Liquid Assets Waiting Period (LAWP) 106-05020040

The LAWP affects customers applying for JobSeeker Payment (JSP), Youth Allowance (YA) as a job seeker, and Youth Allowance (YA) or Austudy as a student or an Australian Apprentice.

For Austudy and YA (student) or an Australian Apprentice, see Table 2.

If the customer voluntarily surrenders their payment while serving a LAWP, reject the payment CLR - withdrawn/voluntary surrender from the date of claim.

Verification of liquid assets for JSP and YA job seeker new claims is not required.

Go to Step 2.

Liquid assets are calculated based on information provided by the customer in the online claim and on the customer's record. The calculated amount auto-fills in the LAWP Amount field on the NSA Start Date Calculator (NDC) screen in Process Direct. The calculated amount will adjust as information is updated on the customer's record.

Manually adjusted the LAWP

If a manual adjustment is required, record the details of the adjustment on the grant DOC. Liquid assets can be identified on the claim form, Module IA and/or existing information on the system.

Incapacitated customers

If the date on the medical certificate is before the date last worked, the date of incapacity is the day after the date last worked.

Note: if there is a difference between the amount of liquid assets at the day after ceased work or study and the date of claim, use the higher amount. See Assessing and coding the Income and Assets Mod iA. To determine the LAWP start date, go to Step 7.

See the References page for more information about what is a liquid asset.

The liquid assets maximum reserves are:

$5,000 for single people with no dependent children

$10,000 for couples, or if the customer has a dependent child

As partial weeks are rounded down to the nearest whole week, a customer's liquid assets must be equal to or exceed the below amounts before LAWP is applied:

$5,500 for single customers, or

$11,000 for partnered customers or single customers with dependent child/ren

If the customer is:

single with no dependent children, and liquid assets are:

greater than or equal to $5,500, go to Step 3

below the affecting amount, a LAWP will not apply. Record the details on a DOC. Procedure ends here

a couple or single with dependent children, and liquid assets are:

greater than or equal to $11,000, go to Step 3

below the affecting amount, a LAWP will not apply. Record the details on a DOC. Procedure ends here

Check this on the NDC screen.

If the previous claim was rejected while the LAWP was still being served, details may not be present on the NDC screen. Check if DOCs exist containing LAWP information.

Is the customer exempt from the LAWP?

Yes,

Do not apply the LAWP

Ensure the auto calculated LAWP amount on the NDC screen is set to zero dollars

Record the details on a DOC

Procedure ends here

No, go to Step 5

Yes,

See Assessment of hardship for LAWP

Procedure ends here

No, go to Step 6

Yes, if the customer wants to have their LAWP reassessed:

add all unavoidable or reasonable expenditure together

in Customer First, go to the NDC screen

enter the new LAWP amount

note the reason for the LAWP adjustment in the Manual Start Date Comments field

DOC the decision
Note: exclude any expenditure that is not reasonable or unavoidable, that is, disallowed as well as expenditure that cannot be supported by receipts

No, go to Step 7

If the customer is:

a member of a couple or has a dependent child:
LAWP = (liquid assets - $10,000 (maximum reserve)) / $1,000 = number of weeks of the LAWP

not a member of a couple and does not have a dependent child
LAWP = (liquid assets - $5,000 (maximum reserve)) / $500 = number of weeks of the LAWP

For the table of exclusion periods for LAWP, see Assessment of hardship for LAWP.

If the result is:

a fraction, round down to the nearest whole number to get weeks to apply as the LAWP

less than one, no LAWP applies

greater than 13 weeks, the LAWP equals 13 weeks

The start date of the LAWP is based on the customer's circumstances and auto-fills the NDC screen. This date can be adjusted if necessary and the details of the adjustment recorded on the claim grant DOC.

If the customer is:

single and not incapacitated, the LAWP starts from:

the day after the person ceased work

the day after the person ceased to be enrolled in full time education or vocational training; or

the claim start date where the person has not previously worked or studied
There is no time limit on this. The claim start date is only to be used when the customer has had no prior connection to employment or education, regardless of how long ago

single and incapacitated, the LAWP starts on, the date of incapacity for work

a member of a couple and incapacitated, the LAWP starts on the latest of the following dates:

the date the person become incapacitated for work

if when the claim is made the partner ceased work, from the day on which the partner ceased work

if when the claim is made the partner has ceased to be enrolled in a full time course of education or of vocational training, from the day after the persons partner ceased to be enrolled in full-time education or vocational training, or

