When can my social security payments be stopped or reduced?

In Plain English

Your social security payments can be stopped or reduced in a number of situations. Here's a breakdown:

You're not eligible: If you don't meet the requirements for the payment, or you were incorrectly paid in the past, the Social Security (Administration) Act 1999 allows the Secretary to cancel or suspend your payments.
You don't provide required information: If you receive a notice asking for a statement or other information and you don't respond, your payments may be cancelled or suspended. This can also affect your rent assistance.
You leave Australia without notifying: If you are required to inform the Department of your intention to leave Australia and fail to do so, your payments may be cancelled or suspended.
You don't take action to get foreign payments: If you are required to apply for payments from another country and you don't, your social security payments can be stopped or suspended.
Your partner starts receiving a pension or benefit: If your partner starts receiving a social security pension, service pension, or other benefit, your Austudy payment or Partner Allowance may be reduced.
Changes in your circumstances: If you don't inform the Department of changes to your circumstances that affect your eligibility or rate of payment, your payments may be reduced or stopped.
Automatic computer changes: The Social Security (Administration) Act 1999 allows for automatic changes to your payments (including cancellation or reduction) based on computer programs.

Detailed Explanation

The Social Security (Administration) Act 1999 outlines various circumstances under which social security payments can be cancelled, suspended, or reduced. Here's a more detailed look:

Cancellation or Suspension Due to Ineligibility: Section 80(1) of the Social Security (Administration) Act 1999 states that if the Secretary is satisfied that a social security payment is being paid to someone who is not qualified or to whom the payment is not payable, the Secretary must determine that the payment be cancelled or suspended.
Non-Compliance with Notices: Section 81 of the Social Security (Administration) Act 1999 allows the Secretary to cancel or suspend payments if a recipient fails to comply with notices requiring them to provide statements or other information. This also extends to situations where a partner fails to comply with such a notice, and it affects the recipient's payment. Section 81(3) specifically addresses situations where a person leaves Australia without informing the Department, potentially leading to cancellation or suspension.
Failure to Obtain Foreign Payments: Section 82 of the Social Security (Administration) Act 1999 allows for cancellation or suspension if a recipient fails to take required actions to obtain payments from another country, after being given a notice to do so.
Automatic Rate Reduction: Section 101 of the Social Security (Administration) Act 1999 specifies that if a person receiving parenting payment also starts receiving a social security pension, service pension, income support supplement, or veteran payment, the parenting payment will be reduced accordingly.
Automatic Changes by Computer: Section 103 of the Social Security (Administration) Act 1999 allows for automatic cancellation or reduction of payments via computer programs. The Secretary is taken to have made a determination that the relevant provision applies. Section 83 provides similar provisions.
Partner Allowance: Sections 771NB, 771NC, 771ND, 771NE and 771NF of the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994 outline various automatic termination events for Partner Allowance, including transfer to a new payment type, the partner receiving a pension, or failure to comply with notification obligations.
Austudy Payment: Sections 587, 588, 588A, 588B, 588C and 588D of the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998 outline various automatic termination events for Austudy payments, including failure to comply with notification obligations.

It's important to note that the Social Security Act 1991 and related legislation are complex. If you receive a notice about changes to your payments, it's crucial to seek clarification from Services Australia or legal advice to understand your rights and obligations.