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Centrelink
TERMS AND DEFINITIONS
This document has been developed for those who wish to gain a better understanding of the terms and definitions
used by Centrelink. This document is a guide only. More detailed information can be obtained from Centrelink.
A
abridged claim A claim from a customer who was previously receiving the same payment
type within a certain period in the past. This type of claim can result in
shorter processes, as previously assessed information is not normally
revisited if the customer’s circumstances are unchanged.
ABSTUDY A payment to eligible Indigenous secondary and tertiary students and
full-time Australian Apprentices (who can be apprentices or trainees).
ABSTUDY Activity Agreement A written agreement between a secondary school student receiving
(ABAA) ABSTUDY and Centrelink. It outlines the activities the student will
undertake to meet the requirements of their Activity Test. These
agreements apply to students who have had unapproved absences of more
than five days in a term.
ABSTUDY Awards Allowances and benefits available to particular groups of students or
Australian Apprentices under ABSTUDY provisions.
ABSTUDY Simplified Claiming Tool An over-the-phone staff assisted claiming option for ABSTUDY customers
via the Centrelink Call Centre.
access points A network of over 200 self-help facilities located in rural and remote
communities where customers can access Centrelink publications and
forms, have their Proof of Identity documents copied and have free use of
phone, fax and photocopier for Centrelink related business.
action to obtain child support To maximise the amount of Family Tax Benefit Part A paid, a parent or
guardian must show they have taken reasonable steps to arrange child
support payments from the child’s other parent.
actively seeking work Looking for, and being willing and available to undertake paid work. For
example, applying for jobs or attending job interviews.
Activity Agreement A formal document signed prior to 30 June 2009 negotiated by either
Centrelink or an Employment Services Provider and a job seeker that
contains all the activities, both compulsory and voluntary, that a person has
agreed to undertake.
Activity Test Refers to the activities Centrelink customers must complete to receive
certain Centrelink payments. People with the capacity to work and who are
of working age, need to find work or take part as fully as possible in the
community.
Activity Test Exemption Period Certain special and verifiable circumstances in which a customer is not
obligated to actively look for work and still remain eligible for an income
support payment.
Actual Assessment Method The calculation of Family Tax Benefit, taking into account variable child
support payments that a family receives.
Additional Boarding Allowance The additional component of Assistance for Isolated Children (AIC)
(ABA) Boarding Allowance, which is means-tested on parental income.
adjusted fringe benefits Fringe benefits are benefits that an employee receives from their employer.
The benefit may be assigned to someone else. The value of these fringe
benefits is included as adjusted fringe benefits regardless of whether they
were received in Australia or elsewhere.
Adjusted Taxable Income (ATI) For the purposes of family assistance, an individual’s ATI for the tax year
is the sum of the following amounts for that year:
• taxable income the value of any adjusted fringe benefits
• reportable superannuation contributions
• target foreign income (e.g. foreign income and tax exempt foreign
employment income)
• total net investment losses, and
• tax free pension or benefit
• less 100% of the individual’s child maintenance expenditure.
Administrative Appeals Tribunal An independent tribunal to resolve disputes between people and
(AAT) government agencies. It can review decisions of the Social Security
Appeals Tribunal.
administrative error An error in calculating the correct entitlement, made by Centrelink.
This error has in no way been caused or contributed to by the
claimant/customer.
Adult Migrant English Program Teaches English as a second language to help migrants and humanitarian
(AMEP) entrants to successfully settle in Australia.
adult wage Legal minimum wage that must be paid to all workers over 21 years of age
in a certain industry.
Advance Payment A prepayment of a person’s income support payment, pension or Family
Tax Benefit entitlement, which is subsequently repaid by deductions from
fortnightly payments. There are rules that apply to granting the Advance
Payment and the amount that can be advanced.
affirm A decision to keep the original decision (usually in a review or appeal
situation). That is, to follow the original decision. Opposite of ‘set aside’.
Age Pension A payment to help people of age pension age who do not have enough
income to support themselves in retirement. Claimants must be Australian
residents (unless living in a country with which Australia has an
international social security agreement) and generally must have lived in
Australia for 10 years (unless claiming under the terms of an international
social security agreement). Payment is subject to income and assets tests.
aged care home A nursing home or hostel that provides residential care.
allowable deductions Expenses allowed as a deduction from business income for the purposes of
calculating a person’s entitlement to a Centrelink payment.
Alternative Proof of Identity (POI) Proof of Identity (POI) documents other than primary documents such as
Proof of Birth, Proof of Arrival or Australian Citizenship. Some customers
have trouble providing POI documents. In these cases Customer Service
Advisers may use alternative POI and, if appropriate, help customers to get
additional POI documents.
annual leave A yearly entitlement to paid recreation leave, usually between two and four
weeks. This may affect some Centrelink payments.
annuity Regular or periodic payments made under arrangement, usually with a life
insurance company, and may be for a fixed period or for a person’s
lifetime. Annuities can also be received under the terms of a will.
annul To cancel. For example, if a decision is annulled it is cancelled and usually
a new decision is made in its place. Once something is ‘annulled’, it is
treated as if it were never made.
anticipated payment An advance of up to seven days of a person’s accrued entitlement, which
may be paid when they are in severe financial hardship through exceptional
and unforeseen circumstances.
Anticipated Pension A type of Italian benefit and a technical term contained in the international
social security agreement between Australia and Italy.
appeal If a person is not happy with a decision made by Centrelink, he or she can
ask to have the decision reviewed.
apprenticeship A scheme combining practical work with structured training to give young
people experience and a nationally recognised qualification.
approved activity Jobseekers with a participation requirement are required to actively look for
work or participate in suitable training or other activities, that will assist
them in returning to employment. These activities are known as ‘approved
activities’.
approved care Childcare services that have been ‘approved’ by the Commonwealth
Government. Families can claim reduced childcare fees if they use
‘approved services’.
approved course of study Study that is an approved activity for unemployed people. It is usually
full-time and less than six months.
approved deposit fund A fund set up for the investment of superannuation and certain other
termination payments to allow them to be saved for use at a later date
(usually on retirement).
arrears payment A back-payment, i.e. payment for a period in the past.
assessable income Amount of income to be taken into account when determining a rate of
pension or benefit. Usually gross income, but deductions are allowed in
some circumstances. Reportable superannuation contributions (which
include amounts voluntarily salary sacrificed to superannuation) and net
losses from investment are assessable income for Centrelink purposes.
assessable period Any period during which the person received a Centrelink payment.
assessment period The period for assessing a family’s shared care, which usually begins on
1 July and ends on 30 June, or earlier if the shared care ends before 30
June.
Assessment Subsidy for Overseas A subsidy that may help with fees involved in having a non-Australian
Trained Professionals (ASDOT) qualification assessed. ASDOT is available to selected professional
categories only.
assets Any goods, money, real estate, personal property, interest in any property,
any debt owing to the person and any other right or interest, including a
right to income. In short, any valuable possession, in Australia or
elsewhere.
Assets Disqualifying Limit If the assets owned are above the dollar limit, a person or couple will be
disqualified from receiving a Centrelink payment.
assets hardship Special provisions are in place for those customers in severe financial
hardship due to the application of the assets test. The assets hardship rules
allow for the value of particular assets to be disregarded and for the rate of
pension, allowance or benefit payable to be determined in a special manner.
assets test A method of calculating a rate of payment or entitlement to a pension using
the value of a person’s assessable assets.
Assistance for Isolated Children Helps the families of primary, secondary and certain tertiary students who
(AIC) Scheme do not have reasonable daily access to a suitable state school, primarily
because of geographic isolation. Most AIC allowances are not means
tested.
assumed benefit A benefit not actually being paid to a customer, but considered as being
paid by an international social security agreement partner
Assurance of Support Debt An amount of benefit or allowance received by an assuree during the
Assurance of Support period, which the assurer must repay to the
Commonwealth.
Assurance of Support Period The period of two or 10 years, commencing from the assuree’s date of
arrival in Australia, or the date permanent residence is granted, whichever
is later.
Assurance of Support Scheme Provides a means for migrants who do not meet the conditions for
independent admission to Australia. Allows migrants to enter under the
assurance that an Australian resident or organisation will support them for a
defined period.
assuree A new migrant for whom the Assurance of Support has been provided.
assurer An individual, or an organisation, that has undertaken to support a new
migrant (an assuree) under the Assurance of Support Scheme.
Auslan Is the sign language of the Australian deaf community.
Australian Apprenticeships Access Helping disadvantaged jobseekers to successfully participate in an
Program (Access Program) apprenticeship or traineeship.
Australian Business Number (ABN) An identifying number businesses/employers obtain from the taxation
office.
Australian Disability Enterprises These services employ and support people with illness, injuries or
disabilities, often in specialist working environments. Provided by
Australian Disability Enterprises previously known as Business Services.
Australian residence qualifications apply.
Australian Education Coordinate, assess and facilitate the recognition of overseas gained
International—National Office of qualifications and skills for permanent residents of Australia. AEI-NOOSR
Overseas Skills Recognition assess higher education, post-secondary and technical and vocational
(AEI-NOOSR) qualifications.
Australian resident A person who resides in Australia and is either, an Australian citizen, the
holder of a permanent visa, or the holder of a special category visa who is a
protected SCV holder (i.e. in Australia on 26 February 2001 or for 12
months in the two years prior to that date, or assessed as ‘protected’ before
26 January 2004).
Austudy payment A payment for students aged 25 or over doing an approved full time course
at an approved institution.
Authorised Review Officer (ARO) A senior and experienced officer whose main function is to review
decisions made under social security law and family assistance law, as well
as several other pieces of legislation administered by Centrelink.
Automatic Uplift A process whereby income estimates for Family Tax Benefit and Child
Care Benefit customers are automatically updated if they have not
provided an estimate for the relevant financial year of their own. The
Automatic Uplift can occur as a result of the new financial year
assessment process or the receipt of actual Adjusted Taxable Income from
the Australian Taxation Office.
averaging (earnings) A provision that allows customers over age pension age to advise wages
earned over a previous period of agreed duration (2-12 weeks) and then use
this average rate of income over the next period of the same duration.
award A set of rights that a worker has to certain wages and conditions in return
for doing a certain job. The award is mutually agreed to by an employer
and the worker’s union or set by the Australian Industrial Relations
Commission.
Away from Base assistance ABSTUDY assistance that covers students’ fares and accommodation
costs. It enables tertiary and some secondary level students to participate in
residential schools, testing and assessment programs for entry into a tertiary
course, field trips and/or placements, which are necessary to complete the
course.
B
Baby Bonus A payment made to customers for a new baby or adopted child up to the
age of 16. Customers must claim within 52 weeks of the birth of their
child or in the case of adoption, 52 weeks from the date the child entered
their care.
bank guarantee An amount paid by the assurer, which can be used by Centrelink to recover
an Assurance of Support debt. This money is deposited for a fixed term
with the Commonwealth Bank and can be retrieved at the end of the
Assurance of Support period, if there is no Assurance of Support debt.
basic rate of payment The minimum amount payable per fortnight, not including additional
payments such as Rent Assistance.
beneficiary A person who is entitled to income, assets or both, from either a trust or a
deceased estate.
Bereavement Allowance This allowance provides short-term assistance (usually up to 14 weeks) for
both male and female persons, without children, in the period immediately
following the death of their partner.
blended family A family where there are at least two Family Tax Benefit (FTB) children
and one FTB child is from a previous relationship of one member of the
couple and another FTB child is from the current relationship or a previous
relationship of the other member of the couple.
board Payment for meals only.
board and lodging Payment for accommodation and meals.
board and lodging in return for Receive accommodation and meals without payment but in return for doing
services some work or duties.
boarder Person who lives in someone else’s house and pays for meals and
accommodation (lodging).
bulk billing A system where doctors send their bills directly to Medicare.