if when the claim is made, the partner is incapacitated, from the date of the partner's incapacity for work

a member of a couple and not incapacitated, the LAWP starts on the latest of the following dates:

the day after the person ceased work, full-time study, or date of incapacity

if when the claim is made the partner has ceased work, from the day after the person's partner ceased work

if when the claim is made the partner has ceased to be enrolled in a full time course of education or of vocational training, from the day after the persons partner ceased to be enrolled in full-time education or vocational training

if when the claim is made, the partner is incapacitated, from the date of the partner's incapacity for work, or

the claim start date if neither the person nor their partner has previously worked or studied. There is no time limit. Only use the claim start date when the customer or their partner has no prior connection to employment/education, regardless of how long ago

Note: if a customer is still working casually or part-time when they claim JSP, the delegate must decide when the customer is deemed to be unemployed. This is usually the date on which the last change to that employment occurred. For example, work hours reduced.

If the customer is single and not incapacitated, the LAWP starts from the day the person becomes qualified for YA. This date also applies for single and not incapacitated customers who have no prior connection to employment or education.

If the customer is single and incapacitated, the LAWP starts from the day the person became incapacitated.

If the customer is a member of a couple and incapacitated, the LAWP starts from the day the person became incapacitated for work,

If the customer is a member of a couple and not incapacitated, the LAWP starts:

The day the person becomes qualified for YA,

If when the claim is made, the partner has ceased work, from the day the person becomes qualified for YA,

If when the claim is made, the partner has ceased to be enrolled in a full-time course of education or of vocational training, from the day the person becomes qualified for YA,

If when the claim is made, the partner is incapacitated, from the day the person becomes qualified for YA, or

The day the person becomes qualified for YA where neither the person nor their partner has previously worked or studied.
Note: there is no time limit. Only use the day the person qualifies for YA where the customer or their partner has no prior connection to employment/education, regardless of how long ago

The LAWP amount field and the DLW/DCS/DPQ or Release Date field auto-fill based on information provided by the customer and on the customer's record. Please note: For YA Jobseeker claims, please ensure this field contains the day prior to qualification (or date of incapacity where relevant) ONLY.

Check the details to ensure they are correct before finalising the claim.

The LAWP amount can be manually adjusted. Record the details of any manual adjustment on the grant DOC.

Record the details of all action taken on a DOC.

The claimant's liquid assets include those of their partner as per the definition of liquid assets in the Social Security Guide, 1.1.L.50.

Work out the total amount of liquid assets (based on the current policy definition), using:

the claim

Mod IA Income and Assets form, and/or

existing information on the system

The liquid assets maximum reserves are:

$5,000 for single people with no dependent children, and

$10,000 for couples, or if the customer has a dependent child

As partial weeks are rounded down to the nearest whole week, a customer's liquid assets must be equal to or exceed the below amounts before LAWP is applied:

$5,500 for single customers, or

$11,000 for partnered customers or single customers with dependent child/ren

See the Resources page for examples.

If the student or Australian Apprentice is:

single with no dependent children, and liquid assets are:

greater than or equal to $5,500, go to Step 2

below the affecting amount, record the liquid asset amount on the screens relevant to the asset. For example, debentures are recorded on the Direct Investments (SVDI) screen. For further coding details, see Coding income and assets for Centrelink payments and services

a couple or single with dependent children, and liquid assets are:

greater than or equal to $11,000, go to Step 2

below the affecting amount, record the liquid asset amount on the screens relevant to the asset. For example, debentures are recorded on the SVDI screen. For further coding details, see Coding income and assets for Centrelink payments and services

The LAWP is one whole week for every full $1,000 (for partnered person or single person with a dependent child) and full $500 (for single person with no dependent children) for amounts over the relevant maximum reserves.

