Paid work as an approved mutual obligation requirement 001-09070070
Expand allFair Work Ombudsman
Check the current rate of the national minimum wage on the Fair Work Ombudsman website. Some employees have a different minimum wage depending on their employment type, age, or work capacity.
Examples - deciding if part-time work satisfies mutual obligation requirements
Note: the amount of $24.10 per hour used below for the national minimum wage is based on the rate as of 1st July 2024 and is for illustration purposes only. This is the base rate for adult employees in the national system who are award free and may be substituted for people in occupations covered by an award which provides a rate of pay which is lower than the national minimum wage or where junior/trainee rates apply.
Service Officers must check the Fair Work Commission's website for the latest national minimum wage when assessing a job seeker's circumstances.
Table 1
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Example |
Description |
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1 |
Parenting Payment (PP) single principal carer Aminah receives PP as a single principal carer with a dependent child under 14 years old. Aminah can satisfy mutual obligation requirements by working 30 hours per fortnight. Aminah currently works 20 hours a week at a shop owned by relatives. They pay $13.00 an hour so Aminah earns $260.00 a week. Aminah will satisfy the sufficient work test if earning at least $723.00 per fortnight, which equals 30 hours at $24.10 per hour. Although Aminah is working at least 30 hours per fortnight, their earnings do not exceed the minimum wage requirement and the sufficient work test is not satisfied. Aminah would have to look for alternative work. If Aminah was working 20 hours a week for $19.00 an hour, the sufficient work test would be satisfied. Aminah would not have to look for alternative work. |
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2 |
Jobseeker Payment (JSP) partial capacity to work (PCW) Cheung receives JSP and has been assessed as having a PCW of 15-22 hours per week. Cheung will satisfy the mutual obligation requirements if working 30 hours per fortnight and the earnings are equivalent to the national minimum wage for the minimum number of required hours. Cheung works for 20 hours a fortnight, earning $26.00 an hour, or $520.00 a fortnight. Cheung will satisfy the remuneration test if earning at least $723.00 a fortnight, which equals 30 hours at $24.10 per hour. Cheung earns more than this, so the remuneration test is satisfied. However, Cheung is not working the minimum number of hours required, so the sufficient work test is not met. Cheung will need to do or look for at least 10 hours per fortnight more work. |
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3 |
55 years of age and over Wendy is a job seeker aged over 55 and has been receiving the current income support payment for more than 12 months. Wendy is currently doing 20 hours a fortnight approved voluntary work and works part-time for a total of 10 hours per fortnight. As Wendy is doing a combination of approved voluntary work and paid work of at least 30 hours per fortnight, Wendy can use them to satisfy the mutual obligation requirements if the income from the part-time work satisfies the national minimum wage. Wendy is paid $10 an hour in the part-time job so earns $100.00 per fortnight. This will not satisfy the sufficient work test, as the remuneration is insufficient. Wendy needs to earn at least $241.00, which equates to 10 hours at the minimum wage rate of $24.10 an hour. Wendy increases the part-time job to 22 hours per fortnight and now earns $511.06 per fortnight. Combined with the volunteer work, this is more than the required number of hours, and as the pay now exceeds $241.00 per fortnight, the remuneration test is satisfied. Wendy is therefore meeting the mutual obligation requirements in full. |
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4 |
55 to 59 years of age Rachel is a job seeker aged 58 and is within the first 12 months of receiving the current JSP payment. Rachel is currently doing 15 hours per fortnight approved voluntary work and works part-time for a total of 15 hours per fortnight. As Rachel is doing a combination of approved voluntary work and paid work with a minimum of 15 hours being paid work, Rachel can use them to satisfy the mutual obligation requirements if the income from the part-time work satisfies the national minimum wage. Rachel is paid $15 an hour in the part-time job, so earns $225.00 per fortnight. This will not satisfy the sufficient work test, as the remuneration is insufficient. Rachel needs to earn at least $361.50, which is 15 hours at the minimum wage rate of $24.10 an hour. Rachel increases the part-time job to 20 hours per fortnight and now earns $464.60 per fortnight. Combined with the volunteer work, this is more than the required number of hours, and as the pay now exceeds $361.50 per fortnight, the remuneration test is satisfied. Rachel is therefore meeting the mutual obligation requirements in full. |
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5 |
JSP principal carer Gnani is a JSP principal carer parent of a 14-year-old. Gnani can satisfy the mutual obligation requirements by working 30 hours per fortnight. Gnani sells Tupperware on a commission basis and is paid commission monthly. Gnani works 40 hours, and the affecting income is assessed as $725.00 per fortnight. As Gnani is meeting the sufficient work test, earning at least the national minimum wage, and has fully satisfied the mutual obligation requirements. |
