Unlike other Social Security payments where the rate (subject to income and assets) is set out in legislation, the rate of Special Benefit is at the discretion of Centrelink. Under Centrelink policy guidelines, it will normally be paid at a rate that does not exceed the rate of Youth Allowance, NSA or Family Tax Benefit that would otherwise be payable. Centrelink may determine, that the rate actually paid should be the lowest rate in the range available to it. Where Centrelink applies the discretion and the result is thought to be unfair or unjust, the decision about the rate of payment can be appealed to an Authorised Review Officer and then, if necessary, to the Social Security Appeals Tribunal and the Administrative Appeals Tribunal.
The main rules about the payment of Special Benefit are:
Often the reason a person is not paying board, lodging or rent and therefore attracting only the one third rate of Special Benefit is because they do not have the funds to pay rent, board or lodging, although they may actually be required to. Where the free board and lodging is only a temporary situation, for example, pending determination of the Special Benefit claim, the rate reduction should not apply.
In situations where Centrelink is paying a person Special Benefit at the reduced rate because the person is not paying board, lodging or rent, it may be of assistance to have the person write a statement to Centrelink indicating that the reason they are not paying board, lodging or rent is because they do not have the money to do so and that, upon receipt of more money they will be required to pay and/or reimburse the landlord for the rent or board they were not able to pay. Centrelink may then lift the person’s rate to the maximum rate payable in the circumstances.
According to Centrelink policy guidelines, where the person receiving Special Benefit is a member of a couple, the partner’s income will affect the rate of Special Benefit. Where the person receiving Special Benefit is a child, income earned by the parents may affect the child’s rate of Special Benefit. The parent can generally earn an income equivalent to the maximum rate of Newstart Allowance before Centrelink applies a deduction of one dollar for every dollar of income which is over the maximum rate of Newstart Allowance.
It is also important to note here that the “in kind” and “$1 deduction for every $1 of income” rules are only in Centrelink policy guidelines. It would therefore be possible to apply the Newstart Allowance, or in some cases the pension income test. It is also possible for a person to immediately seek an ARO review of any Centrelink decision on Special Benefit rate (see Chapter 48).
All recipients of Special Benefit receive a Health Care Card. A recipient of Special Benefit who is an Australian resident, has turned 60 and has received Special Benefit continuously for at least nine months, is eligible for a Pensioner Concession Card, which gives access to additional concessions (see Chapter 36).
A person may qualify for a “low income earner” Health Care Card even if Special Benefit is not payable. This is because there is a different income test, and no assets test, for the Health Care Card. Also, New Zealanders who are temporary “Special Category Visa” holders who therefore do not qualify for Special Benefit may qualify for a Health Care Card (see Chapter 36). For these reasons, a person who claims, but is not paid, Special Benefit should lodge a separate claim for a Health Care Card.
