The Law Handbook 2024

322 Section 5: Managing your money • not be serving a preclusion period due to a compensation payment; • be an Australian resident or the holder of a specified visa subclass. Among other things, to qualify for the Special Benefit, a person must be ‘unable to earn a sufficient livelihood’ because of age, disability, domestic circumstances or any other reason. People who may be considered to be qualified for the Special Benefit include: • resident children whose parents are not entitled to payments; • victims of natural disasters; • individuals who hold criminal justice stay visas or other temporary or provisional visas; • new migrants who are ineligible for the Age Pension because they do not meet the 10-year Australian residence requirement. These categories are not exhaustive. It is necessary to consider the legislative requirements and look at the circumstances of each case. Nominated visa holders who receive the Special Benefit are subject to an activity test, but may be eligible for an exemption from those requirements in the first 13 weeks (see ‘JobSeeker Payment’, above). Some carers, pregnant women, parents, people affected by natural disasters, or people who are temporarily ill are specifically exempt from the activity test, as are people covered by the ‘special circumstances’ general discretion. Failure to comply with the activity test or the Special Benefit Employment Pathway Plan may result in a penalty being imposed. The penalties are the same as for JobSeeker Payment breaches. Except in limited specified circumstances, a newly-arrived resident will have to wait four years before they can receive the Special Benefit. These limited circumstances include: • where the person has experienced a substantial change in circumstances beyond their control after they first entered Australia; • the person is a refugee or former refugee or a family member of a refugee. Rate of benefit The Special Benefit is paid at a rate that is not more than the JobSeeker Payment, Austudy Allowance (see above) or Youth Allowance (see below) that the person would receive if they qualified for that benefit (s 746 SS Act). Under Centrelink’s policy, a strict income test is applied. There is no ‘free-income area’, so any income a person receives reduces the rate of the Special Benefit that they receive (i.e. for every $1 of the person’s income, $1 is deducted from their payment). The rate may also be reduced if the person receives free rent, board or lodging. Rent Assistance may also be payable (see ‘Rent Assistance’, below). Education Entry Payments and Pensioner Education Supplements may be payable to single parents who are receiving the Special Benefit. Centrelink also applies an ‘available funds’ policy that examines a person’s liquid assets and takes into account whether a person is likely to be dependent on the Special Benefit in the short term (i.e. less than 13 weeks) or in the long term (i.e. more than 13 weeks). To be eligible to receive the Special Benefit in the long term, a person can have no more than $5000 in available funds. To be eligible to receive the Special Benefit in the short term, this policy is even more restrictive. (See also A Guide to Australian Government Payments for more information about the Special Benefit.) Youth Allowance Eligibility There are two types of Youth Allowance: 1 Youth Allowance (student): full-time students; 2 Youth Allowance (job seeker): unemployed people and part-time students. To be eligible to receive the Youth Allowance (ss 7, 540–556 SS Act), a person must be an Australian resident or have a ‘protected special category visa’. Although a person who has a non-protected special category visa, who has lived in Australia continuously for 10 years since 26 February 2001, may, in limited circumstances, be eligible to receive the Youth Allowance for a one-off, six- month period. Youth Allowance (student) may be payable to: • people aged 16 to 24 who are doing a full-time Australian apprenticeship; or • people aged 18 to 24 who are studying full-time; or