Paid work as an approved mutual obligation requirement 001-09070070

Job seekers who are doing or expected to commence sufficient paid work to fully satisfy their mutual obligation requirements may approach Services Australia about having their requirement approved, so they do not have to participate in employment services and do other activities like looking for work.

Alternatively, Service Officers should try to identify job seekers who could possibly have paid work approved and become Centrelink managed.

When a job seeker with:

• part-time mutual obligation requirements (principal carer, partial capacity to work (PCW), or
• mature age 55+ job seeker (PCP/PCW/TRWC/MA55+), and
• has been declaring sufficient hours and earnings from employment to fully satisfy their requirements
• an activity and action item will automatically generate on their record to prompt Service Officers to consider approving the requirement

The action item is as follows, 'Customer's recent earnings suggest employment may be approved as meeting mutual obligation requirements. If approving, update Activity and Exemption Summary (AEX) screen and determine if a Job Plan update is required. Do not update the Job Plan if the customer is a Disability Employment Services (DES) Post Placement Support participant.

Note: some principal carers will have their approved part-time work (PTW) requirement automatically updated if they:

• are a principal carer, and
• are receiving JobSeeker Payment (JSP), Parenting Payment Single (PPS), or Youth Allowance (YA) (job seeker), and
• have declared in their last two consecutive fortnights that they have worked at least 30 hours each fortnight

Job seekers with full-time mutual obligation requirements can also use paid work to fully satisfy their obligations if the work is at least 70 hours per fortnight with income equal to or above the national minimum wage. These job seekers remain provider managed and connected to employment services.

Service Officers should direct these job seekers to their provider to discuss their paid work. The Employment Services Provider will negotiate a new Job Plan to ensure the job seeker's level of paid work is considered. If the employment is less than 70 hours, other activities such as job search may be required (as determined by their Employment Services Provider).

Job seekers working 70 hours or more per fortnight may still qualify for payment depending on the income test applicable for their circumstances.

Job Plans for job seekers managed by Centrelink are negotiated via an outbound phone call interview, done by service centre Service Officers. These outbound contacts are currently managed through the 'Compulsory Participation Interview' appointment type in the Centrelink Appointment System.

If the job seeker is Disability Employment Services (DES) managed, go to Step 11.

Job seekers can view scheduled appointments through their online account, but it will appear as a 'Participation Requirements Appointment'.

If the job seeker is declaring paid work for the first time:

• Smart Centre Service Officers who are suitably skilled may negotiate a Job Plan with the job seeker over the phone. For further information, see Negotiating Centrelink Managed Job Plans Apply the criteria for paid work to satisfy mutual obligation requirements. Note: update the AEX screen first to automatically generate the correct item into the Job Plan. Do not update the AEX screen for those with full time participation requirements working 70 hours or more per fortnight. These job seekers remain provider managed. Go to Step 3
• Otherwise:
• Book the first suitable 'Compulsory Participation Interview' available at the job seeker's local service centre. Tell the job seeker the time, date, and reason for the appointment. Record a DOC confirming advice given, and any other relevant information from the job seeker. If the job seeker cannot accept a call from the service centre (e.g. they have inbound calling restrictions on their phone service), Service Officers should check Office Locator to decide if a walk-in is needed instead of a booked appointment. Procedure ends here
• Apply the criteria for paid work to satisfy mutual obligation requirements. Go to Step 3

If a principal carer contacts because of no longer earning the minimum wage, go to Step 9.

If the job seeker advised they have ceased an existing approved part-time work (PTW activity) requirement, see Step 5 in Table 2.

If the job seeker has a previously approved part-time work (PTW) activity on the Activity and Exemption Summary (AEX) screen that has expired, see Step 7 in Table 2.

Updating details

If the job seeker is declaring previously approved paid work to satisfy their mutual obligation requirements:

• At a Reporting Statement (SU19) form contact, go to Step 8
• If a principal carer has had AEX updated automatically, a 'Change of Circumstances' work item is allocated to Service Officers for a new Job Plan to be negotiated. Finalising the COC activity must be done by selecting the 'Update Part-time Work activity' COC Interaction from the Interaction Summary and changing the status from 'For manual action' to 'Completed'. For further information, see Negotiating Centrelink Managed Job Plans

Procedure ends here.