C
capacity for work A person’s ability to work which may be reduced by an illness, injury or
disability.
capacity to earn income A person’s overall capability (i.e. health, intellect, experience) to perform
productive activities either as a self-employed person or in someone else’s
employment.
Cape York Welfare Reform Trial There are four Cape York communities that are currently participating in
(CYWRT) the CYWRT, they are Aurukun, Hope Vale, Coen and Mossman Gorge
including their outstations.
capital gain Accumulated profit received as a single payment on the sale or realisation
of an investment or property.
capital transfers (lump sums) The transfer of an asset such as a new car, or any payment of a lump sum
(as separate from regular payments of cash maintenance).
capitalised maintenance—lump sum A lump sum payment or transfer/settlement of property specifically for
agreements child support, where the value exceeds $1500 (such as a car or house or
cash payment of a lump sum).
car fringe benefits A fringe benefit where the person is provided with a car by the person’s
employer or an associate of the employer, for private rather than work
related purposes. The value of the car affects the Family Tax Benefit
income test and parental means test under the Social Security Act 1991.
care and attention For Carer Allowance, care and attention refers to the requirement that the
carer provides additional care and attention to a person because of their
disability, severe medical condition or frail age. The care must be provided
on a daily basis.
care receiver For Carer Payment and Carer Allowance, this is the person who receives
care from a carer because of their disability or medical condition.
Career Information Centres (CIC) A service that provides career information and support to students, the
unemployed or people who are looking at their career options.
Carer Allowance A supplementary payment for people who provide daily care and attention
for an adult or child with a physical, intellectual or psychiatric disability or
someone who is frail aged. It may be paid in addition to other payments.
Carer Payment An income support payment for people who, because of the demands of
their caring role, are unable to support themselves through substantial
workforce.
Carer Supplement The Carer Supplement is an ongoing, non-indexed annual lump sum
payment to eligible carers.
cash child support Child support paid regularly as money or the equivalent of a payment of
money, for example a cheque, money order or electronic funds transfer.
cash management trust Money can be invested in this product with banks, building societies and
special cash investment trusts. The manager of the trust invests in the
short-term money market and other securities.
casual earnings Income from casual or irregular work. This income can be paid to a worker
regularly, casually or part-time.
casual employee Someone employed on a casual and temporary basis. A casual employee
might be employed full-time for a well-defined (limited) time or part-time,
but not on a permanent basis.
casual work Work that is not permanent; may be full-time for a defined (but limited)
period or part-time. For example, odd jobs.
Centrelink A government agency delivering a range of Commonwealth services to the
Australian community. Centrelink is set up so people can get more of the
help they need in one place.
Centrelink Agents Centrelink has a network of more than 370 Agents located in rural and
remote communities where customers can lodge their forms, receive
information and have free use of a phone, fax/copier and internet enabled
computer for Centrelink related business. Agents are not Centrelink staff.
Centrelink International Services Handles the day-to-day details of social security payments to customers
living outside Australia and customers living in Australia claiming or being
paid foreign benefits. Can provide information and advice on international
social security agreements and whether payments can be paid outside
Australia. Responsible for correct administration of parts of social security
law relating to portability, residence, foreign pensions etc.
Centrelink Multilingual Call A Centrelink call centre service providing information and help in
languages other than English by Centrelink staff. This is not an interpreter
service.
Centrepay A voluntary direct deduction facility that customers can use to pay bills
such as rent, electricity, gas, water etc, with companies who have adopted
the service.
Certificate of Citizenship An official document provided to a person after they have taken the
citizenship of a country other than the country of their birth.
certified copy A copy of a document certified by an official as being a true and complete
copy of the original document.
change of circumstances A legal requirement for people to notify Centrelink within a specified time
of changes that affect their entitlement.
Child Care Benefit Assistance with the cost of child care for an approved and/or registered
care. It is designed to help parents, foster parents and grandparents balance
their work and/or family commitments.
Child Disability Assistance Payment An annual payment made to carers of children who are receiving Carer
Allowance.
child support Money paid to a parent or carer for the support of dependent children, by
the children’s other parent/s.
Child Support Agency An agency that assesses and/or collects child support payments from the
non-custodial parent for payment to the other parent/s or carer.
child support assessment An amount of child support calculated by the Child Support Agency
under the administrative formula, which a non-custodial parent is legally
obliged to pay.
child support formula A formula set out in legislation under the Child Support Scheme, which
sets the level of child support that needs to be paid.
Child Support Scheme The scheme aims to improve financial support for children of separated
parents, in accordance with their capacity to pay.
child care provider Includes long day care centres, occasional day care centres, or family day
care schemes, where children are supervised and cared for by adults other
than their own parents or guardians. Generally the parents of the children
pay the child care service provider for the service.
Child Care Rebate In addition to Child Care Benefit, customers may be able to claim a Child
Care Rebate, which will cover a percentage of out-of-pocket child care
expenses for approved care.
citizenship test Most people applying for Australian citizenship will need to sit and pass the
citizenship test before they lodge their citizenship application.
claimant The person who is lodging a claim.
commission payments Payments received by a sales person according to the amount of sales
generated. This may replace a salary or may supplement a (low) regular
wage.
Commonwealth Ombudsman An independent person who investigates complaints about an action
relating to administration matters, taken by a Commonwealth Government
official or a Commonwealth agency.
Commonwealth Pharmaceutical A Commonwealth funded scheme, which subsidises the cost of many
Benefit Scheme prescriptions purchased from pharmacies and public hospitals.
Commonwealth Seniors Health Card This card gives non-pensioners of age pension age, whose income is below
the pension cut-off points, access to low cost prescription medicines and
Telephone Allowance.
Community Development The Community Development Employment Project is a community based
Employment Project (CDEP) employment initiative run by the Department of Families, Housing,
Community Services and Indigenous Affairs (FaHCSIA), and the Torres
Strait Regional Authority (TSRA), to enable Aboriginal and Torres Strait
Islander communities and organisations to take control of their own
communities’ economic and social development, and to provide
employment for people in their communities.
community work Voluntary work undertaken through a Community Work Coordinator prior
to 31 December 2009.
Comparable Foreign Payment An amount of foreign income payable to a person from a source outside
Australia. The person who is entitled to receive the foreign payment can be
asked to take reasonable action to obtain the payment.
compensation A payment made under an insurance or compensation scheme, or a
payment of damages, made wholly or partly in respect of lost earnings or
lost capacity to earn.
compensation debt A debt owing to the government representing short-term income support
payments received by a Centrelink customer (and their partner) during a
periodic payment period or lump sum preclusion period.
compensation payments For social security purposes, these are payments to a person, which
partially or wholly compensate the person for loss of earnings or earning
capacity.
compensation preclusion period When a person receives a lump sum compensation payment, Centrelink
calculates a preclusion period during which the person is deemed to have
been compensated for lost earnings or lost earning capacity. During the
preclusion period the person (and their partner) cannot be paid certain
Centrelink income support payments.
compensation settlement date The date on which a compensation payment becomes payable.
complaint A person’s expression of dissatisfaction with a product or service provided
by Centrelink.
compliance Systems and procedures to identify and investigate incorrect payments
and fraud.
Compliance Activity An activity a job seeker can undertake to avert or end a serious failure
penalty early. This is referred to as a serious failure requirement in the
Social Security (Administration) Act 1999.
compliance penalty Financial penalty as a result of a job seeker’s non-compliance with an
Activity Test or participation requirement where a reconnection or No
Show, No Pay failure has been applied. It can also be the result of the
application of a serious failure for persistent non-compliance. For example,
a job seeker not fulfilling their Employment Pathway Plan compulsory
activity or participation requirement or not attending a reconnection
appointment. The penalty may be a non-payment period for eight weeks or
a failure penalty amount. The definition of a debt related penalty is not
covered by this definition.
compliment Normally a spoken expression of praise or admiration. Compliments may
also be made in the way of a gift or favour.
Comprehensive Compliance An assessment undertaken by Centrelink specialists to uncover the reasons
Assessment for non-compliance. This is aimed at informing a determination on a
serious failure for persistent non-compliance and/or to enable and support
the development and implementation of suitable early intervention
strategies.
confidential All information given to Centrelink that is used to assess a person’s correct
entitlement cannot be given to anybody else unless the disclosure complies
with the confidentiality and privacy legislation.
connection failure A failure applied following a job seeker’s non-attendance at a Centrelink or
provider appointment, or other job search requirements. A connection
failure does not result in a financial penalty to the job seeker, however they
will be required, where applicable, to reconnect with their provider or
Centrelink.
consent order An order issued by a court but drawn up with the full agreement of the
parties involved.
constant care For Carer Payment, a carer is said to provide constant care if they
personally provide care on a daily basis for a ‘significant period’ each day.
Consumer Price Index (CPI) Officially calculated indicator of price movements of a standard basket of
goods and services in Australia, recalculated every three months.
continuous residence Residence in Australia that is uninterrupted. A temporary absence from
Australia (e.g. a short holiday) does not usually break the continuity of the
person’s residence.
correct entitlement The correct amount of payment, taking into account all relevant
information.
cost of living adjustment Adjustments made as a result of price movements of a standard basket of
goods and services, recalculated every three months.
Court order or a court registered A court order awarding an amount to be paid in child support for a child, or
agreement in spousal maintenance for a partner or ex-partner, or both a child and
partner/ex-partner.
Crisis Payment A one-off, non-taxable payment that is designed to help people who are in
severe financial hardship.
curtilage The area of land used primarily for private or domestic purposes
surrounding the home that is exempt from the assets test. This is limited to
two hectares (unless qualifying for extended curtilage) and one title.
custody Legal right to make decisions about the daily care of a child.
custody order A court order giving legal custody of a child to a person.
custody, care of a child A person with custody has the legal right to make decisions about a child’s
daily care.
customer Person who is receiving or who has claimed a Centrelink payment or
service.
Customer Access Number (CAN) A unique number given to Centrelink customers to enable access to
eServices.
Customer Charter Centrelink’s statement of service to its customers.
Customer Confirmation System Allows concession providers to confirm Centrelink customer information
provided by the customer via secure Internet arrangements.
customer record The total history and circumstances of a person, as a Centrelink customer.
The history includes entitlement and eligibility information, as well as the
payment history. The information is held electronically, and as a paper file.
Customer Reference Number (CRN) A unique number given to every Centrelink customer.
Customer Relations Line A telephone service where Centrelink customers can provide feedback,
complaints or compliments.
Customer Relations Unit This team listens to customer feedback and decides on the most appropriate
course of action.
Customer Service Centre A Centrelink office where claims can be lodged, and enquiries made.
D
damages An amount of money claimed or awarded in compensation for loss or
injury.
data matching A process which compares two or more sets of information about
individuals and seeks to identify information, which relates to the same
individuals.
date incapacity commenced The date when incapacity for work began.
date injury occurred Date of the accident; not necessarily date when consequences of the injury
first showed up.
date of claim Date on which a claim for a Centrelink payment is taken to be made.
date of commencement Date from which a Centrelink payment is paid.
date of expiry of medical certificate End of the period covered by a doctor’s medical certificate. For example, if
a claimant for Sickness Allowance is still sick and not able to work, they
need to get another certificate before the current one expires to continue to
receive Sickness Allowance.
date of grant Date on which entitlement to a Centrelink payment was officially
established and the correct entitlement calculated.
date of lodgement Date on which a claim form is actually received by Centrelink, or by a
Centrelink Agent, or by an international social security agreement partner
on behalf of Centrelink.
day care The care for children of working parents during normal working hours, in
particular, pre-school age children.
de facto relationship A relationship between two people (opposite-sex or same-sex), who are not
legally married or in a registered relationship, but are partnered and living
together (or usually live together) as members of a couple.
Debenture A type of medium to long-term fixed-interest investment issued by a
corporation or company.
