supplement up to the date of effect
• from date of effect, the daily Energy Supplement will cease to be paid fortnightly and start to accrue as a quarterly payment

When the customer asks to cease Energy Supplement quarterly payments:

• the amount already accrued for the next quarterly Energy Supplement, up to the day before the date of effect of the change, will be paid to the customer with their next fortnightly income support payment
• the customer will then start to receive the Energy Supplement fortnightly