Does the job seeker want to do:

• paid work for at least 15 hours per week (30 hours per fortnight), or
• a combination of:
• paid work
• self-employment
• activities such as study or voluntary work for at least 15 hours per week (30 hours per fortnight)?

Note: job seekers with full-time mutual obligation requirements, paid work of at least 70 hours per fortnight with income equal to or above the national minimum wage are not eligible to have their paid work assessed as a Centrelink approved activity. These job seekers remain provider managed and connected to their provider. They should be encouraged to discuss their paid work with their Employment Services Provider who will review the job seeker's Job Plan and other mutual obligation requirements.

Workforce Australia Providers only can approve participation through a combination of paid work and study for at least 70 hours per fortnight as fully meeting the requirements for job seekers. Once approved, DEWR will send details to Services Australia. These job seekers will be suspended or exited from employment services and become Centrelink managed and require a Centrelink Job Plan to be negotiated.

Job seekers with a partial capacity to work (PCW) of 0-14 hours per week can choose to do some paid work. For further information, see Negotiating Centrelink Managed Job Plans.

• Yes, go to Step 4
• No, the paid work does not meet the requirements. The job seeker may need a referral to an Employment Services Provider if they have not already been connected. Providers are responsible for negotiating and maintaining the Job Plan for provider managed job seekers. Advise the job seeker of the decision, record decision and conversation with the job seeker on a closed DOC. Procedure ends here

For ministers of religion who are either a principal carer of a dependent child or a person assessed as having a partial capacity to work (PCW), who is doing at least 30 hours of paid pastoral work a fortnight for their religious order, the amount of remuneration received does not have to be at the national minimum wage.

Note: more information about the national minimum wage is on the Fair Work Ombudsman website. Rates quoted in the information section of this site relate to workers 18 years or older. Other rates like junior rates are listed in the fact sheets for relevant years on the relevant website. See the Resources page for a link to the website.

Income provided by a partner to a member of a couple who is receiving a social security payment, does not meet the definition of income under the Social Security Act (1991). This does not preclude instances where a principal carer does employment and gets income from a business where their partner engages in that business if the requirement meets the necessary criteria.

For principal carers, a combination of paid work and self-employment or paid work and approved study, totalling at least 15 hours per week (30 hours per fortnight), will fully meet mutual obligation requirements. The business income must be equivalent to the national minimum wage for the agreed hours of employment.

• Yes, go to Step 6
• No, go to Step 5

The paid work does not meet the requirements and cannot be an approved requirement. The job seeker may need a referral to an Employment Services Provider if they are not already connected. Providers are responsible for negotiating and maintaining the Job Plan for provider managed job seeker. Advise the job seeker of the decision, record decision and conversation with the job seeker on a closed DOC.

Investigate other approved activities for the job seeker.

Procedure ends here.

For both Centrelink managed and provider managed job seekers with part time mutual obligation requirements, record the paid work as an approved requirement.

If the job seeker has not started work yet, consider the correct start date to use when recording the approved requirement, as this could affect their ability to use self-service reporting. Activities can be recorded on the Activity and Exemption Summary (AEX) screen with a start date of up to 2 weeks in the future. Once the requirement start date has been reached, the self-service reporting system will expect the required hours to be declared for each fortnight. If the job seeker has only commenced work part way through the first fortnight, they will not normally be declaring sufficient hours, and they will be transferred to a Service Officer (if using phone self-service), or asked to contact the agency to have the report finalised:

• Record the approved paid work mutual obligation requirement on the AEX screen using the code of 'PTW'. Note: if doing a combination of suitable paid work and self-employment, use 'PWS' activity. Anytime self-employment is considered, the Service Officer must first code details on the Real Estate/Business Details (REBS) screen
• For mature age 55+ job seekers doing a combination of voluntary and paid work, use code 'VPE' on the AEX screen. See Voluntary work as an approved activity if the job seeker is attending for the annual review of their voluntary work activities
• For principal carers doing a combination of part-time work and approved study, use code 'SPW'

