Raising ISP debts for customers granted Parental Leave Pay (PPL) 107-18040300
Expand allThis document provides information on raising income support payment (ISP) debts resulting from payment of Parental Leave Pay (PPL).
ISP debts for customers granted PPL
PPL is treated as ordinary income for determining eligibility and calculating the rate of ISP for the customer or their partner.
Customers (and/or partners) may incur a debt if they receive PPL in the same period as receiving an ISP. Customers can minimise the amount of the overpayment by nominating:
- their first PPL day or block of days from a date in the future
- subsequent PPL days or block of days for dates in the future
Offsetting of PPL arrears
PPL arrears and an ISP overpayment can occur in the same activity. When this happens, the system will offset the PPL arrears with the ISP overpayment. This is so the agency does not issue a payment and raise a debt on the same day. PPL arrears can only be used to offset ISP overpayments that are as a result of getting PPL for the same period. For more information about PPL offsetting, see Parental Leave Pay (PPL) debt raising, debt offsetting and recovery.
If the PPL arrears amount is less than the overpaid amount, the remaining outstanding amount will be raised as a debt.
The Resources page contains a list of Debt Benefit Types.