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This topic covers the rules for a recipient's opening working credit balance and the circumstances for carryovers.
A working credit opening balance is nil, except when a carryover occurs.
There are 3 types of carryover:
Note: Student income bank cannot be carried over to student income bank.
These 3 types of carryover occur in the case of transfers between payment and in the case of a recipient who recommences a social security pension or benefit (either the same payment as they were or a different one) after a break of up to 12 months.
The maximum carryover amount is 1,000 working credits.
1 working credit = $1 student income bank.
The following table lists all the possible carryovers situations:
|
Recipient situations |
Carryover From To |
|
A recipient transfers from one social security pension or benefit that has access to working credit to another payment that has access to working credit. |
Unused working credit becomes new working credit opening balance. |
|
A recipient ceases a social security pension or benefit that has access to working credit, and after a break of no more than 12 months, recommences that payment or another that has access to working credit. |
Unused working credit becomes new working credit opening balance. |
|
A recipient transfers from a social security pension or benefit that has access to working credit to YA (full-time student or full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) that has access to student/Australian apprentice income bank. |
Unused working credit becomes new student/Australian apprentice income bank opening balance. |
|
A recipient ceases a social security pension or benefit that has access to working credit and after a break of no more than 12 months commences YA (full-time student or full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) that has access to student/full-time Australian apprentice income bank. |
Unused working credit becomes new student/Australian apprentice income bank opening balance. |
|
A YA (full-time student/full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) recipient transfers to a non-student social security pension or benefit that has access to working credit. |
Unused student/full-time Australian apprentice income bank becomes new working credit opening balance, up to maximum of 1,000 working credits. |
|
A YA (full-time student/full-time Australian Apprentice) or Austudy or Austudy (Australian Apprentice) recipient ceases payment and after a break of no more than 12 months commences a social security pension or benefit that has access to working credit. |
Unused student income/Australian apprentice bank becomes new working credit opening balance, up to a maximum of 1,000 working credits. |
Note: These rules also apply to ABSTUDY.
A recipient becomes eligible for working credit from the day they start receiving their social security pension or benefit. Therefore a carryover amount is available for use from that day.
Act reference: SSAct section 1073E Opening balance
Policy reference: SS Guide 3.1.11.10 Recipients Eligible for Working Credit, 4.2.8.50 Full-time Students - Personal Income Test, Limits & Student Income Bank
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Last reviewed: 20 March 2008