To record an approved activity in Process Direct:

• Go to the AEX screen
• Select the + symbol at the top of the manual activities and exemption table to add a new row
• On the Create Activity and Exemption Summary (AEX) screen, complete the:
• Activity Type
• Start date: the day the activity is started is day one

Note: make sure the correct start date is recorded from the date the job seeker can fully meet their minimum hourly and remuneration requirement. This enables them to successfully report their employment income paid and hours worked in the first full reporting period after requirements start being met. The Start date will be the:

• initial date job seeker notified paid work commenced meeting requirements (if commenced in the past), or
• Entitlement Period Start Date (EPSD) of the next reporting period (if paid work commenced meeting requirement's part way through the current reporting period), or
• date of paid work is expected to commence meeting requirements (if commencing in the future)

The Resources page has start date coding examples.

Continue coding:

• Complete the End date. The duration rules are inclusive of start and end dates of the activity. The part-time work and other approved mutual obligation requirements cannot be coded on the AEX screen for more than 363 days at a time
• Select Save
• Complete the Receipt Date and Channel fields > Save. Note: a provisional line will display on the AEX table. For a combined activity, select Add to add the second approved requirement
• Select Assess and address any errors/warnings
• Select Assess > Finish. Record details of the update on the Finalise screen
• Select Finalise to complete the transaction

After the AEX screen is updated, the system identifies if the:

• job seeker is Centrelink or provider managed
• Job Plan needs to be updated

Job seekers whose PTW activity is updated with a future start date will not change to Centrelink managed until the start date of the approved requirement. The Job Plan cannot be negotiated until the job seeker is displaying as Centrelink managed and the PTW activity has commenced.

If a future start date is recorded, tell the job seeker to contact the agency (by phone or in person) within 14 days of commencing their activity to negotiate a new Job Plan.

If a Job Plan is required to be updated or negotiated by Services Australia, an Action Item message will display stating: 'Job Plan requires at least one compulsory requirement. Ensure Job Plan is updated taking into consideration the job seeker's participation category'.

To update the Job Plan:

• Select > Participation Summary to view the Key Information screen
• Select Messages > Action Item to view the Job Plan screen, select Negotiate Plan and negotiate a Job Plan
• Once the Job Plan is negotiated, the Action Item is removed
• Close any Digital Image Work items associated with the voluntary work activity. See Viewing Centrelink's customers digital images

For Workforce Australia and Community Development Program (CDP) provider managed job seekers, the job seeker will become Centrelink managed once the AEX screen is updated with the job seeker approved activity (except those with full time mutual obligation requirements who are working 70 hours or more per fortnight).

Workforce Australia Providers only can approve participation in the following paid work combination activities for some job seekers to fully meet their mutual obligation requirements.

• PSW activity code - any job seeker participating in paid work and study for at least 70 hours per fortnight
• PPW activity code - principal carers and those assessed with a partial capacity to work (15-29 hours) participating in paid work and study for at least 30 hours per fortnight
• PSV activity code - principal carers under 55 years of age participating in voluntary work, study and paid work for at least 30 hours per fortnight
• PVP activity code - principal carers under 55 years of age participating in voluntary work and paid work for at least 30 hours per fortnight

DEWR will send the relevant activity details to Services Australia and the AEX screen is updated with the relevant activity code.

Note: mature age job seekers, principal carers and those assessed with a partial capacity to work who are already connected with an Employment Service Provider can also have paid work (PTW activity code) and combination with approved voluntary work (VPE activity code) approved to fully meet their mutual obligation requirements. DEWR will send the activity type, start and end dates to the Centrelink system. A work item is generated to request the Service Officer to contact the job seeker and negotiate the Centrelink managed Job Plan.

