Centrelink is the name of the statutory authority that administers the payment of financial assistance from the Commonwealth Government to individuals.
Legislation administered by Centrelink includes:
It can be particularly useful to refer also to the Australian Government's Guides to Social Policy Law.
Centrelink payments include a range of pensions, allowances and benefits which are paid to eligible people in certain circumstances.
Some common types of Centrelink payments include:
For a full list of Centrelink payments and their eligibility criteria, see the Guide to Australian Government Payments on the Services Australia website.
Eligibility to receive a Centrelink payment will depend on a wide range of factors, including a person’s income and assets, whether they are studying, a member of a couple, a parent, have a disability, are a carer, or are a retiree, as well as many other factors [Social Security Act 1991 (Cwth) Chapter 2]. Generally speaking, to be approved for a Centrelink payment a person must also meet residence requirements, although there are some exceptions to these rules [see section 7].
Disputes over Centrelink matters most commonly arise when a person’s application for a payment is rejected, when an existing payment is reduced or cancelled, or where a person has been overpaid and Centrelink has raised a debt against them. These issues are explored further in this chapter.
Most Centrelink decisions are reviewable and there is no time limit, but be aware that you can generally only be fully back paid an entitlement if you appeal within 13 weeks of the original decision. Some particular payment types may have a longer period in relation to back pay. Legal Services can advise about what steps to take and what evidence should be presented in the review. Call the free Legal Helpline on 1300 366 424. For more information, please refer to Challenging a Centrelink Decision.
If you have been issued with a debt, you should get legal advice before seeking review. If the debt is a result of fraud, you will need to complete a legal aid form for legal representation.
How to apply for a Centrelink payment
To receive a Centrelink payments a person must first make an application to Centrelink. It is possible to apply for many Centrelink payments online. Applicants should create both a MyGov account and a Centrelink account, and then link the two together. Before creating a Centrelink account, the person will be required to confirm their identity, usually in person at a Centrelink office by showing certain identity documents [see Social Security (Administration) Act 1999 (Cwth) s 8].
More information on setting up online accounts can be accessed via Services Australia website.
Any person can self-check their eligibility for a Centrelink payment. This can be done by using the Payment and Service Finder tool on the Services Australia website.
A person will be required to provide certain documents to Centrelink (depending on which payment they are applying for) in order for their claim to be approved. The claim will not be completed or lodged until the required documents are provided. It is therefore helpful to have all relevant documents ready before starting a claim.
If a person is unable to lodge a claim online, they can contact Centrelink via telephone, or visit a service centre in person.
Once an application for a payment is lodged, Centrelink will assess whether the person is eligible to receive the payment. Processing times for claims will vary depending on the type of claim made and the individual application.
If a claim for a payment is refused, the person has the ability to challenge the decision, see: Challenging a Centrelink Decision.
It is a good idea to keep a copy of any documents given to Centrelink (whether given to Centrelink as part of the initial application, or later) in case any documents need to be relied upon in a dispute.
The time that payments will commence after a claim is approved depends on the type of payment that has been applied for.
For example, JobSeeker payments most often commence on the day that the person has their first interview with an Employment Services Provider (not on the day they first contact Centrelink or the day they lodged their completed claim) [see Social Security (Administration) Act 1999 (Cth) section 63, Schedule 2 s 4A ]
Many other payments commence on the day a person lodges their completed claim with Centrelink [see Social Security (Administration) Act 1999 (Cth) section 42; Schedule 2].
Previously, a person could make an intent to claim. If they lodged an intent to claim and then lodged their completed claim within 14 days, their payments could be backdated to the date they first made contact with Centrelink, i.e. when they lodged their intent to claim.
As of 1 July 2018, however, the ability to have payments backdated to the date that Centrelink was notified of an intent to claim has been removed for most payments. Certain people (such as those deemed to be vulnerable claimants) may still be able to lodge an intent to claim and have their payments backdated to that date [Social Security (Administration) Act 1999 (Cth) sections 13, 14 and 14A].
A vulnerable claimant can be a person who (at the time of contacting Centrelink) is:
See Social Security (Administration) (Class of Persons- Intent to Claim) Determination 2018 section 5.
In order for a claim to be approved for a person who is not a vulnerable claimant, the claim must be completed in full, and all relevant supporting documents must be provided to Centrelink before the claim will be determined.
Some people may be subject to waiting periods before receiving payments. This could be for a number of reasons. For more information on waiting periods see: Are There Waiting Periods?
People who have experienced family violence may be able to access a crisis payment. This is a one-off, lump sum payment that is made to existing or eligible recipients of Centrelink payments. It is made in addition to any other existing Centrelink payment the person may be receiving. A person must apply for a crisis payment within seven days of either them leaving the home due to family violence, or their partner being removed from the home due to family violence. The payment is equal to one week's payment of the person's usual pension, allowance or benefit.
See Social Security Act 1991 (Cth) ss 1061JH and 1061JHA.
Centrelink will often require supporting documentation to approve a crisis payment. Such documentation could include information, contact details or reports from a social worker, health professional, the Police, or a family member or close friend. A person is able to access a crisis payment up to a maximum of four times per year.
Centrelink can also make an advance payment in certain circumstances, if a person has already been receiving a payment for more than three months. When an advance payment is made, it is paid back eventually through the regular fortnightly payment [see Social Security Act 1991 (Cth) Chapter 2, Part 2.22].
Centrelink can provide social work services and referrals to other agencies. For more information, see the Services Australia website, How Can We Help You With Family and Domestic Violence Concerns?.
More information on family violence including support services can be found in the Law Handbook chapter on Family Violence.
It is possible to be approved for a payment but be subject to a waiting period before the payments commence. This could be for a number of reasons. Some of the more common reasons are listed below.
Income Maintenance Period
An income maintenance period most often applies where a person leaves a job and is paid out a lump sum termination payment, such as a payout for unused long service leave or unused annual leave, or a redundancy payment.
The payout means that there will be a period of time (which is usually the same period of time that the person received the payout for) where the Centrelink payments that the person would otherwise be entitled to are reduced to nil. For example, if a person received a payout for four weeks’ unused annual leave, it is likely that their income maintenance period would be a four week period.
Income maintenance periods are covered by the relevant sections of the Social Security Act 1991 (Cth) that apply to the particular payment. For example, income maintenance periods as they apply to the Disability Support Pension are addressed in section 1064 of the Social Security Act 1991 (Cth).
