Youth Allowance is generally for people aged 16-24 who satisfy the activity test or people temporarily incapacitated for full-time study aged 21-24. People over 25 may be eligible if they were receiving Youth Allowance as an Australian Apprentice or student before they turned 25 and continue in that course or apprenticeship. A person who is 15 may also be eligible for Youth Allowance if they are independent. Exemptions from the full-time study requirement apply (see below).

The person must be an Australian resident (or exempt resident) and in Australia to receive Youth Allowance.

The activity test is satisfied if the applicant:

A person under 21 years old who does not have a Year 12 or equivalent qualification will usually need to participate in education or full-time training or participate full-time (25 hours a week) in part-time study or training, in combination with other approved activities. If a person under 21 has a partial capacity to work, they may also be eligible for a Youth Disability Supplement.

Payment of Youth Allowance is subject to waiting periods similar to those for Newstart Allowance (see: "Waiting periods" under "Newstart Allowance", below). Failure to comply with the activity test or Youth Allowance Employment Pathway Plan may result in a penalty being imposed. The penalties are the same as for Newstart Allowance (see below).

Youth Allowance is paid subject to:

The parental means test applies to dependent young persons, including those required to live away from home. From 1 July 2011 the rate reduces by 20 cents for every $1 the parent's income exceeds $45,114. There is also an asset test and family actual means test. The test which produces the lowest payment is applied.

Under the personal income test, Youth Allowance for full-time students is reduced as income increases. However the first $6,972 of a merit and equity based scholarship is exempt. A job seeker can earn $62 per fortnight and a student $236 per fortnight without affecting the rate.  The rate of reduction after that changes frequently, contact Centrelink for specific rates.

Youth Allowance is not payable if the assets value (parental or partner plus personal) exceeds the amounts set out in section 547C. These limits increase twice a year.

Most students in receipt of Youth Allowance will also receive the Student Start-Up Scholarship, worth $1,300 per year. Some may be paid a fares allowance.

To be eligible for Austudy, a person must satisfy an Activity Test, be over 25 (unless recieving Youth Allowance immediately before turning 25), and be an Australian resident. Waiting periods may apply, including a preclusion period for seasonal workers.

The Activity Test requires the person to be undertaking qualifying study (this may require a full-time, or in some circumstances, concessional study load) in an approved course, and satisfy progress rules. A person cannot satisfy the Activity Test if they are a new apprentice or have completed doctoral study.

A person commits an Austudy participation failure by failing without reasonable excuse to comply with certain Centrelink requirements, or to satisfy the Activity Test. If the person commits a failure in the same payment period as a previous failure, the failure is not considered a participation failure if it is the person's first payment period. If the failure is committed during a subsequent period, it is not considered a participation failure if another failure was not committed in the immediately preceding payment period, or the person had acted in accordance with a Centrelink requirement in respect of the failure.

Following an Austudy participation failure, or failure to comply with a requirement in respect of the failure, Austudy is not payable until the person undertakes an activity required by, or complies with a direction of, Centrelink in respect of the failure. An eight-week non-payment period applies following repeated participation failures, although Centrelink have discretion not to apply the non-payment period.

Austudy is also not payable while the person is subject to a "multiple entitlement exclusion". This applies if the person becomes entitled to another payment or scheme referred to in section 578A while receiving Austudy, or is subject to an Assurance of Support. Austudy is also not payable to CDEP Scheme participants or armed service widow(er)s who receive a lump sum or weekly payments under section 234(1)(b) of the Military Rehabilitation and Compensation Act 2004 (Cth).

The rate of Austudy varies according to whether the recipient:

In addition, a special rate is available for long-term income support recipients commencing full-time study or an Australian Apprenticeship.

To be eligible for Sickness Allowance, a person must be aged between 21 and age pension age, and must be an Australian resident.

The person must be temporarily incapacitated for work (or study, if on Austudy or Abstudy) and in Australia throughout the period. That incapacity must be caused wholly by a medical condition arising from sickness or an accident. Immediately before the incapacity, the person must have been in employment, and when the incapacity ends must be able to return to their job.

Incapacity for work is judged by assessing the extent to which a person's medical condition limits their ability to engage in paid work. "Work" is defined as full-time, part-time, permanent or casual work of at least eight hours per week at award wages or above. Sickness Allowance is also payable to recipients of Austudy or Abstudy who are temporarily incapacitated but still committed to resuming full-time study.