Debt A recoverable overpayment. When a customer is paid more than they are
entitled to, it becomes a debt to the Commonwealth and may be legally
recovered.
decree absolute Final certificate of divorce. It is an irreversible court order of Dissolution of
Marriage.
decree nisi Conditional certificate of divorce. It is usually made final (decree absolute)
after a period of one month.
deductible child maintenance Where a person pays child support to another person, the full amount paid
expenditure can be deducted from the payer’s family income under the Family Tax
Benefit income test.
deemed contributions For international social security agreements, periods in which contributions
to the other country’s social security system have not been paid but which
are equated with periods of paid contributions.
deemed income Generally, the income figure arrived at after multiplying the value of an
investment by the deemed interest rate.
deemed residence A period when a person is considered to have been a resident of Australia
under an international social security agreement by virtue of having made
contributions to (or resided in) the relevant country.
deeming and deemed interest rate A rate of interest, which is assumed to be earned by the total of a person’s
‘financial investments’, even if the investments are not earning this rate.
The actual interest rate may be higher or lower than the deemed interest
rate.
deferred annuity An annuity where the regular payments have been delayed until a later date,
usually until retirement or age 65. Often the payments are never
commenced and the profits are received as a lump sum. Used to defer tax
liability and preserve termination payments for retirement.
Department of Child Protection Refers to the Department of Child Protection for that state or territory.
(DCP)
Department of Veterans’ Affairs This department cares for people who served in the Army, Navy or the Air
(DVA) Force, and their dependants. The department administers different types of
disability and service pensions.
dependant A person who relies on another person for financial support.
dependent child Any child dependent on another person, i.e. not in receipt of (substantial)
income in his or her own right. An adult has legal responsibility either
alone or jointly with another person for the day-to-day care of the child or
in another person’s care and is wholly or substantially in the adult’s care.
Needs to satisfy the definition of an Australian resident.
depreciation Reduction in value of equipment and vehicles over time through wear and
tear.
deprivation of assets/income Disposal of assets or income for nil or minimal return, regardless of
whether there is intent to avoid the assets/ income tests.
direct deduction Periodic or weekly payments of compensation can affect a person’s
entitlement to income support payments as a direct deduction, rather than
under the ordinary income test. This means that for every dollar of
compensation received, entitlement is reduced by a dollar. Can also apply
to payments inside Australia made under the terms of an international
social security agreement.
Disability Employment Services Services providing specialised employment assistance for people with
disabilities, injuries or ill health.
Disability Pension Paid by the Department of Veterans’ Affairs as compensation for an injury
or disease, which has been accepted as war or defence-caused.
Disability Support Pension Payment to persons 16 years or older where their disability, illness or injury
has been assessed as preventing them from working for at least two years.
A person assessed as permanently blind may also be eligible for Disability
Support Pension.
Disaster Recovery Payment A one-off payment made by Centrelink, when a person’s main home is
severely damaged or there is a significant interruption to a person’s source
of livelihood because of a declared major disaster.
Double Orphan Pension Paid to carers of a child where either both parents are deceased, or one
parent is deceased and the other parent is either missing, been sentenced to
prison for at least 10 years, or in a mental hospital/nursing home for an
indefinite period, or the child is a refugee whose parents are outside
Australia or missing.
E
Early School Leaver This applies to a Youth Allowance job seeker who:
• is less than 21 years old, and
• has not completed Year 12 or an equivalent qualification (Certificate
Level II or above) and
• is not undertaking full time study as a Youth Allowance Full Time
student.
earned, derived or received In relation to income—the amount earned, derived or received by any
means whether within Australia or outside Australia. For example by
wages, salary, investment, commission, etc.
earnings worksheets A worksheet provided by Centrelink to help customers work out their gross
earnings and report the right details.
Education Entry Payment A payment made to certain Centrelink customers who enrol in an approved
course of education.
Education Entry Payment A temporary payment made to certain Centrelink customers who enroll in
Supplement an approved course of education and are also entitled to Education Entry
Payment. The payment will cease from 30 June 2010.
eight week non-payment period A penalty imposed on a job seeker when they are found to have committed
a serious failure or became unemployed as a result of a voluntary act or
misconduct. For example, they have failed to commence suitable
employment, refused a suitable job offer, or are found to be persistently
non-compliant. A job seeker’s payment may be stopped for a period of
eight weeks.
Electronic Message Reminder An eService that allows Centrelink customers to receive reminders and
Service important information messages via email or SMS.
Employer Contact Certificate A Centrelink form signed by a prospective employer as evidence that a job
seeker is actively seeking and willing to undertake suitable work.
Employment Declaration A taxation form advising the Australian Taxation Office of a person’s tax
file number, entitlement to general tax exemptions, higher education
contribution scheme (HECS) liability and/or claim for rebates.
Employment Pathway Plan A formal document signed after 30 June 2009, negotiated by either
Centrelink or an Employment Services Provider with a job seeker that
contains all the activities, both compulsory and voluntary, that a person has
agreed to undertake. This includes activities aimed to assist the job seeker
on their path to employment.
employment self service facilities Centrelink offices have facilities available for unemployed customers to
use, including self service computers listing job vacancies, a telephone,
photocopier, fax, and computers to prepare job applications and resumes.
Employment Separation Certificate A certificate on which an employer lists details of a former employee. It
includes the reason for ceasing work, the date work ceased and details of
termination payments.
employment services provider An organisation contracted by the Department of Education, Employment
(provider) & Workplace Relations to provide employment services to job seekers.
entitlement A payment or service that an individual is able to claim.
entry contribution The amount paid, or agreed to be paid, for a person’s current right to
occupy a special residence, such as a retirement village or granny flat.
equality of treatment Citizens of Australia and another country with which Australia has an
international social security agreement are treated the same in regard to the
laws of social security. This ensures that people will not be discriminated
against by either of the nations laws.
equity The degree of ownership in a property, or the amount paid towards
ownership. It can also be the value of shares issued by a company.
eServices Service delivery channels that allow Centrelink customers and nominees to
conduct Centrelink business online or using interactive voice response
technology over the phone.
Exceptional Circumstance Relief An income support payment for farmers and certain small business
Payment operators affected by drought.
Executor A person appointed to carry out the instructions in a last will and testament.
Exempt asset An asset that is not assessed under the Asset Test used by Centrelink. The
most common exempt asset is a person’s principal home.
exempt from tax Income which is not assessable for taxation purposes.
exempt income Income that is not assessed under the Income Test used by Centrelink.
exemption Circumstances that excuse customers from meeting standard requirements
for payments and services.
exit assistance Grants available to eligible farmers or irrigators who elect to exit farming.
exit fee A fee that may have to be paid in order to make a withdrawal of money
from a managed investment fund. This fee may be imposed as a penalty if a
person wishes to withdraw money before an investment term has been
completed.
expected date of The anticipated date of birth of a child. This date is relevant in determining
confinement/delivery the length of exemptions from activity tests and participation requirements
for expectant mothers.
expenses incurred in producing All costs involved in deriving income, for instance travel costs, car
income maintenance, tools, books, clothing etc.
extended curtilage A provision that allows senior customers with a 20-year attachment to their
home and surrounding land to have the whole title exempt from the assets
test as opposed to limiting it to the first two hectares.
extended Lodgement Year The financial year which is two years after the relevant financial year.
F
Face value of shares Either the nominal value of a share, the original value printed on the share,
or value at the date of issue. The intrinsic (market) value is usually higher
or lower.
fail to notify of a change of Not advising Centrelink of a change of circumstances is an offence that
may be punished with fines. If an overpayment results from this omission,
circumstances
it will be recovered from the recipient.
false or misleading statement Where incorrect information has been supplied either accidentally or
intentionally.
Family Actual Means Test A test applied to a Youth Allowance or ABSTUDY customer, whose parent
is a designated parent for Family Actual Means Test, to determine the
customer’s entitlement.
Family Assistance Office (FAO) The office set up by the Commonwealth Government to provide families
with a range of payments and services.
Family member Is usually, but not limited to, a partner, parent, sister, brother or child of the
person.
Family Relationship Advice Lines The Advice Line is a free national telephone service available to the general
public, especially for callers who do not have a centre in their local area or
who prefer to use the telephone. It is available from 8 am – 8 pm Monday
to Friday and 10 am – 4 pm on Saturday (local time), except national public
holidays.
Family Relationship Centres Family Relationships Centres are a community resource providing
information and referrals for families at all stages. They also provide
individual, group and joint sessions for separating or separated parents (and
other family members, where applicable) to help them make parenting
plans and resolve disputes about their children without the need to go to
court.
Family Responsibilities Commission Is responsible for providing Centrelink details of customers within the
(FRC) designated localities, under the Cape York Welfare Reform Trial, who the
state has determined would benefit from being under Income Management
from 1 July 2008.
Family Tax Benefit (FTB) Payments to help families with the cost of raising children. It consists of
two parts—FTB Part A and FTB Part B.
Family Tax Benefit (FTB) Part A An income tested payment to help raise children that increases with the
number of FTB children in care.
Family Tax Benefit (FTB) Part B An income tested payment that provides additional assistance for single
income families, including families with one main income earner. The rate
is dependent on the age of the youngest child rather than the number of
children in care.
Fares Allowance Paid to tertiary students as well as ABSTUDY secondary students who
have to live away from their permanent home for study. It repays the cost
of the cheapest practicable form of public transport, regardless of transport
actually used. Not payable for daily travel.
Field Assessor A Centrelink officer with responsibility for investigating cases and seeking
information from customers, employers etc. This information gathering is
generally done by interviewing people in their homes and workplaces.
financial hardship Where a customer’s liquid assets, such as bank balances and share
holdings, are below a certain threshold.
Financial Information Service (FIS) A free service offered by Centrelink, giving information which helps
customers improve their standard of living by using their own money to the
best advantage for their retirement security.
financial year For income tax purposes, the year is taken from 1 July to 30 June. For
companies it varies and might mean a calendar year. In other countries the
financial year may have different start and end dates.
First Contact Service Offer (FCSO) An online application, which guides the screening process when a person
first contacts Centrelink to claim certain payments. It is intended to
identify the customer’s readiness, capability and capacity to look for and
accept work.
fixed trust A fund of securities, cash or other assets, whose management purchases
shares from a number of companies and whose trust deed provides for a
fixed portfolio of investments during the lifetime of the trust.
foreign income Income earned, derived or received from sources outside Australia, or
periodical payments or benefits by the way of gifts or allowances from a
source outside Australia.
foreign payment An amount of foreign income payable to a person from a source outside
Australia. The person who is entitled to receive the foreign payment can be
asked to take reasonable action to obtain the payment.
Foreign pension Pension received from another country. Centrelink usually regards these
pensions as income for the income test.
forgone wages When a customer legally transfers ownership of a farm to a close relative,
the value of any past contributions made to the farm by the close relative
are taken into account when assessing gifting. Forgone wages include the
value of unpaid work performed on the farm, improvements to the farm,
purchases of livestock or equipment and the unpaid care of the customer.
formula for child support A legislative rule used by the Child Support Agency to calculate the level
of child support payable by the non-custodial parent.
foster care Temporary care of a child by people other than natural parents or legal
guardians.
franked dividends Dividends that carry a tax rebate. They lessen the gross amount of tax
payable on taxable income of the shareholder.
fraud An intentional dishonest act or omission done with the purpose of
deceiving, i.e. to gain an advantage.
Freedom of Information (FOI) Act An Act to give members of the public rights of access to official documents
of the Government of the Commonwealth and of its agencies. For
Centrelink customers, this means they can see their own files and the rules
used to make decisions about them.
friendly society Private associations of members who contribute to provide themselves with
assistance in times of distress. Friendly societies provide for medical
benefits or other expenses in cases of sickness or death.
friendly society bond Investments, which usually have a 10-year maturity period and are offered
by friendly societies.
fringe benefits An incentive or concession received in addition to a person’s salary or
wage, that is, a car or travel allowance.
full-time student A person enrolled in an approved course at an approved Australian
educational institution, and undertaking at least 75 per cent of the ‘normal
amount of full-time study’.
