Chapter 9: Benefits and Allowances
Centrelink
What happens at Customer Service Centres:
Consumer Benefits and Allowances
Disability Support Pension
Sickness Allowance
Newstart Allowance
Youth Allowance
Mobility Allowance
Pensioner Education Supplement
Other entitlements
Carer Benefits and Allowances
Carer Payment
Carer Allowance
Dealing with Centrelink
How to claim a payment
Intent to Claim
Getting others to look after personal affairs
Challenging a Centrelink decision
Access to information
Can you receive benefits while a case is being reviewed?
The Social Security Appeals Tribunal (SSAT)
The SSAT’s review powers
How much does it cost to appeal?
How to appeal
What happens next?
What should an applicant do before the hearing?
What happens after the hearing
Further appeal rights
The Welfare Rights Centre
What sort of issues does the Welfare Rights Centre deal with?
People with a mental illness have the same rights as everyone else to pensions and benefits provided by the Commonwealth Government and the State Government. Most Commonwealth assistance is from Centrelink and the Department of Veterans’ Affairs. This chapter outlines the functions of Centrelink and certain benefits and allowances which people with a mental illness and their carers may be entitled to. All Centrelink’s contact details, including service departments, can be found in Chapter 18.
The information provided in this chapter on Allowances and Benefits is meant as a guide only. A person may be eligible for allowances in addition to/other than those listed here. MHCC always recommends you contact Centrelink to discuss all of the options available to you.
Centrelink
Centrelink is a statutory body set up by the Commonwealth Government which is responsible to the Minister for Human Services. It administers social security policy and it is responsible for ensuring that all social security payments are made in an accurate and timely manner. Centrelink has four main sections, shown in the diagram above.What happens at Customer Service Centres:
- New claims for Centrelink payments and allowances are lodged;
- Queries are made in person about Centrelink payments and allowance;
- People provide documents (forms and publications) in relation to Centrelink payments and allowances;
- Decisions are made about entitlement to Centrelink payments and allowances;
- People can appeal decisions.
There are more than 450 Customer Service Centres throughout Australia. Each Centre has three main sections:
Section | Function |
Retirement | Age Pension Wife Pension Widow Pension Carer Pension |
Employment Services | Newstart Allowance Youth Allowance Disability Support Pension Carer Payment Special Benefit |
Family Assistance | Family Tax Benefit Parenting Payment Double Orphan Pension |
Staff at these offices can include:
- Section Managers: who can make initial decisions but who more frequently supervise and review decisions made by other officers;
- Senior Customer Service Advisers: trained to provide assistance to people with disabilities. They can also:
- Assess and refer people to appropriate employment services;
- Help people get access to training and vocational rehabilitation in their local area;
- Advise on medical eligibility for disability and carer-related payments; and
- Help people if they are not ready for employment assistance by linking them to their local disability and carer organisations.
- Customer Service Officers: handle initial enquiries and provide information and advice to customers;
- Social Workers: do not make decisions but can act as a liaison between the customer and the staff; and
In some offices, other staff may include: Interpreters, Multicultural Service Officers and Indigenous Officers.
Consumer Benefits and Allowances
People with a mental illness may at various times be eligible for the following:
Benefit | Target |
Disability Support Pension | For people whose disabilities, illnesses or injuries prevent them from working or retraining for work for two years or more. |
Sickness Allowance | For people temporarily unable to work or study due to illness, injury or disability, and who have work or study to return to when they are better. |
Newstart Allowance | For unemployed people aged 21 or over OR people who are temporarily unable to work due to illness, injury or disability. |
Youth Allowance | For full-time students aged 16-24 OR unemployed people under 21. |
Mobility Allowance | For people with disabilities to help them to travel to work, training or job search activities when they cannot use public transport without extra help. |
Pension Education Supplement | For people who are studying to help them with education expenses. |
Disability Support Pension
A Disability Support Pension may be paid if you are aged 16 or over, and have a disability, illness or injury that will prevent you from working or retraining for work for two years or more.