A person who claims Sickness Allowance within five weeks of becoming incapacitated for work may be paid from the date of incapacity.

The rate of the Allowance varies according to the age of the person. The rates are the same as for Newstart Allowance. (Also see: "Income and assets tests for Sickness, Youth, Newstart and Parenting Payment (Partnered)", below.)

To be eligible for Newstart Allowance, a person must be at least 21 and below age pension age. The person must:

The activity test is set out in section 601. The person must show that they are actively seeking and willing to undertake suitable paid work; and that they are complying with any directions from Centrelink or their Job Network Provider to undertake paid work or training. There are exemptions to the activity test (ss.602C to 603F). These include:

Increasingly, activity test requirements are being modified, rather than a complete exemption being allowed. In addition, people deemed to have a "partial capacity to work" (s.16) will be required to look for work of up to 25 hours per week, but will be deemed to fully meet the activity test if they undertake 15 hours work per week. This decision will be made following a Job Capacity Assessment (see: "Disability Support Pension", above).

Employment Pathway Plans are written agreements "negotiated" between Centrelink and a recipient of activity-tested payments, in this case Newstart Allowance. They are negotiated with a Job Network Provider, but must be approved by Centrelink.

Employment Pathway Plans require the person to do things to improve their chances of obtaining employment. These include job training, paid work experience, unpaid voluntary work and applying for a certain number of jobs in a period. Newstart Allowance is usually not payable until a person signs an Employment Pathway Plan, and a participation failure may result if a person unreasonably fails to comply with the terms of the Employment Pathway Plan (see below).

Generally, a person must wait seven days from the date of claim before becoming eligible for Newstart Allowance, unless the person transfers from another income support payment within 13 weeks. The waiting period may be reduced or waived because of financial hardship.

In addition, where the person has liquid assets of more than $5,500 (single) or $11,000 (member of a couple, or with dependent children), they must serve a waiting period of up to 13 weeks, depending on the amount.

Migrants who entered Australia or became permanent residents after 4 March 1997 must serve a waiting period of 104 weeks, although Special Benefit may be available in some circumstances.

There are also waiting periods for people who get payouts of sick leave, annual leave, long service leave or maternity leave, or have done seasonal work earning more than "average weekly ordinary time earnings" in the six months prior to claim.

Participation Failures are set out in Division 3A of the SSA Act. The regime applies to Participation Payments (generally NewStart Allowance, but for some people Youth Allowance, Parenting Payment and Special Benefit). Also from 1 July 2009, what used to be called Activity Agreements are now called Employment Pathway Plans.

There are now four possible types of failure:

Centrelink can also impose an unemployment non-payment period. 

"No show no pay" failures

A person commits a no show no pay failure if they:

It is only possible to commit one no show no pay failure per day. The penalty for a failure is loss of one day of payment for each failure committed. A failure only applies if the person has no reasonable excuse (unless the person commits misconduct).

Connection failures

A person commits a connection failure if (without reasonable excuse) they:

If a connection failure is committed, the person may be required to comply with a reconnection requirement (essentially an opportunity to fix the failure).

Reconnection failure

A person commits a reconnection failure if they fail to comply with a reconnection requirement without reasonable excuse.

The penalty for a reconnection failure is loss of payment until the failure is fixed. Further reconnection requirements may be imposed even if the person had a reasonable excuse for committing an earlier reconnection failure.

Serious failure

A serious failure is committed if a person, without reasonable excuse, persistently and intentionally, recklessly or negligently fails to comply with obligations, or fails to accept a suitable job offer. An eight-week non-payment period applies if a serious failure is committed.

Centrelink may require the person who has committed a serious failure to comply with a serious failure requirement. If the person begins to comply, Centrelink may end the non-payment period. Failure to comply may result in a no show no pay failure.

If Centrelink determine that a person can't do a serious failure requirement, and would be in severe financial hardship if required to serve the non-payment period, the non-payment period can be ended early.

Comprehensive Compliance Assessment

Before determining that a person has committed a serious failure due to persistent non-compliance, Centrelink must conduct a Comprehensive Compliance Assessment to ascertain why the person has committed failures or failed to meet Centrelink requirements, whether the person has employment barriers, and whether the participation requirements are appropriate.