Full-time student Income Bank Allows Youth Allowance, ABSTUDY and Austudy recipients to
accumulate up to $6000 of any unused portion of their fortnightly
income-free area.
fund manager A person or body that manages an investment product.
Funeral Bond Allowable Limit The maximum amount a customer can invest on one or two funeral bonds
and still qualify for an exemption under the income and assets tests.
funeral bond/investment An investment of money, designed to assist with the investor’s funeral
expenses in part or in full. The investment matures upon the death of the
investor.
G
gainful employment Any employment performed for financial gain.
gap fee The amount that each family contributes towards the cost of child care, in
addition to the Child Care Benefit percentage that is provided by the
government.
garnishee A notice issued to a third party which requires them to deduct money held
on behalf of or given to a customer and forwarded to Centrelink, with or
without the customer’s consent.
general tax exemption The total exclusion from tax charges, for example, the first few thousand
dollars of a person’s earnings are free from income tax.
gifting Disposal of assets, including property, and income for less than their
market value.
good faith (bona fides) Good faith, or the Latin term ‘bona fide’, is the mental and moral state of
honesty. A reasonable person, given the facts as presented to them, may
receive something that they are not actually entitled to and due to their
good faith, would not be considered to have acted fraudulently. Good faith
is sometimes used as a synonym for credentials, background, or
documentation of a person’s identity.
grandfathered An exemption that allows an old rule to continue to apply to a customer’s
entitlement to a payment or benefit after a law has changed or a new law
introduced.
granny flat interest A purchased right to reside for life in someone else’s home or in a separate
dwelling built on someone else’s property.
Green Corps A program for participants to preserve and restore the Australian
environment.
gross annual income Full yearly income before any deductions, such as tax. Reportable
superannuation contributions that include amounts voluntarily salary
sacrificed to superannuation are included in gross income.
gross income The amount of income in dollar value, derived, earned or received from any
source before any tax is applied. Reportable superannuation contributions
which include amounts voluntarily salary sacrificed to superannuation is
included in gross income.
gross weekly earnings All income earned during a week before any deductions, such as tax.
Reportable superannuation contributions that include amounts voluntarily
salary sacrificed to superannuation are included in gross income.
guardian A person or organisation who has been given the right and responsibility to
protect and make decisions on behalf of another person. Guardians do not
necessarily assume the day-to-day care of the person in their guardianship.
H
half pay Payment of only half of a person’s standard wages.
Hardship Advance An advance of up to seven days of the person’s first instalment of their
payment or benefit. It is not an additional payment.
Health Care Card A card issued to certain Centrelink customers, that entitles the card holder
to a limited range of health, household, educational, recreational and
transport concessions.
health insurance Insurance taken out with a private health insurance company to cover
oneself and family against the costs not covered by Medicare.
home visit Visit to a customer’s home by a Centrelink staff member to obtain more
information.
homeowner A person who has a right or interest in the home in which they live.
humanitarian entrant A humanitarian entrant is someone living outside their home country
because they were subject to substantial discrimination leading to a
violation of their human rights in their home country. Most humanitarian
entrants are from refugee-like backgrounds, that is, living in a country of
asylum, in a refugee camp, or displaced in their own country of origin.
I
illness separated couple Where members of a couple are unable to live together in their home for an
indefinite period because of the illness or infirmity of one or both of them
and, as a result, their living expenses are greater than they would otherwise
be.
immediate annuity An annuity where payments commence straight away, that is, not a deferred
annuity.
impaired Weakened, damaged, especially said of hearing or vision.
imputation A way of taxing dividends paid by Australian resident companies.
imputation credit Once taxable income is calculated a person is allowed a credit for any tax
already paid by the company on dividends (e.g. profits) distributed by the
company to shareholders.
imputation of capital or lump sums The giving of a weekly or monthly value to transfers of property, goods, or
a lump sum of money.
inability to work A person has a continuing inability to work if his/her impairment prevents
them from doing their usual work for the next two years, doing work for
which they are skilled and work for which they are being trained.
inalienable Ownership of something cannot be transferred to another person; for
example, a Centrelink pension, benefit or allowance cannot be paid to
another person.
incapacitated for work Unable to work. This refers to both temporary and permanent incapacities.
Incidentals Allowance An ABSTUDY allowance that helps pay for general course expenses and
paid at the beginning of studies for the year. Different amounts are paid
based on the length of the course.
income An amount earned, derived or received by a person in the form of personal
earnings, money, profits or valuable considerations. May be from inside or
outside Australia.
Income Bank When a student on Youth Allowance, Austudy payment or ABSTUDY has
income in a fortnight under the income-free area, an Income Bank is
created. The bank allows students to build up income credits to offset any
income they later earn above the fortnightly income-free area so it doesn’t
affect their payments as much.
Income Confirmation System Allows the automated transfer of a customer’s income and payment details
directly to third party organisations.
income disqualifying limit The amount of income earned, derived or received that will disqualify a
person or couple from receiving a Centrelink payment.
income free area The amount a person may earn before their payment is affected and/or the
amount a partner can earn before the customer’s payment is affected.
income from a business venture The net amount arrived at after allowance has been made for the costs of
running a business, but before income tax and other personal deductions are
made.
income from boarders or lodgers Payments received by a person who pays board or lodging to another
person.
income stream An income stream is a series of regular payments with at least one payment
being made on an annual basis. Allocated pensions, market-linked
pensions, annuities and defined benefits all fall into this category.
income support A pension, benefit, allowance or other kind of payment paid to a person
under the Social Security Act 1991 or the Social Security Act 1947.
income tax Tax imposed on wages and salaries of workers and on profits of businesses.
income tax assessment Calculation by the Australian Taxation Office of the income tax due over a
financial year.
income tax assessment notice An official notice containing income tax assessment.
income tax deduction Deductions that are allowed to be made from total earnings before the
taxable income is assessed. Deductions, for instance, can be expenses
incurred in producing income and in performing a job.
income tax instalment Instalments regularly deducted from a person’s salary or wages in payment
of income tax.
income tax instalment deductions A customer can request for tax to be withheld from their Centrelink
payment.
income test Centrelink pays pensions, benefits or allowances only if a person’s income
is below a certain amount. Under this test, a person can have a certain
amount of income without affecting their pension or allowance. This is
called allowable income. A different income test applies to each payment
type.
indexation The adjustment of payments, i.e. wages, salaries, pensions or benefits to
take into account rising costs. The most common form of indexation is the
Consumer Price Index.
Indigenous Australians Aboriginal and Torres Strait Islanders who meet the Commonwealth
Government’s definition.
Indigenous Call Centre A Centrelink call centre service providing information and assistance to
Indigenous customers.
Indigenous Customer Service Centrelink staff who deliver Centrelink services to Indigenous customers.
Officer (ICSO)
Indigenous Service Officer (ISO) Centrelink staff who deliver Centrelink services to Indigenous customers.
Indigenous Wage Assistance Provides a financial incentive to employers who provide ongoing
employment to eligible Aboriginal and Torres Strait Islander people.
industrial action Any action such as a strike or protest, taken by a union as part of the
process of resolving a dispute with an employer or category of employers,
usually disrupting normal work.
insurance Protection against the financial impacts arising in specified contingencies
such as fire, accidents, death, damage or loss of property, as well as
expenses with regard to personal injury and illness.
insurance bond An investment offered by a life insurance office. It usually has a 10-year
maturity period that can be extended beyond maturity. It does not pay out
interest to investors. Returns can only be obtained through fully or partially
cashing them in.
intent to claim When a person contacts Centrelink to advise that they will be making a
claim for payment or service within the following 14 days (or 28 days if
outside Australia, recently bereaved or suffering a serious illness).
interest rate A percentage at which interest is charged on a loan or paid on a savings
account.
interim order for child support An order made by a court for a custodian who needs child support urgently.
The order has effect until an assessment is issued or a formal agreement is
made.
international social security A formal agreement between Australia and another country that allows
agreement for social security coverage for people who have lived and/or worked in
both countries.
interpreter A person who verbally translates what is spoken from one language into
another language. In the case of sign language, interpreters translate hand
signals into speech and vice versa.
interrupted residence A break in the continuity of a person’s residence in Australia or another
country. It usually means that the person has become a resident of another
country.
Invalid/ Invalidity pension The name given in many countries to their equivalent of Australian
Disability Support Pensions.
J
Job Capacity Account Funding available to Job Capacity Assessors to purchase short-term
services or support program to help job seekers who require this assistance
to move onto an employment service provider.
Job Capacity Assessment A full assessment of a person’s ability to work involving the identification
of a person’s barriers to employment and any help that may be required to
assist them to overcome those barriers.
Job Capacity Assessor The person who conducts a Job Capacity Assessment. Assessors are able to
directly refer people to services to help find and maintain employment.
Job Seeker Diary Used to record job search efforts.
Job Services Australia A national network of organisations dedicated to helping job seekers find
and keep a job. Centrelink is the gateway to Job Services Australia,
providing referral to, and information about, Job Services Australia
providers and the services they deliver.
Job Services Australia provider A Job Services Australia provider role is to offer advice on searching for
jobs, career options, employment programs, help arrange job interviews and
help meet the obligations of job seekers while they are looking for work.
Jobs Education and Training Child Assistance with the cost of approved childcare. This is in addition to Child
Care fee assistance (JETCCFA) Care Benefit for eligible parents undertaking activities such as work,
training, study or rehabilitation as part of an Employment Pathways Plan to
assist them to enter or re-enter the workforce.
junior wage Legal minimum wage payable to workers between 16 and 21 years
according to their age.
Justice of the Peace (JP) A person appointed by the state government who can witness official
declarations, usually for identification purposes.
L
Language, Literacy and Numeracy LLNP aims to improve job seekers’ English language, literacy and
Program (LLNP) numeracy skills to assist them in securing sustainable employment or to
participate in further education and training.
Language, Literacy and Numeracy The LLNS provides financial assistance for customers who want to
Supplement (LLNS) improve their language, literacy and numeracy skills as part of their plan to
return to work. Eligibility rules apply.
Large Family Supplement Paid as part of Family Tax Benefit part A to families, with three or more
FTB children.
Lawful Custody Allowance A payment from Centrelink to ABSTUDY students who are imprisoned in
a correctional institution, remand centre or youth training centre to assist
with expenses associated with study, such as educational institution fees,
textbooks, equipment, stationery and daily travel costs.
leave entitlement Amount of paid leave that a worker is entitled to. This can include
recreation leave, sick leave, personal leave, long service leave, redundancy
payment, payment in lieu of notice and other payments received on
termination of employment.
leave loading A salary bonus paid at the time annual leave is taken.
leave pay Salary payments made when on leave.
legacy An item, for example, money or property that is handed down by an
ancestor or predecessor.
legislative scope In the context of international social security agreements, a range of laws
covered by the agreement between Australia and the other country.
letter of authority Gives permission to another person to receive a message, letter or money
on the original owners behalf.
liable to repay Under an obligation and legally required to pay back money.
life insurance Insurance against the financial risks of death. Either a lump sum or an
annuity will be paid by the insurance company at the death of the insured
person to the person who is nominated by the insured in the policy. The
surrender value of the policy is the value assessed under the assets test.
light duties Reduction in duties, generally following a period of incapacity or an
incident. A person recovering from a severe illness is sometimes placed on
light duties.
limited liability company Companies in which the liability of the shareholders is limited to the
amount (if any) unpaid on their shares. Limited liability companies will
have the word ‘Limited’ or ‘Ltd’ after their name.
liquid assets The person’s and their partner’s cash and readily realisable assets. Includes
shares, debentures, bank deposits, and moneys on loan.
lock out A situation in which employees are prepared to work as directed within the
terms of their employment agreements but are prevented from doing so by
their employer.
lodgement Delivering a document to Centrelink. Most commonly, a form that needs to
be lodged that will continue the customer’s payments or verify the
customer’s circumstances.
lodgement date The date a form should be lodged, or was lodged, with Centrelink.
lodgement year The financial year immediately following the relevant income year.
long-service leave entitlement A worker’s right, accumulated over the years, to an extra, fully paid,
extended period of leave.
long-term disability A disability, injury, illness or impairment that is likely to last for at least
two years. In the case of a long-term disability, advice should be sought on
the eligibility for payment of the Disability Support Pension.
lump sum advance A prepayment of a person’s income support payment, pension or Family
Tax Benefit entitlement, which is subsequently repaid by deductions from
fortnightly payments. There are rules that apply to granting the Advance
Payment and the amount that can be advanced.
lump sum compensation payment Payment for damages or injury paid out in one amount of money.
lump sum payment A payment of a benefit at the end of the financial year, rather than
payments on a fortnightly basis.
lump sum preclusion period When a person receives a lump sum compensation payment, a preclusion
period is calculated during which the person is deemed to have been
compensated for lost earnings or lost earning capacity. During the
preclusion period the person (and their partner) cannot be paid any social
security income support payments.
lump sum superannuation payment Superannuation moneys paid out in one sum, instead of regular (smaller)
payments.
