Energy Supplement for Commonwealth Seniors Health Card holders 101-03090050

From 20 March 2017, Energy Supplement grandfathering arrangements were applied for Commonwealth Seniors Health Card (CSHC) holders. Only CSHC holders who are grandfathered for Energy Supplement will continue to receive the payment.

The Energy Supplement was introduced as part of the Household Assistance Package to compensate people for the introduction of the carbon price. The carbon price has ceased and from 20 March 2017 the Energy Supplement has stopped being paid to CSHC holders unless they meet the grandfathering provisions.

Grandfathered customers:

• CSHC holders who were receiving the Energy Supplement on the 19 September 2016, continue to be paid Energy Supplement as long as they remain entitled to a CSHC
• Customers who were in receipt of a qualifying income support payment (ISP), form either Services Australia or Department of Veterans' Affairs (DVA), on 19 September 2016, and successfully apply for a CSHC within 42 days of the date of effect of their ISP cancellation
• Customers who were in receipt of Energy Supplement with their pension on 31 December 2016 and they were automatically granted a non-income tested CSHC from 1 January 2017 as part of the Rebalance the Assets Test changes. See Non-income tested (NOI) concession cards for more information about these card holders

Customers not grandfathered:

• New CSHC holders granted from 20 March 2017 will not get the Energy Supplement
• Customers granted CSHC between 20 September 2016 and 19 March 2017 and have received Energy Supplement for every day they were eligible within that period and then stopped receiving Energy Supplement from 20 March 2017

Services Australia make Energy Supplement payments quarterly to eligible CSHC holders who:

• are grandfathered for Energy Supplement
• have provided payment destination details, and
• have not requested for the supplement to be suppressed

If a customer ceases to be a CSHC holder before the next payment date, any owed amount is paid on cancellation.

The Energy Supplement is:

• an arrears payment calculated on a daily rate based on the customer's marital status (single or partnered)
• paid each quarter on or shortly after the test days of 20 March, 20 June, 20 September and 20 December. A quarter commences on a test day and ends the day before the next test day.
• a non-taxable payment
• not means-tested, all grandfathered CSHC holders get the amount in full
• an optional payment. Customers not wishing to be paid the supplement can decline the payment at any time
• portable, for more information see Portability of Add-ons

The supplement is only payable to a bank account and is not paid by cheque, in accordance with section 1061UA of the Social Security Act 1991. See References page for links.

Energy Supplement Eligibility

Customers must be:

• residing in Australia
• in Australia (the supplement can be paid for the first 6 weeks of a temporary absence from Australia)
• receiving a qualifying Energy Supplement payment, or
• a grandfathered CSHC holder

Grandfathered CSHC holders must have a valid bank account recorded to receive quarterly Energy Supplement.

Reversal of Energy Supplement

CSHC holders can decline payment of the Energy Supplement. Prior to 20 March 2017, CSHC holders could request to have their Energy Supplement recommence, Energy Supplement would then be paid from the date of this request.

CSHC holders who declined payment of the Energy Supplement are not grandfathered. From 20 March 2017 customers who had previously declined the payment are no longer able to recommence payment for the Energy Supplement.

Grandfathered CSHC recipients who lose entitlement to CSHC will cease to receive Energy Supplement. If entitlement to CSHC is lost for a past period, the customer may:

• have an Energy Supplement debt raised, and
• lose their CSHC grandfathered status

For more information see Raising Pension Supplement and Seniors Supplement Payment (SSP) debts.

The Energy Supplement payment frequency table lists the payment frequency based on the type of qualifying payment the customer receives and their circumstances.

The Quarterly Supplement is calculated on a daily rate. The daily rate is calculated by dividing the annual rate by 364.

Quarterly Supplement may vary because it is calculated by the daily rate multiplied by the number of days in the quarter. Test days are included in the next quarter, for example, for the December Quarterly Supplement, the first day of the quarter is 20 September and the last day is 19 December.

The rate of Quarterly Supplement is based on marital status:

• Partnered rate applies whether or not the customer's partner receives a payment or holds a CSHC. The rate may be affected by changes to the partner's circumstances such as illness separation.
• Single rate applies to customers who are:
• Not a member of a couple
• A member of an illness separated couple
• A member of a psychological care separated couple
• A member of a respite care couple, or
• Partnered and their partner is in gaol