Liquid Assets Period
Centrelink will consider any funds readily available to a person (their liquid assets) when they apply for certain payments, such as JobSeeker Payment and Youth Allowance. Depending upon the amount of funds the person has, and their personal circumstances, Centrelink may impose a liquid assets period of between one and 13 weeks. During this period, the person will be precluded from receiving the payment they have applied for and would otherwise be eligible for.
See Social Security Act 1991 (Cth) ss 14A (definition), 549A, 575A, 598, 676.
Newly Arrived Residents Waiting Period
Most newly arrived residents in Australia are subject to a 104 week waiting period before they can access certain Centrelink payments, including JobSeeker Payment and Youth Allowance. As of 1 July 2018, the Commonwealth Government has announced an intention to increase this waiting period from two to four years, although this has not yet been implemented.
For all waiting periods, some exemptions may apply, and a person may be granted an exemption or waiver of the period, particularly if they are suffering from severe financial hardship or are otherwise particularly vulnerable.
See Social Security Act 1991 (Cth) ss 7(4B), s 23(1).
The application of a waiting period is a decision that can be reviewed, should the person to whom it applies disagree with its application – see Challenging a Centrelink decision.
Newly arrived residents who are waiting to resolve their immigration status may be able to access assistance through the Status Resolution Support Services Program (SRSS Program). The assistance can include financial assistance (such as a Status Resolution Support Services Payment), accommodation, education and health care assistance.
More information on the SRSS Program including eligibility can be located on the Department of Home Affairs websiteor via the Services Australia - SRSS Payment website.
People are able to receive most Centrelink payments while overseas as long as certain conditions and criteria are satisfied. This is referred to as the portability of payments, i.e. the ability to receive payments while absent from Australia.
Different payments will have rules regarding eligibility and payment. There are specific rules relating to payments for the Aged Pension, Disability Support Pension, JobSeeker Payment, Youth Allowance and Sickness Allowances.
Portability of payments is a complex area of law and legal advice should be sought.
The legislative provisions relating to portability can be found in Part 4.2 of the Social Security Act 1991 (Cth) and in the Social Security (International Agreements) Act 1999 (Cth).
There is an interaction between a Centrelink payment and a compensation payout. This area of law can be complex and legal advice should be sought.
If a person receives an injury compensation payout, such as one due to a personal injury motor vehicle accident or workers compensation payout, it may impact their existing Centrelink payment or their ability to apply for a Centrelink payment [see Social Security Act 1991 (Cth) s 17].
The rationale behind this is that if a person is compensated for loss of income for a period of time through the payment of lump sum compensation, they should not also receive social security assistance at the same time for the same period.
Receiving a payment due to injury may result in a person’s Centrelink payments being reduced or their eligibility to apply for a payment being restricted for a period of time, called a preclusion period.
Preclusion periods may apply depending on the type of compensation a person receives, and what they received it for [see Social Security Act 1991 (Cth) sections 17(8), s 1169, s 1170].
There are specific formulas that Centrelink uses to calculate a preclusion period which will be calculated based on the lump sum amount of compensation they received [see s 1170]. There may also be instances where a person will be required to pay back an amount of Centrelink payments they received after they were injured. If a person is due to receive a lump sum payout from an insurance company, Centrelink can require the insurance company to pay them any monies owed before the person receives their payout. This is known as a compensation charge [see Social Security Act 1991 (Cth) sections 1182, s 1184, s 1184A].
A person can ask Centrelink to disregard their compensation payout or shorten a preclusion period if special circumstances exist [s 1184K]. The law is very strict in this area.
The interaction between Centrelink payments and compensation payouts can be complex, so legal advice should be sought in these circumstances, particularly if a review of the decision is sought.
There are many types of Centrelink benefits, pensions and allowances. For a full list of Centrelink payments and their eligibility requirements, see the Guide to Australian Government Payments on the Services Australia website.
Any person can also self-check their eligibility for any type of Centrelink payment, using the Payment and Service Finder on the Services Australia website.
Some common payments include the Disability Support Pension, JobSeeker Payment, and the Age Pension. These payments are explored in more detail in this chapter.
Cashless Debit Card
The Federal Government's Cashless Debit Card program is ending.
From 1 October 2022, no person can be added to the program. Existing program participants can request to be removed from the program and this request will be granted within 7 days [Social Security (Administration) Act 1999 (Cth) s 124PG]. A request can be made using Centrelink online through myGov, by calling the Cashless Debit Card hotline 1800 252 604 or by visiting a Centrelink service centre.
On a date yet to be proclaimed, but not later than 1 March 2023, the Cashless Debit Card program will end for all program participants (with some arrangements in place for certain classes of persons who will transition to income management).
Program participants will need to make arrangements for the end of the program, whether they request to be removed or wait until the program ends. Any direct debit payments, scheduled payments or deductions will need to be changed to be paid from another bank account. See Services Australia's How to get ready for the end of CDC (SA) page for further information.
The Cashless Debit Card program objective was to ensure that welfare payments are spent in responsible and meaningful ways and not spent on products and activities that contribute to social harm. The program is currently operating in various regions throughout Australia, including the Ceduna region of South Australia. Persons that are receiving a working age Centrelink payment, and live in the Ceduna region (South Australia) will be subject to the Cashless Debit Card.
Under the program, participants receive their full Centrelink payment but it is separated into two parts. An allocated amount goes to the participant's normal bank account and the rest goes to a nominated cashless debit card. A Cashless Debit Card looks and works like a normal bank debit card. However, it cannot be used to buy alcohol, some gift cards, gamble, or withdraw cash out. Further information on the program can be found on the Services Australia Cashless Debit Card website.
Participants on the Cashless Debit Card who need help with their card or account can visit the Indue website, or call the Cashless Debit Card hotline on 1800 252 604 (free call).
The Disability Support Pension is a Centrelink payment that provides financial support to people who have a physical, intellectual or psychiatric impairment and who have a continuing inability to work.
Services Australia has produced a number of short information videos regarding the Disability Support Pension including one entitled “Are You Eligible for the Disability Support Pension?” The short videos can be accessed via the Services Australia - YouTube Channel.
There are a number of eligibility criteria that a person must meet to be approved for the Disability Support Pension (DSP). Generally speaking, the DSP is available to people who have a permanent medical injury that results in incapacity to work.
