Making a decision about a hardship advance or anticipated payment 003-10020000

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Description

1

Examples of when a hardship advance might be available

• A single parent attends a Service Centre just after separating from their partner in circumstances that do not qualify for Crisis Payment. They are not receiving income support just before separation, and have no immediate access to funds
• A job seeker who claims JobSeeker Payment (JSP) or Youth Allowance (YA) soon after losing their job has not yet been paid casual earnings and a deferment period will not apply
• New grant or restoration of payment, when it is confirmed that accommodation can be secured if funds are made available in advance
• A customer applying for Disability Support Pension (DSP) with a manifest condition who can be paid immediately and who has no income or income support before grant
• Refugees and those covered by humanitarian programs
• Prison release customers

2

Pensions - calculating hardship advance

• Michael lodges a claim for Carer Payment (CP) on 3 May 2022. The first instalment is due 13 days later on 16 May 2022. The first payment represents Michael's entitlement from 3 May 2022 to 14 May 2022 - a total of 12 days. (Allowing for 2 processing days)
• As Michael does not present with exceptional and unforeseen circumstances the maximum amount that can be advanced is a payment to the maximum amount of 7 days entitlement
• This amount is the amount available after any deduction from the payment, for example, Centrepay, tax deductions

3

Allowance - calculating entitlement days for a hardship advance

Sally goes onto her Centrelink Online Account on 5 June 2022 and starts her claim for JobSeeker Payment. Sally finalises the claim on 7 June 2022, and requests that the benefit be paid from Tuesday 11 June 2022.

The first instalment is Sally's entitlement from 7 June 2022 to 10 June 2022. This is a total of 3 days (allowing for 1 processing day). This is the maximum amount that can be advanced. This amount is the amount available after any deduction from the payment.

From 1 July 2018, a customer will no longer be backdated to the date that they first contacted Centrelink. Eligible customers will receive payments or concession cards from the date they actually submit a complete claim with all relevant supporting documents.

Note: different processes apply for customers in vulnerable circumstances.

4

Parenting Payment - calculating entitlement days for a hardship advance

Melissa lodges a claim for Parenting Payment (PP) on 5 July 2022, a Monday and requests that payments be made every second Wednesday. Melissa's first instalment will therefore be due on Wednesday 13 July 2022.

This represents Melissa's entitlement from 5 July 2022 to 12 July 2022 - a total of 8 days (allowing for 2 processing days). Melissa can be advanced 7 days payment, or a maximum of 8 days.

5

Recovery of hardship advance

The amount of the advance is recoverable from the first instalment or the first 14 days of payment after grant or restoration. If the recovery is proportioned over the first 2 instalments to minimise hardship, as long as the full amount is recovered there is no need to raise a debt on Debt Management Information System (DMIS).

Any amount that cannot be recovered from the payment period the hardship advance was granted in will be recovered from the next available instalment. If the customer loses qualification, a debt is to be raised for any unrecovered hardship advance payment received.

DMIS will create undetermined debt shells for non-recovered hardship advances. In most cases, creates the debt shell 28 days after issuing the payment. Other activity on the customer record (suspension, late lodgement of first report) may prevent recovery create the debt shell earlier.

As hardship advances are payments of anticipated entitlement, care must also be taken not to incur an overpayment. Essential documents and information to establish eligibility may be outstanding. It must be obtained before paying an advance. Service Officers need to be aware if the customer's circumstances are expected to change later in the fortnight, for example, through reconciliation, casual earnings, or child leaving care.

Deductions such as tax, debt withholdings, previous advance payments and Centrepay are excluded from the hardship advance payment issued. All deductions (including the immediate payment instruction for the hardship advance) will come from the remaining amount for that period, further reducing the amount of the next payment. Service Officers must take these deductions into account when deciding the amount of the Hardship Advance ensuring that the remaining amount will cover all of the deductions.

Customers who request a change of payday after receiving a hardship advance need to wait until the following pay cycle to allow recovery of the advance. The system prevents change of payday in this case.

6

Minimum amount needed to meet the customer’s immediate need

The maximum amount that can be paid to a customer without Team Leader approval, should be the lesser of:

• The minimum amount needed to meet the customer’s need; or
• Between 1 and 7 days of the customer’s first instalment.

The minimum amount needed to meet the customer’s need, will normally be the amount requested but if the amount seems excessive, discussion should be had with the customer to determine what they are requesting the funds for.

Examples

JobSeeker customer has been granted and has asked for a payment of $500. As this is more than 7 days payment, some discussion was had, and the customer advised they only really needed $150 for some clothes and food.

Maximum JSP rate = $693.10pf

No rent assistance

Daily rate = $49.50 ($693.10 /14 days)

Minimum - 1 day’s payment = $49.50

Maximum – 7 days payment = $346.50

As the customer has as requested $150, this amount would be the minimum amount needed to meet the immediate need and would be the amount paid.