M
Maintenance Income Test A separate test used to assess child support or spousal maintenance income
when calculating the rate of Family Tax Benefit or Child Care Benefit
payable.
major disaster An event that caused a significant number of deaths, serious illnesses or
serious injuries or caused severe and widespread damage to property.
managed investment A type of investment where a person’s money is pooled and invested by a
fund manager. Includes insurance bonds, rollover funds, public unit trusts,
etc.
Mandatory continuous adjustment Mandatory continuous adjustment applies to Family Tax Benefit (FTB)
(MCA) instalment customers only if a projected overpayment is identified when the
customer’s income estimate is updated.
market value An amount one would receive by selling property or shares.
market-linked investment An investment with an approved deposit fund, deferred annuity, public unit
trust, insurance bond, friendly society or other eligible investment that is
not an accruing investment or an investment in property, stocks or shares.
marriage-like relationship A relationship that is similar to a legal marriage but has not been formalised
by a legal ceremony. When referring to relationships this term has generally
been replaced with ‘member of a couple’ which can include opposite-sex or
same-sex relationships. See ‘Member of a couple’ definition.
Maternity Immunisation Allowance A non-income tested payment to encourage parents to immunise their
children. It is generally paid in two amounts.
maternity leave A type of leave granted to employed women preceding and following
childbirth.
means test Test of a person’s entitlement having regard to the person’s total income
and assets.
medical certificate A certificate signed by a medical practitioner, which provides essential
information concerning an individual’s current capacity to work.
medical evidence in support of claim Medical details provided by a treating doctor in addition to a clinical report,
X-rays or other medical documents in support of a claim (e.g. for Disability
Support Pension, Sickness Allowance).
medical history All relevant facts to establish someone’s present medical condition
including details of previous illnesses, operations, stays in hospitals or
clinics.
medical report A report written by a medical practitioner (or treating health professional in
some cases) regarding a person’s medical condition.
medical treatment Any treatment by a medical practitioner in or out of hospital for the purpose
of treating a patient’s illness or condition.
Medicare Australia’s National Health Insurance Program.
member of a couple A person is a member of a couple if they are living with another person as
their partner, where both people are over the age of consent (applicable to
the relevant state or territory), are living together on a permanent or
indefinite basis, are not in a prohibited relationship, and are either:
• legally married, or
• in a registered relationship (opposite-sex or same-sex), or
• in a de facto relationship (opposite-sex or same-sex).
In determining if a person is in a member of a couple relationship,
consideration must be given to the following five factors:
• the financial aspects of the relationship
• the nature of the household
• the social aspects of the relationship
• any sexual relationship between the people, and
• the nature of the people’s commitment to each other.
minimum period The least period of residence and/or credited contributions required by a
person to use the provisions of an international agreement between
Australia and another country.
misconduct Improper conduct. In the workplace misconduct refers to an act of
misconduct or misbehaviour resulting in the job seeker being dismissed
from employment due to that act. Misconduct may also need to be
determined for a No Show, No Pay failure where the job seeker does not
behave appropriately in a program or activity.
misrepresent one’s circumstance To knowingly provide false or misleading information. For example, not
declaring one’s full income, giving incorrect information about a de facto
relationship or their dependants.
Mobility Allowance A payment to people with an illness and/or disability who are
undertaking paid work, voluntary work, job search or vocational training
who cannot use public transport without extra help because of their
illness and/or disability.
Multicultural Service Officers MSOs consult widely with local migrant and refugee communities on
(MSOs) government programs and help Centrelink improve its services. They also
inform these communities on English language courses and how overseas
skills can be recognised.
Multiple Birth Allowance Payable to customers with three or more Family Tax Benefit children born
during the same birth.
N
net income Income after the deduction of tax-liabilities. In the commercial sense, it is
gross income from a business minus the cost of running the business.
New Enterprise Incentive Scheme A scheme that helps with training and supports people interested in
becoming self employed.
Newly Arrived Residents’ Waiting Many social security payments have a 104-week newly arrived resident’s
Period waiting period, meaning no benefits are payable upon arrival in Australia
until the waiting period has expired (104 weeks after being granted
permanent residence). Refugees, humanitarian visa holders and their
immediate family members are exempt.
Newstart Allowance Paid to people who are considered to be unemployed, capable of
undertaking, available for and actively seeking work, or temporarily
incapacitated for work.
No Show, No Pay failure A failure applied to instil a ‘work like’ culture to employment services by
reinforcing the importance of attending and fully participating in
compulsory activities and job interviews. Results in a penalty amount
equivalent to one ‘working’ day’s pay.
nominee A person appointed by a Centrelink delegate and usually nominated by a
customer to handle their Centrelink affairs because they are unable to do so
themselves.
non-cash maintenance Any non-cash child support or payment to a third party such as payment of
the child’s school fees or payment of the custodial parent’s rent or
mortgage.
non-custodial parent Parent who does not have custody of the eligible child or children.
non-homeowner A person who is not regarded as a homeowner for Centrelink purposes.
Non-homeowners who pay rent may be eligible for rent assistance.
non-lodger A non-lodger is a recipient or the partner of the recipient, who is required to
lodge an individual tax return for the relevant income year but has not done
so by June of the lodgement year.
non-protected Special Category A New Zealand citizen who was not in Australia on 26 February 2001, or
Visa holder for 12 months in the two years immediately before that date, nor was
assessed as ‘protected’ before 26 February 2004. A person under this
category does not meet the definition of an Australian resident.
Northern Territory Emergency Income Management in the Northern Territory involves the setting aside of
Response Income Management 50 per cent of regular fortnightly instalments and 100 per cent of advances
and lump sums of most Centrelink payments made to customers who live in
declared relevant Northern Territory areas, to ensure they are spent on
priority needs of those individuals and their families.
Northern Territory Emergency The exclusion of a customer from Northern Territory Emergency Response
Response Income Management Income Management as a result of the customer having an excluded
Exclusion payment nominee, i.e. a payment nominee who is a public trustee or a
person that is not subject to Northern Territory Emergency Response
Income Management.
Northern Territory Emergency The application of a decision that a customer is exempt from Northern
Response Income Management Territory Emergency Response Income Management. This decision can be
Exemption made either by Ministerial determination, or by a Centrelink discretionary
decision in accordance with Northern Territory Emergency Response
Income Management policy.
Northern Territory Emergency The circumstance where a customer ceases to be subject to Northern
Response Income Management exit Territory Emergency Response Income Management. This can be due to a
customer’s income support payment (and partner’s income support
payment, if applicable) being cancelled; the customer passing away;
income management for the customer’s community ending; or the customer
being subsequently exempted from income management after having
income management applied.
Northern Territory Emergency A specific area or community that the Minister determines is a prescribed
Response—Declared relevant area in which Northern Territory Emergency Response Income
Northern Territory Areas management is to apply.
Northern Territory Emergency A breakfast and/or lunch service for school-aged children from declared
Response—School Nutrition relevant Northern Territory areas, that aims to support better school
Program attendance and to help with learning and engagement in education.
notice of dismissal To be given notification of dismissal from employment.
O
offer of suitable employment An offer of work within reasonable travelling distance suited to a person’s
training, ability or experience, paying at least the applicable statutory rate
and offering safe working conditions.
Online Service An eService that allows customers or nominees to view or update
Centrelink or Family Assistance Office business online via the Centrelink
Website.
ordinary waiting period A one-week waiting period that people claiming Newstart Allowance have
to serve before the payment begins. The ordinary waiting period can be
waived in hardship cases.
original decision maker A Centrelink officer who made the original decision relating to a payment
or service affecting a Centrelink customer.
orphan Children whose natural or adoptive parents are deceased.
outside school hours care Childcare provided outside of standard school hours where children are
supervised and cared for by adults other than their own parents or
guardians.
overpayment Where a person has been paid more than they are entitled to receive. If it is
found to be legally recoverable, it is known as a debt.
Overseas Qualifications Unit (OQU) State-based organisations that help Australian residents to assess their
qualifications and experience gained outside Australia.
P
parental income and assets test Young people may have their rate of payment reduced by their parents’
taxable income or by the level of their assets.
Parenting Payment A payment that provides financial assistance for people who are principal
carers of a child/children. Parenting Payment can only be paid to one
person who cares for a child.
parenting plan For the purpose of Family Assistance and the Social Security Act, a
parenting plan is a written signed and dated agreement between parents,
detailing arrangements for the day-to-day care and upbringing of their
child. Although it may specify a third party as providing care of a child,
only the natural or adoptive parents can be party to the agreement and sign
the document.
part-payment Payment consisting of an amount, which is less than the normal full
payment.
part-pension A rate of pension that is less than the maximum rate because of the impact
of the person’s assets, income or compensation, or is a proportional rate due
to portability or qualification under an international social security
agreement
participation failure A failure applied when a person who is subject to a compulsory Activity
Test or participation requirement fails to meet their requirements without a
reasonable excuse. Participation failures ceased to apply to job seekers who
fail to comply with their Activity Test or participation requirements post 1
July 2009 although Youth Allowance and Austudy students are still subject
to such failures.
participation requirements Participation and activity test requirements refer to the activities Centrelink
customers must complete to receive certain Centrelink payments, including
Newstart Allowance, Youth Allowance (job seeker), Parenting Payment
and Special Benefit.
partner A person is considered to be partnered if they are married, in a registered
relationship (either opposite-sex or same-sex), or in a de facto relationship
with another person (either opposite or same-sex) and they are not living
separately or apart on a permanent or indefinite basis.
Partner Allowance Paid to the partners of pensioners and allowees who were born on or before
1 July 1955, have no dependent children and little or no recent workforce
experience. This is a closed payment with no new grants after 20
September 2003.
partnered rate Amount of payment per fortnight paid to either person who is a member of
a couple, or to one member of a partnership.
payable A customer may be qualified for a Centrelink payment but not payable due
to income and assets, waiting periods or precluding payments.
PAYG Payment People who get a taxable payment from Centrelink will receive this or a
Summary—Individual Non Business ‘Statement of Payment’ at the end of the financial year.
payment in arrears Payment meant to cover a period in the past.
payment outside Australia Refers to a social security payment that can be paid to a person while they
are living or are temporarily outside Australia.
Payment Summary Statement issued by an employer, for tax purposes, showing gross income,
tax deducted, net income and period worked. A certificate is also issued to
Centrelink customers showing how much payment was paid and how much
tax was taken out.
payslip Official notification by a company, business or government department,
issued with each periodical payment, specifying the gross amount of wages
or salary and the various additional payments and deductions made, for
example, for tax and superannuation.
pension age The age at which a person becomes eligible for an Age Pension.
