3.6.4.90 Payability of CP

Summary

Even though a person is qualified, CP is NOT payable to the person in the circumstances listed in the following table. Where more detail about the circumstance is required, the second column indicates where you will find this.

Act reference: SSAct section 199(1) Carer payment not payable if payment rate nil

Policy reference: SS Guide 5.1.5.20 CP - Current Rates

Newly arrived resident's waiting period

The NARWP applies to CP. Carers serving the 104 week waiting period cannot be paid CP until the expiration of the waiting period. A person from New Zealand is also subject to these provisions.

No part of the waiting period can be served outside Australia. All periods spent outside Australia extend the waiting period.

Exception: The NARWP does not apply to newly arrived residents (1.1.N.60) claiming CP, who:

• have a QRE for CP (section 7(6AA)), OR
• hold a 104 - Preferential family visa, as a 'carer', as defined in the Migration Regulations, OR
• hold a 116 - Carer visa as defined in the Migration Regulations, OR
• hold an 806 - Family visa, as a 'carer', as defined in the Migration Regulations, OR
• hold an 836 - Carer visa as defined in the Migration Regulations (see explanation).

Explanation: Carers who are holders of a Carer visa are granted permanent residence on the basis of needing to provide care to an Australian resident family member who has no other carer available.

A holder of a Carer visa who is in receipt of CP is treated the same as any other CP recipient. This means that all the provisions in the Act are applied in the same way.

Note: The term 'SPECIAL NEEDS RELATIVE' has been deleted from the Migration Regulations, and no further visas will be granted on that basis. However, existing visas that were granted on the basis that the applicant was a special needs relative remain in effect.

If a holder of a Carer visa ceases to be qualified for CP during their first 2 years of residence, consideration should be given to whether they could qualify for another payment, such as SpB.

Example: The care receiver dies or the carer is unable to provide care at the required level to maintain qualification for CP. Where this is due to a substantial change in circumstances beyond the person's control, they may be eligible for SpB without a NARWP.

Act reference: SSAct section 7(6AA) A person also has a qualifying residence exemption..., section 201AA(1) Newly arrived resident's waiting period, see also section 201AA(3) and section 201AA(4)

Policy reference: SS Guide 3.1.2.40 Newly Arrived Resident's Waiting Period

Income & assets testing

The pension income and assets test applies to the CP recipient.

Policy reference: SS Guide 4.2.5 CP Income & Assets Tests

Employment income nil rate period - an incentive to take up work

A CP recipient who loses payment because of ordinary income (1.1.O.30), made up entirely or partly of employment income (1.1.E.102), may qualify for an employment income nil rate period. To assess qualification for an employment income nil rate period see 3.1.12.

During the employment income nil rate period a CP recipient can:

• be paid certain supplementary benefits, see 3.1.12, and
• retain their PCC or HCC, and
• have their payment resumed if they report a reduction in income sufficient for CP to be payable again.

Explanation: This policy provides incentives for CP recipients to take up casual or short-term work.

Note: The employment income nil rate period does not apply to a person who lost their qualification for CP because they have paid work for more than 25 hours per week.

Act reference: SSAct section 23(4A) Despite subsection (4)…, section 23(4AA) For the purposes of subsection (4A)…, section 1061ZEA Further extended qualification rule: loss of payment because of employment income, section 198AC Effect of cessation of care etc. on carer payment

Policy reference: SS Guide 3.1.12 Employment Income Nil Rate Period, 3.9.2.30 PCC due to Employment, 3.6.4.70 Changes to Carer Situation - Effect on CP Qualification

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Last reviewed: 1 July 2009