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Liquid Assets Waiting Period (LAWP) 106-05020040



LAWP calculator - single - no dependent children

Table 1

Amount of liquid assets

$

Liquid Assets Waiting Period

(WEEKS)

0 to 5499

NIL

5500 to 5999

1

6000 to 6499

2

6500 to 6999

3

7000 to 7499

4

7500 to 7999

5

8000 to 8499

6

8500 to 8999

7

9000 to 9499

8

9500 to 9999

9

10 000 to 10 499

10

10 500 to 10 999

11

11 000 to 11 499

12

11 500 onwards

13

LAWP calculator - partnered or single - with dependent children

Table 2

Amount of liquid assets

$

Liquid Assets Waiting Period

(WEEKS)

0 to 10 999

NIL

11 000 to 11 999

1

12 000 to 12 999

2

13 000 to 13 999

3

14 000 to 14 999

4

15 000 to 15 999

5

16 000 to 16 999

6

17 000 to 17 999

7

18 000 to 18 999

8

19 000 to 19 999

9

20 000 to 20 999

10

21 000 to 21 999

11

22 000 to 22 999

12

23 000 onwards

13

Examples - assessing the LAWP start date for YA and Austudy students

Table 3

Item

Scenario

1

Level of funds needed before a LAWP applies

A single customer with no dependent children will not have a LAWP unless their liquid assets are above $5,499:

$5,499 (liquid assets) - $5,000 (maximum reserve) = $499 (liquid assets)

$499/$500 (LAWP single recipient divisor) = 0.998

As 0.998 is less than a 'whole week', no LAWP is applied

A customer with a partner or dependants will not have a LAWP unless their liquid assets are above $10,999:

$11,000 (liquid assets) - $10,000 (maximum reserve) = $1,000

$1,000/$1,000 (LAWP partnered and/or with dependent's divisor) = 1 ('whole week')

As this is a 'whole week', a LAWP of one week is applied

2

Early claimants

Sam is aged 30, is single, and meets the Australian residence requirements. Sam is applying for Austudy and is intending to leave current employment voluntarily to start a new course on 1 August. Sam lodges an Austudy claim on 1 July and has $7,800 in liquid assets with upfront study expenses of $500.

To determine the LAWP period Sam needs to serve, we use the following calculation:

$7,800 (liquid assets) - $500 (upfront study expenses - $5,000 (single maximum reserve)

= $2,300/$500 (single LAWP divisor)

= 4.6 weeks

Round down to whole number = 4 weeks.

In this case, the LAWP start date is the date the student starts the course (also known as the Student Start Date). The date entered in the Day Before Qualification field is the day before Sam started the new course (31 July). The system will calculate a 28 day LAWP from 1 August to 28 August. Assuming no other waiting/preclusion periods apply, the Sam's Austudy start date is 29 August.

3

Continuing students

Corinne is single, an Australian resident and is applying for YA. On the day the claim is lodged (1 April 2016), Corinne is aged 21. However, Corinne wants to delay the start day/payability of the payment until reaching 22 years of age in 4 weeks' time (28 April 2016). Corinne started a course on a full-time basis 2 years ago on 1 March 2014, has always been a full-time student and has liquid assets valued at $20,000.

As Corinne started the course on 1 March 2014, the LAWP start date was this date the maximum LAWP period of 13 weeks has been self-served.

4

Intending student

Matt is single and an Australian resident. Matt studied full-time from the start of 2017 until the end of the last study period of 2017. Matt has recently enrolled in a different full-time course that is due to start on the first study period of 2018. Matt has submitted a claim for YA before starting the new course in 2018. Matt has liquid assets valued at $20,000.

As Matt is an intending student and his first full-time approved course started on 1 March 2017, the LAWP start date was this date and the maximum LAWP period of 13 weeks has been self-served.

5

Continuing/intending students from part time to full time study

Ross is single and applying for YA. On the day the claim is lodged (1 December 2015), Ross is aged 21. However, Ross has asked to delay the start day/payability of YA until turning 22 years of age in 3 weeks' time (22 December 2015).

Ross started an approved course on a full-time basis on 1 March 2015. However, Ross only undertook one subject as a part-time student in Semester 2 of 2015 from 6 July 2015 to 13 November 2015. Upon completion of the part-time study, Ross intends to resume full-time study on 29 February 2016. The claim and supporting documents confirm that Ross has $12,300 in liquid assets and $500 in upfront study expenses.

