Lump Sum Bereavement Payment (LBP) 099-06000000

LBP is a one-off payment paid to the customer in addition to any other bereavement assistance that may be payable.

The LBP is intended to ensure that the surviving partner receives at least the amount that would have been paid to the couple during the bereavement payment period, had the person not died. The LBP is the difference between the surviving partner's new single rate and the member of a couple rate that would have been payable. An LBP is not payable if the new single rate is more than the previous combined member of a couple rate or if the member of a couple rate continued throughout the bereavement period because the death was notified late.

The LBP is calculated and paid automatically when the person is recorded as deceased if both members of the couple were pensioners. If one or both members of the couple were long term social security recipients as allowees, the LBP must be manually calculated and issued. Surviving partners who receive JobSeeker Payment (JSP) or Youth Allowance and who are eligible for LBP must also be assessed for Partner Bereavement Payment.

The way the LBP is worked out depends on who is entitled to receive it and when the death is notified and recorded.

Rent Assistance is included in LBP calculations for both the previous combined member of a couple rate and the survivor's new single rate.

If the surviving partner dies at the same time as or shortly after their partner's death, any LBP not yet paid relating to their partner may be paid to an appropriate person (for example, executor of the estate).

LBPs to partners and to non-partner carers are tax exempt only up to the tax free amount. Any amount of the LBP over the tax free amount is taxable income. A manual tax adjustment may be required. See Adjusting tax details for Bereavement Payments.

Bereavement payments cannot be paid to a person who is in prison or psychiatric confinement because they have been charged with an offence. However, if they are acquitted of the offence, they may be entitled to bereavement assistance even if some time has passed.

Carers in receipt of CA (adult) who also receive an income support payment (other than Carer Payment) that does not qualify them for a bereavement payment may be entitled to a CA Bereavement Payment on the death of the adult care receiver in certain circumstances.

Department of Veterans' Affairs (DVA) may be responsible for paying the LBP.

If the surviving partner is a DVA only customer, DVA assesses entitlement to the LBP. See Initial contact after the death of a member of a couple and the surviving partner is a DVA recipient.

For partnered customers who also receive Defence Force Income Support Allowance (DFISA) payments, the amount of DFISA lump sum bereavement payment that is due to the surviving partner is calculated by Services Australia and transmitted to DVA for payment. DFISA ceased from 1 January 2022. In cases where DFISA is payable, a manual follow up will be created automatically when death action is undertaken on the primary payment and directed to SCS. See Defence Force Income Support Allowance (DFISA).

Farm Household Allowance (FHA) customers who are partnered may be entitled to an LBP.

FHA is paid in the SAP system. In most cases, the LBP is calculated and paid automatically when the person's partner is recorded as deceased.

If the surviving partner is receiving a DVA payment, a referral to the DVA specialist team should be made for them to assess LBP entitlement and manually calculate.

FHA is a time limited payment and is payable for a cumulative period of 4 years (1,460 days) only. The amount of bereavement payment is not affected by the amount of time remaining on the deceased partner's payment 'clock', including when they had less than 14 weeks FHA eligibility remaining on payment.

From 20 March 2020, PBV is a one-off lump sum payment available to the surviving partner who is claiming or receiving JobSeeker Payment (JSP) or Youth Allowance (YA) following the death of their partner.

Eligibility for LBP remains for JSP and YA customers who are long term social security recipients and whose partner was a long-term social security recipient or a pensioner. Some customers may therefore be eligible for both PBV and LBP; however, they are only entitled to receive one bereavement payment.

If a customer is eligible for both PBV and LBP, the LBP should always be paid to the customer.

If the PBV will be or will likely be greater than the LBP, an SA490 Partner Bereavement Payment application is to be issued, inviting the customer to request to be paid a PBV. On the form, the customer will relinquish their LBP entitlement before they can be paid PBV.

When the form is processed, an adjustment to the bereavement payments is made, by offsetting of LBP already paid with the PBV.

Extra care must be taken to only invite customers who will be paid more PBV than what they have received of LBP. This is because an overpayment will occur if the PBV value is lower.

A JSP or YA customer cannot relinquish their PBV to receive LBP. The exception to this rule are JSP or YA customers who transfer to another Income Support Payment (e.g. Disability Support Payment (DSP) or Carer Payment (CP)) that qualifies them for LBP. The PBV paid can be offset against the LBP to reduce the PBV qualification debt.