CENTRELINK BENEFIT UPDATE - Presented by Tom Cobban 7 October 2020 - Berrill & Watson
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CENTRELINK BENEFIT
UPDATE
Presented by Tom Cobban
7 October 2020
JobSeeker
▪ Jobseeker was previously called Newstart
▪ Newstart base rate was $280 per week for a single
JOBSEEKER: person
▪ $255 per week each for a couple
COVID-19 ▪ From March 2020, Jobseeker was effectively
doubled by the introduction of the Coronavirus
supplement of $275 per week.
▪ CURRENT:
▪ Single - $1,115.70 per fortnight
▪ Couple - $1,060.50 per fortnight (each)
JOBSEEKER: ▪ FROM 25 SEPTEMBER 2020 - 31 DECEMBER 2020
RATES ▪ Single - $815.70 per fortnight
▪ Couple - $760.80 per fortnight (each)
▪ FROM 1 JANUARY 2021
▪ ???
▪ CURRENT:
▪ Income free threshold: up to $106 per fortnight
▪ 50 cents per dollar reduction: $106-$256 per fortnight
JOBSEEKER: ▪ 60 cents per dollar reduction: >$256 per fortnight
INCOME TEST
▪ FROM 25 SEPTEMBER 2020
▪ Income free threshold: up to $300 per fortnight
▪ 60 cents per dollar reduction: >$300 per fortnight
▪ CURRENTLY: SUSPENDED
▪ FROM 25 SEPTEMBER 2020: REINTRODUCED
▪ Exempt threshold: single
• $268,000 (homeowner)
• $482,500 (non-homeowner)
JOBSEEKER: ▪ Exempt threshold: couple
• $401,500 (homeowner)
ASSETS TEST • $616,000 (non-homeowner)
▪ Thereafter, there is a reduction of $3 per fortnight per $1,000 assets
▪ Cut off: single
• $583,000 (homeowner)
• $797,500 (non-homeowner)
▪ Cut off: couple
• $876,500 (homeowner)
• $1,091,000 (non-homeowner)
JOBSEEKER:
INDEXATION ▪ Jobseeker payments are indexed by the Consumer
Price index (CPI)
JOBSEEKER: ▪ Mutual obligations(eg job search) - reinstated with
OTHER MATTERS some limits from 4/8/20
▪Waiting periods-the usual 1 week waiting period
waived from 12/3/20 - now extended to 31/12/20
Disability Support Pension (DSP)
▪ The DSP payment rates and income/assets tests
DSP: have remained unchanged during the COVID-19
pandemic
COVID-19▪ Single:
o Base rate: $860.60 per fortnight;
o With supplements (pension & energy): $944.30 per
fortnight
DSP: ▪ Couple:
RATES o Base rate: $1,297.40 per fortnight (combined);
o With supplements (pension & energy): $1,423.60 per
fortnight (combined)▪ Income free threshold:
o Single: up to $178 per fortnight
o Couple: up to $316 per fortnight (combined)
DSP: ▪ Thereafter: 50 cents per dollar reduction
INCOME TEST ▪ Cut off:
o Single: $2,066 per fortnight
o Couple: $3,163.20 per fortnight (combined)▪ CURRENTLY: SUSPENDED
▪ FROM 25 SEPTEMBER 2020: REINTRODUCED
▪ Exempt threshold: single
o$268,000 (homeowner)
o$482,500 (non-homeowner)
DSP: ▪ Exempt threshold: couple
ASSETS TEST o$401,500 (homeowner)
o$616,000 (non-homeowner)
▪ Thereafter, there is a reduction of $3 per fortnight per $1,000 assets
▪ Cut off: single
o$583,000 (homeowner)
o$797,500 (non-homeowner)
▪ Cut off: couple
o$876,500 (homeowner)
o$1,091,000 (non-homeowner)▪ DSP’s increase by the Pensioner & Beneficiary Living
DSP: Cost Index
INDEXATION ▪ This rate is benchmarked against the Male Total
Average Weekly Earnings
▪ It is higher than the CPI.JobKeeper
▪ JobKeeper payments were introduced from
JOBKEEPER: 30/3/20 to support businesses to maintain
employees in their employ during COVID-19.
