Commencing or returning to work or self-employment Parenting Payment Single (PPS) 102-07030100

Determine whether the customer is considered self-employed or a sole trader. Note: calculating self-employment/sole trader income is different to calculating regular employment income.

See:

• Factors to determine self-employment
• How to identify a sole trader

Has the customer commenced or returned to self-employment or sole trader business?

• Yes, see Documents required to assess a sole trader business. Procedure ends here
• No, go to Step 2

Tell the customer of incentives for commencing work:

• Any Working Credits will be used to offset employment income. View the customer's Working Credit Balance Explanation (WCBE) screen
• Only income above the customer's income free area will reduce their PPS rate. See Parenting Payment Single (PPS) income and assets test
• The customer may be eligible for an employment income nil rate period if PPS is reduced to nil and some of the income is employment income. Advantages include:
• Payments resuming without the need to reclaim if the customer's income reduces so they become eligible for at least a part rate of PPS
• Payment of Child Care Subsidy (CCS) at the non-income tested rate
• Entitlement to a Pensioner Concession Card
• The customer may be entitled to a Special Employment Advance (SEA)

Has the customer specifically asked to cancel their PPS?

• Yes, ensure the customer is aware of the benefits of the employment income nil rate period and using their Working Credit balance. If the customer insists that their PPS be cancelled immediately:
• Code cancellation on the Benefit Action (BA) screen. Use reason 'CLR' - Withdrawn/Voluntary Surrender with the correct date of effect (DOE). This is the Entitlement Period Start Day (EPSD) of the period the customer has requested their payments to stop. For further details, see Cancellation of Parenting Payment
• Complete the activity on the Assessment Results (AR) screen and record details on a DOC
• See Step 5 in Table 2
• No, or if the customer would like to take advantage of the employment income nil rate period, go to Step 4

Promote to customer that they can update employment status online through their Centrelink Online account or the Express Plus Centrelink mobile app when they:

• start, or
• cease employment

Make genuine attempts to transition customers to report via self service options before completing assisted reporting, unless an Exception applies.

Obtain the following details from the customer when they are unable to update details online:

• employer's details, to allow contact if necessary (at least a contact name and phone number). Include business name and Australian Business Number (ABN) number if possible
• date of first pay
• gross employment income paid per week/fortnight
• hours worked
• period of employment, if known

Tell the customer:

• the benefits of providing verification of their employment income
• of possible eligibility for Special Employment Advance (SEA)DOC minimum standards

These only require the collection and recording of enough information about the employer (for example, contact name and address or phone number) to allow:

• correct assessment of income, and
• contact with the employer if necessary

Some customers (for example, those who work in sensitive areas such as refuges) may not want all employment details (for example, business name) recorded on a DOC. This does not affect the requirement to collect sufficient information for assessment or review purposes.

Are all the employment details provided?

• Yes, go to Table 2
• No, go to Step 5

• Ask the customer to give actual employment income, first paid date and/or employer details when known
• Tell them an overpayment will occur if employment details are not given within 14 days of the date their employer pays them
• Place the customer onto 2 weekly reporting if the paid work is continuing. More information is contained in Step 2 in Table 2
• Tell them of possible eligibility for Special Employment Advance (SEA)
• Tell them to update their Family Tax Benefit (FTB) estimate as soon as possible. For more information, see Effect of income support entitlement on Family Tax Benefit (FTB)/Child Care Subsidy (CCS)

Customers without mutual obligation requirements

• If income is:
• Either a regular amount and not paid 1 weekly or 2 weekly, or amount will vary, they will need to report 2 weekly. They can do this via self-managed service channels or in person on their Entitlement Period End Day (EPED) each fortnight to stimulate their payment
• Paid 1 weekly or 2 weekly and is paid the same gross amount each pay period, they can stay a notification reporter and will be subject to the normal 14 day notification provisions
• These customers can update their employment status via their Centrelink online account

Make genuine attempts to transition customers to report via self service options before completing assisted reporting, unless an exception applies.

Customers with mutual obligation requirements

• To be paid PPS, they will generally need to report each fortnight:
• via self-managed service channels (online account, Express Plus Centrelink Mobile App or phone self service)
• in person, or
• in writing (SU19)
• Discuss if this employment will meet their mutual obligation requirements
• If the employment can be approved by Centrelink as meeting the customer's mutual obligation requirements:
• renegotiate Job Plan, or
• book an appointment to arrange an update of Job Plan

The system will automatically identify a customer's reporting requirements, but it may take several weeks. Manually update reporting requirements if it is clear that their income will vary.

