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Disability payments and services which may no longer be granted 008-03170000



This page contains information about Incentive Allowance (IA) under the savings provision.

Circumstances that may affect payment of IA

Item

Description

1

IA Savings Provision + Read more ...

IA remains payable after 12 November 1991, if a Disability Support Pension (DSP) customer was receiving Sheltered Employment Allowance or Invalid Pension and Incentive Allowance at 11 November 1991 and remains engaged in:

  • sheltered or supported employment
  • training at an activity therapy centre or an adult training centre, or
  • independent living training

This can be verified, if necessary, with the service manager or provider.

If an IA customer transfers from one qualifying activity to another, (e.g. from independent living training to supported employment) qualification for IA is not affected.

Customers in receipt of IA and participating in a suitable activity are invited to claim Mobility Allowance (MOB).

2

Cancellation of IA + Read more ...

If the customer wishes to surrender their existing Incentive Allowance, (e.g. so they can receive Rent Assistance (RA)), manual cancellation is required.

Go to the Pensions Savings Provisions and Entitlements (PSV) screen and in the:

  • Effect Date field, key the Date of effect (DOE). If the customer is changing to RA, the effect date will match the RA DOE, otherwise code today
  • Nov 91 Saved Incentive Allow Ind field, key 'N'

3

Change of circumstances affecting entitlement + Read more ...

If the customer ceases participation in a qualifying activity or transfers to another income support payment such as Age Pension or Carer Payment, they are no longer eligible for IA.

Note: restoration of Incentive Allowance is only allowed in specific circumstances, see Step 4.

If the customer starts paying rent, an assessment of whether Rent Assistance (RA) or Incentive Allowance is the better option should be made.

If a customer's circumstances change and they are no longer eligible for IA, for example, they have ceased a qualifying activity, cancel their IA as per Step 2.

4

Restoration of IA + Read more ...

If a customer ceases to be qualified for IA on or after 12 November 1991, the savings provision allows for restoration only where cancellation of IA has occurred as part of an administrative error.

Payment can only be restored if the customer is also qualified for DSP. If the customer had also ceased to receive DSP, IA can only be restored if the DSP can also be restored.

In any other situation where a customer is considered to have ceased to be engaged in supported employment or otherwise ceases to be qualified for IA on or after 12 November 1991, payment cannot be restored.

5

Manual restoration of IA following the restoration of DSP + Read more ...

If DSP is cancelled and subsequently restored, IA will not automatically restore. Manual restoration via the Pension Savings Provision and Entitlements (PSV) screen is required. The restoration of IA must be actioned after the DSP restoration activity has been completed (that is, not within the restoration activity itself).

To restore IA, go to the PSV screen, complete the following fields:

  • Nov 91 Saved Incentive Allow Ind, key 'Y'
  • DOR, key the date of the DSP cancellation
  • Source
  • the correction, key 'C' in the field in the top left corner of the PSV screen
  • Effect Date, no update is required

Finalise the activity via the Assessment Result (AR) screen.