To be eligible for the DSP, a person must:
See Social Security Act 1991 (Cth) ss 7 and 94; Social Security (Administration) Act 1999 (Cth) s 28.
A person can also be eligible for the DSP if they are 16 years of age and over, meet the residence requirements, and have been assessed as being permanently blind [Social Security Act 1991 (Cth) s 95]. A person who is permanently blind also does not have to demonstrate a continuing inability to work in order to remain eligible for the DSP.
To assess whether a person meets the eligibility requirements, Centrelink requires medical evidence that outlines the person’s injury, illness or impairment. In most instances this will be a person’s medical records which can include medical reports, medical imaging reports, hospital records, etc. For psychological impairments, a report from a clinical psychologist or psychiatrist must be provided [see Social Security Act 1991 (Cth) s 94; Social Security (Administration) Act 1999 (Cth) s 63]
To be eligible for the DSP, a person must have an impairment rating of 20 points or more on the impairment tables [Social Security Act 1991 (Cth) s 94]. A person’s permanent medical impairment is assessed against the impairment tables, and a rating is given. A copy of the impairment tables can be found on the Federal Register of Legislation.
The requirement to have actively participated in a program of support before being eligible to receive the DSP usually means a person has undergone a program with an Employment Services Provider or Disability Employment Service Provider, often while receiving the Newstart Allowance. There are exemptions, however, from the requirement to participate in a program of support, such as where a person has a severe impairment (20 or more points under one impairment table) [See Social Security Act 1991 (Cth) ss 94(2) s 94(3)], s 94(3B)], 94(3C), s 94(4), s 94(5)].
As applications for DSP can take longer to process, a person can receive Newstart Allowance or Youth Allowance as a provisional payment until their DSP application is approved [see Social Security Act 1991 (Cth) s 540A(1)(c); s 593(1B)].
After being approved to receive the DSP, Centrelink can review a person’s ongoing eligibility at any time. If a review results in their DSP being cancelled, they can appeal this decision.
The Disability Support Pension is often misunderstood in terms of eligibility. Legal advice should be sought if any adverse decision is made and an appeal is being considered.
Since March 2020, JobSeeker Payment has been the new working age payment. It replaced the previous Newstart Allowance which was the previous Centrelink payment that provided financial support to people who were unemployed.
JobSeeker Payment has also replaced the Sickness Allowance, the Wife Pension and the Bereavement Allowance. More information on transferring between payment types can be located via the Services Australia- JobSeeker Payment website.
There are a number of eligibility criteria that a person must meet in order to be approved for the JobSeeker Payment. A person must:
A person must also be one of the following:
A person may also be subject to mutual obligation requirements, such as requirement for job hunting or training. These requirements will vary depending on the payment type the person is receiving, their circumstances, and their age.
See Social Security Act 1991 (Cth) ss 7, 23(5A)-23(5D), 593- 601,and s 605.
For people who have transferred from Newstart Allowance to the JobSeeker Payment, or people who are new recipients of the JobSeeker Payment and who are eligible because they are unemployed, there may be activity testing requirements, meaning that eligibility is dependant upon them satisfying Centrelink that they are actively seeking and willing to undertake paid work [see Social Security Act 1991 (Cth) s 601]. This generally involves engaging with an Employment Services Provider. Employment Services Providers should make initial arrangements for an appointment with the person to occur within two business days of their claim for the JobSeeker Payment being approved. Payment of the JobSeeker Payment will then, in most instances, start from the date of the person’s first interview with the Employment Services Provider [see Social Security (Administration) Act 1999 (Cth) Schedule 2, section 4A].
Once a person is approved to receive the JobSeeker Payment, and meets with an Employment Services Provider, an Employment Pathway Plan will be developed. This Plan is individually tailored to the person and will identify their activity requirements, i.e. their employment and training goals and the activities the person must undertake to achieve the goals. The goals must be specific and measurable, for example, the Plan should identify how many job contacts per fortnight the person must have. A Plan can be amended at any time, and should be developed so that the person is capable of adhering to the plan and undertaking the activity requirements [see Social Security Act 1991 (Cth) s 605].
A person applying for the JobSeeker Payment may be subject to a 26 week non-payment period if they relocate to a new place of residence, without sufficient reason, and where their employment prospects have consequentially reduced as a result of the move [Social Security Act 1991 (Cth) s 634].
A person has sufficient reason in relocating if:
See Social Security Act 1991 (Cth) s 634(3).
A person applying for the JobSeeker Payment may also be subject to an eight week non-payment period if they voluntarily resign from their previous employment or if they are terminated because of misconduct [see Social Security (Administration) Act 1999 (Cth) s 42S].
The non-payment period can be waived, however, in circumstances where the person is in severe financial hardship and where they have a dependant child, have medical expenses relating to an illness, have a recognised cognitive impairment, or do not have access to safe and secure housing, for example.
For a full list of the classes of people who may be eligible to have the non-payment period waived, see the Ending Unemployment Non-Payment Periods - Classes of Persons Specification.
Certain recipients of the JobSeeker payment (and some in receipt of Youth Allowance or Parenting Payment) have obligations that they must meet in order to continue to receive the payment. These obligations are referred to as mutual obligation requirements. The requirements include entering into an employment pathway (i.e. Workforce Australia) and a Job Plan, and meeting any activity requirements [Social Security (Administration) Act 1999 (Cth) Part 3 Division 2A]. These obligations generally apply to those recipients who are eligible to receive the JobSeeker payment because they are unemployed and therefore there is an expectation they would be looking for employment.
The new system from 2022 includes the requirement to participate in mandatory activations referred to as activation points. Activation points include:
Different obligations apply to people who are aged 55 years and over [s 40R], to people who are the principal carer of a child aged under 16 years [s 40P], or to people who have a partial capacity to work [s 42AC(1A)].
An exemption from mutual obligation requirements can also be sought in situations of crisis, such as where someone is experiencing family violence [s 40N] or on the breakdown of a marriage or relationship [s 40L].
Where a person breaches their mutual obligation requirements, penalties may apply. These penalties may include the demerit system and financial penalties [see ss 42AC, 42AD, 42AE], see Demerit System.
For more information, see the Mutual Obligation Requirements section on the Social Security Guide.
