Parenting payment single and work

[Neenee Jellybeanie]

I'm a bit confused about how the parenting payment decreases when one starts work and was hoping someone *COUGH*BG*COUGH* could help me!

My understand was that if as a single parent pensioner, I earn over the threshold (some 160 odd dollars a fortnight) my entire parenting payment is reduced by 40 cents in the dollar i.e. 40%. My mother says that when she was a single parent working, it was only the amount over the threshold that was reduced. E.G. if I earn $130 for the fortnight instead of $120, I'll lose 40 cents in the dollar for the $10 extra I earned. Is that correct or is it the whole payment? I enquired at centrelink but I didn't understand what the bloke meant! I thought it was my entire payment that was reduced until Mum said otherwise!

Thanks

[_JeSs_]

omg im having the same prob at the moment and its hardly even worth while going back to work, they seriously need to re look it i think, they want us to stop 'mooching' off them yet make it so hard to go back to work!

i got told this, the 1st $62 a fortnight u earn is 'free' as in no money gets taken off u, then $62-$250 a fortnight u get 50c out of every dollar taken out of ur payments then $250+ is 60c out of every dollar... im going back to work part time soon, prob 4 half days a week and with all the money i get taken out of my payments plus childcare im only going to be a bout $100 a week better off, not really worth it!

[briggsy's girl]

OK - PPS first for Neenee
basically, you have your income free threshold (the $160ish amount) - once your income goes over that amount, you lose 40c in the dollar for the difference - so, as an example - if you earn $200 for the fortnight, the first 160 is deducted as having no impact, the other $40 is taken into account, 40% is deducted from your PPS entitlement - so you lose $16 for that fortnight from your full PPS entitlement. for every dollar of income your earn, you reduce your parenting payment by 40c

for a single parent, you get max rate of payment when your income is less than $138, plus $24.60 per child - you will then have 40c for every dollar you earn deducted until your income hits $1,558.25, plus $24.60 per child, where your PPS cuts out completely.

something to keep in mind - if you haven't worked in a while, you will have working credits available - basically it's like a safety net that means if you haven't worked a while and then get seasonal work, or even long term work, the first weeks you are working you may not lose any payment as you will deplete working credits first. you will have UP TO 1000 working credits - when your income first breaches that threshold (138 + 24.60 per kidlet), one working credit is deducted for each dollar over that amount - no payments will be impacted until all working credits are gone first.

if your income goes OVER the upper threshold (1558.25+24.60 per kidlet), you will receive no PPS for that fortnight. your PPS will NOT be cancelled due to income until you have income OVER this threshold 6 fortnights in a row. if it goes over a couple of times, you are still classified as being PPS current, and will keep your PPS entitlements (concession card etc).

Jess - the system does seem frustrating, but it makes sense when you look at all the research that has been done on the subject. the payment is essentially there JUST to keep you above the poverty line - and it's only there for the period your kidlets are under school age - after that, it's onto newstart (or parenting payment with new start obligations). if both yourself and your DP are receiving income support, you're going back to work but he isn't, it may be worth getting him on parenting partnered instead of you, as then the first $769 you earn isn't impacted

you're right in the way you laid out the impact for the PPP recipient themselve - for their partner, the first $769 they earn in a fortnight doesn't impact it - once it goes over that limit, it impacts at a rate of 60c in the dollar

you will still receive partial payment of PPP if all the following criteria are met:
customer's income must be less than $769 per fortnight, and
partner's income must be less than $1,444.67 per fortnight, and
the combined income of the couple must be less than $1,538 per fortnight.

the same deal applies with working credits and the income thresholds as for PPS - you have to have six fortnights running where your combined incomes go over this threshold before you lose PPP eligibility. while you are still eligible for PPP you maintain your health care card, and max rate FTBA, max rate CCB - once PPP is cancelled for consistent income over these thresholds, FTBA and CCB will be based on the income estimate...

[Ashlee]

Don't forget you still get your FTB A&B...I was FAR better off working then just being on a pension. I get approx. $850 per fortnight for full rate PPS and FTB.... When I was working and earning around $500 a week, I was still getting around $220 PPS and FTB of $370 odd, plus earnings, add it all up

[Neenee Jellybeanie]

Thanks for that Ashlee, I think the FTB is affected by your income? At least one is. Still, it's far better to work (financially speaking) since the money isn't deducted from the entire payment. That makes far more sense!

Thanks BG, I was going to ask about the working credits - I knew they existed for jobseekers but not other non-mutual obligation payments.

[Ashlee]

Not on PPS, you get full rate of FTB if you're a single parent with care of the child. I'm not exactly sure when it does become means tested, but I know it hasn't reduced for me ever. Mum used to work at Centrelink and said this is correct. I know BG will have more info on it, but no reduction for me as a single parent and working!

[briggsy's girl]

Not on PPS, you get full rate of FTB if you're a single parent with care of the child. I'm not exactly sure when it does become means tested, but I know it hasn't reduced for me ever. Mum used to work at Centrelink and said this is correct. I know BG will have more info on it, but no reduction for me as a single parent and working!

the only reduction for FTB for a PPS customer occurs when you've got less than 65% care of your kidlet or when you go off PPS after that six fortnights of high income. then FTBA only is impacted by your income (unless income is over 150k - FTBB is still max rate)

FTBA for customers on PPP stay at max rate while on PPP, FTBB fluctuates depending on the income of the lowest income earner and age of youngest child (younger than five is higher rate)

[_JeSs_]

ahh confusing lol!
BG, havent got a partner thats why im getting pps lol ? getting both ftb's too so is this 40-50c taken out of them too?

[briggsy's girl]

ahh confusing lol!
BG, havent got a partner thats why im getting pps lol ? getting both ftb's too so is this 40-50c taken out of them too?

nope - income doesn't impact ftb until you're off pps - and then it's based on your estimate

the only thing that might impact payment is maintenance payments...

[_JeSs_]

ok thats good then lol...
dont get maitenence either, dont have anything at all to do with the father, long story but better off that way