Cancellation and Period of Grace for Mobility Allowance (MOB) 008-05070030

Payment of MOB must cease when a customer no longer satisfies the qualification criteria. The date of cessation depends upon the reason why the customer no longer qualifies.

Payment of MOB can continue at the same rate for a period of grace after the disqualifying event. The length of this period also depends on the customer's circumstances. The rules that govern the customer's POG are the same for a reduction in the rate of payment and a cancellation of payment.

MOB ceases to be paid immediately if the customer:

• is imprisoned or in psychiatric confinement
• starts receiving a funded package of support under the National Disability Insurance Scheme (NDIS). Note:
• NDIS participants whose MOB payment has been cancelled continue to be eligible for a Health Care Card (HCC). The HCC continues to be reissued to the customer unless the National Disability Insurance Agency (NDIA) advises the customer is no longer a participant with the NDIS
• My Way participants in Western Australia continue to qualify for MOB

A 2 week POG applies where the customer:

• dies
• becomes able to use public transport without substantial assistance
• no longer meets the travel test
• is provided with a 'gift' car from the Department of Veterans' Affairs (DVA) through the DVA Vehicle Assistance Scheme or Motor Vehicle Compensation Scheme. Note: this includes the initial car provided to the customer and any replacement cars if they receive a grant to assist with purchasing
• leaves Australia permanently
• is exempt from their mutual obligation requirements while in receipt of JobSeeker Payment (JSP) and Youth Allowance (YA) (job seeker), or
• ceases to receive JSP, YA (job seeker) or Austudy payment due to the failure to satisfy their mutual obligation requirements

A 12 week POG applies for customers receiving the standard rate when they cease:

• participation in gainful employment, vocational training, voluntary work or a combination of these activities for at least 32 hours every 4 week period
• to receive JobSeeker Payment (JSP), Youth Allowance (YA) (job seeker) or Austudy for reasons other than the failure to satisfy their mutual obligation requirements or Activity test requirements, or
• undertaking job search activities. Including under an agreement with a government funded employment services provider including Disability Employment Services (DES)-Employment Support Service, or
• activities with their Disability Employment Services (DES) - Disability Management Service provider

A 12 week POG applies for customers receiving the higher rate when they cease:

• working 15 hours or more per week at or above the relevant minimum wage and are in receipt of Disability Support Pension (DSP), JSP, YA (job seeker) and Parenting Payment (PP)
• working 15 hours or more per week for wages determined under the Supported Wage Scheme (SWS) and are in receipt of DSP, JSP, YA (job seeker) and PP
• looking for work for 15 hours or more per week under an agreement with an employment services provider and have compulsory mutual obligation or participation requirements
• voluntarily looking for work for 15 hours or more per week under an agreement with a government funded employment services provider and have no compulsory mutual obligation or participation requirements
• to become eligible for MOB at the standard rate

When a customer is no longer eligible for the higher rate of MOB and enter into a POG, at the end of the POG they will either:

• revert to the standard rate if they remain qualified for that rate, or
• their payment will cancel

MOB job seekers who register as a volunteer with Workforce Australia receive a total of 12 months employment assistance and can be paid MOB if they remain registered and have a current Voluntary Job Plan.

When the 12 months with Workforce Australia ends the job seekers cannot re-register with a Workforce Australia provider unless there is a change in circumstances, for example they are registered as a fully eligible participant.

To continue to be paid MOB after the 12 months with Workforce Australia ends, the customer needs to be registered as a fully eligible participant or start another qualifying activity for MOB.

The current 12 week POG rules automatically apply to these job seekers when the 12 months with Workforce Australia ends, their Job Plan ends, or if their registration ends before the 12 month total is reached (whichever event occurs first).

Job seekers who have compulsory mutual obligation or Participation Requirements from 8 December 2019 and receive MOB are not affected by this 12 month servicing limit.

MOB is cancelled immediately if the customer is in a 12 week POG and they:

• become a participant with the National Disability Insurance Scheme (NDIS)
• leave Australia permanently
• die
• become able to use public transport without substantial assistance
• are provided with a 'gift' car from DVA, or
• receive a sales tax exemption on the purchase of a car

In response to the COVID-19 national health emergency, the standard POG was extended for some customers who receive Mobility Allowance for the period 20 June 2020 to 31 March 2021. These temporary rules applied to POGs ending on or after 12 June 2020, extended the POG to a total of 18 weeks or until 31 March 2021 (whichever was sooner) and did not affect standard duration POGs which would have otherwise ended after 31 March 2021.

MOB is portable for up to 6 weeks:

• if the customer is overseas temporarily, and
• they continue to meet the qualification provisions for MOB

For example, customer goes overseas during an employment/training holiday period.

The portability period may be for less than the maximum 6 weeks. For example, if their period of leave is only 4 weeks or their portability for JSP is for 2 weeks then their MOB portability is restricted to the same period.