Eligibility and rate impacts for Youth Allowance (YA) (job seeker) 001-04010000

Customers may contact Services Australia to discuss their eligibility for Youth Allowance (YA) (job seeker). Use the following details to assist with the customers enquires.

To qualify for a YA (job seeker), the customer must:

• be of qualifying age for YA (job seeker), go to Step 2
• meet Australian residence requirements for YA
• be unemployed, see Table 2
• be prepared to negotiate and enter into a Job Plan if required to do so, or comply with, or renegotiate an existing Job Plan
• not be receiving ABSTUDY Living Allowance
• satisfy the requirements of their Job Plan

For payment eligibility for sports people, see Table 3.

The minimum age for YA is:

• 16 years, or
• 15 years if independent and above the minimum school leaving age for the State/Territory

The maximum age to be eligible for YA is:

• 21 years for job seeker customers, or
• 25 years for full-time students undertaking a course of education

To initially qualify for Youth Allowance (YA) as a job seeker, customers must:

• be unemployed:
• An unemployed person is generally someone who is without paid work. Some people in paid work can still be considered unemployed for YA (job seeker). Determining whether a person is unemployed at a particular time depends on several factors
• not employed on a full-time basis as an apprentice or trainee (YA only)

As per Section 595 of the Social Security Act 1991, use discretion when determining unemployment to encourage increased workforce participation, rather than providing a disincentive for people to increase their hours of work. The extent of a customer's compliance with any applicable mutual obligation requirements can be useful in determining whether they are genuinely committed to engagement in the labour market.

Consider all of the customer's circumstances in determining whether they are unemployed.

Note: YA customers starting a full-time Australian Apprenticeship may still be entitled to YA subject to the income test, but not as a job seeker.

Customers may still be eligible for YA if they are:

• employed or studying, and
• unable to undertake work or study due to a medical condition, illness or injury and have a job or study to

A current YA customer returning to work does not need to be considered unemployed to remain qualified. The customer is eligible to access the employment income nil rate period until:

• they lose qualification for a reason not related to employment (for example, do not meet Australian residence requirements), or
• payments cease to be payable either because their working credits are reduced to nil, they reach the end of a 12 fortnight employment income nil rate period or because of a payability factor such as the assets test or a compensation preclusion period

For:

• Self-employed, go to Step 2
• Satisfying mutual obligation requirements by undertaking self-employment, go to Step 3
• Unemployed due to stand down or industrial action, go to Step 4
• Casual Employees, go to Step 5
• On leave from usual employment (including suspension from work and expectant mothers), go to Step 6
• Paid work and unemployment, go to Step 7
• YA customer commences full-time employment, go to Step 8
• Customers in full-time work who may remain qualified for YA, go to Step 9
• Full time students, go to Step 10

A customer substantially engaged in running a business is not generally considered unemployed. It is irrelevant whether the business is being run at a profit or loss, or whether any income is currently being received.

However, there are situations where a self-employed person can be granted an allowance.

Customers running a business can be considered unemployed when:

• the business is on a small scale
• the business is designed to be a supplement rather than an alternative to wages
• the customer invests is a 'sleeping partner'. For example, they have invested capital but not time and effort
• the business is a contracting or sub-contracting enterprise

Note: customers who have an Australian Business Number (ABN) are not automatically assumed to be self-employed. There is no requirement for the customer to cancel their ABN to qualify YA (job seeker).

A customer spending a fair amount of time with their business and not earning enough income does not necessarily entitle them to YA (job seeker). The customer needs to meet their mutual obligation requirements and must be willing and able to undertake any suitable work or study. For example, prove that work is being sought in fields other than those related to their business.

A customer with part-time or full-time mutual obligation requirements may be able to satisfy their requirements with self-employment, if the work meets the sufficient work test.

For self-employment to be regarded as sufficient work the:

• customer must be able to show that they are working at least their required number of hours under their mutual obligation requirements, and
• assessable, net income from their business provides the equivalent of the national minimum wage rate for the minimum required hours

If the self-employment does not satisfy the sufficient work test, the customer needs to look for alternative work. If their commitment to their business interferes with their ability to meet their mutual obligation requirements, the customer will usually not be considered to be unemployed.