Does the customer need to be manually placed on 2 weekly reporting?

• Yes, go to Step 2
• No, go to Step 3

• Go to Reporting Summary via Workspace, select Place on EAN Reporting and follow the Reporting Regime workflow. Otherwise, update the Reporting Regime Details (RPRD) screen to 2 weekly. See Reporting screens for help if needed
• Discuss self-service options (online account, Express Plus Centrelink mobile app or phone self service) for reporting employment income
• If the customer is using their online account or the Express Plus Centrelink mobile app, tell them they can use this service to report income. If they subscribe to online letters and electronic messaging, they can receive reporting reminders
• If the customer does not report income online, tell them a 12 weekly Reporting Statement will be issued to them. This shows the dates and the periods that they will need to report. This may take up to 7 days to reach them, so check the date in the Current/Future Reports field on the Reporting Summary screen and tell the customer the date they are next due to report. Ensure they understand they will not be paid if they do not report on their EPED. Check they have a PIN for quick access to the reporting line (13 3276)
• Check the customer's reporting day is the day they prefer to report. If not, change their EPED to their preferred day on the Payment and Delivery (RAD) screen
• Direct the customer to the Services Australia website to find out more about income reporting
• Explain how the earnings worksheets can help them report, and that they can be accessed on the website

Make genuine attempts to transition customers to report via self service options before completing assisted reporting, unless an exception applies.

If the customer is also advising income details, record all employment details. See Recording and correcting employment income details.

If the customer is notifying income details for previous entitlement period (EPED), request all employment income details from the date of commencement until the last EPED and code earnings on record.

If the workflow is unavailable, manually update all details on the Employment Income Summary (EANS) screen.

Employment income for PPS customers with mutual obligation requirements who are full-time employed with continuous employment income should be coded as 'IOP' if their pay period is equal to, or less than, the entitlement period. Where the customer's pay period is greater than the entitlement period, use the 'LOP' frequency and include the start and end dates of their pay period.

Is the customer's PPS still current (including employment income nil rate period)?

• Yes, go to Step 4
• No, go to Step 5

• 2 weekly reporters need to report their income via self-managed service channels (online account, Express Plus Centrelink mobile app or phone self service), in person or in writing (SU19) on their Entitlement Period End Day (EPED) each fortnight to stimulate their payment. Customers in an employment income nil rate period need to continue reporting on their EPED or their payment will cancel
• Notification reporters need to notify within 14 days of any changes

Make genuine attempts to transition customers to report via self service options before completing assisted reporting, unless an exception applies.

Ask customers to provide proof of income as part of the Earnings Service Update process. Tell them not to wait until they are reviewed to notify employment income.

If the customer has mutual obligation requirements, discuss whether this employment will meet their requirements. Renegotiate the Job Plan or book an interview to arrange an update of the Job Plan.

• If PPS will cancel, the customer will need to provide an income estimate for FTB/CCS
• If they enter an employment income nil rate period, they are required to provide an income estimate within 21 days for their FTB payment to continue
• The customer may wish to update work/training/study test details for CCS
• If the customer requires extra help with the cost of child care, they may be eligible for Additional Child Care Subsidy (ACCS) Transition to Work
• A PPS customer’s entitlement to certain concessions and/or add-ons, for example, Telephone Allowance (TAL) and Pension Concession Card (PCC), may continue for a further period, if they:
• have an assessed partial capacity to work due to a disability, claimed after 1 July 2006, and
• had their payment cancelled due to employment income on or after 1 January 2008

To avoid this problem, create a Display on Access (DOA) DOC for all PPS customers granted an employment income nil rate period. So PPS cancels correctly, the DOC should tell the Service Officer how to code employment income if the customer reports late for the thirteenth and final fortnight of the employment income nil rate period.

For details of text to include in the DOA DOC, and coding for the final fortnight, see Employment income nil rate period.

Date of effect (DOE) of the cancellation will be after the 12 full fortnights at Nil rate from the first affected entitlement period (it can be between 85 to 97 days due to income that is partly or fully from employment)

Effect on Family Tax Benefit (FTB)

The exemption to the income test for payment of FTB Part A will not apply if the customer commences an employment income nil rate period. They must provide an income estimate within 21 days of the commencement of the period, otherwise payment of FTB will cancel.