Identifying people with a partial capacity to work 001-03030060

Customers are considered to have a Partial Capacity to Work (PCW) if they have an ongoing physical, intellectual or psychiatric impairment that prevents them from:

• working at least 30 hours per week at or above the relevant minimum wage independently of a program of support within the next 2 years, and
• undertaking any training (mainstream or disability specific) that would allow them to do such work within the next 2 years

Temporary Reduced Work Capacity (TRWC) is assessed as a work capacity of 0-29 hours per week that is reduced on a temporary basis for medical reasons such as:

• a medical condition likely to persist for less than 2 years
• a temporary exacerbation of a condition likely to persist for more than 2 years, or
• to allow client time to engage in treatment for their condition

PCW or TRWC is determined by an Employment Services Assessment (ESAt). For the purposes of mutual obligation requirements, a PCW applies indefinitely unless a change in circumstances occurs. This means that the PCW applies regardless of the age of the ESAt that determined the PCW. A PCW can only change if a new PCW bandwidth is determined via an ESAt. Before requesting an ESAt, staff should check to see if there is already a current and valid assessment of the customer's work capacity on the customer's record.

If a current and valid assessment of the customer's work capacity is not available, or their current circumstances were not assessed in the previous ESAt, a request for an ESAt is required to determine their current work capacity. Note: a request for an ESAt should not delay the decision about a temporary incapacity exemption. The Service Officer should make the decision based on whatever existing evidence is available to them.

Note: an assessment of the customer's work capacity via an ESAt may also be triggered as a result of the Job Seeker Snapshot, if one is required. In these cases, medical evidence is also required before requesting an ESAt.

Customers will not be eligible for Disability Support Pension (DSP) at the initial assessment or DSP transition review if they are:

• able to work 15 hours per week, where wages are at or above the relevant minimum wage in the open labour market, independently of support, within the next 2 years, or
• able to be retrained for such work within the next 2 years with a program of assistance (including disability specific assistance)

These customers will be assessed for JSP, YA or PP with a PCW if their ongoing impairment prevents them from working for at least 30 hours per week at or above the relevant minimum wage within a 2 year period.

Job seekers with a 'baseline' and 'with Intervention' work capacity of less than 15 hours per week generally are medically qualified for DSP. However, they may not qualify for DSP for other reasons (for example, residency). If so, they may claim JSP/YA/PP with a PCW. In some cases, a customer may choose to claim JSP/YA/PP instead of claiming DSP.

Customers who are assessed at review or at initial assessment as having a current (baseline) capacity to work of less than 15 hours per week at or above the relevant minimum wage independently of support, but are expected to be able to work 15 or more hours per week within the next 2 years with a program of assistance (including disability specific assistance), will be assessed for JSP, YA or PP unless another payment is more appropriate.

Customers with a PCW of 15 hours or more per week, due to a disability, will be deemed 'unemployed' and fully satisfying their mutual obligation requirements when undertaking sufficient work of:

• 15 or more hours per week in suitable paid employment or self-employment
• where remuneration, or net business income, is at least equivalent to 15 hours a week at the national minimum wage

There is no requirement to seek an increased level of employment.

Note: job seekers with an assessed PCW/TRWC of 0-14 hours per week are able to fully meet their requirements through paid work or self-employment and are not subject to the 30 hours per week rule.

For job seekers with a PCW, mutual obligation requirements are determined based on their assessed work capacity. The customer's Job Plan is modified accordingly by Services Australia if the job seeker is Centrelink managed and by the provider if the job seeker is provider managed.

The ESAt assesses partial capacity to work according to the following bandwidths:

• 0-7 hours per week
• 8-14 hours per week
• 15-22 hours per week
• 23-29 hours per week

A customer with a PCW may provide a medical certificate when they have:

• a medical condition likely to persist for less than 2 years, or
• an exacerbation of their condition that is likely to persist for more than 2 years

This can lead to a further reduction in work capacity. Mutual obligation requirements can be modified further, or an exemption applied.

Job seekers who have a PCW of less than 15 hours per week and do not have an exemption may need to attend Quarterly Participation Interviews (QTI).

Customers assessed as having a PCW, will have the capacity to work displayed as a category on the Customer Target Category Summary (CTCS) screen. TRWC will also have an end date recorded, due to the condition or incapacity being considered temporary.

The First Contact Service Offer (FCSO) workflow or the Participation Interview will identify customers with a current assessment of PCW.

Customers (excluding Special Benefit (SpB) customers) who have been assessed as having a PCW will be entitled to a Pensioner Concession Card (PCC) and will retain the PCC for 12 months after ceasing payments due to employment. They will also be eligible for Pharmaceutical Allowance (PhA) and Telephone Allowance (TAL).

Customers who lodged a claim and qualified for DSP between 11 May 2005 and 30 June 2006, who have since transferred to JSP, YA or Parenting Payment Partnered (PPP) with a PCW and are in receipt of PES, will only remain eligible for PES while completing the course of education or study for which they were receiving PES while in receipt of DSP.

Youth Disability Supplement (YDS) is an income supplement paid to customers assessed as having a PCW who are under 22 years of age, and receiving one of the following payments:

• ABSTUDY (students and Australian Apprentices receiving Living Allowance)
• Youth Allowance (YA) including full-time students, Australian Apprentices and job seekers

Job seekers with a PCW will be independent for the purpose of YA (job seeker) for the period of time that they are assessed as having a PCW.