A customer may be unemployed due to stand down or industrial action:

• Stand down, occurs when an employer is unable to temporarily offer employment work for a short period of time, without terminating the employment. For example, where a factory closes over the Christmas holiday period or if a company has a short term lack of work. A customer who has been stood down is considered unemployed. Evidence may be required if a stand down means the customer will be affected by an Seasonal Work Preclusion Period (SWPP) or Unemployed Due to Industrial Action (UDIA)
• depending on the circumstances that has led to industrial action, a customer may not be qualified for payment and be required to serve an exclusion period. See Unemployed Due to Industrial Action (UDIA)

If a customer is working casually, the Social Security Act 1991 allows them to continue to be considered unemployed even though they are not without paid work.

To determine if a person is deemed unemployed when undertaking casual work, consider:

• the duration of the employment
• the hours worked, and
• other relevant factors (i.e. type of work and variability of hours)

In general, a customer working casually would not be regarded as unemployed if work in which earnings were sufficient to preclude payment of YA (job seeker) continued, or were expected to continue, for 12 weeks or more.

A customer on leave from their usual employment, whether paid or not, is not usually unemployed as their contract of employment is ongoing.

The customer may be considered unemployed if the:

• employer refuses to re-employ the customer before the end of the leave
• leave is unpaid and no benefits are accruing while on leave, and
• customer is willing to comply with mutual obligation requirements

Expectant mothers

Customers expecting a child may be granted an exemption from their mutual obligation requirements from 6 weeks prior to their child’s estimated date of birth.

Encourage expectant mothers to investigate their eligibility for Parenting Payment.

Note: the customer is still considered an expectant mother whether or not their child is born alive or stillborn.

See Exempting a job seeker from their mutual obligation requirements when they are an expectant customer.

Customers in paid work may be considered unemployed if all the following applies:

• the work is suitable work
• the work is less than 70 hours per fortnight
• income earned is less than the income test taper cut off point

The customer needs to meet mutual obligation requirements. However, they may have sufficient work to fully meet any job seeking obligations.

Partial Capacity to work

Customers in paid work assessed as having a Partial Capacity to Work (PCW) or who are principal carers, may be considered unemployed if:

• the work is suitable
• the work is at least 30 hours per fortnight for a principal carer or at their assessed capacity for PCW
• income earned is at least equivalent to the national minimum wage but less than the Income Test cut off point

These customer’s fully satisfy their mutual obligation requirements.

If a customer commences full-time employment they will remain:

• current on payment if they:
• have a Working Credit balance greater than zero. They can use this to offset their employment income while remaining qualified for payment, and
• have not served a 26 week employment nil rate period
• qualified for payment until:
• they lose qualification for a reason not related to employment. For example, do not meet Australian residence requirements, or
• payments cease to be payable either because their working credits are reduced to nil, they reach the end of a 12 fortnight employment income nil rate period or because of a payability factor such as the assets test or a compensation preclusion period

If the customer is part of the Youth Bonus Wage Subsidy (YBWS) initiative they will be:

• able to access the 12 fortnight employment nil rate period, and
• placed on a 26-week suspension period prior to their payment being cancelled due to income.

For more information, see Youth Bonus Wage Subsidy 26 Week Suspension Period.

Customers in full-time employment who may remain qualified without further mutual obligation requirements include:

• customers in the employment income nil rate period
• customers with a pensioner partner. The income test results in a higher cut-off point than for couples who both receive job seeker payment
• single principal carers (despite being employed full-time) who are entitled to a part rate of payment after the Jobseeker payment single test is applied and all working credits used

The customer does not qualify for payment if involvement in their sport interferes with:

• obtaining suitable paid work
• their job searching efforts, or
• undertaking study/training or other approved requirements

These customers are not considered unemployed as their main commitment is to their sport rather than seeking suitable paid work, study/training or other approved requirements.

If matter has been discussed with the customer and they have been advised they are not entitled, record details of the decision on a DOC.

If the customer is suitable for payment:

• To continue to be eligible for payment, their main commitment will need to be seeking suitable paid work or undertaking study/training or other approved requirements
• Their payments are cancelled if they leave the country for competition. For example. the Olympic Games. They would need to reapply on return to Australia
• The income from their sport such as lump sum payment from sponsorship deals, signing-on fees or endorsement, may affect payment