Commencing or returning to self-employment for JobSeeker Payment, Youth Allowance and Austudy 102-08030000

A customer or partner may be involved as the owner or part owner in a business when they initially claim an income support payment.

For JSP or YA (job seeker) customers who are self-employed, Service Officers must determine if they are unemployed.

Self-employed customers are considered to be unemployed if they are able to:

• fulfil their mutual obligation requirements, and
• willing to undertake any suitable work

Self-employment as an approved activity to satisfy mutual obligation requirements if the job seeker is working at least their required number of hours and the net income of the business provides the equivalent of the relevant national minimum wage for the minimum required hours.

Income from self-employment cannot be offset against Working Credits because it is not regarded as employment income. If the customer's (or their partner's) income reduces their rate to nil and the income is from self-employment only, then payments should be cancelled immediately. If some of the income is employment income the customer may be entitled to use their Working Credits to offset their employment income. If payment is reduced to nil rate, a customer can remain current at nil rate for up to 12 fortnights and retain certain benefits.

YA customers who are not full-time students may not qualify for payment if they are substantially involved as the owner or part owner in a business. Full-time students claiming or receiving YA or Austudy may qualify for payment if they continue to meet the requirements of a full-time student. These customers must regularly report their income from self-employment.

JSP and YA (job seeker) customers who have a partial capacity to work and are self-employed may meet their mutual obligation requirements if they are working a minimum of, and declaring at least, the relevant national minimum wages for at least 30 hours per fortnight.

If the principal carer of a dependent child commences self-employment, they may satisfy their mutual obligation requirements if they are working at least 30 hours per fortnight and declaring at least the relevant national minimum wages for this period.