To determine the LAWP that needs to be served, use the following calculation:

$12,300 (liquid assets) - $500 (upfront study expenses - $5,000 (single maximum reserve)

= $6,800/$500 (single LAWP divisor)

= 13.6 weeks

Round down to whole number = 13 weeks.

In Ross' case, requalification occurs from the day Ross is considered a continuing student (part-time study end date + 1 day). The LAWP start date therefore is 14 November 2015. The date entered in the Day Before Qualification field is the day Ross completes part-time study for that study period. The system will calculate a 13 week (91 day) LAWP from 14 November 2015 to 12 February 2016. Assuming no other waiting/preclusion periods apply, Ross' YA start date is 13 February 2016.

Note: although Ross requalified for YA by meeting the activity test, Australian residence and age requirements on the date he requested his payment start (when he became eligible for the independent rate at 22 years of age), YA is only payable from the day after his LAWP ceases.

6

Continuing students with a Newly Arrived Resident Waiting Period (NARWP)

Ali is 30 years of age and lodges a claim for Austudy on 1 March 2016. Ali has been studying a 2 year approved English course since 1 February 2015.

Ali arrived here on a temporary visa on 1 July 2012 with a view of obtaining permanent residency. A permanent residency visa (visa sub-class 189) was obtained on 1 May 2015. This visa does not provide a Qualifying Residence Exemption for the NARWP. Therefore, Ali is required to serve a 104 week NARWP.

While Ali qualifies for Austudy from 1 May 2015 based on age, student activity test and Australian residency requirements, payability of Austudy will be delayed due to the application of the 104 week NARWP. The NARWP end date is currently 27 April 2017.

On the date that Ali started full-time studies, Australian residence requirements for payment were not met due to holding a temporary visa. Ali became fully qualified for Austudy upon the grant of the permanent Australian visa on 1 May 2015. Therefore, the LAWP start date is 1 May 2015 and the LAWP is served at the same time as the NARWP.

To ensure that the LAWP is applied correctly, the Service Officer should enter 30 April 2015 in the Day Before Qualification field in the Date of Commencement (NDC) panel in Process Direct.

7

Unapproved course becomes approved

Roger is single and applying for Austudy. On the day the Austudy claim is lodged (1 July 2016), Roger is aged 40 and is an Australian resident. Roger is undertaking a Masters of Media and Communication at Curtin University. At the time the claim is lodged, Roger does not qualify for Austudy, as the Masters course has not been approved.

On 10 September 2016, the Masters course gains Ministerial approval.

Roger's LAWP start date for the Austudy claim is 10 September 2016 as this is the date that Roger meets all the qualification requirements for Austudy.

To ensure that the LAWP is applied correctly, the Service Officer should enter 9 September 2016 in the Day Before Qualification field in the Date of Commencement (NDC) panel in Process Direct so that the LAWP starts from 10 September 2016.

8

Qualification for YA at 18 years of age

Nicola, aged 17 years, is a full-time student living at home who starts year 12 in February. The YA claim states Nicola has $6,200 in savings (from part-time work). When Nicola turns 18 on 18 May, a claim for YA is lodged. However, while qualified for YA, the YA payment is precluded until a LAWP is served, in this case 2 weeks. Payment of YA will start right after the LAWP ends.

Calculation is: $6,200 - $5,000 (single maximum reserve)

= $1,200/$500 (single LAWP divisor)

= 2.4 weeks

Round down to whole number = 2 week LAWP.

In this case, the LAWP start date is the date Nicola turns 18 years of age. The date entered in the Day Before Qualification field in the Date of Commencement (NDC) panel in Process Direct is the day before the date Nicola turns 18 (17 May). The system will calculate a 14 day LAWP from 18 May to 31 May. Assuming no other waiting/preclusion periods apply, the student's YA start date is 1 June.

9

Qualification for YA upon completion of year 12 or equivalent

Nicholas, aged 17 years, is a full-time student living at home who is completing year 12. Nicholas's parent is currently receiving Family Tax Benefit (FTB) for him. Nicholas is intending to start tertiary study in the new year and has heard media reports to apply for YA early.

