3.8.13 UA - Qualification & Payability

Introduction

This topic explains the qualification and payability requirements for UA through the following related issues:

• UA test day,
• qualification criteria,
• payability criteria,
• overseas absences,
• election by recipient not to receive payment, and
• limit of instalment payments in financial year.

 

UA test day

UA test days are 20 March, 20 June, 20 September and 20 December each year. Qualification and payability provisions are applied to recipients on each UA test day and if met, UA will be paid on the recipient's payment delivery day on or after the UA test day.

 

Act reference: SSAct section 1061TA(3) In this section: utilities allowance test day

 

Qualification criteria

From 20 September 2009, even though a person is qualified for UA, it is not payable to transitional rate (5.1.8.40) pensioners, or anyone receiving seniors supplement (1.2.10.20), or to anyone whose notional rate of pension supplement (1.2.10.10) includes the pension supplement minimum amount. Special rules apply for payment recipients who are overseas - see Overseas absences below.

 

To qualify for UA, a person must:

• be in receipt of PA or WA, OR
• have reached age pension age AND be receiving a social security income support payment, OR
• be in receipt of DSP, CP, WidB, WP, or BVA, AND
• either:
  • be in Australia, OR
  • be temporarily absent from Australia for a continuous period not exceeding 13 weeks.

 

From 20 September 2009 the value of UA was incorporated into:

• pension supplement minimum amount for certain pension recipients, and
• the transitional rate of pension.

 

UA will not be paid to recipients of these payments after 20 September 2009.

 

Act reference: SSAct section 1061T Qualification for utilities allowance, section 1061TA When utilities allowance is payable, section 20A Pension supplement rate definitions

Policy reference: SS Guide 1.2.7.130 Utilities Allowance (UA) - Description, 1.2.10.10 Pension Supplement - Description, 7.1.2.20 Portability Table

 

Payability criteria

UA is payable to a person if they qualify for UA on a test day. However, a person may be qualified to receive UA, but UA will NOT be payable if:

• a service pension or an income support supplement is payable to the person on that day, or
• a person has received a transitional rate pension on that day, or
• a person has received seniors supplement on that day, or
• a person has received pension supplement, and their notional rate of pension supplement includes the pension supplement minimum amount, on that day, or
• a person has an election in force, on that day, to receive their pension supplement minimum amount on a quarterly basis, or
• a person has elected not to receive UA and has not withdrawn that election.

 

Explanation: UA under SSAct provisions cannot be paid to a DVA service pensioner or DVA income support supplement recipient.

 

Members of a couple

UA is shared between eligible couples so that each receives half the instalment. For couples living apart due to ill health, they are both eligible for the full rate of the UA as long as both recipients satisfy the eligibility criteria in their own right. Each recipient must satisfy payability conditions to receive the UA payment.

Example 1: Bob and Vera each receive Age. Both are eligible for UA, but it is not payable to either of them as the value of the UA is already incorporated into their rate of payment.

 

Example 2: Tom receives Age and Jane receives PA. On the UA test day both are eligible for UA, but it is only payable to Jane. Jane receives a UA payment of $65.25.

 

Overseas absences

UA is not payable for any UA test day after a person departs Australia permanently. Provided a person remains qualified for income support and they satisfy payability conditions, UA is payable on a test day if their temporary absence from Australia has not exceeded 13 weeks.

 

Policy reference: SS Guide 7.1.2.20 Portability Table

 

Election NOT to receive UA

A person may elect NOT to receive UA for any reason. An election not to receive UA can be in writing (short statement signed by the person) or may be notified to a Centrelink Call Centre; however the person is not required to provide their reason for electing not to receive UA. Where an income support recipient withdraws an election they had previously made, UA becomes payable from the next available UA test day. UA is NOT paid for any UA test days that had occurred while the election was in force.

 

Limit of instalments

UA recognises that some people need assistance with their household bills and living costs. There is a limit (4 in a financial year) to the number of instalments which can be payable to any person.

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Last reviewed: 21 September 2009