• they satisfy their mutual obligation requirements as they are doing an approved requirement
• they still need to report or lodge their Reporting Statement via self-service (online or phone), in person or in writing (SU19) fortnightly but do not need to report job search efforts
• once the paid work is approved, the PTW activity is required to be coded on the job seekers record, the details are sent to the Department of Employment and Workplace Relations and the job seeker will automatically be suspended or exited from employment services. There is no need for job seekers to discuss this with their provider. However, the job seeker may choose to volunteer in Employment Provider Services. In this case, the job seeker will need to discuss this with their provider
• Note: job seekers aged 55 years and over:
• may be eligible for variable reporting only if it is decided their income is unlikely to change and they meet all other eligibility criteria for variable reporting
• are suspended or exited from Employment Provider Services
• must tell Services Australia of changes about their participation in an approved mutual obligation requirement within their next reporting period and how the changes may affect their mutual obligation requirements, that is, a reduction in income paid or hours worked
• Advise the job seeker of the decision, record decision and conversation with the job seeker on a closed DOC

Note: the employer or hours worked cannot be recorded through the Earnings and Reporting workflow unless the job seeker is due to lodge an SU19 and has already started their part-time hours.

Is a Reporting Statement (SU19) due?

• Yes, go to Step 8
• No, procedure ends here

If the job seeker is lodging an SU19, select the Earnings and Reporting workflow in Process Direct

The workflow lets the user record the employer, gross income paid, and hours worked.

Has the job seeker met their requirements?

Note: if a principal carer did not complete their self-service reporting because they did not declare the minimum wage, go to Step 9.

• Yes, complete the workflow then process the SU19. Procedure ends here
• No, see Step 1 in Table 2

Where a job seeker with 'PTW' 'drops through' to the Smart Centre or contacts about a reduction in their income below the minimum wage, the following actions are needed:

• Stimulate the job seeker's current outstanding payment (if required)
• Discuss the job seeker's regular declared income. If declared income has consistently been under the minimum wage per fortnight, go to Step 10

Note: if regular declared income is usually above the minimum wage, but their employer has not yet passed on the latest increase, tell the job seeker of the change to the minimum wage, and discuss. Annotate the failed self-service DOC (if applicable) or record a new DOC with details of the discussion.

Procedure ends here.

• If declared income is consistently under the minimum wage per fortnight, 'PTW' must be ended on the Activity and Exemption Summary (AEX) screen for the job seeker (Date of Effect (DOE) = date of discussion)
• Tell the job seeker they must be connected to an Employment Services Provider for further assistance as the job seeker will have job search requirements. See Selection or allocation of a Workforce Australia Employment Services if not already connected. Their Employment Services Provider must negotiate a Job Plan with them
• If a job seeker can arrange for an increase in their hourly rate of income with their employer to match the current national minimum wage, they can have 'PTW' approved again
• Annotate the failed self -service DOC (if applicable) or record a new DOC with details of the discussion

Procedure ends here.

If the job seeker has not started work yet, consider the correct start date to use when recording the approved requirement, as this may affect their ability to use self-service reporting (as outlined in Step 6).

Activities can be recorded on the AEX screen, with a start date up to 2 weeks in the future.

If the job seeker has already started work, use the date of notification.

The day the activity is started is day one.

The duration rules are inclusive of start and end dates of the activity.

The end date should be coded as the end date for employment (if known) or no more than 363 days in the future.

• Select PTW or EPT (EPT is coded only for Early School Leavers) as the activity and code the start and end date for paid work on the AEX screen (as outlined in Step 6)
• Depending on the duration of the activity, the job seeker will either be suspended or exited from DES:
• If the activity is less than 13 weeks the job seeker will be suspended
• If the activity is longer than 13 weeks the job seeker will be exited
• Do not discuss exiting the current DES provider with the job seeker. DES Providers can offer Post Placement Support or Ongoing Support to job seekers who require additional workplace support
• If the job seeker is a participant in DES Post Placement Support, do not negotiate the job plan. The DES provider will act on the coding of the activity on the AEX screen and will contact the job seeker to negotiate the Job Plan accordingly
• Note: see the current Placement Type on the 'Provider referral information' table within the Participation Summary in Process Direct
• If, after talking with their DES provider, a job seeker chooses to exit DES (and is eligible to exit), the Job Plan must be updated by Services Australia at that time

Note: paid work and other approved activities cannot be coded on the AEX screen for more than 363 days at a time.