COVID-19 ▪ They are not part of Centrelink payments.▪ ‘Eligible employers’ i.e. those with turnovers that had or
were likely to reduce by at least:
o 15% (charities);
o 30% (turnover under $1 billion); or
o 50% (turnover of $1 billion+).
▪ The payments are made to ‘eligible employees’:
o their employer is an eligible employer; and
JOBKEEPER: o employed since March 2020; and
ELIGIBILITY o currently employed or stood down; and
o employed full time, part time or long term (12+
months) casual; and
o Australian resident
▪ Self-employed people are also eligible if their business
meets the above turnover test.▪Currently: $1,500 per fortnight
▪ From 28 September 2020 – 3 January 2021:
o Tier 1: $1,200 per fortnight (80 hours work per 4
weeks pre 1/3/20 or 1/7/20)
JOBKEEPER: o Tier 2: $750 per fortnight (JOBKEEPER:
▪ JobKeeper payments are not subject to income
INCOME & ASSET & assets tests such as Centrelink benefits are.
TESTS▪ Businesses must reassess their eligibility from 28
JOBKEEPER: September 2020
NEW ELIGIBILITY ▪ They must show a decline in turnover compared
REQUIREMENTS to the relevant quarter in 2019/20
▪ The relevant employment relationship date is 1
July 2020DSP Eligibility Requirements
▪ To be eligible for Disability Support Pension (DSP) a person
must:
o be 16 years or older; AND
o satisfy certain Australian Residence criteria; AND
o have a permanent, physical, intellectual or psychiatric condition that:
o is fully diagnosed, treated and stabilised; and
o gets 20 points on the Impairment tables (see below); AND
o have completed a Program of Support (POS); AND
REQUIREMENTS: o be unable to work 15 hours or more per week (and unable to be retrained for such
work)in the next 2 years.
▪ The only exceptions are:
▪ If the person has 20 points on one of the 15 impairment tables a (as opposed to 20
points accrued across several tables) - in which case they won’t have to undertake a
Program of Support; OR
▪ When the person is taken to be eligible on the presenting medical evidence alone
without the need for further assessment (‘manifest grants’) ie:
o are permanently blind;
o have a terminal illness (less than two years life expectancy and significantly
reduced capacity to work);
o have an intellectual disability with an IQ of less than 70;
o need nursing home level care;
o have category 4 HIV/AIDS; or
o are in receipt of a DVA TPI pension.▪Table 1 Functions requiring Physical Exertion and Stamina
▪Table 2 Upper Limb Function
▪Table 3 Lower Limb Function
▪Table 4 Spinal Function
▪Table 5 Mental Health Function
DSP: ▪Table 6 Functioning related to Alcohol, Drug and Other Substance Use
IMPAIRMENT ▪Table 7
▪Table 8
Brain Function
Communication Function
TABLES ▪Table 9
▪Table 10
Intellectual Function
Digestive and Reproductive Function
▪Table 11 Hearing and other Functions of the Ear
▪Table 12 Visual Functions
▪Table 13 Continence Function
▪Table 14 Functions of the Skin
▪Table 15 Functions of Consciousness
Source: Department of Social Services, Social Security Guide - Impairment Tables (DSP)
http://guides.dss.gov. au/guide-social-security-law/1/1/i/10▪In conjunction with SSRV we have prepared pro-forma reports for all 15 impairment tables
covering “severe” impairment (20 points), “moderate” impairment (10 points) and “mild”
impairment (five points).
▪To use the pro-formas:
o identify which of the impairment tables are relevant to the applicant’s disabilities
o print off the “severe”, “moderate” and “mild” pro-formas for those impairments and the letter to the doctor or clinical psychologist
o take the pro-formas to the relevant treating specialists (or clinical psychologist in the case of mental health impairment) and ask them if they
would be prepared to complete the “severe” form or, if not, the “moderate” or “mild” form.
o It may also be useful to ask the treating GP to fill in the relevant pro-formas.
▪If the doctors fill in any of the forms, the forms should be checked to see if they satisfy the
requirements for a DSP.
DSP: ▪The forms can then be lodged with a DSP application. It would also be useful to get statements
from any people who have provided any care and support to lodge with the application.
HOW TO USE PRO ▪Centrelink will usually arrange a Job Capacity Assessment and maybe a Disability Medical
Assessment.