Three failures in any six-month period will trigger an Assessment. At an Assessment, a Centrelink officer will, among other things, consider whether the person would benefit from any additional assistance. Failure to attend an Assessment may result in a connection failure.

Unemployment non-payment period

If a person is unemployed due to misconduct, or an unreasonable voluntary act, an eight-week non-payment period applies. This can be ended early if the person is in severe financial hardship, and is in a specified class of persons (e.g. has an impairment, is homeless, or has a dependent child).

Centrelink may impose a deferment period on a seasonal worker who is "between jobs" (s.633). The length of the period will depend on how long the person worked and how much they earned.

A deferment of 26 weeks may be imposed if a person reduces their own employment prospects by moving to a new place of residence without sufficient reason. There is only "sufficient reason" when the person has moved to join a family member, for treatment of illness, to undertake approved rehabilitation or training, or for an "extreme circumstance" (e.g. domestic violence) (s.634).

The rate of Newstart Allowance varies according to whether the recipient:

Work for the Dole participants may be eligible for an additional $20.80 per fortnight.

A person on Newstart Allowance may also be eligible for Rent Assistance (see: "Rent assistance", below).

The rates are reduced if the recipient (or their partner) has income that brings the recipient above the income threshold. There is also an assets test for Newstart Allowance. (See: "Income and assets tests for Sickness, Youth, Newstart and Parenting Payment (Partnered)", below.)

The partner of a person receiving a benefit may also receive a Partner Allowance. The same eligibility requirements apply as for Partner Allowance (pension).

Special Benefit is a "safety net" that provides income support for people who do not qualify for another social security payment, and who need financial support.

To be eligible for Special Benefit the person must:

The SSA gives Centrelink discretion to decide whether to recognise a person as "unable to earn a sufficient livelihood" and to determine whether Centrelink should pay them. These decisions are affected by:

A two-year waiting period may apply to Special Benefit applicants. An exemption applies for holders of a specific class of visas, or where there has been a significant change in circumstances beyond the person’s control.

Typical cases where Special Benefit may be paid include:

These categories are not exhaustive. Both the Secretary and the appeals tribunals will look at the circumstances of each case.

People receiving Special Benefit who are holders of designated temporary protection, humanitarian, and safe haven visas are usually required to meet the activity test from 13 weeks after the visa is granted (see: "Newstart Allowance", above). People living in isolated areas, some carers, pregnant women, parents, and some people who are temporarily ill are specifically exempt, as well as those covered by the "special circumstances" general discretion.

Failure to comply with the activity test or Special Benefit Employment Pathway Plan may result in a penalty being imposed. The penalties are the same as for Newstart Allowance breaches (see above).

Special Benefit is paid at a rate which does not exceed the rate of Newstart Allowance, Austudy or Youth Allowance (see above) that the person would receive if they qualified for that benefit.

Centrelink has a discretion to pay Special Benefit at a lower rate. Currently a strict income test applies to Special Benefit, so that the rate of payment is reduced by $1 for every $1 of the person's income. There is no "free area" for Special Benefit, so any income reduces the payment rate. The rate may also be reduced if in receipt of free board and/or lodgings.

The assets test for Special Benefit is identical to the test used for Sickness Allowance and Newstart Allowance (see: "Income and assets tests for Sickness, Youth, Newstart and Parenting Payment (Partnered)", below). For a long-term payment of a special benefit, available funds must be no more than $5,000.

Rent Assistance may also be payable (see: "Rent assistance", below).

A Parenting Payment (PP) is paid to a "principal parent" who has at least one "Parenting Payment child".

Parenting Payment (partnered) (PP (partnered)) is paid to a member of a couple where the child is under six years old, and Parenting Payment (single) (PP (single)) is paid to a single person where the child is under eight years old. The person must be an Australian resident and in Australia at the date of claim.

If a person was receiving a Parenting Payment before 1 July 2006 and has been continuously eligible for PP since this date, or does not cease to be eligible for more than 12 weeks, then the person may receive this payment until their youngest child turns 16, but will have participation requirements from the time the child is seven years old.

However, this only applies with respect to children in the person’s care immediately before 1 July 2011.