If the job seeker asks for a short-term exemption from their requirements, consider the merits of the case and decide. If granting an exemption, code it on the Activity and Exemption Summary (AEX) screen.

Does the job seeker qualify for an exemption from their requirements?

Yes, and if the job seeker has requested the exemption:

• on their reporting day:
• at the 'reasonable excuse' list, select 'other'
• record the approved exemption reason in this field
• process the payment, subject to all other eligibility being met
• procedure ends here
• at change of circumstances
• record a DOC on the job seeker's record, outlining the conversation and decision made
• procedure ends here

No, go to Step 2

Check if the job seeker has a reasonable excuse for not meeting their requirements. With an exception that working hours will return to normal in the next fortnight, the only responses are:

• ill or injured
• a sick child/ren
• cancelled shift
• short term reduction in hours due to public holiday (for example Easter, Christmas)
• pupil-free day/school holidays
• other, and
• No longer undertaking activity

Where 'other' or 'no longer undertaking activity' are selected, the job seeker will be subject to a hand off (if using the self-service channel). When the job seeker makes contact, the Service Officer will:

• discuss their ongoing participation
• make relevant updates to the AEX screen (potentially approve a different activity), and
• refer the job seeker to employment services (as appropriate)

Note: principal carers and people assessed as having a partial capacity to work (PCW) of 15 or more hours per week:

• Are not required to look for additional work if they were working 30 or more hours a fortnight and then have a drop in their hours that is temporary and unforeseen, and their work is likely to increase to more than 30 hours in the next fortnight
• Whose approved activity is permanent part-time work, are not required to look for additional work if their work falls below 30 hours per fortnight for any period if their basic rate of income support does not increase during that period. That is, they get the same level of employment income during the break

In the Customer First Earnings and Reporting workflow, an alert pop message will display to remind staff to check the reasonableness of the excuse provided by the job seeker 'Customer has not met their approved activity requirement'. Discuss and determine if the customer is still meeting their approved activity. If the customer is no longer meeting the approved activity, following completion of the report, update the end date of the activity on the AEX screen in Process Direct and refer customer back to their Employment Service Provider as appropriate. The report should only be finalised after discussion with the job seeker.

Does the job seeker have a reasonable excuse which they expect their working hours to return to normal in the next fortnight?

• Yes, go to Step 3
• No, go to Step 5

The reasonable excuse reasons are coded in the Earnings and Reporting workflow

If the job seeker is not making contact on their report day, record a DOC/Note stating the:

• information provided by the job seeker
• advice given, and
• details of all relevant action taken

Has the job seeker reported not meeting their mutual obligation requirements for two consecutive fortnights?

• Yes, go to Step 4
• No, procedure ends here

After providing two consecutive reasonable excuses, the job seeker must choose another activity type as they cannot meet their obligations through part-time work any longer.

Complete the following actions:

• process the outstanding report
• end date the current approved activity on the AEX screen
• If the job seeker is eligible for a different approved activity as fully meet their requirements, update the AEX screen and negotiate the Job Plan as appropriate
• check the Key Information page within the Participation Summary for any outstanding actions and complete as required
• connect or reconnect the job seeker with their Employment Services Provider (if not already active with one)
• record a DOC/Note outlining the:
• information provided by the job seeker
• advice given
• details of all relevant action taken

Note: when the job seeker becomes provider managed, the Employment Services Provider will renegotiate the Job Plan with the job seeker.

Procedure ends here.

If the job seeker does not have a reasonable excuse for failing to meet their requirements or they have ceased participating in their activity, they may choose another activity type (where appropriate), as they cannot meet their obligations through paid work.