If you or your partner's income and assets are above a certain amount, you may only be eligible for a reduced pension or not eligible for a pension at all
If the illness, injury or disabilit prevents you from working or studying for only a short time, then depending on your age and other circumstances, you may be elgible for Sickness Allowance, Newstart or Youth Allowance.
Sickness Allowance
Sickness Allowance may be paid to people who are temporarily unable to work or study due to an illness, injury or disability and are:
- 21 or over and have a job, or
- 21 or over and on ABSTUDY, or
- Over 25 and receiving Austudy
You must have work or study to return to when you are better.
Newstart Allowance
A person may be eligible for Newstart Allowance if the applicant is:
- 21 or over and under Age Pension age; and
- Unemployed or working part-time; and
- Assessed as having a partial capacity to work; and
- Prepared to enter into an Activity Agreement; and
- An Australian resident, in Australia and not subject to the two year newly arrived residents waiting period; and
- Not involved in industrial action; and
- Able to satisfy the income and assets test; and
- Able to satisfy the activity test or exempted from these.
Terminology | Definition |
‘Activity Agreement’ | An Activity Agreement lists the activities which you agree to do in order to improve you chances of getting a job. You may be asked to enter and Activity Agreement by an Employment Service Provide or Centrelink and the activities may be compulsory or voluntary.. |
‘Activity Test’ | To meet the Activity Test, a person must:
|
Youth Allowance
Youth Allowance may be paid if the applicant is:
- 16 to 24 years old and studying full time (or aged 15 if considered independent); or
- 16 to 24 and a full time New Apprentice (apprentice or trainee) (or aged 15 if considered independent); or
- 16 to 20 yearsld and looking for work full time (or aged 15 if considered independent), undertaking a combination of approved activities such as part-time work and training, or have a temporary exemption from the activity test (for example, due to illness); or
- A partnered principle carer with a youngest child aged six or over, or a single principal carer with a youngest child aged eight or over and you are under 21; or
- Under 21 and assessed as having a partial capacity to work; or
- 25 and over and studying full time, if receiving Youth Allowance immediately before turning 25 and still doing the same course; or
- 25 and over and a full time New Apprentice (apprentice or trainee), if you were receiving Youth Allowance immediately before turning 25 and are still doing a New Appreinticeship; and
- Able to meet residence requirements.
Terminology | Definition |
‘Independent’ | A person aged 15 is considered independent if they:
|
‘Approved Activities’ | Permission is required before undertaking any of the following approved activities:
|
Mobility Allowance
Mobility allowance may be paid if you have a disability and cannot use public transport without extra help. There does not need to be public transport in the area to qualify.
You may qualify for Mobility Allowance if you:
- Are 16 or over; and
- Have a disability which will prevent them from using public transport without substantial help ; and
- Are doing at least 32 hours ocer a four week period of voluntary work, paid work, training, or a combination of any of these; or
- Have an agreement to look for work through an employment service provider; or
- Are receiving an activity test payment such as Newstart Allowance, Youth Allowance or Austudy; and
- Need to travel to and from you home as part of your work, training or job seeking activities.
If you are receiving Newstart Allowance, You Allowance or a Disability Support Pension, you are working 15 or more hours per week, or looking for such work under an agreement with an employment service provider you may be eligible for a higher rate of Mobility Allowance.
