Special rules applying to CSHC holders

Special Rules Applying to CSHC Holders

From 20 March 2017 Energy Supplement is not paid to new CSHC holders unless they are a grandfathered client.

Existing CSHC holders and income support pensioners may have their entitlement to CSHC Energy Supplement grandfathered and continue to receive Energy Supplement as a CSHC holder. The rules for how grandfathered status is gained and lost are set out below.

CSHC holders who also hold a Gold Card will continue to receive Energy Supplement on the basis of their Gold Card entitlement.

How to gain grandfathered status

Grandfathered status for CSHC Energy Supplement can be gained on 20 March 2017 if:

1. A person was entitled to the Energy Supplement as a CSHC holder for the period from 19 September 2016 to 19 March 2017.
2. A person has continually received an income support payment on and from 19 September 2016.
3. A person was granted an income test exempt CSHC on 1 January 2017 due to losing their income support payment on that date as a result of the assets test changes (announced in the 2015 Budget to improve the fairness and affordability of the pension system), and continuously held the CSHC until 19 March 2017.
4. A person claimed the CSHC within 6 weeks of the cancellation of their income support payment and continuously held the CSHC until 19 March 2017, and

• they were receiving their income support payment on 19 September 2016, or
• they had their income support payment cancelled between 9 August 2016 and 19 September 2016.

What changes might cause grandfathered status to be lost

Grandfathered status for CSHC Energy Supplement might be lost after 19 March 2017 if:

1. A person is a CSHC holder and they depart Australia permanently or for a temporary absence greater than 19 weeks. If they leave Australia temporarily for greater than 19 weeks, they will still receive Energy Supplement for the first six weeks but on return to Australia, they will not be grandfathered and will not be able to receive Energy Supplement after 19 March 2017. This rule applies to anybody absent from Australia on 19 September 2016 and to any departure from Australia after that date.
2. A person is a CSHC holder and they were outside of Australia for greater than six weeks as at 19 September 2016.
3. A person’s income support payment is cancelled and they do not apply for a CSHC within six weeks of the cancellation date of their income support payment.
4. A person’s income support payments are not continuous after 19 March 2017 (i.e. there is a gap in their payments).
5. A person transitions from a CSHC to an income support payment and they are not granted an income support payment on the date their CSHC was cancelled (i.e. there is a gap between the cancellation of their CSHC and the grant of their income support payment).
6. A person no longer holds a CSHC or receives an income support payment after 19 March 2017.
7. A person elects to not receive Energy Supplement payments with their CSHC.
8. A person fails to provide their payment information within 28 days to the Department of Veterans’ Affairs. This time period may be extended by the Commission.

Note: A person who is a war widow(er) pensioner or MRCA wholly dependent partner will receive Energy Supplement with these payments and will not receive Energy Supplement as a CSHC holder.