Special Employment Advance (SEA) 103-05050030

Claim for Special Employment Advance

SU514 - Claim for Special Employment Advance - Services Australia Intranet

Claim for Special Employment Advance form (SU514) - Services Australia website

Examples of SEA where income earned but not yet received

Table 1: This table describes information relating to how income, which has been earned but has not yet been received impacts on the SEA payment.

These amounts are examples only. The rates were correct as at March 2021. For current payments, see Rates and thresholds.

Example	Income earned but not yet received
1	Earned income but has not yet been received and outstanding SEA Job seeker has earned income but has not yet received it, has an outstanding SEA and zero working credits. Michael is a 30 year old single job seeker who does not pay rent. Michael is entitled to $620.80 JobSeeker Payment (JSP) per fortnight. He has earned $700 but has not received it. Michael already has an outstanding SEA of $150, zero working credits and has applied for an SEA of $400. Michael is entitled to the smallest of the following amounts: amount requested = $400 reduction in Basic Entitlement = (under the Allowance Income Test) $53 + (earnings - $256) x 0.6 $53 + ($700 - $256) x 0.6 $53 + $444 x 0.6 $53 + $266.40 $319.40 the current available SEA amount ($500-$150) = $350 In this example Michael's unreceived income will reduce his maximum basic rate of payment by at least 50%, so the SEA is payable. Michael would be paid an SEA of $319.40.
2	Earned income but has not yet been received and has working credits Job seeker has earned income but has not yet received it, has 200 working credits and applies for a SEA of $500. George is a 30 year old single job seeker who receives $620.80 JSP plus $60.00 Rent Assistance (RA) per fortnight. George has earned $1000 but has not received it. George has 200 working credits and applies for a SEA of $500. Working Credit: The depletion amount is the lesser of: Employment income = $1000 Total Ordinary Income (TOI) – Income Free Area (IFA), which equals $1000 - $150 = $850 Working Credit balance = $200 The depletion amount is $200 The adjusted TOI = Employment Income – depletion amount $1000 - $200 = $800 For the SEA, George is entitled to the smallest of the following amounts: amount requested = $500 reduction in Basic Entitlement = (under the Allowance Income Test) $53 + (adjusted TOI - $256) x 0.6 $53 + ($800 - $256) x 0.6 $53 + $544 x 0.6 $53 + $326.40 $379.40 the current available SEA amount = $500 In this example, George's unreceived income will reduce his maximum basic rate of payment by at least 50%, so the SEA is payable. George will be paid an SEA of $379.40.
3	PPS customer has started work and has not yet received their earned income Ruth is a single parent who has one child and receives PPS. Ruth is entitled to the maximum rate of $825.80 per fortnight. Ruth starts employment and has earned $850 over the past fortnight, but has not yet received it. Ruth has accrued 500 working credits. Working Credit: The depletion amount is the lesser of: Employment income = $850 Total Ordinary Income (TOI) - Income Free Area (IFA) which equals $850 - $192.60 = $657.40 Working Credit balance = $500 The depletion amount is $500 The adjusted TOI = Employment Income - depletion amount $850 - $500 = $350 For the SEA Ruth is entitled to the smallest of the following amounts: amount requested = $500 the current available SEA amount = $500 reduction in Basic Entitlement (under the Pension Income Test) (adjusted TOI - $192.60) x 0.4 ($350 - $192.60) x 0.4 $157.40 x 0.4 $62.96 (rate reduction) As the income has not reduced, Ruth's rate by more than 50 percent there is no entitlement to an SEA.
4	Single Youth Allowance (YA) student applies for SEA of $200 A single student customer entitled to $611.90 per fortnight basic YA has earned $200 over the past fortnight but has not received it. Under the YA income test, the $200 earned would not affect the customer's payment as students receiving YA have an income free area of $437 per fortnight. Because the effect of unreceived income does not reduce the customer's maximum basic entitlement by 50%, the customer is not entitled to an SEA.

Examples of SEA where job seeker returns to work

Table 2: This table describes information on how returning to work impacts on the entitlement to the SEA payment.