Pensioner Education Supplement
A person may qualify for the Pensioner Education Supplement if they are receiving:
- A payment from Centrelink:
- Parenting Payment (Single);
- Disability Support Pension;
- Carer Payment;
- Special Benefit (in some circumstances);
- Widow B Pension;
- Widow Allowance; or
- Wife Pension (if you are a full time student and your partner receives a Disability Support Pension)
- Newstart or Youth Allowance as a job seeker (in some circumstances)
- ABSTUDY; or
- some Veterans' Affairs pensions
- A payment from the Department of Veterans’ Affairs:
- Defence Widow/er Pension (with a dependent under 16)
- Invalidity Service Pension
- Partner Service Pension (if partner is receiving an Invalidity Service Pension)
- War Widow/er Pension (with dependent child under 16)
Other entitlements
A person with a mental illness may also be eligible for the following:
Benefit | Includes |
Health Care Card | Concessions from state and local government authorities may include reductions in health care costs (including ambulance, dental care and eye care), public transport costs, water rates and energy/electricity bills. |
Pensioner Concession Card | The card entitles the holder to reduced cost medicines under the Pharmaceutical Benefits Scheme (PBS). Additionally, concessions from state and local government authorities may include: reductions in water and property rates, reductions in energy bills, a telephone allowance, reduced fares on public transport, reductions on motor vehicle registration and one or more free rail journeys within the state each year. |
Carer Benefits and Allowances
There are two payments that target people who care for a person with a disability: Carer Payments and Carer Allowances.
Carer Payment
A person qualifies for Carer Payment where they:
- Are an Australian resident;
- Are living in Australia;
- Are not getting another social security pension, benefit, Veterans Affairs Service or Wife’s Service Pension;
- Are personally providing care for a disabled adult; and
- Are providing care for the person in the home of either the carer or the care recipient.
In some circumstances, a person may also qualify for the Carer Payment where the person being cared for is under 16. In this case the person being cared for must be a profoundly disabled child.
The carer payment is income and assets tested.
Terminology | Definition |
‘Constant Care’ | A person is providing constant care where the care provided is:
|
‘Disabled Adult’ | A disabled adult is a person who:
|
Carer Allowance
Carer Allowance has two forms: Child and Adult, each of which have different sets of qualifcation criteria. It is possible to receive BOTH Carer Allowance and the Carer Payment at the same time.
Carer Allowance is not income and assets tested.
Dealing with Centrelink
How to claim a payment
To work out whether people are eligible for a payment or other assistance, Centrelink needs to collect information about their circumstances. They may be able to provide this information over the phone or at a Centrelink office.
After contacting Centrelink, a claim package is sent out that includes information on what is needed to complete the claim. It also tells people what they need to bring to an interview with Centrelink.
Intent to Claim
An Intent to Claim means a person or someone they know tells Centrelink they will be applying for a payment. They do not have to fill out forms to register an Intent to Claim.
After an Intent to Claim is made, the person must lodge their claim form with Centrelink within fourteen days so that, if they are eligible, their payment can be dated from the date they first registered their Intent to Claim.
People can tell Centrelink about their Intent to Claim on Centrelink’s website (www.centrelink.gov.au), by phone or at a Centrelink Centre. People should contact Centrelink immediately if they have difficulty returning the claim within fourteen days. In special circumstances this period may be extended.
Getting others to look after personal affairs
People may decide that they want or need someone to help manage their Centrelink business. They can appoint a person to deal with Centrelink. Centrelink calls this person a nominee. A nominee can receive mail, enquire about payments or make changes to the information Centrelink uses to assess payment, and/or receive the payment. It is important to select a nominee carefully as any actions of the nominee can effect benefits provided to the person receiving the payment. This means that if an action of the nominee causes an over payment, the amount overpaid will be recovered from the person receiving the payment.
A person or their nominee needs to complete a form to make this arrangement. This can be changed at any time except where the arrangement is made by a court, tribunal or social worker.
Challenging a Centrelink decision
If someone thinks Centrelink has made a wrong decision, they can ask for it to be reviewed at no cost to them. They should contact Centrelink as soon as possible because if the decision is changed, they may be backpaid. It is important they request a review of the decision as soon as possible as certain time limits apply.
The first step is to have the person who made the original decision explain it. This provides the opportunity to correct misunderstandings, present new information or evidence and to get an incorrect decision changed immediately. If someone still thinks the decision is wrong, the next step is a review by a senior Centrelink officer called an Authorised Review Officer. This person is independent of the Regional Office. They will contact the person, and look at the decision again after they have talked to all those involved in the decision and taken into account any new evidence. They will advise the person of the outcome and their appeal rights if necessary. Almost all reviews will be held by telephone (using the Telephone Interpreter Service where needed). Review by the Authorised Review Officer should take no more than ten working days or less in an emergency. If the decision is unfavourable the Authorised Review Officer will put the reasons in writing.
