Wife Pension (WP) to JobSeeker Payment (JSP) transitional rate 001-19081521

WP was a non-activity tested income support payment for female partners of Age Pension and Disability Support Pension (DSP) customers. It was paid at the rate equivalent to Age Pension.

WP was closed to new entrants on 1 July 1995. WP ceased being paid on 20 March 2020. Transitional arrangements applied to those customers receiving WP on 19 March 2020. Eligible WP customers transitioned to new payments as follows:

• JSP if under Age Pension age and not receiving Carer Allowance (CA)
• Carer Payment if receiving CA, or
• Age Pension if Age Pension age and not receiving CA

Wife Pension customers under Age Pension age who were not residing in Australia were cancelled.

The transitional arrangements for WP customers affected by the introduction of JSP are:

• Customers will maintain their former rate of payment until the amount payable under JSP exceeds the rate they would have received under WP for at least 42 consecutive days
• The WP payment rate that applied on 19 March 2020 is the maximum transitional rate payable and will be frozen for JSP customers who qualify for the transitional arrangement
• A comparison is made between the rate worked out using the frozen WP amounts and the current rate of JSP. The customer will receive whichever rate of payment is higher, known as the JobSeeker Payment Transitional Rate (JTR)
• The JTR ensures that if the customer’s circumstances do not change and they met eligibility requirements they transfer to JSP at their existing payment rate
• Customers getting the JTR can get a Pension Concession Card

Transitional rules apply to WP customers who transfer to JSP on 20 March 2020. Wife Pensioners were transferred to JSP if they were:

• not Age Pension age
• an Australian resident
• getting WP on 19 March 2020
• not getting Carer Allowance on 19 March 2020

There are 2 methods used to calculate the transition WP rate for JSP. This is determined by the customer's circumstances on 19 March 2020. Once the method of rate calculation has been determined, it will not change, even if there are changes in the customer's circumstances.

Method 1

• Applies to WP customers who on 19 March 2020 had:
• income and assets below the pensions income and assets free areas, and
• income below the Newstart income test free area each day during the period 6 February 2020 to 19 March 2020 inclusive
• Method 1 customers WP transition rate is calculated using:
• Pension basic rate frozen at 19 March 2020
• Pension Supplement frozen at 19 March 2020
• Pension assets frozen at 19 March 2020
• JSP income test (not frozen)

Method 2

• Applies to WP customers who on 19 March 2020 had:
• income or assets above the pension income and assets tests free areas and there is a payment reduction, or
• income above the Newstart income test free area on at least one day during the period 6 February 2020 to 19 March 2020 inclusive
• Method 2 customers WP transition rate is calculated by using the frozen rates on19 March 2020 of:
• Pension basic rate
• Pension Supplement
• Pension assets test
• Pension income test
  Note: WP customers paid under the 2009 transitional rate rules have the above amounts frozen under those rules

To calculate the transition rate for former WP customers who transfer to JSP:

• Calculate the JSP rate on transition day (Note: income test only - assets are disregarded)
• Calculate the WP transition rate – using method 1 or 2
• Compare the two rates
• The higher of the two is the JobSeeker Payment Transitional Rate (JTR)

For the purpose of calculating the transitional rate for JobSeeker Payment (JSP), customers who are eligible for the JobSeeker Payment Transitional Rate (JTR) will also receive Rent Assistance (RA), where eligible. RA will continue to be calculated at half the maximum partnered rate, as if the customer was still receiving Wife Pension.

The Age Pension or Disability Support Pension partner of a JTR recipient has Rent Assistance (where eligible) calculated as per the existing process for pension/benefit couples. This means that the couple receives 150% of the couple RA entitlement for the period that the customer receives JTR.

The JobSeeker Payment Transitional Rate (JTR) grandfathered the WP rate for customers who transferred to JSP. The transitional rate can continue to be paid while the customer remains on JSP.

Eligibility to JTR ends when:

• the customer's JTR is the same as the JSP rate on transition day for 42 consecutive days and assets do not exceed the jobseeker assets test free area
• the customer would no longer qualify for WP on or after 20 March 2020, for example, they are no longer partnered, partner no longer receives Age Pension or Disability Support Pension or income or assets exceed the pension cut-out amounts
• JSP is cancelled. If the customer applies again they will not be eligible for JTR

When the customer ceases to be eligible for JTR, the JSP rate is assessed in the usual manner and the Allowance Assets test applies. See Rates and Thresholds.

The Rate Comparison screen is on the Circumstance Data (CDC) screen.

• Enter Start in the Super Key field.
• Select the Rate Comparison JSP and WP task and select Start.
• The Rate Comparison screen allows Service Officers to apply date filters.