Assessing independence when a customer is self-supporting through full-time paid employment 001-04060040

Scenario

Description

1

Independent - full-time employment of on average 30 hours per week for at least 18 months during any period of 2 years

William left secondary school 2 years ago and worked full-time as a sales assistant for 6 months before doing a 6 month TAFE course. After completing the TAFE course, William returned to full-time employment for 12 months.

William meets the self-supporting provisions and would qualify as independent on the grounds of having worked full-time for 18 months during a period of 2 years.

2

Independent - special safety net criteria

Kate, 19, left school 4 years ago after having completed Year 10. Kate left home at the same time and receives no financial assistance from her parents.

Kate has been working full-time for the last 6 months as a bar attendant and previously had worked full-time for 3 months as a sales assistant. Before this, Kate was employed for 3 months full-time as a kitchen hand.

Kate qualifies as independent under the special safety net criteria due to being unskilled and having left school before completing Year 12.

Note: not available for ABSTUDY customers.

3

Income received from board and lodgings

Harry, a Youth Allowance (YA) customer and homeowner, has taken in a boarder to help pay the bills.

This board is not paid in lieu of employment income and therefore, is unable to be used as income for the independence criteria.

Note: a portion of income from boarders and lodgers is assessed as income.

4

Board and lodgings in lieu of employment income

Joe is studying at university, and tutors other students. In return for tutoring, Joe is receiving free board and lodgings.

The value, as determined by the contract, can be used as income for the purpose of independence, because the board and lodgings were in lieu of employment income. The board and lodgings do not affect Joe's Centrelink payment, as it is not treated as income.

5

Independent - self-supporting and workers' compensation

Chris received workers' compensation from 17 July 2017 - 21 November 2017, with periodic payments of $287.10. Chris last worked on 1 July 2017, the day of the injury (as supplied on the separation certificate signed by the employer).

Chris is no longer employed. On 22 January 2018, Chris was paid annual leave of approximately 9 days but was unsure whether this was from leave prior to Workcover period or accrued leave whilst receiving Workcover. While on Workcover, Chris moved to Melbourne returning to the parental home. The employer took this to mean Chris walked out of the apprenticeship. Chris wants to use the compensation amount to go towards being assessed for independence.

Chris was employed during this time and if it were not for the injury (or lack of sick leave entitlements), Chris would have continued to work and be paid by the employer.

Centrelink will assess the value of the compensation payments as an entitlement arising from paid work. Therefore, it will be assessed as contributing towards the income amount required for independence under s1067A(10)(c) of the Act.

Scenario

Description

1

Start date of independence for current YA customers

Shelby's claim for Youth allowance (YA) is granted in February 2025. On 1 May 2025, Shelby lodges evidence to be assessed as independent under the self-supporting criteria. On 12 May 2025, a Service Officer assesses Shelby's independence documents and determines that Shelby met the independent criteria from 20 March 2025.

The Service Officer codes the Start Date for independence as 20 March 2025, as this is the event date Shelby qualifies for independence. As the date Shelby lodged evidence was within 13 weeks of the independence event date, any arrears are payable from 20 March 2025.

If Shelby lodged evidence more than 13 weeks after the event date of qualifying for independence, any arrears are payable from the date the evidence was provided.

2

Start date of independence for a YA new claim

Edmund lodges an online claim for YA on 15 February 2025. Edmund lodges supporting documentation to meet independence under the self-supporting criteria. A Service Officer assesses Edmund's new claim on 20 March 2025.

The Service Officer codes Edmund's YA and independence start dates from the date they qualified on 15 February 2025.

3

Start date of independence for current ABSTUDY customers

Kaylene's claim for ABSTUDY is granted in February 2025. On 17 June 2025, Kaylene lodges evidence to be assessed as independent under the self-supporting criteria. On 2 July 2025, a Service Officer assesses Kaylene's independence documents and determines that Kaylene met the independent criteria from 1 March 2025.

As there is no closing date to provide additional information for ABSTUDY, the Service Officer codes the Start Date for independence as 1 March 2025, as this is the event date Kaylene qualifies for independence.

4

Start date of independence for an ABSTUDY new claim

Miranda lodges an online claim for ABSTUDY on 19 March 2025. Miranda also lodges supporting documentation to meet independence under the self-supporting criteria. The documentation shows that Miranda met the independence criteria from 15 November 2024.

A Service Officer assesses Miranda's new claim on 3 April 2025. The Service Officer determines that Miranda's ABSTUDY start date is 1 January 2025, and codes both the ABSTUDY start date and independence start date from the date they qualified on 1 January 2025.