Pension Bonus Bereavement A payment to the surviving partner of a deceased member of the Pension
Payment Bonus Scheme who did not make their claim for Pension Bonus before
their death.
Pension Bonus Scheme A scheme that provides a tax free lump sum incentive for older Australians,
who were qualified for Age Pension before 20th September 2009, to defer
claiming the Age Pension and remain in the workforce.
Pension Bonus Top-up The difference between the initial amount of Pension Bonus paid and the
amount of Pension Bonus that would have been paid using the highest
pension rate in the 13 weeks after grant of Age Pension. (The highest
pension rate does not include any component due to indexation of pension
rate or allowable limits.)
Pension Loans Scheme Retired people of age pension age who can’t get a pension because of their
income or assets (but not both), or those who only receive a part pension,
can apply for a loan. The loan is secured against real estate owned in
Australia.
Pension Supplement A fortnightly payment, consisting of three components, paid to eligible
income support recipients and portable for up to 13 weeks of a temporary
absence from Australia.
Pension Supplement Basic Amount The first component of the Pension Supplement, which is taxable if the
primary income support payment is taxable. It is portable where a
temporary absence exceeds 13 weeks or for permanent absences from
Australia, if the primary payment is payable.
Pension Supplement Component for An amount included with the basic Age Pension rate used to calculate
Pension Bonus (PSCPB) Pension Bonus Payment.
Pension Supplement Minimum The third component of the Pension Supplement. The full amount is paid,
Amount after means testing, some income support payment is payable.
Pension Supplement Remaining The second component of the Pension Supplement.
Amount
pension payday The day on which fortnightly pension entitlements are paid.
pensioner account A savings account offered by a bank, building society or credit union which
will pay the ‘bank deeming rate’ on all or part of the account. The account
balance is at call. These accounts are usually available only to Centrelink
pensioners and allowees and to Veterans’ Affairs pensioners.
Pensioner Concession Card All eligible Centrelink pensioners will receive this card, which provides
concessions including low cost medicines, reduced fares on public
transport, and reductions in property, water rates and energy bills. Private
companies and organisations as well as state and local government bodies
may also provide discounts.
Pensioner Education Supplement Paid to sole parents, carers, disabled people and other people receiving
certain Commonwealth income support payments who are studying
full-time or part-time in an approved course.
period of residence The period(s) of time that a person is considered to be resident in a
particular country.
periodic gifts or allowances Regular payments made to a person, usually by near relatives. Such
payments are exempt income for pension purposes, but assessable for other
payments.
permanent residence The place (e.g. home, city) where a person usually lives. It is also the status
granted by the Department of Immigration and Citizenship and allows a
person to stay in Australia indefinitely.
permanent resident In relation to Australia, a person who has made Australia their permanent
or usual country of abode. The person would normally live in Australia or
at least their permanent home would be located in Australia.
permanently incapacitated for work A person who has a permanent incapacity and is unable to work.
permanently separated When there is a breakdown in the relationship between a couple. This
usually involves a physical separation where the couple is estranged, living
separated lives, and usually residing at separate addresses. Circumstances
should be such that the separation is likely to be permanent.
permissible income The amount of income allowable before an entitlement is affected.
personal effects/household contents This makes up a person’s normal household contents and personal effects,
i.e. clothing, books, television video recorder, collectables, jewels, etc.
personal expenses Money spent for one’s own personal needs.
Personal Identification Number A confidential number used when accessing or providing data.
(PIN)
personal income test Personal gross income is assessed. Income above the income free area
reduces payment.
personal scope In relation to international agreements, allows an Australian resident or a
person who is a resident of the country with whom an international
agreement on social security is with, to come within the terms of the
agreement.
Pharmaceutical Allowance A fortnightly amount added to a person’s maximum basic rate to offset the
cost of prescription medicines available through the Pharmaceutical
Benefits Scheme.
Pharmaceutical Benefits Scheme A scheme which aims to provide timely, reliable and affordable access for
the Australian community to necessary and cost effective medicines.
phone Service An eService that allows customers to hear or update Centrelink or Family
Assistance Office business over the phone.
physical impairment An impairment that affects a person’s physical bodily functions.
place a child in care Place a child in care of an institution or approved foster home. State welfare
departments responsible for children usually do this.
placement Putting someone in a certain job or allocating a physical place of
employment or training. Also refers to placement in an approved program
or activity.
portability A system allowing social security payments to be made while a customer is
outside Australia.
Portability of agreement benefits The right of a person to transfer benefits paid under an international social
security agreement outside the territory of the country which granted the
benefits.
portable pension A pension, which under certain conditions, can be paid to customers
residing in, or temporarily present in another country.
potential capacity for work It is the consideration of the range of occupations a person is physically and
intellectually capable of performing.
pre-grant interview Interview held before claim for pension, benefit or allowance is processed.
primary earner The member within the family, who earns the highest income.
primary producer A person whose main occupation is farming, fishing or forest operations.
principal carer An adult who has legal responsibility either alone or jointly with another
person for the day-to-day care of a child is wholly or substantially in the
adult’s care.
principal home A dwelling house, flat or home unit where a person usually lives. The
private land adjacent to a dwelling house that does not exceed two hectares
is considered to be part of the principal home and subsequently an exempt
asset. Where the title on the principal residence exceeds two hectares, this
title (not adjoining others) may be exempt from the assets test if the
following three criteria are met; the customer is age pension age and
qualifies for an Age Pension, AND the property has been the customers
principal residence for 20 years or more AND the customer is making
effective use of productive land to generate income considering their
capacity to do so.
privacy Centrelink has a legal obligation to comply with the Privacy Act 1988,
which contains principles about how information that identifies an
individual is handled.
Privacy Act A provision to protect the privacy of individuals.
private agreement Parents can choose to have their child support contributions to be registered
with the court, and not through the Child Support Agency. These child
support payments will be made privately.
private company A private company is a separate legal entity set up to run a business or hold
investments. Its shares are not publicly traded. Some private companies will
not be considered under the private companies rules for Centrelink
purposes due to size or other elements. Once a customer is determined to be
involved in a private company, Centrelink will attribute the amount of
company income and assets to be assessed for the customer involved. Any
income received by a customer or deemed income on loans, will be
assessed as income for the customer, even if they are not attributed with
any of the company assets or profit.
private trust Private trusts include family trusts, testamentary trusts, constructive trusts
and fixed trusts of fewer than 50 members. Once a customer is determined
to be involved in a private trust, Centrelink will attribute the amount of trust
income and assets to be assessed for the customer involved. This
assessment will be based on a number of factors including, ability to
control the trust, provision of funds to the trust, beneficial ownership of
trust assets and any distributions made by the trust. Any income received
by a customer or deemed income on loans, will be assessed as income for
the customer, even if they are not attributed with any of the trusts assets or
profit.
Prohibition of instalment payments Customers who receive Family Tax Benefit (FTB) on a fortnightly basis
(PIP) will have their payments stopped if they (and/or their partner) do not lodge
tax return(s) or advise they are not required to do so. This will apply to any
outstanding income tax returns they have failed to lodge for financial years
they were receiving FTB.
Proof of Identity (POI) People claiming most Centrelink payments must prove their own and their
partner’s identity by producing original documents from Centrelink’s
approved list. These documents will show proof of birth in Australia or
proof of arrival in Australia and other documents from the list that will add
up to 100 points.
proportional rate The amount of pension paid outside Australia to a person depends on the
time a person has resided in Australia, usually during their working life (16
to age pension age). The rate is calculated by dividing the period of
residence or contributions in one country, by the total time spent in both
countries and multiplying the result by the total benefit payable.
prosecution Individuals or organisations who breach sections of the Social Security or
Crimes Act may be liable for prosecution before the Courts. Imprisonment,
fines and bonds can apply.
protected Special Category Visa A New Zealand citizen who was in Australia on 26 February 2001, or for
holder 12 months in the two years immediately before that date, or was assessed as
‘protected’ before 26 February 2004. A person under this category who
is residing in Australia meets the definition of an Australian resident.
Q
qualified/qualification To meet all fundamental conditions for a claim to be granted, although the
payment must also be payable.
Qualifying Australian Residence Defined in Section 7(5) of the Social Security Act 1991 as a period of 10
years residence in Australia.
Qualifying residence exemption An exemption from serving the residence period to qualify for Centrelink
payments. Granted to certain refugees.
Qualifying residence in Australia The period(s) of residence in Australia required before a person can qualify
for most Centrelink payments. The periods vary depending on the type of
payment.
R
RapidConnect A referral process that gives unemployed people early access to an
employment service provider and employment opportunities.
rate of payment Amount of benefit, pension, allowance to be paid. The rate depends on, for
example, whether a customer is single or partnered, has dependent children
or students, and their level of income or assets.
rate of return The calculation of the amount earned by a managed investment or share
over a 12-month period. It includes the gross increase or reduction in the
value of the investment, as well as the cash distributions or dividends paid
to the investor during the period.
rates notice Advice from local authorities stating the amount owed for local services
such as sewerage and water in relation to ownership of real estate.
ratification In relation to international agreements, it means that the respective
governments to the agreement give their formal approval or consent to the
agreement.
readily available funds Are assets that can be converted to cash and include proceeds from the sale
of non-liquid assets, cash on hand, amounts deposited with a bank, building
society, credit union or other financial institution fixed and term deposits,
bonds, shares in public companies, debentures or other investments, and
loans made by a person.
realisation of an asset Sell or transfer title of an asset to another person.
realise an investment When the investment matures or the investor fully or partially withdraws
funds out of a saved investment.
reasonable steps to obtain work Actions showing that someone is genuinely looking for a job. For example,
applying for jobs, phoning for job interviews, looking at positions vacant in
newspapers.
reassessment Recalculation of a person’s entitlement due to a change in their
circumstances.
reconcile Resume living together as a couple.
reconciliation The process of checking Family Tax Benefit against a family’s actual
income for the financial year, to ensure that they are paid the correct
amount of money.
Reconciliation Action Plan (RAP) A tool to help organisations build positive relationships between
Indigenous and non-Indigenous people.
Reconciliation Australia Reconciliation is building mutual respectful relationships between
Indigenous and other Australians that allow us to work together to solve
problems and generate success that is in everyone’s best interests.
reconnection failure A failure applied following the application of a connection failure and the
job seeker’s failure to attend the subsequent reconnection appointment.
This results in a financial penalty until the job seeker reconnects or is no
longer required to reconnect with their provider or Centrelink.
recovery of an overpayment Obtain repayment of an amount paid which was more than the person’s
correct entitlement.
recovery proceedings Action to obtain repayment of overpayment.
redundancy A case of there being not enough work to do in the workplace. Some
workers may be declared redundant, laid off or dismissed.
Re-entry Visa, (or Resident Return A visa that allows a permanent resident who is not an Australian citizen, to
Visa) return to Australia following a period living or travelling outside Australia.
reference number A unique number given to every Centrelink customer. See Customer
Reference Number (CRN).
referral Arranging for a person to attend an appointment for further assessment, or
to access an additional service or other service, depending on their
circumstances.
refugee People who have fled their country of origin because of persecution, war, or
natural disasters.
Refugee Contact Officers Provide timely and effective assistance to help newly arrived refugees in
targeted rural and regional areas. They act as the first point of contact and
coordinate service appointments and other related contacts within
Centrelink.
refugee status Recognition by Australia that a person is a refugee. Relaxed residence
requirements for Centrelink payments apply to such people if they hold
specific refugee visas.
refugee visa A document authorising a person who is found to be a refugee or seeking
asylum, to stay in Australia for resettlement.
refuse an offer of work If a person refuses an offer of suitable work and thus remains unemployed,
payment of certain income support payments may cease or a serious failure
non-payment period may be imposed.