FORMA REPORTS ▪There is no time limit for a decision on a DSP application. It can take many months. In the
meantime, applicants should register for a POS with an employment services provider (if not
already done).
TO PROVE ▪If a DSP application is rejected, there are rights of appeal:
o an internal review with Centrelink
ELIGIBILITY o then an external review to the Administrative Appeals Tribunal (Tier 1)
o then a further external appeal to the Administrative Appeals Tribunal (Tier 2)
*Time limits apply to each stage, so it is important to get advice straight away
▪If an application is rejected, it may be appropriate to get further medical evidence.
More info:
http://guides.dss.gov.au/guide-social-security-law
https://www.humanservices.gov.au/individuals/services/centrelink/disability-support-pen-
sion/eligibility https://www.humanservices.gov.au/individuals/enablers/how-we-assess-your-
condi-tion-disability-support-pension/39871DSP:
LETTER TO
DOCTOR/CLINICAL
PSYCHOLOGIST
TEMPLATEDSP:
MEDICAL REPORT
5 POINTS
(FATIGUE)DSP:
MEDICAL REPORT
10 POINTS
(FATIGUE)DSP:
MEDICAL REPORT
20 POINTS
(FATIGUE)Superannuation/Insurance & Centrelink
▪ If you are receiving or entitled to Centrelink
benefits, you may also be entitled to access
SUPER/INSURANCE some/all of your superannuation and you may
also be eligible for disability insurance benefits
& CENTRELINK: because of your health problems.
INTRO ▪ However, its important to understand how
payments for superannuation or insurance can
affect your Centrelink benefits - for Jobseeker or
DSP.▪ If you have worked since 1992, you should have
employment super
SUPER: ▪ You may have had more than 1 super fund
BENEFITS ▪ The benefits can include:
o your account balance
o a TPD insurance lump sum
o monthly income protection insurance payments
o death and terminal illness lump sums.▪ Superannuation benefits are usually paid when
you retire from the workforce (after age 55-60)
or earlier if you satisfy ‘early release’
requirements
▪ Early release includes permanent incapacity and
SUPER: temporary incapacity
EARLY RELEASE ▪ Because of the Covid-19 measures, you can also
get up to $10,000 out of your super by
31/12/20 if you are unemployed, on Centrelink
payments or made redundant or had your
working hours reduced by at least 20% since
1/1/20.▪ Is usually an insurance lump sum paid in addition
INSURANCE: to your superannuation account balance
TOTAL & ▪ Standard definition-permanently unfit for your
usual occupation or other suitable work given your
PERMANENT skills and experience
DISABILITY (TPD) ▪ If you have more than 1 super fund, you can
have multiple TPD claims.▪ Monthly payments usually upto 75% of your
INSURANCE: income, capped at a monthly amount
INCOME ▪ Standard definition-you are off for work for 30-
90 days and unfit to do your normal job
PROTECTION ▪ Sometimes offset against Centrelink payments.▪ You can have more than 1 super fund with TPD
or income protection insurance cover
INSURANCE:
▪ You might also have TPD or income protection
OTHER insurance outside super e.g. private or through
your employer.▪ If you are entitled to receive income protection
insurance payments, they will count towards the
SUPER/ Centrelink income test (see Jobseeker and DSP
INSURANCE: above)
CENTRELINK ▪ Even with this, income protection claims can still
be worthwhile-it depends on the amount of the
INCOME TEST monthly payments and the Centrelink benefits
▪ Get advice.▪ Superannuation lump sums (account balance or
TPD) are exempt from the Centrelink assets test
SUPER/ whilst the money remains in super. After any
monies are withdrawn from super, they will count
INSURANCE: towards the assets test.
CENTRELINK ▪ Insurance TPD lump sums outside of
superannuation do count towards the test (see
ASSETS TEST Jobseeker and DSP above)
▪ If Centrelink try to apply a lump sum to the
assets test and reduce your Centrelink payments,
get advice.▪ Contact Berrill & Watson for free advice and help with any
Centrelink or Superannuation/Insurance matter
▪ Telephone - (03) 9448 8048/0409 508 970 (Tom)
HELP! ▪ Email – info@berrillwatson.com.au
▪ DSP Toolkit – www.ssrv.org.auYou can also read