Since 1 July 2018, a new penalty system applies for recipients of the JobSeeker Payment who are not compliant with their jobseeker requirements. This system is called the Targeted Compliance Framework, or more commonly the Demerit system [see Social Security (Administration) Act 1999 (Cth) Part 3 Division 3AA and Division 3A]. This applies to those recipients of the JobSeeker Payment who must meet mutual obligations or requirements relating to job hunting or training.
The Demerit system has three stages and recipients of the JobSeeker Payment may move between the stages depending on their compliance with their jobseeker requirements. Every time a JobSeeker Payment recipient fails to meet a JobSeeker requirement, their payments will be suspended until they meet certain requirements.
The zones and some of the associated requirements are not legislated but are instead administrative mechanisms to monitor compliance [see for example Social Security (Administration) (Non-Compliance) Determination 2018 (No. 1)].
Stage one: the Green Zone
The Green Zone is where JobSeeker Payment recipients will be when they are first approved for the payment.
If a person in the Green Zone fails to meet one of their mutual obligation requirements, they will be given one demerit point for each failure without a valid reason. When a person receives a demerit point, they move to the next zone, the Warning Zone, and their payments may be suspended.
For a list of what constitutes a mutual obligation failure, see Social Security (Administration) Act 1999 (Cth) s 42AC.
Stage two: the Warning Zone
People in this zone (i.e. people who have incurred one or more demerit points for a mutual obligation failure) will have their payments suspended until they complete a reconnection requirement, which is usually correcting whatever action led to the incursion of the demerit point in the first instance. If the reconnection requirement is completed, payments will recommence and the person will be back paid from the date of suspension [see Social Security (Administration) Act 1999 (Cth) ss 42AF (compliance action for mutual obligation failures); s 42AG (compliance action for work refusal failures); s 42AL (payment suspension for mutual obligation or work refusal failures)].
A person in the warning zone will receive written notification of the payment suspension, the requirement to undertake the activity they failed to do which led to the suspension, and the effect of not complying with the activity requirement [see s 42AM(2)].
If a person does not complete the reconnection requirement within four weeks of being notified of their payment suspension, their payment will be cancelled [see s 42AM(3)].
If a person incurs three demerit points within a six month period, they will be required to attend a capability interview to explain why they are not meeting their mutual obligation requirements. The person’s demerit points can be reset to zero if the job seeker requirements need to be adjusted, allowing the person to return to the Green Zone. The person can be required to complete the activities.
If a person incurs five demerit points within a six month period, or fails to attend a job interview, they will be referred to Centrelink for a capability assessment. This is another opportunity for the person to provide an explanation as to why mutual obligation requirements are not being met. The person’s Job Plan may be adjusted, or their demerit points may be reset to zero. The person can also be required to complete the activities that led to them incurring the demerit points.
See Social Security (Administration) (Non-Compliance) Determination 2018 (No. 1) section 5(2).
If a capability interview and capability assessment determine the job requirements are appropriate, the person automatically moves to the next zone, the Penalty Zone.
Stage three: the Penalty Zone
In this zone, no further demerit points are given and financial penalties for non-compliance are instead imposed. If a person in this zone fails to meet one mutual obligation requirement, they will lose 50% of their payment. If they fail to meet two requirements, they will lose 100% of their payment. If they fail to meet three requirements, their payments will stop for four weeks [see Social Security (Administration) Act 1999 (Cth) ss 42AN(3) and s 42AP(5); Social Security (Administration (Non-Compliance) Determination 2018 (No.1) sections 6(1) and 6(2)].
If, however, a person in the penalty zone meets all their activity requirements for a three month period, they will return to the Green Zone [see Social Security (Administration) (Non-Compliance) Determination 2018 No.1 sections 5(5) and 5(6); Social Security (Administration) Act 1999 (Cth) s 42AF(2)].
Further information
If a person disagrees with a decision to impose a demerit point, they must ask for a review of this decision with their provider or the digital services contact centre. If their complaint is not resolved, they can contact the Department of Employment and Workplace Relations’ National Customer Service Line.
If a person disagrees with a decision of Centrelink to impose a financial penalty (while in the penalty zone) they can seek a review of this decision through the usual processes – see Appeal Process.
A person’s payments can also be stopped at any time for a four week period if they undertake certain behaviour, such as where they refuse a suitable job offer or where they fail to attend a job interview [see Social Security (Administration) (Non-Compliance) Determination 2018 No. 1 section 5(2)(a)(ii)].
If it is agreed that a person has a reasonable excuse as to why they have failed to meet a mutual obligation, and in some instances they have given prior notification of that reasonable excuse before committing the mutual obligation failure, then they may not be penalised. Matters that can be taken into account when deciding whether a person has a reasonable excuse include:
See Social Security (Administration) (Reasonable Excuse- Participation Payments) Determination 2018 section 5; Social Security (Administration) Act 1999 (Cth) s 42AI.
As the rules regarding demerit points can be complex, legal advice should be sought if any decision is made that is disputed.
For more information, see the Consequences of not meeting mutual obligation requirements – tarted compliance framework section on the Social Security Guide.
Previously, a person receiving the former Newstart Allowance could seek an exemption from their mutual obligation requirements if they were suffering from drug or alcohol dependency issues, or they could use their dependency as a reasonable excuse for their failure to meet their requirements. This is no longer the case.
A person experiencing drug or alcohol dependency issues is offered the option of voluntarily undertaking treatment for their dependency. In some instances, participating in treatment will enable them to meet their mutual obligation requirements. If a person refuses voluntary treatment options, they will not be able to rely upon their drug or alcohol dependency as a reasonable excuse for failing to meet their requirements in the future. If they continue to fail to meet their requirements, they will be subject to the demerit point system and financial penalties [see Social Security (Administration) (Reasonable Excuse- Participation Payments) Determination 2018 (Cth) section 6(4)], see also Demerit System.
The Age Pension is a Centrelink payment for older people.
To be eligible to receive the Age Pension, a person must:
See Social Security Act 1991 (Cth) ss 23(5A) and 23(5D) for age requirements, section 7(5) for residency requirements, section 43, section 1064 for calculation of pension.
The pension age will increase progressively by 6 months every two years from 1 July 2017 until 1 July 2023 [see Social Security Act 1991 (Cth) ss 23(5A) and 23(5D)].
