Seasonal Work Preclusion Period (SWPP) 106-05020080

The SWPP applies to customers if they or their partners have had high income seasonal, intermittent or contract work in the 6 months prior to claiming an allowance. It makes sure these workers use their income from employment before claiming allowances during the 'off-season'.

A SWPP may apply following the end of employment with a company or trust, if the nature of employment is:

• seasonal work
• intermittent, or
• contract work

For example, working for a company or trust as:

• an employee
• a self-employed contractor
• a sole trader proprietor, or
• a member of a partnership

Seasonal workers who receive a small retainer during the season plus a large lump sum from the season's profits may need to serve a SWPP. The lump sum is only included in the SWPP calculation if it is paid before the person claims an allowance. If the lump sum is paid after an allowance is granted, then it is treated under the usual lump sum payment rules.

Customers affected by a waiting period for an income support payment, they can test their eligibility for a Low Income Health Care Card (LIC).

Duration of a SWPP is based on how long it would take an average wage earner to earn the same amount as a person engaged in seasonal or intermittent work.

The SWPP will only apply to:

• single people who have earnings that are more than the Average Weekly Ordinary Time Earnings (AWOTE), or
• to couples whose combined earnings are more than twice the AWOTE

The SWPP only applies if the work period ended within 6 months of the claim for payment. Work that is of 12 months duration or more is not considered seasonal or intermittent and is not taken into account when calculating a SWPP.

The SWPP applies to the following payments:

• JobSeeker Payment (JSP)
• Youth Allowance (YA) (including full-time students and Australian Apprentices (apprentice or trainee))
• Special Benefit (SpB) customers subject to Nominated Visa Holders (NVH) mutual obligation requirements
• Farm Household Allowance (FHA)
• Parenting Payment (PP) (partnered and single)
• Austudy
• Carer Payment (CP)
• Disability Support Pension (DSP) (except customers who are permanently blind)

The SWPP may be waived in certain cases of hardship, see Assessment of hardship for Seasonal Work Preclusion Period (SWPP).

Seasonal, intermittent and contract work income comprises the gross income received. Allowable deductions can be made if they are in relation to the work and are allowed by the Australian Taxation Office (ATO). See Assessing income from seasonal work.

Short gaps in employment are considered to be one continuous period of work if there is a gap of less than 14 days between episodes of work within the same industry. This is referred to as the '14 day gap rule'. If the customer stops work:

• for less than 14 days and resumes work in the same industry, then the work is treated as one continuous relevant period of work
• for less than 14 days and resumes work in a different industry, then the work is treated as 2 separate relevant periods of work
• for more than 14 days and resumes work in either the same or a different industry, then the work is treated as 2 separate relevant periods of work

A person may be exempt from the SWPP if they were an intermittent worker (as opposed to a seasonal worker) and were in receipt of income support payments for a continuous period exceeding 12 months on the day before the person commenced the intermittent work.

A person may also be exempted from an SWPP if the person is doing:

• a rehabilitation program (Disability Employment Services - Disability Management Service (DES - DMS)) as defined under Part 3 of the Disability Services Act 1986), or
• Community Development Program (CDP) related activities for a person who would otherwise have been referred to a rehabilitation program, if not for the person being placed in CDP

People doing an activity as part of CDP will be eligible for the exemption based on their Employment Services Assessment (ESAt). The ESAt is used to determine a job seeker's barriers to employment, work capacity, and referral to an appropriate employment services program. CDP participants may be exempt from the SWPP if their ESAt indicates that they would have been referred to a rehabilitation program.

SWPP periods are not affected by the customer having a working credit balance and they will not be able to accrue or deplete working credits during these periods.

Job seekers serving a SWPP are not required to satisfy their mutual obligation requirements during this period. For the duration of a SWPP a customer is exempt from entering into a Job Plan.

Recently widowed customers claiming JobSeeker Payment (JSP) or Youth Allowance (YA) within a bereavement period will have an Bereavement Waiting Period exemption and will be automatically exempted from the SWPP where:

• the claim is submitted within 14 weeks of their partner's date of death, or
• if pregnant at the time of their loss, the claim is submitted before the birth of the child or end of the pregnancy

Where an automatic exemption is applied for the above reasons, an Exemption Indicator of 'B' will be displayed against the SWPP on the NDC screen.