Skip to navigation Skip to content

Seasonal downturn in business 043-03130060

Expand/Collapse all sectionsExpand all


This document outlines information on how income is assessed for a customer who receives income from a business, when they advise of a seasonal downturn, but not complete cessation of business activity.

Seasonal downturn of income from a business

This table describes how income is assessed for a customer who advises of a seasonal downturn of business activity.

Step

Action

1

Customer advises of downturn + Read more ...

Customer advises that their previous financial statements no longer provide an accurate indication of the likely current rate of income to be earned by the customer from the business because of a downturn in business activity.

\\INTERNAL.DEPT.LOCAL\Shared\NAT\SERDELEXCEL\WORKPRODIMP\Operation Blueprint Migration\RDT Release Icons\32w\icon-phone.png

  • Discuss the new situation with the customer
  • Document the discussion outlining what changes have occurred, and
  • Ask the customer to upload their business documents (such as an interim profit and loss statement, balance sheet and evidence of the downturn in business) to support their advice:
    • If the customer cannot upload their documents, they can attend their local Service Centre with the relevant business documents. No further action can be taken at a Smart Centre. Procedure ends here.

If the customer is claiming or receiving JobSeeker Payment or Youth Allowance (job seeker), ensure customer is able to satisfy their mutual obligation requirements. Further action is to be taken to reject or cancel if qualification for payment is not met. For more information, see Eligibility for JobSeeker Payment (JSP) and Youth Allowance (job seeker) when self-employed.

Is the downturn due to a regular or seasonal event which is part of the normal cycle of activity for the enterprise?

  • Yes,
    • If new claim, the business income is to be assessed as per Income and assets from business structures. Procedure ends here
    • If not new claim, no reassessment is required as current business income should have been based upon the previous 12 months of business activity which takes into account seasonal changes. Procedure ends here
  • No, go to Step 2

2

Customer to provide financial information + Read more ...

Customer must provide the full financial details including a profit and loss statement, a balance sheet and evidence of the circumstances that require a review.

Is the customer currently receiving an income support payment or is this a new claim?

3

Claim for payment subject to SWPP + Read more ...

Is the customer claiming a payment subject to a Seasonal Work Preclusion Period (SWPP)?

  • Yes, the customer's estimate of the anticipated business profit from the current period of reduced business activity should be converted to an annual rate by multiplying the estimated profit by the period for which the business reduced activity is undertaken. This amount is then reduced to a fortnightly basis
  • No, assess income as per Income and assets from business structures