A student or Australian Apprentice may be exempt from the LAWP if:

They have served a LAWP that started within the last 12 months
To check this, view the Confirmed Data in the NSA Date of Commencement (NDC) screen in Process Direct

They are a transferee to Austudy or YA within a 14 day period

Schedule 1 of the Social Security (Administration) Act 1999 states 'a transferee is a claimant who becomes qualified for the new payment immediately after ceasing payability to the old payment'

If a claimant has partially served a LAWP for another payment type (e.g. JSP), and lodges a student claim (not a continuing student) where a LAWP must be applied, the LAWP must cover the remaining term from qualifying/transfer date to the end date coded on the previous payment record

They have self-served the LAWP

A young person is undertaking one of the following activities/programs and they apply for YA as a student or Australian Apprentice:

A rehabilitation program (e.g. Disability Employment Services (DES) - Disability Management Services (DEM), or

An activity under the Community Development Program (CDP) for a person who would otherwise have been referred to DES - DEM if not for the person being placed in CDP

To check the current activities/programs in Process Direct for customers who:

submit an online claim or a Service Officer has completed the Assisted Customer Claim (ACC) workflow

in the claim, select > Participation Interview > Activity type/Non-applied exemptions > Referral Summary, or

in the Super Key field, key 'RRSUM', select Enter

are currently receiving a payment:

from the Process Direct landing page, select Customer Summary

key the customer's CRN, select Go

in the Super Key field, key 'RRSUM', select Enter, or

select > Participation Summary > Activity type/Non-applied exemptions > Referral Summary

to identify eligibility for DES for a customer currently undertaking a CDP activity, check whether the customer has been assessed by a JCA or ESAt as eligible for DES within the last two years

Is the claimant exempt?

Yes, go to Step 3

No, go to Step 4

On the NDC screen in Process Direct, record the:

LAWP exemption reason by coding a 'Y' in the LAWP Waive field

LAWP amount in the LAWP Amt field

Day before qualification in the Day Before Qualification field

Reason for the LAWP exemption in the Manual Start Date Comments field

Once the claim activity is finalised, record the LAWP exemption reason on a DOC.

Note: if the LAWP Amt field pre-fills with a total of $0.00, this means the customer is not required to serve a LAWP. An exemption reason cannot be recorded.

Procedure ends here.

Is the student or Australian Apprentice in severe financial hardship because of unavoidable or reasonable expenditure?

Yes,

See Assessment of hardship for LAWP for Austudy and YA students

Procedure ends here

No, go to Step 5

Determine if the customer is undertaking an approved course at a tertiary study level, and:

studying full time, or

studying an approved 25% or 66% concessional study load

Does the customer meet these requirements?

Yes. go to Step 6

No, go to Step 7

Full-time tertiary students claiming YA or Austudy can have their liquid assets reduced by upfront study expenses directly related to their approved tertiary course over the next year.

Is the claimant a tertiary student, who has upfront study expenses?

Yes,

The amount of upfront study expenses will reduce the liquid assets figure from Step 1

Go to Step 7

No, go to Step 7

Process Direct will populate a customer's upfront study expenses in the Study Expenses field on the NDC screen. For students studying a secondary course, delete the Study Expenses figure. At Assess, the system will correctly calculate the total LAWP amount.

To manually calculate the length of the LAWP:

Calculation

If the student or Australian Apprentice is:

a member of a couple or has a dependent child
LAWP (in weeks) = (liquid assets - $10,000 (maximum reserve)) divided by $1,000 (partnered/dependent LAWP divisor) = number of weeks of the LAWP (See Result below)

not a member of a couple and does not have a dependent child
LAWP (in weeks) = (liquid assets - $5,000 (maximum reserve)) divided by $500 (single LAWP divisor) = number of weeks of the LAWP (see Result below)

For the table of waiting periods for LAWP, see Assessment of hardship for LAWP.

Result

For both partnered and/or dependent child and single people:

Round down to the nearest whole week. If the result is not a whole number of weeks, round down to the nearest whole week. Go to Step 8

If the result is greater than 13 weeks, the LAWP is 13 weeks. Go to Step 8

If the result is less than one week, no LAWP applies. Code details in the claim DOC

Code the LAWP amount on the NDC screen in the LAWP Amt field.

If the LAWP is to be waived, code 'Y' in the LAWP Waive field

In Process Direct, code the day before qualification in the Day Before Qualification field on the NDC screen. The Liquid Assets Waiting Period Start Date field will auto-fill with the next day.

If the claimant is recently released from prison and the Previous Circumstance field has been recorded as GAO - Released from gaol/psych confinement of equal to or greater than 14 days duration, record the Release Date field and not the Day Before Qualification field.

The Day Before Qualification field in Process Direct will map to the DLW/DCS field in Customer First and Customer Record.

