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Applying mutual obligation requirements during a Liquid Assets Waiting Period (LAWP) 001-09020080




Effect of LAWP on mutual obligation requirements

This table provides scenarios showing the effect of LAWP on mutual obligation requirements.

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Item

Scenario

1

LAWP and mutual obligation requirements

Sharna is single and 20 years old, and is claiming Youth Allowance (YA) on 2 November after ceasing work as an apprentice mechanic on 1 November. Sharna had $6,550.00 in a savings account, so is subject to a LAWP of 3 weeks. For examples of LAWP calculations, see Liquid Assets Waiting Period (LAWP).

  • This means that Sharna will not be entitled to any YA for the first 3 weeks
  • As the LAWP is longer than 2 weeks, Sharna may not want to be referred to an employment services provider, as they are not subject to mutual obligation requirements until after the LAWP is served

2

LAWP and a mutual obligation requirements exemption

Damien is partnered and has ceased work on 1 July due to a medical condition. Damien submitted a claim for JobSeeker Payment (JSP) on 2 July, and advised they have $15,000.00 in their bank accounts. The LAWP is 5 weeks. For examples of LAWP calculations, see Liquid Assets Waiting Period (LAWP).

Damien has a broken leg and has been granted a temporary exemption for 8 weeks. The 5 week LAWP period and the 8 week temporary incapacity exemption period are served concurrently. Damien will be exempt from mutual obligation requirements due to their temporary incapacity for 3 weeks after their LAWP is served.

  • Damien will remain Centrelink managed for the duration of their temporary incapacity exemption
  • As Damien remains exempt from mutual obligation requirements after their LAWP ends, referral to an employment services provider is not required until after the temporary incapacity exemption ends
  • When the exemption ends, Damien will need to satisfy their mutual obligation requirements. Damien will be referred to an employment services provider who will negotiate a Job Plan

3

LAWP for a customer who is a single principal carer of a dependent child

Tony is single and has a 15 year old child in their care. Although being laid off from a full time job due to closure of business, Tony is working part-time for 20 hours per week at above minimum wage rates. Tony claims JSP and declares having $7,500 in bank accounts, so a LAWP is not applied. For examples of LAWP calculations, see Liquid Assets Waiting Period (LAWP).

  • Tony is undertaking part time work that can fully satisfy their mutual obligation requirements as a principal carer. Tony has been registered as Job Seeker Registration Only (JSRO) and has elected not to be referred to an employment services provider
  • Tony's part time work is recorded as an approved activity. They will become Centrelink managed and required to negotiate a Job Plan with Services Australia. The Job Plan will include the approved part time work as a compulsory activity in Tony's Job Plan