Registered Agreement An agreement for child support made between the non-custodial parent and
the resident parent and registered with a court or the Child Support Agency
(CSA). It is legally enforceable and cash components may be collected by
the CSA.
registered care Paid care that is provided other than by approved care providers. Care
providers can include, for example, family, friends and nannies. The carer
must be registered with the Family Assistance Office.
registered relationship A registered relationship is one that is registered under prescribed
Australian state or territory laws that provide for registration of certain
couple relationships, including civil partnership schemes (currently
available in Victoria, Tasmania and the Australian Capital Territory). A
registered relationship can be between people of the opposite-sex or
same-sex.
re-imbursement of medical expenses Commonwealth benefits relating to the provision of medical, dental or
pharmaceutical services, and also payments made to registered health funds
for these services. These reimbursements are excluded from the definition
of income for the purpose of the income test.
release of information Confidentiality and privacy legislation prohibit staff from releasing
customer information without legal authority. Customers who want
Centrelink to release information about them to another person or agency
must give Centrelink an authority to release the information to that person
or agency.
relevant income year The financial year in which family assistance entitlements were paid or
were claimed for (past period claims).
Remote Area Allowance Payment to Centrelink recipients living in specified remote areas.
Remote Area Service Centre (RASC) Centrelink offices located in remote areas. The RASCs predominantly
service Indigenous customers and are generally staffed by local Indigenous
people.
rent Rent is the amount payable by a person as a condition for occupying their
principal home and includes amounts paid for:
• board and lodgings (includes meals and accommodation), or
• lodgings (accommodation), or
• site fees for a caravan, tent, mobile or other structure, or
• mooring fees for a vessel, or
• service and maintenance fees provided in a retirement village, hostel or
aged care facility.
rent arrears Rent payments due for a previous period but not yet paid.
Rent Assistance Rent Assistance is an extra payment provided to help some customers pay
their rent. It gives extra assistance for low income, singles, couples and
families who rent accommodation generally in the private rental market.
Rent Deduction Scheme Allows Centrelink customers in public housing to have their rent deducted
from their social security payments and sent directly to the housing
authority in their state or territory.
rent-free in return for services Where no rent is charged but a tenant is expected to do some work for the
owner, for example, gardening, caretaking.
reparation order Where a magistrate orders a debtor to repay a debt through a court.
Reporting Statement A fortnightly statement covering income for a particular period, which must
be regularly submitted in order to continue receiving certain Centrelink
payments.
residence A person’s usual place of living, i.e. their house, home unit, flat, caravan,
etc. It may also refer to the state of residing in a country, that is, the usual
country of residence. A person can still be resident in a country although
they may be temporarily out of that country.
resident parent The parent with whom a child lives all or most of the time and has care of
the child.
Residential Care Assessments The income and assets assessments provided by Centrelink on behalf of the
Department of Health and Ageing for aged care purposes.
Residential Costs Option ABSTUDY assistance for full-time tertiary students receiving the away
from home rate and living in a residential college attached to a university,
or in a hostel.
residentially qualified Meets the residence requirements for a specific payment.
respite care Short term care of the disabled and the elderly, in or outside the home, to
provide relief for their carers.
restitution payment Payment made by the governments of particular countries to compensate
people who were victims of Nazi persecution in World War II. Certain
compensation payments made by Austria and Germany are considered as
exempt income.
retirement village Residential accommodation for people aged 55 years or more, comprising
of self-care units, and/or serviced units and/or hostel units.
retirement village resident A person who has their principal home in a retirement village.
retrenched Dismissed from employment in order to reduce the employer’s costs.
reversionary bonus A bonus issued by an insurance company not paid directly to the policy
holder but added to the sum insured.
review Can refer to a review by Centrelink of a customer’s entitlement, or to a
review requested by a customer where the customer disagrees with a
decision.
review form A form posted out periodically to Centrelink customers asking them to state
any change in their circumstances over the preceding period.
rolled over amount The Eligible Termination Payment that is placed into a rollover fund.
rollover fund A type of investment into which an Eligible Termination Payment (ETP)
may be placed for later use. On leaving a job, a person may be entitled to an
ETP. ‘Rolling Over’ is transferring an ETP into a rollover fund.
routine assessment method The calculation of Family Tax Benefit, taking into account any child
support payments that the family receives.
Rural Call Centre A Centrelink Call Centre that is dedicated to providing services for rural,
regional and remote parts of Australia.
Rural Services Officers Connect rural customers to Centrelink services through outreach,
appointment or by telephone.
Rural Transaction Centre Centrelink participates with other government agencies, credit unions and
financial institutions to provide a rural township with a range of services
and facilities based on the needs of the community.
S
safety net The Australian social security system is designed to be a safety net for all
Australian residents. It is the provision of payments and services by
Centrelink for those Australians who cannot provide for themselves.
salary sacrifice Salary sacrificing is a process whereby an employee can replace their
entitlement to future earnings from employment with a combination of
non-cash salary benefits and a reduced cash salary entitlement. Employees
may enter an arrangement with their employer to sacrifice salary for an
increase to their superannuation entitlements or for other non-cash benefits
such as child care fees, vehicles and more. Most salary sacrifice is included
as income for all income support payments.
savings provision A condition within a new piece of legislation that exempts people from the
effects of the new legislation. Therefore the laws that were previously in
place will continue to apply to those people who are eligible.
school fees fringe benefit A person receives a school fees fringe benefit if their employer pays an
amount to them, or to a school, for primary or secondary level education.
The amount may be for book or equipment fees for either a dependent child
of the person or person’s partner or a child of the family who is getting
Newstart Allowance. The value of a school fees benefit is the actual
amount of the payment.
school leaver A person who has just left secondary school and is entering the workforce
for the first time
School Nutrition Program (SNP) Refer to Northern Territory Emergency Response—School Nutrition
Program.
School Term Allowance An ABSTUDY term payment available to students under 16 years of age
who have a parent/guardian in receipt of a certain Australian government
payment, Community Development Employment Project (CDEP) wage, or
who holds a current Health Care Card. Students must also attend at least 85
per cent of each term to be eligible.
seasonal work Work only available at a given time of the year mainly due to factors
related to climate, e.g. fruit picking, snow season jobs etc.
secondary earner The member within the family, who earns the lesser income.
Secure Online Mail An eService that allows customers to view and/or print Centrelink or
Family Assistance Office letters online.
seminar Short intensive course of study or meeting, from one day to a few weeks in
duration.
Seniors Supplement A payment to Commonwealth Seniors Health Card holders. Customers
have the option to decline the payment.
separated A person not living with their partner as a result of a breakdown in, or a
withdrawal from the relationship, not just a physical separation. The couple
are living separate lives, usually residing at separate addresses. The
separation is likely to be permanent or indefinite.
separated under one roof People who are no longer a member of a couple but still live in the same
home.
Separation Agreement The agreement made by a separated couple on maintenance, financial
arrangements, and who will be responsible for the children.
separation order An order issued by a court, usually the Family Court, setting out the terms
of a separation.
serious failure Where a job seeker refuses an offer of suitable employment, fails to
commence employment or is found to be persistently non-compliant with
Activity Test or participation requirements, a serious failure non-payment
period may be applied.
service pension A means tested income support payment from the Department of Veterans’
Affairs (DVA) for eligible veterans with qualifying service, and is paid on
the grounds of age or invalidity. It is not possible to receive DVA service
pension and a social security payment at the same time.
service pension for carers A means tested income support payment from the Department of Veterans’
Affairs (DVA), paid to relatives, non-relatives and partners, providing
constant care to a severely handicapped veteran. New payments are no
longer available from DVA.
service pension for partners A means tested income support payment from the Department of Veterans’
Affairs (DVA) for eligible partners, living as members of a couple (are
legally married, in a registered relationship or in a de facto relationship)
with a veteran. The term partner includes: spouses, de factos (of
opposite-sex or same-sex), widows, and widowers. It is not possible to
receive DVA service pension and a social security payment at the same
time.
set aside Usually used in a review or appeal situation, it means to change a decision.
It is the opposite to ‘affirm’.
settlement date The date on which a full payment (settlement) is made.
Severance pay Money received by a worker on leaving a job. This may include
accumulated sick pay, recreation leave pay etc. It is the amount paid to an
employee on termination of an employment contract. It may also include
one (or two) weeks’ pay in lieu of notice where a worker is dismissed.
severely disabled A person is considered to be severely disabled if their physical, psychiatric
or intellectual disability makes the person totally unable to work for at least
the next two years. The person will be unable to benefit within the next two
years from participation in a program of assistance or a rehabilitation
program or if the person is totally blind.
Shared care If the care of a child is shared between two or more carers who are not
members of the same couple, they may be entitled to a percentage of
Family Tax Benefit Part A for that child.
shares Shares are a form of part ownership of public or private companies. There
are different classes of shares and there may be different rights in each class
including the right to vote, receive a share of the profit through dividends,
receive a share of the capital of the company, and receive bonus shares.
Sickness Allowance A payment for people who are temporarily unable to work due to a
short-term disability, illness or injury. Customers must have work or study
to return to when they are well again.
sickness insurance Insurance against the loss of income as a result of sickness.
single A person who is not married, in a registered relationship (either
opposite-sex or same-sex), or in a de facto relationship with another person
(either opposite-sex or same-sex).
single income Refers to a family where only one family member is earning income.
single Rate Basic rate of payment to person who does not have a current partner.
social security Social security is welfare for the Australian community. The majority of
payments paid by Centrelink are authorised and defined under the Social
Security Act, hence the reference to social security payments.
Social Security Appeals Tribunal An independent statutory tribunal that reviews Centrelink decisions after
(SSAT) they have been reviewed by an Authorised Review Officer.
social worker Centrelink Social Workers can help with personal counselling and support
through difficult times, and for various issues including domestic and
family violence, severe financial hardship, homelessness, loss and
bereavement. They can also assist with referral to appropriate services,
including accommodation and crisis support.
sole parent A person who is not a member of a couple and who has the care and control
of at least one child.
sole-parent family Refers to a family where there is only one parent.
sole-trader business A business, owned by one person.
source of income Every source from which income comes from, for example, investments,
pensions, etc.
Special Benefit Payment to some people not eligible for a pension or other benefit who are
in hardship and not able to provide for themselves or their dependants.
Special Benefit is subject to income, assets and available funds tests.
Special Benefit Activity Test The Activity Test is a set of conditions that details what Special Benefit
recipients must do in order to receive payment from Centrelink.
Special Category Visa A visa which is automatically electronically issued to a New Zealand
citizen who enters Australia. While not technically a permanent visa, it
allows holders to remain in Australia indefinitely; live, work and study with
no limitations.
Special Disability Trusts A Special Disability Trust is a trust established for a sole beneficiary, who
has a severe disability, by the parent/s or a close relative for the future care
and accommodation needs of the beneficiary. A Special Disability Trust
may be exempt from the income and asset tests.
Special Preparatory Program An English language tuition program specifically designed to suit eligible
humanitarian entrants who may have difficulty adapting to the more formal
environment of the Adult Migrant English Program.
Special rate disability pension A pension paid by the Department of Veterans’ Affairs. Also referred to as
a Totally and Permanently Incapacitated Pension.
special residence A retirement village, granny flat or a home subject to a sale or leaseback
agreement.
stand down To suspend or dismiss an employee from his/her job for disciplinary
reasons, because of industrial action by a union, lack of work, or to reduce
costs.
statement Information in support of a person’s claim is usually written down in a
statement and signed by that person. It is a legally binding document and it
is therefore important that the person checks that everything written down
is true before signing the statement.
statutory declaration A written statement signed before a Justice of the Peace or another official.
strata title A strata title gives the holder the right to the exclusive use and occupation
of a particular home, unit or flat. This also includes the right to use, in
common with other strata title holders in the same building, the general
amenities, i.e. stairways, lifts, passages and garden. The holder of a strata
title to a particular home, unit or flat can sell or mortgage the same just as if
it were a separate and single building.
