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5.7.4 Date of Effect for CSHC Determinations
Date of commencement of CSHC
The VEA provides that a determination that a person is entitled to a CSHC takes effect on the date of the determination or such earlier or later date as is specified in the determination.
Applying the date of commencement provision
The date of effect for a determination that a person is eligible for a CSHC under the VEA should be the date of lodgement of the claim, unless the claim is an early claim.
If a proper claim is lodged prior to the person becoming eligible for a CSHC, the date of effect of the determination is the date that the person becomes eligible.
CSHC cancellation due to change of circumstances
Where a person notifies of a change of circumstances, the date of effect depends on whether the obligations have been met and is determined using the following table.
If notification obligations ...
Then the date of effect is the day after ...
have been met
the end of the notification period.
have not been met
the event leading to loss of entitlement.
The notification period is 14 days for most CSHC holders. For CSHC holders living in a remote area or temporarily overseas, the notification period is 28 days.
A person's continuing entitlement to CSHC may be reviewed under the data matching program.
Cancellation of the CSHC for failure to provide information
A person continues to be eligible for a CSHC until a determination is made that they are no longer entitled to the CSHC. If a person is requested to provide information and fails to respond to the request, the person's continuing eligibility for the CSHC cannot be established. A determination should be made that the person is no longer entitled to the CSHC, with effect from the date of the determination.
Resumption of entitlement
Where a determination to cancel a CSHC is reviewed and the person is found to be entitled to a CSHC, the date of effect of the review determination is to be the same as the date of effect of the determination to cancel the CSHC.
The date of effect, or effective date, is the day on which a certain incident or 'event' begins affecting a pension assessment.
To be a proper claim, the claim must be:
- made in writing;
- in accordance with a form approved by the Commission; and
- accompanied by any evidence available to the claimant that the claimant considers may be relevant to the claim
A remote area is defined as one of the following:
- Tax Zone A, including the following islands:
-The Territory of Heard Island and McDonald Islands,
-The Australian Antarctic Territory,
-The Territory of Cocos (Keeling) Islands,
-The Territory of Christmas Island, and
-Lord Howe Island,
- Locations within Tax Zone B that are 250 kilometres distant from the nearest urban centre with 2,500 people (known as Special Tax Zone B); and
- Those places in Australia that the Income Tax Assessment Act 1936 treats as being either in Tax Zone A or Special Tax Zone B.