A person applying for the aged pension must have been an Australian resident for at least 10 years, which includes at least one 5 year continuous period (unless an exemption applies) [Social Security Act 1991 (Cth) ss 7, 43(1)(a)].
Different payment rates apply for the Age Pension depending on whether the person is single or a member of a couple. For the current maximum payment rates, see the Services Australia- Age Pension Payment Rates website.
Centrelink will also assess a person’s income and assets in determining their Age Pension payment rate (and overall entitlement to the Aged Pension). See the Services Australia- Income Test for Pensions website.
Further information on the Aged Pension can be obtained in the Pension Rate Calculator A contained in section 1064 of the Social Security Act 1991 (Cth).
The Paid Parental Leave Act 2010 (Cth) provides for paid leave for both parents after the birth or adoption of a child.
Due to the Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Act 2023 (Cth), there are now different laws in place for children born or adopted before and after 1 July 2023.
Applications for Parental Leave Pay must be made within certain timeframes [see Services Australia Claiming timeframes]. In some circumstances, payment will be made through an employer [Part 3-2].
Parental Leave Pay is limited to the set maximum, even in the case of multiple births such as twins [s 20].
Children born or adopted before 1 July 2023
The primary carer of a child born or adopted before 1 July 2023 may be eligible for up to 18 weeks of paid leave. This includes continuous Paid Parental Leave period of up to 12 weeks, and 30 Flexible Paid Parental Leave days.
Eligibility is dependent on the person applying [Part 2-3]:
Flexible Paid Parental Leave days can be taken up to two years after the birth or adoption of the child, and can be taken after the person applying has returned to work.
Paid Parental Leave can be taken before, during or after any paid or unpaid employer funded leave, including maternity or paternity leave, annual leave or long service leave.
For more information visit the Services Australia website.
Prior to 1 July 2023, partners of primary carers may be eligible for Dad and Partner Pay. Similar eligibility requirements apply, in particular that the person applying must have care for a newborn or newly adopted child. There are also limitations on taking paid leave while in receipt of Dad and Partner Pay.
Dad and Partner Pay will be abolished for children born or adopted after 1 July 2023 [Chapter 3A is repealed].
Children born or adopted from 1 July 2023
Carers of a child born or adopted on or after 1 July 2023 may be eligible for up to 20 weeks (100 days) of paid leave [s 31AB].
Eligibility is dependent on the person applying [Part 2-3]:
The birth mother must approve the number of Parental Leave Pay days they share with other applicants, and the applications made by other applicants [s 59A]. There is provision for consent to be revoked.
Parental Leave Pay is all available as Flexible Paid Parental Leave - it can all be taken in blocks as small as a day at a time [Part 2-1]. There is no penalty or restriction on the person returning to work, provided they are not working on a day of paid leave. It can be taken before, during or after any paid or unpaid employer funded leave, including maternity or paternity leave, annual leave or long service leave.
If a birth mother does not meet the residence requirements, another person applying may still be successful if they meet the eligibility requirements and the birth mother provides permission for them to claim.
Up to two weeks' Parental Leave Pay can be used simultaneously by eligible claimants [s 21].
Parental Leave Pay must be used within two years of the child's birth or adoption [ss 11D and 275].
You must advise Services Australia if your circumstances change while receiving Parental Leave Pay.
For more information visit the Services Australia Services Australia website.
Other entitlements
If ineligible for Paid Parental Leave, an application might be eligible for other payments such as the Newborn Upfront Payment or the Newborn Supplement [contact Services Australia]
For information about unpaid leave rights pursuant to the Fair Work Act 2009 (Cth) and the National Employment Standards, see The National Employment Standards and the Fair Work Ombudsman.
Anyone in receipt of social security payments is required to notify Centrelink of any changes in their income, assets and other circumstances. This obligation is stated on letters sent to clients, usually pre-printed on the reverse side of Centrelink correspondence. Centrelink has wide powers to obtain information from any person (including government agencies, banks and employers) on any matter relating to a person’s social security entitlement [see Social Security (Administration) Act 1999 (Cth) ss 192 and 195]. For example, Centrelink can obtain tax records to check information about a recipient’s income, or personnel records from employers to check a recipient’s employment status.
Centrelink also conducts random reviews of clients’ eligibility and entitlements, and participates in data matching programs with other government departments as part of its program to limit fraud. Centrelink will investigate information which comes to it from any source, anonymous or otherwise. Investigating officers, usually part of mobile review teams, may conduct field visits to investigate allegations of fraud, or as part of a standard review.
A recipient of a Centrelink benefit has the responsibility to keep Centrelink informed of any changes in their circumstances, including where:
Any change in circumstances must be provided within 14 days of the event occurring. Notification can be made in writing, over the phone or in person at a Centrelink office.
If a person fails to notify Centrelink about changes in their circumstances, they may find themselves in debt.
It is prudent to keep a copy of any documents relating to a change in circumstances that are sent to Centrelink.
Any person who deliberately or intentionally fails to notify Centrelink about changes in their circumstances could be charged with fraud, which can be a serious criminal offence - see Prosecution.
The following rights apply to anyone in receipt of a Centrelink benefit:
Centrelink must adhere to strict confidentiality provisions in handling personal information and cannot give this information to other people without consent.
Centrelink has wide powers to collect information relating to eligibility and as a consequence is able to access information about people from other individuals and organisations, such as employers, banks and government agencies such as the Australian Taxation Office or the Department of Home Affairs.
Accessing a Centrelink file
Under the Freedom of Information Act 1982 (Cth) a person is entitled to a copy of their Centrelink file. Information that cannot be obtained includes information supplied by someone else confidentially, another person’s personal information and some medical records.
For further detail on how to request your Centrelink file, see How to make a request to Centrelink for a file.
The right to written notice of decisions with reasons
Where a decision is made by Centrelink that affects a person, they have the right to receive a written decision containing the reasons for the decision, the legislative basis for the decision and the evidence considered. This information must be supplied within 28 days of a written request.
Rights if visited by a Centrelink field officer
Centrelink field officers (or Mobile Review Teams) may call at a person's home. These officers have no right to enter a person's house without consent. There is no obligation to answer questions or sign statements in their presence. A person has the right to decide whether or not to invite them into their home. It is possible to request that any interview take place at a Centrelink office or to have the questions put in writing instead.