If someone thinks a decision by the Authorised Review Officer is wrong, they can appeal to the Social Security Appeals Tribunal (SSAT). A negative review by an Authorised Review Officer does not mean that an appeal will not be successful at the SSAT.
Centrelink will help with an appeal to the SSAT. This is an informal body and consists of lawyers, community and welfare workers, doctors and people with knowledge of Centrelink procedures. The SSAT may help with travel and accommodation costs if the person needs to visit them. The SSAT will uphold the original decision, change the decision or give a new decision.
If someone thinks a decision by SSAT is wrong, they can appeal to the Administrative Appeals Tribunal (AAT). The AAT is more formal than the SSAT, and people must appeal in writing, within 28 days of getting the SSAT decision. The AAT will uphold the decision, change the decision or give a new decision.
Is there a time limit?
There is no time limit on asking for a review of a decision, but payment can be backdated to the time of the wrong decision only if a review is requested within three months of that decision. Otherwise, payment will be backdated to the date the review was requested. This also applies to appeals to the SSAT, that is, people need to apply within three months of receiving the Authorised Review Officer’s decision in writing.
Access to information
Under the Commonwealth Freedom of Information Act 1982, if someone is receiving payments and they wish to challenge a Centrelink decision, they are entitled to receive upon request:
- Copies of any statements of fact made by the person to Centrelink;
- Copies of any documents they have handed to Centrelink; and
- Detailed reasons for any decision.
However, the personal details of another person, and information judged to be prejudicial to the psychological well-being of the applicant or prejudicial to the public interest, will not be released.
Can you receive benefits while a case is being reviewed?
Where an original claim for a payment has been rejected, payment is not made while waiting for a review. However, if someone has previously been receiving a Centrelink payment, it may be possible to have payments reinstated.
The Social Security Appeals Tribunal (SSAT)
The SSAT is a statutory body established under the Social Security (Administration) Act 1999 to review administrative decisions made under the Social Security Law, Family Assistance Law and various other pieces of legislation. The SSAT is established by law as the first external level of review of decisions made by Centrelink about social security, education or training payments. The SSAT is:
- Completely independent of Centrelink and departments responsible for payments
- Required to provide a fair, just, economical, informal and quick review of Centrelink decisions
- Able to affirm, vary or set aside Centrelink decisions.
Contact details for the Social Security Appeals Tribunal are located in Chapter 18.
The SSAT’s review powers
Before the SSAT can review a Centrelink decision, an Authorised Review Officer (ARO) in Centrelink must review that decision. The task of an ARO is to look at the original decision and decide whether it should be changed. If an ARO does not change the original decision, or does not change it to a person’s satisfaction, the person can appeal to the SSAT.
How much does it cost to appeal?
It costs nothing to appeal to the SSAT. Even if an appeal is lodged and later has to be withdrawn, there are no fees or penalties involved. To help applicants get to the hearing, SSAT pays reasonable travel costs but not for friends or relatives. If needed, SSAT provides an interpreter. SSAT does not pay fees of solicitors or other professionals if an applicant chooses to be represented at the hearing.
SSAT cannot order Centrelink to continue payments pending the outcome of the appeal. Enquiries about continuing payment pending the appeal should be directed to the Manager of the Centrelink office that made the original decision.
How to appeal
The SSAT has an application form available from Centrelink offices, AROs or from the SSAT. The form includes an addressed and postage paid envelope. It may be posted, faxed or lodged at any SSAT office or lodged with or faxed to any office of Centrelink.
