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Seasonal business activity has ceased completely 043-03130100

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This document outlines the assessment of income for a customer who operates a business either as a sole trader, in a partnership or through a trust or company, and who advises that their regular seasonal business activity has ceased. This seasonal event is part of the normal cycle of activity of the business.

Assessing business income when business activity has ceased

This table describes the steps when assessing income for a customer who operates a business and who advises that their regular seasonal business activity has ceased.

Expand table

Step

Action

1

A customer who operates a business as a sole trader or in partnership or through a trust or company, advises they have completely ceased their business activity

Phone contact: Typically done by Smart Centre staff. Staff may complete this step if they are trained.Advise the customer to attend their local service centre to discuss their new situation or to lodge supporting documents.

Supporting documentation

This could include:

  • a contract of sale
  • a letter from the customer’s accountant confirming downturn
  • confirmation a lease on a shop has expired
  • confirmation plant and equipment have been sold
  • a copy of the last contract
  • a copy of notice showing expiration of contract
  • an updated profit and loss statement and/or balance sheet

Procedure ends here.

Face-to-face contact: Typically done by service centre staff. Staff may complete this step if they are trained.Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained.Has the customer ceased trading altogether?

2

Is the customer unable to work due to injury or illness?

Face-to-face contact: Typically done by service centre staff. Staff may complete this step if they are trained.Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained.

3

Has the business ceased as a result of a regular or seasonal event?

Face-to-face contact: Typically done by service centre staff. Staff may complete this step if they are trained.Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained.

4

Ask the customer if they were to receive a new contract tomorrow, would they continue with the business?

Face-to-face contact: Typically done by service centre staff. Staff may complete this step if they are trained.Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained.

  • Yes, then the customer may only be experiencing an unexpected downturn in business. See Unexpected downturn of a business. Procedure ends here
  • No, then the customer is ceasing work due to other circumstances for example, caring for a partner. Go to Step 5

5

Is the customer making a new claim or asking for reassessment of their current payment?

Face-to-face contact: Typically done by service centre staff. Staff may complete this step if they are trained.Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained.

6

During the period of business inactivity, nil income is to be assessed from the business

Face-to-face contact: Typically done by service centre staff. Staff may complete this step if they are trained.Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained.

Code the sole trader/partnerships details in either:

  • Process Direct:
  • Key Start into the Super Key
  • Select the Self-employment workflow from the Task Selector
  • Customer Record:
  • Go to the Real Estate/Business Summary (REBS) screen

For sole traders and partnerships, select the business from the Real Estate/Business Summary (REBS) screen. Once selected, code the reassessment on the Business Details (BUS) screen:

  • Has this business ceased? field select Yes
  • Code the date the change of circumstances is to be applied in the Event Date: field
  • Net Income, Hours Per Fortnight, Income Owned percentages and Net Assets will default to zero (0)
  • For business activities undertaken through a private company or private trust, refer to a Complex Assessment Officer (CAO)

Procedure ends here.

7

Will customer have a SWPP applied to them?

Face-to-face contact: Typically done by service centre staff. Staff may complete this step if they are trained.Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained.

  • Yes, calculation of the current rate of income (if any) should be based upon the income received from the first day after the relevant period of seasonal work. See Seasonal Work Preclusion Period (SWPP)
  • No, no income is to be maintained from previous business activity. Continue with processing of claim

Note: if customer has ceased seasonal, intermittent or contract work to commence regular work, income should be coded as per normal income coding. See Employment income.