Commencing or returning to self-employment for JobSeeker Payment, Youth Allowance and Austudy 102-08030000

Key the sole trader/partnership details in either:

• Process Direct:
• key Start into the Super Key and select the Self-Employment workflow from the Task Selector
• Customer Record:
• go to the Real Estate Business Summary (REBS) screen

It is the customer’s responsibility to advise of any change of circumstances, generally within 14 days.

Assistance with business

If the customer wishes to have assistance with starting their own business, see Self-Employment Assistance.

Does the customer wish to cancel their payments?

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

Where the self-employment income is known or a reasonable estimate can be provided, information is coded on the Business Detail (BUS) screen. Service Officers should make relevant updates to the BUS and AEX screens where applicable.

Income support payments will cancel automatically where income is above the threshold. If customer also has employment income they may be eligible for:

• the accrual and depletion of Working Credits and/or
• 12 fortnights at nil rate of payment

Where income is unknown, a reasonable estimate cannot be provided, or the income did not preclude payment:

• for JobSeeker Payment (JSP) and Youth Allowance (YA), cancel payment using reason 'EMP' via the Benefit Action (BA) screen
• for Austudy, cancel payment using reason 'OTH' via the BA screen and issue a Q134 explaining the reason for cancellation

Date of effect is the date self-employment started.

Before finalising activity, check if the customer is eligible to receive a Special Employment Advance (SEA). A customer can only receive one of these payments. The SEA claim form and supporting documents can be lodged using the Document Lodgement Service (DLS).

Procedure ends here.

• For sole trader and partnership business structures, issue customer with a Business details (MOD F) form
• For trusts, issue customer with a Private trust (MOD PT) form
• For companies, issue customer with a Private company (MOD PC) form
• See Requesting information (CLK) for how to request the above MOD forms
• Check if customer is on variable reporting. If so, remove customer from variable reporting
• Record details on a Note/DOC. Procedure ends here until MOD forms returned
• Upon return of form, go to Step 4

• For sole trader and partnership businesses, assess the income from self-employment. See Sole traders or Partnerships
• For trusts and companies:
• Scan all the relevant documents and MOD forms for processing
• Service Officers must then refer the case to a Complex Assessment Officer (CAO) to assess the customer's involvement in the business
• CAOs will assess the income from involvement in a business using the financial documents and the MOD PT/MOD PC. The CAO will then index the business and code the income and assets for these businesses using a unique entity record in Environment A, which is linked to, and sends information to, the customer's record for assessment purposes
• For job seekers, if the customer's income reduces their rate to nil and:
• is from self-employment only, coding the self-employment income details will cancel the customer's payment immediately. See Step 2 in Table 2
• some of that income is employment income the customer can use their Working Credits to offset their employment income

The customer may also be able to remain current at nil rate for up to 12 fortnights and retain certain benefits (if a customer has been assessed as having a partial capacity to work, they may also retain their Pensioner Concession Card (PCC)).

Note: the customer cannot use their Working Credits to offset income from self-employment.

If the customer is currently receiving:

• YA (full-time student) or Austudy, go to Step 5
• JSP or YA (job seeker), go to Step 6

• Check if the customer continues to be enrolled in and undertaking a full-time study load
• Advise customer that their YA or Austudy payments will continue if they continue to satisfy the requirements of a full-time or concessional study load student

If the customer:

• ceased studying full-time, code the Customer Study Details (EDC) screen in Process Direct or the Education Course Details (EDC) screen in Customer First appropriately. Payments will auto-cancel. Procedure ends here
• is still studying full-time, and their only income is from self-employment, see Obtaining an estimate of business income for the process to follow. If the customer has employment income as well then they must be coded as a two weekly reporter. Advise customers that they cannot declare their self-employment income via self-service. See Step 2 in Table 2

To establish this, consider the following facts:

• Hours spent working in the business and activities conducted
• Are they continuing to look for full-time work while operating the business, and if so what type?
• Does the customer intend to resume self-employment?

See Eligibility for JobSeeker Payment (JSP) and Youth Allowance (job seeker) when self employed.

If the customer is:

• Not unemployed, see Step 1 in Table 2
• Unemployed, see Step 2 in Table 2

Take the following action:

• Advise the customer of their mutual obligation requirements. See Applying mutual obligation requirements
• Cancel the customer's JSP or YA, as they are not satisfying their mutual obligation requirements. See Coding a cancellation
• Advise customer of their continued entitlement to a Health Care Card (HCC) for six months (if they have been in receipt of payments for 12 months)
• Advise customer to contact Services Australia as soon as possible for advice on reclaiming if the business does not succeed

If the customer:

• has a partner on income support, reassess partner's entitlement, then go to Step 2
• does not have a partner on income support, record details on a DOC. Procedure ends here

Complete the following tasks:

• Advise customer how income from self-employment affects their payments. Staff can access the Combined Rate Estimator in Customer First. For help, see Online estimator options
• Advise customer how to declare income from self-employment. The customer must still fulfil their usual reporting requirements if they also have employment income
• If in receipt of JSP or YA (job seeker) advise the customer that they must satisfy their mutual obligation requirements
• If in receipt of Youth Allowance (student) or Austudy, remind the customer of their continued obligation to satisfy their respective requirements of their payment
• Advise the customer that if they are in receipt of JSP/YA (job seeker) with a partial capacity to work, they may satisfy their mutual obligation requirements if they are working a minimum of 30 hours per fortnight and declaring at least the national minimum wage for this period. Note: their work capacity may be reviewed if they work more than 60 hours per fortnight over a period of three consecutive fortnights
• If the customer is the principal carer of a dependent child, they may satisfy their compulsory participation requirements if they are working a minimum of 30 hours or more per fortnight and declaring at least the national minimum wage for this period
• If the customer has a partner on income support, reassess partner's entitlement

Key the sole trader/partnership details in either:

• Process Direct:
• key Start into the Super Key and select the Self-Employment workflow from the Task Selector
• Customer Record:
• Go to the Real Estate Business Summary (REBS) screen
• See Assessing and coding the Business details for sole traders and partnerships MOD F for assistance with coding

Eligible job seekers who meet the sufficient hours test and declare enough business income to satisfy the sufficient work test, can fully meet their mutual obligation requirement through Self-employment (SEL). See Self-employment as an approved activity to satisfy mutual obligation requirements

For trusts and companies:

• Make sure to scan all the relevant documents and MOD forms for processing
• Service Officers must then refer the case to a Complex Assessment Officer (CAO) to assess the customer's involvement in the business