Commencing or returning to work for JobSeeker Payment (JSP) and Youth Allowance (job seeker) 102-07030080

Job seekers who report every 2 weeks and start work, for example, full-time, part-time, casual, on-call, must tell Centrelink on their Entitlement Period End Day (EPED) they have been paid employment income. They may advise in advance they are starting work but must report their paid gross employment income on their reporting day.

When a customer is on variable reporting (that is, 4WE, 12WE) and starts work, for example, full-time, part-time, casual, on-call, they must tell Centrelink on or before the EPED in the reporting period, they started work.

Income a customer earns from employment may affect their payment under the appropriate income test. The income test and Working Credit provides extra incentive to customers to obtain work. Employment income will only affect the customer's payment when their Working Credit is depleted. If the customer exceeds the relevant income threshold they will enter an employment income nil rate period.

If a customer is returning to work as a full-time Australian Apprentice, consider entitlement to payments as an Australian Apprentice, such as:

• ABSTUDY
• Austudy, or
• YA (student)

If a JSP customer's Australian Apprenticeship is full-time their current income support payment may be suspended. See Existing customer starts an Australian Apprenticeship. If they are a part-time Australian Apprentice, they may be eligible for assistance as a student. The customer must be studying an approved course and undertaking an approved study load for the relevant payment. Customers receiving these payments as an Australian Apprentice are subject to the same income and assets tests as students.

If a customer would receive nil payment due to the income test and some of that income is from their (or their partner's) employment, the customer is entitled to remain current at a nil rate for a period of up to 12 consecutive fortnights.

Customers under 25 and receiving Youth Allowance (YA) (job seeker) or JSP may be eligible for the YBWS initiative when placed in employment by their Workforce Australia provider. These customers are eligible for a 26 week suspension period. This starts on either:

• the completion of the employment income nil rate period, or
• the date they stop to be eligible for YA (job seeker) or
• JSP for an employment related reason

For more information, see Youth Bonus Wage Subsidy (YBWS) 26 Week Suspension Period.

• If the customer or their partner is on variable reporting and commences work, they will be placed on 2 weekly reporting
• For customers and/or their partners who are working, employment income details will need to be reported every 2 weeks
• If a customer contacts to advise they have started employment and it is not their reporting day, employment details must be recorded on a DOC. Tell the customer to report hours worked and employment income paid within their reporting period on their reporting day and explain how to do this. If the customer is a variable reporter, ensure the customer's reporting frequency is changed to 2 weekly and tell the customer their next reporting date
• When advising commencement of (or returning to) work, the customer must provide information about their employment circumstances

Customers should keep their own record of the hours worked and employment income paid so their payment is not delayed while waiting for this information from the employer. Customers can use the Earnings Worksheet (SU505) to keep track of any pay events and hours worked they need to report on their next reporting due date.

Note: family assistance and income support reporting obligations are different. Income support customers must report actual income paid, not just an estimate. Service Officers must discuss income reporting requirements at every opportunity and ensure actual income and income estimates are both updated when required. If either member of a couple is receiving family assistance, their estimate must include for both members of the couple:

• income support payments received
• Paid Parental Leave
• employment income, and
• any other components of Adjusted Taxable Income (received or expected) for the financial year.

Job seekers will be able to deplete their Working Credits and access the employment income nil rate period before their payment is cancelled due to income. Job seekers receiving JSP or YA (job seeker) may continue on payment if:

• they meet sufficient work requirements, and
• their income is not above the allowance income test cut off limit for the relevant payment

The most common examples of full-time workers who might still qualify for JSP without further mutual obligation requirements are:

• JSP and YA (job seekers) current customers who obtain full-time work may remain qualified for payment while in the employment income nil rate period
• A JSP customer with a pensioner partner:
• The income test for these couples results in a cut-out point for JSP which is considerably higher than applies to individuals in couples where both receive a social security benefit such as JSP
• Long-term single JSP customers aged 60 or more who receive Rent Assistance (RA):
• The cut-out point for these customers can also exceed full-time minimum wages
• JSP single principal carers in full-time work:
• The income test for these customers means they are entitled to part rate of JSP after Working Credits are depleted

Job seekers who can satisfy their mutual obligation requirements by undertaking sufficient work of 15 hours per week include:

• principal carers
• job seekers assessed as having a partial capacity to work, or
• mature age job seekers 55+

Providers only can approve combination paid work activities for some job seekers to fully meet their mutual obligations, by undertaking at least 30 hours per fortnight of:

• paid work and study (PPW activity code) for principal carers and those assessed with a partial capacity to work (15-29 hrs)
• approved voluntary work, study and paid work (PSV activity code) for principal carers under 55 years of age, and
• approved voluntary work and paid work (PVP activity code) for principal carers under 55 years of age

Job seekers assessed as having a partial capacity to work will have their work capacity reviewed by an Employment Services Assessment (ESAt) if they work more than 60 hours per fortnight over a period of 3 consecutive fortnights.

Job seekers who are 55 to 59 years (inclusive) and are in the first 12 months of receipt of their current income support payment (including suspension periods of up to 3 months); meet their mutual obligation requirements if they:

• undertake sufficient work for at least 30 hours per fortnight where income is equal to or more than the national minimum wage
• are self-employed, for at least 30 hours per fortnight, with net business income equal to or more than the national minimum wage
• engage, for at least 30 hours per fortnight, in:
• paid work, including self-employment
• a combination of paid work and approved voluntary work, at least 15 hours of which must be paid work

After receiving their current income support payment for 12 months or on turning 60 years, these job seekers may satisfy their requirements by undertaking 30 hours or more per fortnight of any combination of:

• approved unpaid voluntary work, and
• paid work/self-employment

This includes solely through approved unpaid voluntary work.

A person who reaches 60+ years can meet their mutual obligation requirements if they satisfy one of the following:

• Engage in approved unpaid voluntary work with an approved organisation for at least 30 hours per fortnight
• Undertake sufficient work for at least 30 hours per fortnight where income is equal to or more than the national minimum wage
• Are self-employed for at least 30 hours per fortnight with net business income equal to or more than the national minimum wage
• Engage for at least 30 hours per fortnight in a combination of:
• approved unpaid voluntary work for an approved organisation, and
• paid work, including self-employment

If the customer or partner receives Family Tax Benefit (FTB) or Child Care Subsidy (CCS), check if the customer needs to revise their estimate of annual income and tell the customer of the available payment choices. This will help reduce the risk of overpayment due to changes in their income during the financial year. If either member of a couple is receiving family assistance, their estimate must include income support payments received, or expecting to receive, employment income and any other components of Adjusted Taxable Income (received or expected) for the financial year for both members of the couple.

If a customer has been granted an income support payment or allowance and is yet to receive a payment, then the customer advises they have returned to work or employment income precludes their payment before their start day, the claim will have to be manually rejected.

Customers who are registered for self-service can report their employment income via self-service on their reporting due date.

Service Officers are to record employment information via the Earnings and reporting workflow tool.

See Assessment of employment income for Centrelink payments and Recording and correcting employment income details.