Staff may need to update Participation Status Event Date (PSED) and NES screen dates when a LAWP is applied, see Calculating the start day for Austudy and claims. If the claimant:

is an early claimant, see Table 3, Step 1

is a continuing/intending student, see Table 3, Step 2

is undertaking a newly approved course (including a newly approved Masters course), see Table 3, Step 3

was a Family Tax Benefit (FTB) child applying for YA, see Table 3, Step 5

is an Australian Apprentice, see Table 3, Step 6

has recently been released from prison, see Table 3, Step 7

is a new student and none of the other scenarios apply, see Table 3, Step 4

The Resources page contains relevant scenarios.

For claimants lodging an early claim, the LAWP start date is:

the date they meet the Australian residence requirements

the date they meet the minimum age requirements for YA or Austudy, and

the date they start their course on a full-time or concessional study load basis, or

the date they start their Australian Apprenticeship

In the Day Before Qualification field in Process Direct, code the day before the date that all 3 qualification requirements are met. The Liquid Assets Waiting Period Start Date field will auto-fill with the next day.

Procedure ends here.

For continuing/intending students, the LAWP start date will depend on the claimant's circumstances.

If the student:

has been studying continuously and would have satisfied the activity test as a student for the whole period they have studied, their qualification date would be the later of:

the date they started their first approved course, or

the date they became qualified for their payment once they met the Australian residence, age and study requirements

was studying part-time in the previous study period, and they intend resuming full-time study in the next available study period, their qualification day is the day after their part-time study ceased

In the Day Before Qualification field in Process Direct, code the day before the qualification date. The Liquid Assets Waiting Period Start Date field will auto populate with the next day.

Procedure ends here.

For students who were studying an unapproved course (including an unapproved Masters course) that has recently become approved, the LAWP starts from the date the course has been approved.

In the Day Before Qualification field, code the day before the date the course was approved. The Liquid Assets Waiting Period Start Date field will auto-fill with the next day.

Procedure ends here.

For students who have had a break in study and are not a continuing/intending student for the purposes of a student payment, the LAWP starts from the date the student qualifies or requalifies for payment.

Note: if customer has already served a LAWP in the 12 months immediately prior to becoming qualified for payment, they will be exempt.

In the Day Before Qualification field in Process Direct, code the day before the date the student qualifies or requalifies for payment. The Liquid Assets Waiting Period Start Date field will auto populate with the next day.

Procedure ends here.

This applies for an FTB child who:

is/was a full-time secondary student

is/has been living with their parent/s

is applying for YA

meets the Australian residence requirements, and

is intending to continue their studies and meet the student activity test

They will not meet the YA minimum age qualification requirements until one of the following occurs (whichever occurs first):

They turn 18 years of age

They complete their final year of secondary study or an equivalent level of qualification (the qualification day is the day after the day they complete these schooling requirements)

They are eligible for the away from home rate as a student

They are considered independent for YA purposes as a student

The date that has been determined (generally by a Services Australia social worker) that they are no longer benefiting from FTB being paid to the young person's parent/s

In this case, the LAWP start date is one of the above qualification dates.

In the Day Before Qualification field, code the day before the qualification date for YA depending on the claimant's circumstances as detailed above. The Liquid Assets Waiting Period Start Date field will auto-fill with the next day.

Procedure ends here.

The LAWP start date for an Australian Apprentice is the Apprenticeship Start Date recorded on the Apprenticeship Details (NAPD) screen.

In the Day Before Qualification field, code the day before the date the Australian Apprenticeship started. The Liquid Assets Waiting Period Start Date field will auto-fill with the next day, which should be the Australian Apprenticeship start date.

The LAWP start date for a released prisoner will depend on if the claimant has been studying full-time while in prison.

If the claimant:

was a full-time student while in prison, the start date of the LAWP is the date that the claimant started to meet the student activity test as a full-time or concessional study load student. This defaults to the Student Start Date recorded on the Customer Study Details (EDC) screen in Process Direct or Education Course Details (EDC) screen in Customer First

was not a full-time student while in prison, the start date of the LAWP is the date the student starts full-time study or starts to be an approved concessional study load student

Ensure the Release Date field on the YAL/AUS Start Date Calculator (NDC) screen is recorded with the claimant's release date from prison.

If entering a Release Date on the NDC screen:

record 'GAO' in the Previous Circumstance field

leave the Day Before Qualification field blank

manually calculate the LAWP period and enter the day immediately after the LAWP ends in the Manual Start Date field

Record details of LAWP in the Grant/Reject DOC and finalise activity.

Note: if the claimant is not a student for the period from their prison release date to the date they qualify as a student, they should test their eligibility for another payment. Depending on the payment, they may or may not need to serve a LAWP.