Appeals may be lodged any time after the Authorised Review Officer or delegate decision is made, but it is best to do it as soon as possible and certainly within thirteen weeks. This is because, if the SSAT finds in favour of the applicant, there are limitations on the payment of arrears if the application is lodged more than thirteen weeks after the ARO decision.
What happens next?
The SSAT takes about four weeks to reply. It will send a letter giving a hearing date and a copy of Centrelink’s submission to SSAT. There is usually about a 6-8 week wait for cases to be heard by SSAT. If this delay will lead to hardship, the applicant should tell SSAT this at the time of lodging the appeal.
People may request access to their Centrelink files under the Freedom of Information Act if not satisfied that all relevant documents have been provided. FOI requests should be made direct to Centrelink.
The applicant can withdraw the appeal at any time. SSAT can dismiss an appeal if the applicant fails to contact SSAT when asked to, fails to make an appointment for the hearing, or fails to attend their hearing.
What should an applicant do before the hearing?
Applicants representing themselves can use the following as a checklist to help them prepare for their hearing.
- If circumstances change, do not wait for the appeal to be finalised - lodge a new claim with Centrelink immediately. This might avoid possible hardship while waiting for the appeal process to be finalized.
- If a person has no income or is in hardship they may be eligible for continuation of payment pending the finalisation of their appeal or for another type of payment, such as Special Benefit. If someone thinks this applies to them they should contact Centrelink about possible payment and tell the SSAT of the circumstances when they lodge their appeal and ask for their appeal to be dealt with urgently.
- Tell the SSAT if an interpreter is needed.
- Gather information or documents relevant to the claim as evidence to give the SSAT.
- At the hearing the person will have the opportunity to tell the SSAT what they think is important. Do not be afraid to ask questions about any aspect of the appeal.
What happens after the hearing
After the hearing, SSAT members discuss all the information in private and come to a decision based on the case facts, the applicable law and the merits of each case. Within fourteen days of making the decision, the Tribunal must inform the applicant of:
- The decision reached;
- The finding of facts;
- The evidence used in arriving at the facts of the case; and
- The reasons for the decision.
SSAT may adjourn a matter until a later date. This may be to allow the applicant time to provide extra information, for the SSAT to obtain extra information or to allow the SSAT time to research the law. The applicant will be informed in writing of an adjournment and will be given the opportunity to comment on new information that is not favourable to their case.
Further appeal rights
If not satisfied with the outcome, both the applicant and Centrelink can appeal to the Administrative Appeals Tribunal (AAT), which reviews decisions to do with all Federal government departments. This should be done within 28 days of receiving a decision from the SSAT. The AAT is more formal and usually proceeds in a similar manner to a court. The applicant will need to contact a lawyer for advice.
The Welfare Rights Centre
The Welfare Rights Centre provides information, advice and representation to people affected by decisions made by Centrelink. The Centre is funded by grants from the NSW Department of Community Services and the Commonwealth and NSW Legal Aid Commissions. Contact details for the Welfare Rights Centre are located in Chapter 18
The Centre operates on the principle that social security entitlements are a right, not a privilege. People affected by Centrelink decisions should be able to have decisions re-examined if they either do not understand the decision or believe it is incorrect. In a large number of cases heard by an Authorised Review Officer or the SSAT, the client is successful in his or her appeal.
What sort of issues does the Welfare Rights Centre deal with?
The Welfare Rights Centre is often contacted about:
- Eligibility for particular payments (eg. Youth Allowance, Parenting Payment, Newstart, Disability Support Pension);
- Information (eg. what information is Centrelink able to obtain from individuals, particularly in relation to investigation of marital status); and
- Rejection of applications for payment (eg. The Disability Support Pension).
The Welfare Rights Centre offers an independent assessment of all decisions referred to it. It can act as an intermediary where communication between the client and Centrelink has broken down. It can help by finding out what information is missing or has been wrongly interpreted.
If someone appeals against a decision of Centrelink to the SSAT, the Welfare Rights Centre may offer representation by a social worker. The Welfare Rights Centre will offer advice to people who feel confident in running their own appeals.