1.1.S.120 Severe financial hardship - assets test hardship
Usage
This definition is to be used when applying hardship provisions to social security pension (section 23(1)-'social security pension') and social security benefit (section 23(1)-'social security benefit') income support recipients.
Act reference: SSAct section 23(1)-'social security pension', section 23(1)-'social security benefit'
Definition
A person is in severe financial hardship if:
- their total income is less than specified limits (see below), AND
- they CANNOT reasonably be expected to sell or borrow against assets (1.1.A.290) to improve their financial position.
Readily available funds - allowable limits
The readily available funds limits for Age, DSP, CP and associated FaHCSIA closed payments (e.g. WidB, YA (student), Austudy and ABSTUDY) are:
- for a single person, the annual MBR of age pension (including pension supplement) payable to a single person,
- for a member of a couple, the annual MBR of age pension (including pension supplement) payable to a partnered person.
The readily available funds limits for NSA, PPP, YA (other), SA, WA and PA are:
- for a single person with no dependent children, the annual MBR of NSA payable to a person who is single with no children,
- for a single person with a dependent child or children, or who is aged 60 years or older and has been on income support for more than 9 months, the annual MBR of NSA payable to a person who is single with dependent children or aged over 60 with 9 months on income support,
- for a member of a couple, the annual MBR of NSA payable to a partnered person.
The readily available funds limit for PPS is:
Act reference: SSAct section 1129 Access to financial hardship rules-pensions, section 1131 Access to financial hardship rules-benefits
Policy reference: SS Guide 4.6.7 Asset Hardship Rules
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Last reviewed: 1 July 2009