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6 |
Principal carer Elissa is a principal carer parent of a 15-year-old. Elissa can satisfy the mutual obligation requirements by working 30 hours per fortnight. Elissa sells Avon on a commission basis and receives this income monthly. Elissa works 30 hours per fortnight and meets the sufficient work test. However, the affecting income is only $50.00 per fortnight. Elissa is not meeting the income test and therefore not fully meeting the requirements. Elissa will need to look for work that will meet the 30-hour requirement as well as earning the equivalent of the national minimum wage for 30 hours for $723.00 per fortnight (based on the hourly rate of $24.10 as of 1st July 2024). |
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7 |
JSP principal carer Dave receives JSP as a principal carer and currently does part-time work for 20 hours per fortnight, as well as studying part-time for 10 hours a fortnight. Dave declares earnings of $482.00 per fortnight. This is equivalent to the national minimum wage of $24.10 an hour for 20 hours per fortnight. Dave fully satisfies the remuneration test for the part-time work component and fully satisfies the mutual obligation requirements through this combination of approved study and paid work of at least 30 hours per fortnight. |
Examples - deciding if current part-time work is an extension of an expired PTW activity or resumption of mutual obligations after a break in part time work
Table 2
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Example |
Description |
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1 |
Extending an expired activity - Job seeker has continued to meet their PTW activity requirement Trevor is 56 years old and receives Jobseeker Payment (JSP). Trevor has been working casually for the past 13 months and has been meeting their mutual obligation requirement using part time work as their approved activity. Trevor's PTW approved activity expired (1 May) and has contacted to have their activity extended. Trevor has continued to report part time work hours of 30 hours or more each fortnight and has been declaring more than the national minimum award wage of $24.10 per hour ($723.00 per fortnight). Trevor confirms there has been no change to their part time work and they expect to continue working at least 30 hours per fortnight. Trevor's activity on the Activity and Exemption Summary (AEX) screen should be extended for a further 363 days with a start date of the new approved activity period coded from the end date of the expired PTW activity period + 1 day (2 May). A new Centrelink Job Plan must be negotiated for the new period of participation. |
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2 |
Expired activity - Job seeker has resumed meeting their mutual obligation requirement after a break in employment since the expiry of the previous PTW activity Trudy is a single principal carer and has a 10-year-old daughter. Trudy receives Parenting Payment Single and recently ceased part time work at the end of their contracted period. Trudi's part time work approved activity was coded till 31 March. Despite expecting to resume employment soon, Trudy was re-engaged with her Employment Services Provider when their part time work ceased. On 1 May, Trudy recommenced employment with their previous employer and is contracted to work until 31 August. Trudy contacted Services Australia on 5 May to enquire if they needed to continue participating with their Employment Services Provider. As Trudy is expecting to declare 30 hours per fortnight and will be earning more than the national minimum award wage of $24.10 per hour, their PTW approved activity can recommence and they will be suspended or exited from Employment Provider services for the duration of their PTW activity. As Trudy had a break in their PTW after their approved activity expired, their part time work participation has not been continuous. Trudy's employment will be recorded as a new PTW approved activity on the Activity and Exemption Summary (AEX) screen from 1 May when Trudy recommenced employment with an end date of 31 August. |
Examples - determining the start date of the part time work approved requirement
Table 3
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Example |
Description |
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1 |
Job seeker commenced/recommenced meeting paid work requirement within the current entitlement period
As the job seeker:
The Service Officer should code the Activity and Exemption Summary (AEX) screen with a PTW approved requirement start date of 3 May for 363 days. |
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2 |
Job seeker commenced/recommenced paid work but is unable to fully meet their requirement in the current entitlement period
As the job seeker:
The Service Officer should code the AEX screen with a PTW approved requirement from the Entitlement Period Start Date (EPSD) of the next reporting period (15 May) for a duration of 363 days. |
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3 |
Job seeker commencing/recommencing paid work within the next 14 days
As the job seeker:
The Service Officer should:
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