3.12.2 Eligibility for Crisis Payment

Last updated 21 December 2006

Eligibility for crisis payment

To be eligible for a crisis payment a person must be in severe financial hardship. That is, the person's liquid assets are less than:

• the fortnightly amount at the 'maximum payment rate' of DVA income support pension payable to the person who is not a member of a couple, or

• twice the fortnightly amount at the 'maximum payment rate' of DVA income support pension payable to a person who is a member of a couple.

Liquid assets for the purpose of crisis payment

Liquid assets are cash and readily available funds and include, but are not restricted to, assets such as:

• shares,
• debentures,
• money with financial institutions (regardless of whether the funds can be withdrawn immediately), and
• money owed by an employer.

Note: Liquid assets do not include a qualifying eligible termination payment as defined in the Income Tax Assessment Act 1936.

Maximum payment rate for assessment of severe financial hardship

The maximum payment rate is inclusive of the basic rate of pension and a — ssociated allowances before the income and assets tests are applied but excludes remote area allowance. For income support supplement recipients the ceiling rate does not apply.

Note: The 'maximum payment rate' for the assessment of severe financial hardship is different to the 'maximum basic rate' on which the crisis payment rate is based.