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From 1 July 2006 to qualify for PP a person must have a PP child. A child of a person ceases to be a PP child of the person (1.1.P.340):
A person who does not have a PP child is not qualified for PP (3.5.1.10). If the person still requires income support after this time, they will need to apply for another payment such as NSA.
However, under the transitional arrangement, a child of a person can remain the person's PP child until the child turns 16. This applies only to children who were in the person's care immediately prior to 1 July 2011. Any child that enters into a person's care after 1 July 2011 will not be covered by the transitional arrangements and will cease to be a PP child when they turn 6 years for PPP, or 8 years for PPS (subject to the passage of legislation).
This page outlines when a person is covered by the PP transitional arrangement, and the consequences of losing that status.
Act reference: SSAct section 500A Participation requirements, section 500D PP child, section 500F When a person is covered by the parenting payment transitional arrangement
Policy reference: SS Guide 1.1.P.340 PP child (PP), 3.5.1.10 Qualification Summary for PP
To be covered by the transitional arrangement, a person must generally have been granted a claim for PP with a start date prior to 1 July 2006. This means:
However, in all these cases, where there is a subsequent determination that the person's PP is to be cancelled with effect from a day before 1 July 2006, the person is taken to have never been covered by the transitional arrangement.
Example 1: Helen gives birth to a child on 27 June 2006 and on 10 July 2006 she makes a claim for PP. If Helen was qualified for PP on 27 June 2006, then backdating rules operate with the effect that her start day will be 27 June 2006. This will mean that Helen will have a claim in force as required under the transitional arrangement.
Example 2: Jeanette was receiving PP on 30 June 2006 in respect of her child Luke. Her payment is suspended at this time, due to an investigation into her income and eligibility. As she meets the criterion for grandfathering, Jeanette is covered by the PP transitional arrangement. However in July 2006, Jeanette's payment is cancelled, and the cancellation is backdated to 20 June 2006, which is prior to 1 July 2006. As a result, Jeanette is taken to have never been covered by the transitional arrangement.
Act reference: SSAct section 500F When a person is covered by the parenting payment transitional arrangement, section 500G(4) Backdated start date
SS(Admin)Act section 37 Grant of claim
Policy reference: SS Guide 1.1.P.340 PP child (PP), 3.1.12 Employment Income Nil Rate Period, 8.3.3.70 Backdated Start Days - PP
Under SSAct section 500F(1) and section 500F(2), a person is covered by the transitional arrangement until their youngest child turns 16 (subject to continuing to meet other qualification and payability criteria, and other conditions outlined in this section). If additional PP children come into a person's care on or after 1 July 2006, but before 1 July 2011, the person can remain covered by the transitional arrangement until these children turn children turn 16. However, if additional PP children come into a person's care on or after 1 July 2011, the person will not be covered by the transitional arrangements in respect of those children and will cease to be eligible for PPP when the youngest child turns 6 years or PPS when the youngest child turns 8 years.
Example 1: Rachael was receiving PP on 30 June 2006 in respect of her child, Jacob, and was covered by the PP transitional arrangement. In April 2009, Jacob turns 16. However, at this time, Rachael has another PP child in her care, Jonathon, who was born 26 September 2006. Rachael will retain her transitional status and, if she remains eligible, can continue on PP until September 2022, when Jonathon turns 16.
Example 2: Kevin is receiving PPS and has been the principal carer of his 2 oldest children, aged 13 and 15 years, since October 2005. Following a family court decision, Kevin gains custody of his 4 year old son in November 2011. As Kevin's son came into his care after 1 July 2011, Kevin is not covered by the transitional arrangements in respect of his youngest child and Kevin is only eligible for PPS until that child turns 8 years.
Act reference: SSAct section 500F(1) Person is not a member of a couple, section 500F(2) Person is a member of a couple
A person is no longer covered by the transitional arrangement where:
The consequence of a person ceasing to be covered by the transitional arrangement is that each of the children in their care who is 6 or more (if the person is partnered) or 8 or more (if the person is single) will cease to be their PP child. If the person does not have at least one PP child, he or she does not qualify for PP, and may need to claim a different income support payment (e.g. NSA).
Act reference: SSAct section 500A Participation requirements
A person can effectively regain transitional status where they:
A person who has ceased to be covered by the transitional arrangement can subsequently regain that status after a break in qualification of more than 12 weeks. However, they cannot return to payment under the pre 1 July 2006 rules as section 500D operates such that they cannot have a PP child over the age of 6 (partnered parent) or 8 (single parent) where there has been a break in qualification of 12 weeks or more. Because of this, although the legislation allows for a return to 'transitional status' in these circumstances, there is no practical effect and the recipient must be paid under the post 1 July 2006 rules.
If a person regains transitional status within 12 weeks of losing it, the children in the person's care who are 6 years old or more (if the person is partnered) or 8 years old or more (if the person is single) and who have not turned 16 will again become their PP children (younger children will not have ceased to be PP children because of the loss of transitional status). Thus, if the person had ceased to qualify for PP because they ceased to be covered by the transitional arrangement, they will again qualify for PP (subject to meeting other qualification criteria).