Nicholas lodges a YA claim on 1 November 2016 and provides study intentions for 2017 after completing year 12 on 11 November 2016. The claim also states that Nicholas has liquid assets of $7,100 to consider for the LAWP.

Nicholas will qualify for YA on the day after the completion of year 12 (12 November 2016).

However, although Nicholas is qualified, the YA payment is precluded until the LAWP is served, which in this case is 4 weeks. YA will start right after the LAWP ends.

Calculation is: $7,100 - $5,000 (single maximum reserve)

= $2,100/$500 (single LAWP divisor)

= 4.2 weeks

Round down to whole number = 4 week LAWP.

In this case, the LAWP start date is the day after Nicholas completes year 12. The date entered in the Day Before Qualification field in the Date of Commencement (NDC) panel in Process Direct is the date year 12 is completed (11 November). The system will calculate a 28 day LAWP from 12 November to 9 December. Assuming no other waiting/preclusion periods apply, Nicholas' YA start date is 10 December.

10

Qualification for YA upon start of Australian Apprenticeship

Dane has applied for YA as an Australian Apprentice on 1 May 2016.

A check with the Department of Employment and Workplace Relations Apprenticeships Data Management System (ADMS) shows that Dane does not have a current Commonwealth Registration Number and the claim is placed on hold for a couple of weeks.

When the Service Officer rechecks the claim, they notice that the Apprenticeships Data Management System (ADMS) link shows that the Commonwealth Registration Number became current on the 19 May 2016. This means that Dane qualifies for YA as an Australian Apprentice from this day.

The LAWP start date therefore is 19 May 2016. The date entered in the Day Before Qualification field in the Date of Commencement (NDC) panel in Process Direct is the day before the Commonwealth Registration Number became current (18 May 2016).

11

LAWP start date for claimants released from prison who have already started full-time study

Miko is 32 years of age and an Australian citizen who has been serving a 12 month sentence in prison. While in prison, Miko started an approved full-time course studying via distance education from 29 August 2016.

On 1 October, Miko was released from prison and immediately lodged an Austudy claim. The claim and supporting documents confirm that the liquid assets total is $9,523.

Miko's LAWP start date is 29 August 2016 as this is the date of qualification for Austudy. However, as Miko was in prison, Austudy would not have been payable from this date.

The LAWP would be calculated as follows:

Calculation is: $9,253 - $5,000 (single maximum reserve)

= $4,253/$500 (single LAWP divisor)

= 8.506 weeks

Round down to whole number = 8 week LAWP.

The LAWP period that needs to be served is from 29 August 2016 to 23 October 2016 with payments starting from 24 October 2016.

The date entered in the Day Before Qualification field in the Date of Commencement (NDC) panel in Process Direct is the day before Miko started full-time study at OUA (i.e. 28 August 2016).

Examples - proceeds from sale of home

Table 4:

Item

Scenario

1

A customer claiming an income support payment subject to the LAWP has $300,000 from the proceeds of the sale of their house. They have advised they will only be spending $250,000 (including expenses) on their new home. The remaining $50,000 will be assessed as a liquid asset and the full $300,000 will be deemed to be earning interest for the purposes of the income test.

Services Australia website

For information about liquid assets, how they affect payments, the LAWP and exemptions from the waiting period, see the Services Australia website, Liquid assets waiting period.

Impact of coronavirus (COVID-19)

From 25 March 2020 to 24 September 2020 inclusive, new claims had the LAWP automatically waived.

This included:

new claims

customers who were serving a LAWP (for example, their waiting period ended on 30 May 2020). The LAWP was manually waived from the date the waiting period started

customers who served their waiting period and started to receive payment (for example, their waiting period ended on 26 March 2020)

Customers did not need to show financial hardship for these waiting periods to be waived.

The LAWP was reinstated from 25 September 2020. The system will continue to waive the LAWP when it is determined to be appropriate. This includes when claims are backdated to start before 25 September 2020.

If the claim was backdated to before 25 September 2020, the LAWP continued to be waived due to COVID-19.

If the claim is being backdated to before 25 September 2020, code a manual claim date on the NSA Start Date Calculator (NDC) screen that equals the start date.

This will make sure the LAWP is correctly waived.