Rights at Centrelink assessment interviews
Centrelink has the right to ask a person to attend an interview for the purposes of assessing their correct entitlement to a Centrelink benefit. However, the person attending the interview also has rights with regard to these interviews. They have the right to request that questions be put to them in writing so that they may reply in writing. Generally they will have seven or 14 days in which to respond. They also have the right to have a friend or relative accompany them to the interview.
The right not to attend a "prosecution interview" - see Prosecution.
The right to seek independent advice before giving Centrelink information
Everyone has the right to seek independent advice about any Centrelink matter. To obtain advice about a Centrelink matter, consult with an independent advisor or contact the Legal Services Commission on 1300 366 424 for legal advice or a referral to an appropriate community legal service.
The right to have an advocate
Everyone has the right to have an advocate present at any Centrelink interviews or medical examination. Another person can also be nominated to handle Centrelink business on behalf of someone else.
The right to refuse to make a statement immediately
Any request for information must be given in writing and a person should be allowed at least seven days to respond.
The right to appeal
There is a right to appeal against a Centrelink decision where the decision is not agreed with, see Challenging a Centrelink decision.
What does Centrelink define as a debt?
A debt is any payment made by Centrelink to someone who is not entitled to it. Where an overpayment has been made Centrelink raises a debt against that person for the amount overpaid.
A debt can also arise in a variety of situations ranging from a person incorrectly receiving a payment through no fault of their own to a person incorrectly receiving a payment as a result of deliberate fraud.
Section 1222A of the Social Security Act 1991 (Cth) defines the circumstances where a debt can be raised against a person.
Where notification of a debt to Centrelink is made in writing, always seek independent advice on whether the debt is owed or any other residual issues. Independent legal advice can be sought by contacting the Legal Services Commission on 1300 366 424. Where appropriate, a referral may also be made to a community legal service for assistance. Debts can sometimes be raised in error, or an error may have been made as to the amount owed, so it is always appropriate to obtain independent legal advice before paying or challenging a debt.
What powers does Centrelink have to recover a debt?
Centrelink has a wide range of powers to recover social security debts, including the power to:
Is there a limitation period in which Centrelink must take action for a debt?
Since 1 January 2017 there has been no time limit on Centrelink recovering a debt [see Social Security Act 1991 (Cth) s 1234B; similar provisions are contained in other relevant legislation]. Previously Centrelink had 6 years from the date that they ought to have been reasonably aware of the debt to take recovery action.
What happens if a person becomes bankrupt?
If a person with a Centrelink debt becomes bankrupt, Centrelink cannot use its garnishee power or commence a court action for debt. The position in respect of deductions from social security payments is less clear. Advisors and people owing money should seek advice if this situation arises. Bankruptcy does not extinguish debts which arose through fraud.
How is a person notified of a Centrelink debt?
Centrelink must give a person written notice containing specific information relating to the debt. That notice must include information relating to:
See Social Security Act 1991 (Cth) s 1229.
Centrelink has the ability to suspend, either for an indefinite or specified period of time, all action to recover a debt. This is often known as writing-off the debt, however, suspending the debt does not completely extinguish it.
Under what circumstances will Centrelink suspend a debt?
Debts can only be suspended or written-off where:
See Social Security Act 1991 (Cth) s 1236(1A).
Does suspending a debt completely cancel it?
Suspending or writing-off a debt does not completely extinguish a debt. The debt remains enforceable but a decision has been made not to pursue it, either indefinitely or for a specified period. In either case the decision can be reversed and debt recovery proceedings can recommence at any time in response to a change in the debtor's circumstances [see Social Security Act 1991 (Cth) s 1236(3)].
What is a waiver?
A waiver is a permanent giving up of the right of recovery of a debt or part of a debt by Centrelink. As a result any debt or part of a debt that is waived ceases to exist [see Social Security Act 1991 (Cth) s 1237].
In what circumstances will a waiver be granted?
Waivers can only be granted in specified circumstances, outlined below.
Administrative Error Waiver
An administrative error waiver may be granted where the debt is attributable solely to administrative error and the money was received by the person in good faith, and the debt was not raised within six weeks after the first payment which caused the debt, or six weeks after the end of the notification period which the person complied with. In this case all or part of the debt must be waived [see Social Security Act 1991(Cth) s 1237A].
Special Circumstances Waiver
A special circumstances waiver may be granted where the debt did not arise from a person knowingly making a false statement or representation, and there are special circumstances other than financial hardship alone and it is more appropriate to waive rather than write off the debt. In this case all or part of the debt may be waived [see s 1237AAD]. Special circumstances would indicate circumstances that are unusual, uncommon, or exceptional, and could relate, for example, to circumstances regarding family violence, health issues, or other personal matters. What does or does not constitute special circumstances will be determined in each individual case as the Act does not define what is meant by special circumstances in these instances.
Waiver in other circumstances
A debt may be waived in other circumstances, such as where the debt is a very small one and the costs associated with recovery exceed the amount owed [see s 1237AAA].
Debts can also be waived in other circumstances prescribed by the Social Security Act 1991 (Cth), such as where Centrelink have agreed to settle a civil action against a debtor for recovery for less than the full amount of the debt. In this case the difference between the amount owed and the amount agreed upon for settlement must be waived [see s 1237AAB].
Waiver of debt by the Department of Finance
The Department of Finance has a discretionary power to waive debts owed to certain types of Commonwealth bodies, pursuant to section 63 of the Public Governance, Performance and Accountability Act 2013 (Cth). Services Australia (which incorporates Centrelink) is one such body to whom this section applies.
A person can request a waiver of debt where recovery of the debt would otherwise be inequitable or would cause ongoing financial hardship to the person. A waiver can only be sought in circumstances where other options in dealing with the debt (such as those options available to Centrelink and listed above) are not appropriate. Seeking a waiver of a debt from the Department of Finance is therefore an option of last resort and cannot be used where other viable options exist to deal with the debt.
Where a waiver of debt is granted, the debt is extinguished completely and no recovery proceedings can be made to recover it in the future.
An application for a waiver of a debt can be made by completing the Waiver of Debt Application Form on the Department of Finance website.
If the Department refuses to grant the waiver, an aggrieved person can lodge a complaint with the Commonwealth Ombudsman’s office or an application for review can be lodged in the Federal Circuit and Family Court [see Administrative Decisions (Judicial Review) Act 1977 (Cth)]. Legal advice should be sought before commencing any court application.