Example	Return to work
1	Customer receiving PPS is offered a temporary position Mary is receiving PPS and has been offered a two-month temporary position at a local retail store. The income from the job will reduce Mary's PPS payment to zero. Mary must purchase suitable clothing for the job and can verify a need to spend $250. Mary already has a normal advance, but has never had a SEA. Mary has no liquid assets. Mary would be entitled to receive an SEA of $250.
2	Parents receive Youth Allowance (YA) for a job seeker under 18 who has a current SEA of $350 and a definite offer of work John, a job seeker under 18, is receiving YA, which is being paid to his parents. John has a current SEA of $350 and a definite offer of full-time work. To start work, John must purchase work tools costing $250. These are essential to taking up the work. John has no liquid assets and applies for an SEA of $250. John is entitled to the smallest of the following amounts: $500 amount needed (essential expense) = $250 the current available SEA amount = $500 - $350 = $150 John is entitled to an SEA of $150. However, John will only be paid the SEA upon demonstrating being able to access the additional $100, so the required expense can be met. As John's YA payments are made to John's parents, the SEA would also be paid to them, unless directed otherwise.
3	Single job seeker in receipt of JobSeeker Payment (JSP) applies for a SEA of $500 to take up employment James, a single job seeker in receipt of JSP, applies for a SEA of $500 to take up employment. James is a chef and must pay $500 for clothing and equipment. The maximum payment rate (basic rate of JSP) is $620.80. James has $730 in liquid assets. James is entitled to the smallest of the following amounts: amount needed (essential expense) = $500 the current available SEA amount = $500 Less excess liquid assets (the liquid assets exceed James' maximum payment rate by $109.20) James would therefore qualify for an SEA of $390.80. (Amount payable $500 less excess liquid assets of $109.20). James can only be paid the SEA of $390.80 upon demonstrating an ability to spend $109.20 of personal funds to purchase the items.

Examples of other issues relating to SEA payment entitlement

Table 3: This table describes information on other factors, which impact, on entitlement to SEA payments.

Example	Other issues relating to SEA entitlement
1	SEA interviews and applications for remote customers Interviews can be conducted by telephone. All verifications will need to be completed for the customer. The Service Officer must make sure that the customer fully understands the implications of taking an SEA The SEA legislation needs a written application
2	SEA to help someone to register as a provider of child care If there are going to be earnings as a direct result of the registration the answer may be yes, however, an SEA cannot be paid if the action is speculative - that is, will increase the chance of getting work.
3	Offering a standard advance of a person's social security entitlement rather than a SEA It is easier for a customer to qualify for a standard advance of their social security entitlement payment rather than the SEA, however providing a standard advance may not always be the best solution for a customer and could limit the availability of future standard advances. Service Officers are to assess the customer's eligibility for the SEA and discuss this option with the customer. If a customer is likely to go off payment, the outstanding balance of the advance is converted to a debt and the appropriate recovery action is taken. If the customer is likely to continue on payment, processing a SEA might allow them to keep the standard advance 'in reserve'. A standard advance can be offered as an alternative to an SEA if this is unavailable or the customer prefers. It is not mandatory to utilise the standard advance options before applying for an SEA.
4	Multiple SEA applications for extended casual work This procedure covers situations when a customer is going to be affected by unreceived casual earnings over several fortnights: In the first fortnight that the customer is affected, follow the usual verification procedure for unreceived earnings. Essentially, this means verifying when the customer is going to be paid. SEA for unreceived earnings can only be considered when the customer has declared their earnings and their Centrelink payment is reduced by at least 50% The amount of SEA payable will be the smallest of: the amount requested the effect of unreceived income on the customer's entitlement the remaining SEA balance available For subsequent requests, the outstanding balance of an earlier SEA will reduce the amount of the SEA. This will make sure that the $500 SEA limit is not exceeded. a new SEA application is needed for each subsequent unreceived earnings affected fortnight information required in these applications will only need to satisfy Centrelink that the customer's circumstances will still allow them to qualify for SEA it is most unlikely that it would be necessary to carry out new verifications
5	How early can a customer apply for SEA for a return to work? Customers applying for an SEA because of unreceived casual earnings cannot 'apply' until the payday that the unreceived earnings affects their rate of payment. A customer who needs help to return to work can put in the application any time before they return to work. It is still necessary to check that the customer meets all the necessary verification requirements (harder if this is a long time before the job is to start). In addition, the SEA payment should not be made until the customer needs to incur the costs of starting the job. For example: A Tasmanian customer has been offered a job on the mainland and is due to start in several weeks' time. SEA is sought to help primarily with the cost of getting to the job location. If the customer is eligible for the SEA, it should be paid as soon as the customer needs the money to pay for their transport. If the customer wants to reduce their costs by way of 'advance purchase' of a ticket, the SEA would need to be paid in time to allow this Note: it is not up to Centrelink to decide what mode of transport the customer should use.

Advance payment rejection reasons

Table 4: This table outlines the main rejections codes for Special Employment advance payments