Centrelink Youth Allowance Question about Back Payments

Lwehler53 on 12/01/2017 - 17:32
Last edited 12/01/2017 - 18:35 by 1 other user

Have a bit of a interesting question that I'm wondering if anyone has been in this position before and could let me know what happens or has seen or heard about someone in this position in the past.

I started receiving the youth allowance this year as a dependent as I missed out on the required hours to be independent by a couple hours a week. Anyway, my parents always get their tax done just before the deadline, and had to submit an estimate, unfortunately for me apparently they count the sale of their permanent residence to buy a new permanent residence as income (I'd also like to note they made a loss on this, seriously the whole income before lose is so stupid). But my payments were cut off as of the 01/07/16, however they are 100% below the threshold for the last full financial year, so I will be receiving the youth allowance again once they receive their tax back from the accountants.

So here is what I want to know since I should have been receiving the youth allowance payments since 01/07/16 as my parents income is below the threshold, will I receive a back payment for the period I should have been receiving it, but haven't as I've been waiting for my parents tax details?

I appreciate any answer, and will update this in the future for anyone who doesn't know but wants to, once I have it all sorted.

To me it makes sense that they would back pay me because I should have been receiving payments and they wouldnt let my parents submit a new estimate, but then again this is Centrelink so I really don't think they will.

Sorry if this is in the wrong area of the forum, this is my first time posting and this seems like the most logical place to post! :)

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  coco1458 on 12/01/2017 - 18:01

  You most likely won't be back paid tbh with you, and because this is a new calendar year they'll most likely make you submit a new claim, therefore not being able to be back paid.
  I suggest calling up at 8:05am and having a chat to them and see whether you can get your payments reinstated, if not they'll most likely just tell you to go through the motions of submitting a new claim.

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    wehler53 on 12/01/2017 - 19:18

    Its interesting you bring that point up, i was concerned about this because i was unsure about how long it'd take for my parents to receive their tax details back and wanted to make sure i didn't have to resubmit a new application because it is a very painful process. However when i called i was assured i wouldn't have to, hence why I'm wondering if they would back pay, as they wouldn't let me have an estimate submitted and because of that I've had to wait for my parents tax to be finalised and have hence missed 7 months of time i should have been getting paid for.

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      coco1458 on 12/01/2017 - 19:52

      It's been more than 13 weeks since the appeal date closed, I honestly doubt they'll reinstate your payment.
      The best thing to do is to submit a new claim, generally someone will call you when looking at your new claim and you can try to sort it out with them and see if they'll back pay from your previous claim

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  MercSal on 12/01/2017 - 18:37

  I cant understand why their primary residence would be subject to capital gains. Had they rented it out previously?

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    wehler53 on 12/01/2017 - 19:13

    Neither could I, I had a chat with them at length about it and they couldn't give me a straight answer. They had not ever rented it out.

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      MercSal on 12/01/2017 - 19:55

      Look, I'm not a tax agent or something, but I don't know of any circumstance where a primary residence would be subject to capital gains… Something has gone wrong, but I would stress that you should follow the other advice here and get either a reinstatement claim or a new claim on the books ASAP.

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    ham0718 on 17/01/2017 - 23:57

    I work for an accounting firm - primary place of residence is never considered a capital gain event, unless they rented it (or a room) out at any time over the period they owned it… and then the capital gain should only be apportioned based on the amount of time it was rented/available to rent.

    The only thing the ATO might/should consider as income is if they had a bunch of money from the sale sitting in a bank account accruing interest… the interest would be income.

    Totally off topic - but they should ask their tax agent for an explanation.

    As for your youth allowance question… Back in the day when I was on youth allowance, I did receive back pay for the time they spent processing my application, but I'd be surprised if they back pay you even beyond the point at which the application is submitted.

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  argonide on 12/01/2017 - 18:43

  You would have received a cancellation letter from Centrelink, on the last page is says:

  If you do not agree with a decision we have made, contact us as soon as possible. It is important to ask for a review within 13 weeks of being notified about the decision. If your request for a review is more than 13 weeks after being notified and the decision can be changed, you may only receive your entitlement from the date you requested the review.

  Since it's more than 13 weeks past 07/2016, I would doubt that you would receive a back payment.

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    wehler53 on 12/01/2017 - 19:11

    Forgot to mention i did that, because it was quite a shock that they were over the threshold as they are pretty much retired. They told me they had to resubmit their tax for the last financial year and couldn't submit and estimate for the past year. That was all done within two weeks, and id like to point out i received no letters, i only found out because i logged into my mygov account ad checked the mail there.

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  clement1986 on 16/01/2017 - 07:39

  Centrelink is under a lot of pressure, so is everyone else. Anyway, follow up with them, visit their offices and hopefully someone who understands the system will be able to help you.