• Process the outstanding report
• If they are not currently doing another activity or combination of activities that can be approved by Services Australia as fully meeting requirements, investigate other approved activities for the job seeker
• End date the paid work activity coding on the AEX screen using the date the job seeker ceased meeting their requirements
• Check the Key Information page within the Participation Summary for any outstanding actions and complete as required
• Refer the job seeker to an Employment Services Provider (as appropriate). See instructions below. The provider will negotiate the Job Plan with appropriate activities with the job seeker
• Record a DOC/Note confirming
• any relevant information provided by the job seeker
• the advice given, and
• details of all relevant action taken

If the job seeker was previously suspended from the provider's services due to undertaking part-time work activity, once the part-time work activity is ended, the provider will see that the job seeker is not meeting requirements through an approved activity and ensures the provider re-engages the job seeker in a timely manner. The job seeker's record will display as provider managed when the Department of Employment and Workplace Relations send advice that the job seeker has commenced or recommenced in Workforce Australia services.

If the job seeker has not been previously linked to an Employment Services Provider, register the job seeker in Process Direct:

Select > Participation Summary > Job seeker registration & provider referral information > Start job seeker registration

Note: when the job seeker becomes provider managed, the Employment Services Provider will renegotiate the Job Plan with the job seeker.

Procedure ends here.

The job seeker must meet the criteria for paid work to satisfy mutual obligation requirements.

Is the job seeker still meeting requirements through sufficient paid work?

• Yes, check the job seeker's current activity on the AEX screen. Note: PTW can only be coded for a maximum period of 363 days on the AEX screen. The duration rules are inclusive of start and end dates of the activity. Code a new PTW line if the 363-day period has already been exceeded. If the activity has:
• expired, go to Step 7
• not expired, go to Step 8
• indicated a Job Plan is to be negotiated, go to Step 9
• No, refer the job seeker to their Employment Services Provider for their Job Plan to be updated
• If the job seeker was previously suspended from provider's services due to undertaking part-time work activity, once the part-time work activity is ended, the provider will see that the job seeker is not meeting requirements through an approved activity and ensures they will engage the job seeker in a timely manner. The job seeker's record will display as provider managed when Department of Employment and Workplace Relations send an advice that the job seeker has commenced or recommenced in Workforce Australia services
• Procedure ends here

• Extend the PTW activity period
• If the job seeker has continued to meet their PTW requirement record the:
• start date from the previous PTW activity end date + 1 day
• end date, 363 days from the new start date or the date PTW is expected to end (whichever is the earliest). The duration rules are inclusive of the start and end dates of the activity
• the system will display an Action Item on the Key Information screen of the Participation Summary if a new Job Plan is to be negotiated
• If the job seeker has resumed meeting their mutual obligation requirement through PTW after a break in employment since the expiry of the previous PTW activity, record the:
• start date from the date the job seeker recommenced part time work of 30 hours per fortnight. The day the activity is started is day one
• end date 363 days from the new start date or the date PTW is expected to end (whichever is the earliest). The duration rules are inclusive of start and end dates of the activity

The Resources page has examples of how to update the expired PTW approved requirement.

• Record a new period of PTW as appropriate (not exceeding 363 days). The day the activity is started is day one
• The system will display an Action Item on the Key Information screen of the Participation Summary if a new Job Plan is to be negotiated

Once the AEX screen is updated, the system identifies if the Job Plan is to be updated. To update the Job Plan:

• Select > Participation Summary to view the Key Information screen
• View the relevant Message Action Items displayed on the Key Information screen
• Select the relevant Job Plan Action Item to view the Job Plan screen, select Negotiate Plan and negotiate a Job Plan
• Once the Job Plan is negotiated, the Action Item is removed

Suitably skilled Smart Centre Service Officers may negotiate a Job Plan with the job seeker over the phone.

Otherwise:

• Book the first suitable 'Compulsory Participation Interview' available at the job seeker's local service centre. Advise the job seeker of the time, date, and reason of the upcoming appointment
• If they cannot accept a phone call from the service centre (for example, they have incoming call restrictions on their phone service), Service Officers should check Office Locator and decide if a walk-in or another appointment type should be booked
• Record a DOC confirming the advice given and any relevant information from the job seeker

Procedure ends here.