Services Australia (Services Australia)
Assesses and pays income support, Commonwealth Rent Assistance and the Child Care Subsidy, and administers the income tests and reconciliation processes that govern them.
Responsibilities
- Assess eligibility for the Disability Support Pension and other income support
- Assess and pay Commonwealth Rent Assistance alongside a qualifying payment
- Pay the Child Care Subsidy to providers and balance it against actual income
- Apply income tests and working hours rules
- Suspend, cancel and restore payments, and recover debts
Operates under
- Social Security Act 1991 (Cth)
- A New Tax System (Family Assistance) Act 1999 (Cth)
The body that decides what happens to a person's income when they take a job, which makes it as much a part of the employment system as any employment program.
The settings that matter for disability employment:
- A recipient may generally work up to 29 hours a week and keep the Disability Support Pension, subject to the income test. At 30 hours or more on an ongoing basis, payment may be suspended.
- The fortnightly income free area is $226 for a single recipient.
- Suspension rather than cancellation applies for up to 12 consecutive fortnights of nil payment, and the concession card can continue for up to two years, both of which make returning to payment easier.
- The 30 hour rule does not apply to work in an Australian Disability Enterprise.
That last exemption is the one worth sitting with. A person working 35 hours in a supported employment setting keeps their pension. The same person working 35 hours in open employment may have it suspended.
Whatever the history of that rule, its present effect is a financial reason to prefer segregated employment over open employment — at the same time as the Disability Royal Commission has recommended phasing segregated employment out. Two arms of Commonwealth policy pointing in opposite directions, through a rule about hours. See The 30 hour rule pays more for segregated work than open employment.
On family payments, this body holds the most interesting asymmetry in the database.
For Commonwealth Rent Assistance, eligibility is assessed automatically when a person claims a qualifying payment. Nobody applies for rent assistance separately. What they must do is verify their rent — with a lease or, failing that, a Rent Certificate signed by their landlord or head tenant.
For the Child Care Subsidy, the agency pays for a whole year against a forecast the family makes of its own future income, then reconciles it against actual income once tax returns are lodged, and raises a debt where the forecast was too low. A 5 per cent withholding runs all year as a buffer.
Meanwhile, through Single Touch Payroll, this agency already receives salary and wage data from the ATO close to real time, and already pre-fills employer details for income support recipients — a change made expressly to stop people unknowingly accruing debts of the kind produced by the income compliance program.
So the same agency, in the same year, pre-fills actual income for one payment and asks families to predict a year ahead for another. See Pay the Child Care Subsidy from income the government already sees.
Where this body appears in a process
Every point at which Services Australia can hold something up, and why.