A recipient of the PP may have "participation requirements". Penalties for non-compliance apply (see: "Newstart Allowance", above).

The rates of payment and income and assets tests are different for PP (partnered) and PP (single) (see below).

A "principal parent" is a person with the care of at least one dependent child, i.e.:

The child can be the PP child of only one person at a time.

Members of a couple, both those legally married and not living separately and apart on a permanent or indefinite basis, and those determined to be living in a "marriage-like relationship" with another person, including a person of the same sex, are generally precluded from receiving PP (single).

The question of whether two people are living in a "marriage-like relationship" is complex, and takes account of many factors, with a non-exhaustive list in section 4(3) of the SSA. They include financial aspects of the relationship, the nature of the household, social aspects, any sexual relationship and the extent of the persons' commitment to each other.

A person applying for, or receiving, PP (single) may be obliged to provide Centrelink with information on their living arrangements and relationship with the other person. Failure to provide the information will lead to refusal, suspension or cancellation of the PP (single). If the information provided by the person does not establish that the person is single, the PP (single) is not payable.

Parenting Payment is also not paid if:

A Parenting Payment recipient may be required to sign an Employment Pathway Plan. Failure to comply with the Parenting Payment Employment Pathway Plan may result in a penalty being imposed. The penalties are the same as for Newstart Allowance breaches (see: "Newstart Allowance", above).

There are two rates of Parenting Payment:

The PP (single) rate is subject to the same income and assets tests as for pension payments. The maximum PP (single) rate is the same as for the pension.

The PP (partnered) rate will depend on whether the person's partner is receiving a benefit. It is paid to a person whose partner is receiving a social security pension, a service pension, or if the family is on a low income. An asset limit applies which is the same as the pensioner assets test.

A person receiving the PP (single) or the benefit PP (partnered) is entitled to receive the Pharmaceutical Allowance, Rent Assistance and Remote Area Allowance (if qualified). A person receiving non-benefit PP (partnered) is not entitled to these additional benefits.

A person under the age of 21 receiving Youth Allowance is subject to a parental means test unless they fit into one of the exceptions: for example, the person is independent (see s1067A SSA), or have a parent receiving a social security pension or benefit or a service pension (see: "Rate of allowance" under "Youth Allowance", above).

If the parental means test applies, the benefit or allowance payable may be reduced by reference to the parents' assets or income.

If a person is receiving Sickness Allowance, Youth Allowance (see separate discussion above) or Newstart Allowance, the rate of payment to them may be reduced by their income.

A person rescieving Youth Allowance is allowed to receive "free" income of $62 a fortnight (jobseekers) or $236 a fortnight (students). The rate of payment will then be reduced by:

Recipients of Youth Allowance (Student) can accumulate up to $6000 of any unused portion of the fortnightly income-free area as Income Bank credits, which can be used to offset income that exceeds the fortnightly income free area.

A person whose assets are above the relevant limit receives no payment. The limits differ for single and partnered persons, and for homeowners and non-homeowners.

The Baby Bonus is a lump sum payment paid to:

A parent may also be qualified for the Baby Bonus for an adopted child or a stillborn child. Generally only one individual is eligible for the Baby Bonus in respect of a child. In some circumstances the Baby Bonus can sometimes be apportioned amongst multiple persons, but cannot exceed 100% of the current rate.

The current amount of the Baby Bonus is $5,437 per child, and is paid in 13 fortnightly instalments. A higher amount is paid in the first instalment from 1 July 2011. The Baby Bonus is income-tested and payable to families with an adjusted taxable income of $75,000 or less in the six months following the birth of the child or the child's entry into care. There is no assets test.

To be eligible for FTB an adult must have at least one "FTB child" and be an Australian resident, or hold a Special Category or prescribed visa. An FTB child is generally under 18 where the adult is legally responsible for the child's day-to-day care, and the child is in the adult's care and living in Australia or with the adult. Persons aged 18-20 may also be an FTB child if in an adult's care and living in Australia or with the adult. Persons aged 21–24 may be an FTB child if in an adult's care, living in Australia or with the adult, and undertaking full-time study (although the maximum age for FTB will be 21 from 1 January 2012). Rent Assistance can be paid with FTB(A). An FTB activity test may apply if the child is aged 16-20. FTB(B) provides extra assistance to predominantly single-income families.