There is no automatic right to have a waiver of debt application granted, as the decision is entirely at the discretion of the Department of Finance.
If Centrelink has made a decision which a person does not agree with, they can challenge it by making an appeal. An appeal is a formal request to Centrelink for a review of the decision to determine whether it was correctly made. Keep in mind that complaining about something is not the same as requesting an appeal or a review of it, see Appeal Process for information on the steps required to commence an appeal or review.
A person lodging an appeal or review of a decision should be mindful that there is no guarantee of a favourable outcome on appeal or review. If, as part of the review process, the person is unsuccessful in their application and it is determined that they actually owe Centrelink money, then they can be ordered to pay the amount owed.
Legal advice should therefore be sought before commencing an appeal or review of a Centrelink decision.
A person wanting to appeal should do it as soon as possible, or at least within 13 weeks of Centrelink's decision, so that they can receive any back pay they may be entitled to if they are successful.
Appealing a Centrelink decision first involves requesting an internal review of the disputed decision. This is a review that is done within Centrelink by Centrelink.
If a person is not satisfied with the outcome of that review, they can seek external review, that is, a review by an external agency. For Centrelink disputes, that agency is the Administrative Review Tribunal (ART).
A person cannot seek external review of a decision without first going through the internal review process.
The first step in having a decision reviewed is to ask Centrelink to review the decision themselves. When this request is made, the person should try to be specific as to why they believe the decision is unfair or incorrect.
A person simply telling Centrelink that they are not happy with a decision will not usually be considered to be asking for a review. A request for a review should be specific and should be undertaken with the following in mind.
When requesting a review, a person has the option of contacting the Original Decision Maker(ODM) (that is, the person who made the decision in dispute) and asking for more information, or a clarification or explanation of the decision. A person can also ask the Original Decision Makerto review their decision.
If the Original Decision Maker reviews their decision, and the decision still remains in dispute, a person can request that the decision then be looked at by a third party within Centrelink called an Authorised Review Officer (ARO). An ARO is a senior Centrelink officer not involved in the original decision.
It is not a requirement that the decision be reviewed by the Original Decision Maker. Any person can skip that step and go straight to requesting a review by an Authorised Review Officer if they choose.
Although it is possible to ask for a review over the phone or in person, it is best to do it in writing. A review by an ARO can be requested by either writing a letter or completing a Review of a decision form available from the Centrelink website.
If a review is requested over the phone, ask for a receipt number and confirmation in writing that Centrelink will review the decision.
The following information should be included in a written request for a review:
Once the decision has been reviewed, the ARO will send a letter outlining the reasons for their decision.
If a person is unhappy with the ARO’s decision, their next option is to consider an external review in the Administrative Review Tribunal. See External Review for more information.
The Administrative Review Tribunal
A person dissatisfied with a decision of an Authorised Review Officer may seek a review in the Administrative Review Tribunal (formerly the Administrative Appeals Tribunal) [Social Security (Administration) Act 1999 (Cth) s 142].
A person dissatisfied with the decision of the Administrative Review Tribunal on review may seek a second review by the Administrative Review Tribunal.
Costs
There is no fee to apply for a review of a Centrelink decision by the ART.
The Administrative Review Tribunal is a 'no costs' jurisdiction. This means that applicants do not generally need to pay costs, even if they are unsuccessful.
Nevertheless, anyone considering an appeal to the ART or facing an appeal from Centrelink to the ART should still seek legal advice from the Legal Services Commission or a community legal service.
As there are 2 levels of review available in the Administrative Review Tribunal (formerly the Administrative Appeals Tribunal), the initial review was previously known as a 'first review' or 'tier one review'.
The Administrative Review Tribunal is completely independent of Centrelink. The ART reviews decisions made by Centrelink and the Child Support Agency (both are part of Services Australia) and determines whether they have been made correctly. Tribunal decisions are binding on both parties.
In reviewing the decision, the ART will have regard to the information supplied to it by Centrelink and by the person seeking the review. Whether or not Centrelink has made the correct decision will depend on whether it has followed the Social Security legislation.
An application to the ART for review can only be made once the internal review process has been completed – see Internal Review. An application for an ART review may be made online, in person, by email or written application form or by calling the Tribunal on 1800 228 333. Visit the Tribunal website for more information.
Reviews are usually conducted in a public hearing format. Hearings are fairly informal and the person applying (or someone on their behalf) can present their version of events to the Tribunal.
Following the hearing, the ART will provide a written statement of its decision and the reasons for it.
Before considering appealing to the ART, seek independent legal advice from the Legal Services Commission or a community legal service. Also consider making a Freedom of Information application for a copy of the file (see How to Make a Request for a Centrelink File).
To be eligible for back pay, applicants must appeal within 13 weeks after receiving notification of the decision [Social Security (Administration) Act 1999 (Cth) s 147].
If a person is unhappy with the decision of the ART, or the ART agreed with the decision of Centrelink, they can appeal to the Administrative Review Tribunal for a second review(previously known as a ‘tier two review’). See Second Review by the Administrative Review Tribunal.
Parties (including Centrelink) who are dissatisfied with an initial review of a Centrelink decision by the Administrative Review Tribunal may seek a further review (a 'second review' or 'tier two review') by the Tribunal. Second reviews are mainly governed by the Administrative Review Tribunal Act 2024 (Cth).
Applications for a second review must be lodged within 28 days of receiving the initial ART decision in writing. The Tribunal may extend this timeframe but only if it considers it reasonable in all the circumstances to do so [Administrative Review Tribunal Act 2024 (Cth) s 19].
An application for a second review may be lodged online, by email or written application, in person or by calling 1800 228 333. Visit the ART Centrelink payments webpage for more information.
Where an adverse decision is based on the exercise of discretion and the person appeals to an Authorised Review Officer or the Administrative Review Tribunal (ART), payment can continue pending the outcome of the review [see Social Security (Administration) Act 1999 (Cth) ss 131 and 145].
At the second review stage of the Administrative Review Tribunal, either party may apply to the Tribunal for a stay of the first ART decision. This may be necessary where the person has no other source of income and the first ART decision is not in their favour. Centrelink must implement the first ART review decision when it is in the client's favour unless it obtains a stay order from the Administrative Review Tribunal.