Student Financial Supplement A voluntary loan scheme giving full-time tertiary students the option of
Scheme borrowing money to help cover study expenses. Closed to new applicants
from 1 January 2004.
subcontractor A subcontractor offers his/her services to a contractor to perform part of the
work contracted.
substantially more care Substantially more care is defined as the amount of care a child with a
disability needs as a result of that disability. It must be significantly more
than that needed by a child the same age who does not have a disability.
substitute care In relation to children, it means the care provided by a carer of a child
(other than the natural or adoptive parent of the child) in the carer’s home
under the law of a state or territory. No substitute care allowance or other
allowance for the upkeep of the child is paid to the carer by an authority of
the state or territory.
suffer a substantial loss of income Due to circumstances often beyond their control, a person finds they may
have lost a lot of cash income or assets from their possession.
suitable paid work Activity tested income support recipients must actively seek, be capable of,
and willing to undertake work that is deemed suitable for that person.
superannuation A sum paid periodically as a contribution to a superannuation fund. Often
abbreviated to ‘super’.
Super Confirmation Allows administrators and trustees of superannuation funds to obtain
information about a Centrelink customer’s income support status, in order
to assist the determination of the early release of superannuation on the
grounds of financial hardship.
superannuation payment/pension Regular payment (usually monthly) received from a superannuation fund.
superannuation scheme/fund A scheme or fund set up to pay retirement or invalidity benefits to members
and/or their dependants. These benefits are financed by contributions from
the member and/or their employer, which are invested by the fund manager.
superannuation settlement Where a person’s superannuation entitlement is paid all at once as a lump
sum.
supplement A fortnightly supplement to assist with the cost of attending approved
activities such as Work for the Dole, Green Corps, Drought Force and
Language, Literacy and Numeracy Program. Available to eligible
participants receiving Centrelink income support payments.
surrender value The (reduced) value of an insurance policy if it is cashed (surrendered)
before the agreed term has expired.
Survivors Pension A pension made in many foreign countries that is payable to the ‘survivor’
of a person who was qualified for a pension in that country. In most cases
this means a widow or widower, but in some countries it can mean a child
of the deceased contributor.
suspended from work Temporarily dismissed from a job usually for disciplinary reasons.
T
tax deductible The expenses deducted from income to work out taxable income.
tax exempt foreign income Any income for qualifying service on a particular approved project (under
section 23AF of the Income Tax Assessment Act 1936) and/or foreign
service (under section 23AG of the Income Tax Assessment Act 1936) for a
continuous period of 91 days or more.
tax file number A unique number given out by the Australian Taxation Office to every
taxpayer.
tax free limit The part of a person’s income that is not taxable.
tax rebate A reduction in the amount of tax that is otherwise payable.
tax threshold The income level at which income becomes taxable.
taxable income Taxable income has the same meaning as in the Income Tax Assessment Act
1997. Taxable income is the amount of assessable income received
(commonly called gross income) less allowable deductions. A person’s
taxable income is the income as assessed by the Australian Taxation Office
(ATO) and is advised to taxpayers by the ATO each income year on a
Notice of Assessment.
tax-free pensions or benefits A recipient and/or their partner may not pay taxes on some types of
pensions or benefits. These amounts are included as part of their adjusted
taxable Income for Family Tax Benefit, Child Care Benefit and Baby
Bonus income test purposes.
Telephone Allowance Helps with the cost of line rental for a telephone, for people who hold a
Pensioner Concession Card or Commonwealth Seniors Health Card, and
who have a telephone connected in their name.
temporarily separated couple A couple living separately and apart but not on a permanent basis. This is
not an illness separated couple.
temporary employee A person who is employed full-time or part-time for a limited period.
temporary visa Permission for a person to enter and remain in Australia for a specific
period of time and for a specific reason. Holders of these visas are not
allowed to remain permanently in Australia and are generally not entitled to
social security payments.
tenancy in common When two or more people are entitled to the full use of a house or a block
of land, but neither is entitled to the exclusive possession of any part of the
house or the land.
terminate a contract Ending an ongoing contract, such as employment or to supply goods.
terminate payment Ending a customer’s payment, as they are no longer entitled to it.
territory The area under the jurisdiction of each partner to an international social
security agreement.
threshold amount The level of income or assets where a payment will be affected under the
income or assets test.
title deed A legal document proving that someone is the owner of a block of land, and
where appropriate, the house built on it.
totalisation The process of adding together the periods of credited contributions to the
social security system of an international social security agreement country
and/or the periods of Australian residence, in order to meet the minimum
qualifying period for Australian social security benefits.
trade People engaged in a particular line of business e.g. carpentry, plumbing,
butchery etc.
trade union An organised association of workers of a trade, or a group of allied trades,
formed to protect and promote their common interests.
traineeship A scheme combining practical work with structured training to give young
people experience and a nationally recognised qualification.
training course A course that an individual may undertake, either as preparation for work
or on-the-job training.
Training Supplement A temporary supplementary payment for eligible Newstart Allowance and
Parenting Payment recipients who commence an approved training course
between 1 July 2009 and 30 June 2011.
transfer from one pension/benefit to Generally there is no waiting period if a person transfers from one
another benefit/pension to another.
Transitional Rate A rate of pension paid to eligible customers who were in receipt of a
qualifying pension on 19 September 2009.
translator A person who converts written text from one language into another
language.
Treating Doctor’s Report A form that needs to be completed by a person’s usual doctor that outlines
the person’s medical history and condition. This is used by Centrelink to
assess the customer’s eligibility for a payment. This form is only used by
people who cannot work or study because of their disabilities.
trust account An account held by one person as a trustee for another, for example, a
solicitor holding money in trust for a customer.
trust fund A fund set up to manage capital and to distribute the proceedings of it to
specially nominated beneficiaries, normally heirs or relatives of the creator
of the trust fund.
trustee A person who holds assets for the benefit of others, in accordance with a
written agreement or deed.
U
underpayment When a customer is paid less than the amount they are lawfully entitled to.
understate income When people advise Centrelink that their income is lower than their actual
amount of income, or under declare, to get payments at a higher rate than
they are entitled to.
undisclosed income Income received but not declared.
unemployed due to a strike Being without work due to industrial action. Includes strikes, bans and
limitations imposed by a trade union.
unemployment non-payment period If a job seeker voluntarily ceases suitable work or is dismissed from
suitable work due to misconduct as a worker, they may be subject to an 8
week unemployment non-payment period before receiving an income
support payment.
unfit for work Not being able to work because of illness or injury.
unfranked dividends Dividends paid by companies (which have not paid Australian company
tax) and do not carry imputation credits.
unique identification number (UIN) A Department of Veterans’ Affairs (DVA) unique identification number
given to every DVA client.
unprofitable A business is unprofitable if the income received is less than or equal to the
amount it cost to earn that income, i.e. breaking even or operating at a loss.
unrealisable asset For the purpose of applying the hardship provisions, an asset is unrealisable
if the person cannot sell or realise it or use it as security for borrowing.
unskilled work Work not needing any special skill or training.
unskilled worker A worker without special skills or training, as opposed to a (skilled)
tradesman.
Urgent Payment Part of a person’s current income support payment that is paid before the
usual payday. Payment will only be made if there is no suitable alternative
assistance available. The person must provide proof of financial hardship
due to exceptional and unforeseen circumstances.
V
valuable consideration The receipt of goods, services or some other benefit in exchange for some
item, action or promise.
value of free board/lodging The amount that free board or lodging is worth to the recipient. Centrelink
may consider this, or part of it, as income, particularly when it can be seen
as ‘valuable consideration’.
Veterans’ Children Education The child of a veteran who gets a Disability Pension may get an Education
Scheme Allowance and other assistance from the Department of Veterans’ Affairs.
Veterans’ Supplement A fortnightly payment paid to veterans and certain dependants, who are
eligible cardholders.
visa Permission for a person to enter and remain in Australia either temporarily
or permanently. Can be in the form of a label affixed to a person’s passport,
or more usually is electronically issued and is not visible.
visitor’s visa A document or electronic permit that allows people to travel to Australia
for a holiday, visit family and/or friends, or undertake informal studies or
training. A Visitor’s Visa also allows business people to make a short
business trip to Australia.
W
waiting period A statutory period that has to be served before payment can commence. For
example, a person may have a waiting period because they are a newly
arrived resident, or their liquid assets exceed certain limits.
waive • To forgo or put aside a legitimate right or claim: generally used in regards
to overpayments, and
• where an eight week non payment period penalty is ended early due to
commencement in a Compliance Activity (Serious failure only) or due to
hardship provisions (Serious Failure or Unemployment Non-Payment
period).
war-caused disability A disability or illness that resulted from service in the armed forces during
a time of war.
ward of the state A child who has been placed in the legal custody of the child welfare
department of a state government.
welfare payments Any payments received from a government welfare agency or from a
private welfare organisation such as St Vincent de Paul or the Smith
Family.
widow A woman, whose partner has died.
Widow Allowance An income support payment for women, born on or after 1 July 1955, who
were widowed, divorced or separated since turning 40 years of age and who
have no recent workforce experience.
Widow B Pension From 20 March 1997, there are no new grants of Widow B Pension.
Current recipients of this pension will continue to receive this until they are
eligible for Age Pension.
Wife Pension A payment to the female partner of an aged or disability support pensioner.
There have been no new grants since 1 June 1995.
Withdraw To take out money from an account.
Withdrawal form An official form used to make a withdrawal from an account.
withholding An amount may be deducted from a customer’s usual fortnightly payment
to recover an overpayment or debt. It is based on a set percentage of a
payment received by a customer, or a reduced figure agreed upon because
of financial hardship.
Work Bonus A concession that allows pensioners over age pension age to keep more of
their earnings.
Work for the Dole Offers eligible job seekers work experience opportunities in projects of
value to local communities.
work history An account of the claimant’s previous work including self-employment,
voluntary work, the reasons for leaving work and any hobbies or interests.
work permit People without permanent residence status require a work permit to obtain
a paid job.
work-related disability/illness An accident or an illness, which may have taken place at work, for
example, exposure to chemicals. If the person is unable to work because of
an illness or condition, a customer can be required to claim compensation.
work release A program that allows eligible prison inmates to leave the prison each day
to work and earn income, and then returns to the prison at night.
workers compensation A system of insurance (often compulsory) where an employee may claim
compensation from an employer (or from the employer’s insurance
company) for an injury or illness sustained at, or as a result of, work.
working age The age where people can undertake employment. Generally from 15 to 65
years.
Working Credit Available to most people below age pension age who receive income
support. Encourages people to take up paid work by allowing them to keep
more of their payments when they start work.
working-life residence Australian residence, generally between the ages of 16 and age pension age.
Under some international social security agreements the ages for the start
and finish of a period of working life residence may vary from this.
Workplace Modifications Scheme Enables the reimbursement to employment agencies or employers for the
costs of necessary workplace modifications when employing people with
disabilities.
write off a debt To stop recovery action on an overpayment. It does not affect Centrelink’s
right to take recovery action at a later stage. Not to be confused with waive.
written authority Permission or delegated power given in writing.
written-down value The original cost of an asset, minus the total depreciation claimed to date.
Y
Youth Allowance An income support payment for students, trainees and Australian
Apprentices generally aged between 16 and 25 years, or job seekers
generally aged between 16 and 20 years.
Youth Connections Assists young people aged 13 to 19 who are at risk of not completing
Year 12 or its equivalent.
Youth Disability Supplement An income supplement paid to young people with disabilities in recognition
of the extra costs associated with having physical, intellectual or psychiatric
disability.
CO566.1010