If a person who has ceased to be covered by the transitional arrangement regains that status more than 12 weeks after losing it, each of the children in their care who is 6 or more (if the person is partnered) or 8 or more (if the person is single) will NOT be a PP child of the person any more. If the person does not have at least one PP child, he or she does not qualify for PP, and may need to claim a different income support payment (e.g. NSA).
Example 1: Graham is single and has 2 children, aged 10 and 14, who qualify him for PPS. He has been receiving PPS continuously since January 2004. On 12 October 2006, Graham partners with Gail and he advises Centrelink that he is a member of a couple. Graham is no longer covered by the transitional arrangement and as he does not have a child under the age of 6 he cannot qualify for PP under the conditions for new claimants. Graham subsequently lodges a claim for NSA. After 12 weeks, Graham and Gail are still together. Graham loses the ability to return to PPS under the transitional arrangement, if his relationship broke down. This is because for a continuous period of more than 12 weeks, Graham has not been covered by the PP transitional arrangement and his children consequently are no longer PP children. Graham is able to return to transitional status after a period of more than 12 weeks however this has no practical effect as his children will no longer be covered by the transitional arrangements.
Example 2: On 28 June 2006, Nilda, a single parent with a 3 year old child, lodges a claim for PPS. On 12 July 2006, Centrelink grants her claim and determines that, as she was qualified for PPS when she lodged the claim, her start day is 28 June 2006. On 4 September 2006, Nilda moves in with Robert and advises Centrelink of this change to her relationship status. Robert is employed and receives additional income from investments. His total income from both sources is low enough for Nilda to be eligible to PPP. As she has a youngest child aged under 6 she now qualifies for PP, but as Nilda moved from PPS to PPP on or after 1 July 2006, she is not covered by the transitional arrangement during this period of time. On 9 October 2006, Robert's investment income increases and this results in Nilda's PPP no longer being payable. Centrelink cancels Nilda's PPP with a date of effect of cancellation of 9 October 2006. On 14 November 2006, Nilda leaves Robert. This is 10 weeks since Nilda partnered with Robert. Nilda is again not a member of a couple but as she has had her PP cancelled and no other determination is in force, Nilda is still not covered by the transitional arrangements. Nilda advises Centrelink and lodges a claim on 2 December 2006, with a start day for PPS of 20 November 2006. This is 11 weeks since Nilda's circumstances first changed and she left PPS, so she regains her transitional status. Nilda has no further changes in circumstances and if otherwise qualified, may remain on PPS until 2019, when her child turns 16.
Example 3: Kerrie is married to Simon and they have a daughter who is 5. Since July 2003, Kerrie has been receiving PPP. Kerrie and Simon are living in rented accommodation. On 10 October 2006, Kerrie leaves Simon and advises Centrelink that she is no longer a member of a couple. Kerrie still lives in rented accommodation. Kerrie qualifies for PPS from that date because her daughter is under 8. However, she is not covered by the transitional arrangements. On 7 November 2006, Kerrie inherits a 4 bedroom house in Sydney. Kerrie advises Centrelink about the inheritance, that she is not living in the house and that the value of the house means that her assets are above the assets limit. Centrelink cancels Kerrie's PPS with a date of effect of cancellation of 7 November 2006. Kerrie has not been a member of a couple for 4 weeks when her payment is cancelled. On 14 November 2006, Kerrie and Simon reconcile and become a couple. This means that Kerrie was not a member of a couple for 5 weeks. In January 2007, Kerrie and Simon move into the house she has inherited and Kerrie is granted a claim for PPP with her start date being 5 January 2007. This is a period of over 8 weeks since her PPS was cancelled in November, but more than 12 weeks since she was covered by the transitional arrangements. Kerrie will only qualify for PPP while she has a youngest child who is less than 6 years old as her child has lost PP child status.
Example 4: Terri, a single parent with a 10 year old son, has been receiving PPS since September 2004. On 3 September 2006 Terri starts a job as a co-manager of a clothing store. She is paid $850 per week and as a result is no longer eligible to receive PPS. Unfortunately the business is unable to justify employing 2 managers following the Christmas rush and Terri loses her job on 28 January 2007. After the 6 fortnight nil rate period is taken into account (3.1.12), Terri has only been off payment for a period of 10 weeks. Terri is therefore able to return to PPS under the transitional arrangement while her youngest child is less than 16 years old.
Act reference: SSAct section 500D PP child, section 500D(3) PP child, section 500F When a person is covered by the parenting payment transitional arrangement, section 500H The effect of cancellation
Policy reference: SS Guide 1.1.P.340 PP child (PP)
Until 1 July 2006, financial penalties will continue to apply to PP recipients who fail to comply with the terms of their existing participation agreements under the AWT initiative. However, from 1 July 2006, all PP breach penalties will be clean-slated. All breach penalties identified and yet to be served, or being served at 1 July 2006 will cease to apply.
Additionally, under transitional arrangements, any person whose PP is cancelled during the 13 weeks ending on 30 June 2006 because of a failure to enter into a participation agreement, will be re-instated from 1 July 2006 and will be granted grandfathered status.
Act reference: SSAct section 500G(3) When determinations are taken to be in force, section 500G(4) Backdated start date
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Last reviewed: 1 July 2011