Centrelink keeps copies of claims forms, any written statements or information provided by a person, and its records of contacts with the person. This can be useful information when seeking a review of a decision made by Centrelink.
A person can apply for access to their file, or request a copy of their file be sent to them, by making a written application under the Freedom of Information Act 1982 (Cth). There is no charge for making this request, however Centrelink may charge a fee for repeated requests for the same documents.
To make a request a person must either complete a form or write a letter. If they choose to write a letter they should mention that they are making the request under the Freedom of Information Act 1982 (Cth). A 'Freedom of Information: I want To Access or Change Documents Form' is available from the Centrelink website.
When submitting a request it is advisable to list the specific documents the person is intending on viewing or receiving copies of. Centrelink keeps records in both paper and electronic formats. For example, if a person wishes to receive copies of all the information that Centrelink keeps on them, they should ask for “copies of all file papers and computer records and printouts” relating to the person.
Centrelink must respond to a Freedom of Information request within 30 days, however extensions of time may be granted - see further the Law Handbook on Access to Government Information and the Office of the Australian Information Commissioner's website.
Detailed information about options for seeking compensation from Commonwealth government departments is set out in the Law Handbook chapter Complaints Against Government.
Information on claiming compensation specifically from Services Australia (i.e. Centrelink) is contained below.
Compensation should only be sought in specific circumstances. All existing review mechanisms should be exhausted before seeking compensation.
There is no right to receive compensation and any payments made are entirely at the discretion of Services Australia or Department of Finance.
There are three types of compensation payments that can be sought from either Services Australia or Department of Finance:
Payment pursuant to legal liability
A person can apply directly to Services Australia for compensation in circumstances where they believe they have a legal claim against the Department.
All Centrelink employees have a duty of care towards the public. A negligent breach of that duty of care may give rise to an action in negligence, for example. In such circumstances Services Australia may make a payment of compensation to a person for breaching its duty to exercise reasonable care. The ability of Services Australia to make such a payment is by virtue of section 23 of the Public Governance, Performance and Accountability Act 2013 (Cth).
A person seeking compensation from Services Australia in these circumstances should complete a Compensation Application Form (SS509) and lodge it with Services Australia A copy of the form is available on the Services Australia website.
Any offer of payment is not an admission of liability by Services Australia, and if an offer is made the person receiving the compensation will be required to sign a deed of release as a condition of settlement. This indemnifies Services Australia against further litigation. There is no review of a decision of Services Australia not to make a payment pursuant to legal liability, as any payment made is entirely at the discretion of Services Australia.
Compensation for detriment caused by defective administration (CDDA Scheme)
Where it can be shown that an individual or group has suffered loss as a result of defective administration on the part of the Services Australia, the Compensation for Detriment caused by Defective Administration scheme (CDDA Scheme) can provide compensation on a discretionary basis. Unlike payment pursuant to legal liability, such liability is not required in the CDDA Scheme.
The CDDA scheme is an administrative scheme and is not governed by legislation. It was established pursuant to the powers contained in section 61 of the Australian Constitution.
Defective administration is defined as an unreasonable failure by an agency to implement appropriate administrative procedures, to comply with existing administrative procedures, or to provide proper advice. The fact that Centrelink has made an error is not sufficient in itself to give rise to a payment under this scheme – it must also be established that the error in question was unreasonable.
Compensation can be granted for both financial and non-financial loss and applications for compensation under the CDDA scheme should be made directly to Centrelink. Decisions made under the CDDA scheme are not appealable or reviewable. However, complaints about the scheme can be made to the Commonwealth Ombudsman.
More information on the CDDA Scheme can be accessed via the Commonwealth Ombudsman’s Factsheet Compensation for Defective Administration.
Act of Grace payments
An Act of Grace payment allows the Commonwealth Minister for Finance to make a discretionary payment to a person who is not otherwise entitled to compensation by law, but where payment is appropriate due to special circumstances [see Public Governance, Performance and Accountability Act 2013 (Cth) s 65]. Applications should therefore be made directly to the Minister for Finance.
There are three broad categories in which Act of Grace payments will be considered:
For a claim to be considered under this scheme there must be special circumstances warranting the payment of compensation, that is, there must be something distinctly anomalous or inequitable about the individual’s situation. Act of Grace payments are not common and are often seen as a payment of last resort.
A refusal to grant an Act of Grace payment can be reviewed by the Commonwealth Ombudsman. Decisions about Act of Grace payments can also be reviewed by the Federal Circuit and Family Court [Administrative Decisions (Judicial Review) Act 1977 (Cth)]. Legal advice should be sought before commencing any court application for review.
It is a criminal offence to intentionally provide false information to Centrelink in order to obtain a payment, to continue to maintain a payment, or in order to receive a higher payment where a person is not otherwise entitled to it.
Services Australia, in circumstances where it suspects unlawful conduct has occurred, can pass on a person’s details to the Commonwealth Department for Public Prosecutions who can commence a criminal prosecution against the person.
This criminal process is not to be confused with the process Centrelink undertakes when recovering a debt from a person who has unknowingly received an overpayment, for example. A prosecution can result in court proceedings, a criminal conviction, and a penalty being imposed. For that reason it is important for a person to obtain legal advice should they receive notification of a criminal investigation or charge.
Most Centrelink related criminal offences are contained in the Criminal Code Act 1995 (Cth) [see for example s 134.1(1) – obtaining property by deception; s 134.2(1) – obtaining financial advantage by deception; s 135.2(1) – obtaining a financial advantage].
The maximum penalties for such offences can be as severe as up to 10 years imprisonment. As these cases are often complex and can involve significant penalties, obtaining early legal advice is recommended.
There is no requirement to attend a "prosecution interview"
When determining whether to prosecute a person for unlawful conduct, Centrelink may request that the person attend a prosecution interview. It will be a prosecution interview (as opposed to an assessment interview) if Centrelink provide a warning that anything the person says may be used against them in a court of law and that the interview will be taped.
The prosecution interviewer may suggest that there is no need for the person to attend the interview and to just "send them a letter" instead. In these circumstances Centrelink should be advised that the person is seeking legal advice.
There is no explicit legal obligation to attend or remain in a prosecution interview.
If a person does decide to attend, they can walk out at any point that they wish. No penalty can be imposed on them for not attending such an interview, or for stopping it once it has begun. Their current payments cannot be stopped for refusing to attend a prosecution interview.
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