Since 1 July 2011, payment of FTB(A) for a child turning four is conditional on the child undergoing a health check.

The base rate of FTB(A) can be paid for three years of temporary absence from Australia. More than the base rate of FTB(A) and (B) can generally be paid for only 13 weeks of a temporary absence from Australia. However, the length of the recipient's last return to Australia, or type of visa held, may affect entitlement to FTB while absent from Australia.

FTB can be paid as a fortnightly payment, as a reduced tax instalment or as an end of the year lump sum tax rebate. There is no assets test for FTB (A) or (B).

Only one member of a couple caring for an FTB child can be paid the FTB. If the parents are separated FTB can be divided between both parents depending on the proportion of care each provides for the child. However, if the level of care provided is less than 35%, the child is not taken to be a FTB child of that care provider.

The rate of payment depends on the age of the child, with different maximum rates of FTB(A) for children aged 0–12 years, 13–15, 16–17, and 18–24. A different minimum rate of FTB(A) applies to children under 18 and to those 18–24.

FTB(A) is subject to an income test. The maximum rate of FTB(A) is paid where the taxable income of the adult is less than the threshold in the current year of income. For every $1 received as income above this amount the rate of FTB(A) reduces by 20 cents. The minimum rate of FTB(A) is paid where taxable income is less than the higher income threshold for the current year. The threshold is increased for the second and any subsequent children. For every $1 received as income above this amount the rate of FTB(A) reduces by 30 cents until the rate is nil. There is no income test for persons receiving a social security payment.

The rate of FTB(B) also depends on the age of the child; either 0–5 years or 5–18. Once income exceeds the threshold, the rate of FTB(B) is reduced by 20 cents for every $1 of income above this amount.

Note: From 1 July 2009, FTB(B) will only be paid to families where the primary earner has an adjusted taxable income of less than $150,000. In such a case, it is the income of the lower earner that affects how much FTB(B) the family will receive.

Both the carer and the person being cared for must be Australian residents.

To get Carer Allowance in respect of an adult:

If the care provider and receiver do not share the same private home, the care provided must not attract award wages, total at least 20 hours per week, and relate to the bodily functions or sustaining the life of the care receiver.

A carer may be eligible for up to two Carer Allowance (adult) payments, if they care for two disabled adults. Carer Allowance may be shared between two carers with Centrelink approval, but is not payable to more than one member of a couple.

To get Carer Allowance in respect of a child, the person must have a dependent child under 16 years of age who qualifies as a disabled child.

A "disabled child" is a child who has a physical, intellectual or psychiatric disability which is permanent, or will continue for an extended period. The child must receive daily care and attention in a private home that is the residence of the carer and the care receiver, and must have a prescribed disability, or the carer must be given a qualifying rating of "intense" under the Disability Care Load Assessment (Child) Determination (DCLA). Such a rating may be given to a carer who cares for two disabled children (whose disabilities do not individually qualify) provided the combined special care needs are at a significant level when measured by the DCLA.

Qualification for Carer's Payment in relation to children under 16 for whom constant care is provided will ensure automatic qualification for Carer Allowance.

The Carer Allowance is a flat rate of $110.00 a fortnight and is not subject to either an income or an assets test. In addition, an amount of $1,000 is paid annually to a person receiving Carer Allowance for each child being cared for under 16 years of age.

Carer Allowance may be paid in addition to an income support payment.

The Bereavement Allowance is payable for a maximum of 14 weeks after the death of a person's partner, where the partner is pregnant at the time of her partner's death, this period may be extended to the end of the pregnancy (when, in the normal course of events, she would become eligible for the PP (single) (see: "Parenting Payment" above).

To qualify for this payment, the person must have been a member of a couple whose partner has died. If the person and their partner were Australian residents when the partner died, no previous residence is required. Otherwise, the person has to have been an Australian resident and in Australia for 104 weeks or have a qualifying residence exemption. Alternatively, a woman can qualify for this allowance if, immediately before the death of her husband, a Wife Pension (see above) or Partner Service Pension (see: Part III of the Veterans' Entitlements Act 1986 (Cth)) was payable to her and she was not in Australia at the time of her husband's death.

The rate of Bereavement Allowance is the same as for the single Age Pension including the Pension Supplement. The rate payable is subject to the pension income or assets test.