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

Item

Example

1

Customer wants to become self employed

Francis is in receipt of JobSeeker Payment (JSP), is regarded as a computer whiz and has a good idea for setting up a computer consultancy business. Francis wants to know about available assistance. An appointment should be booked with a Service Officer for Francis to discuss available options.

Things to discuss with Francis

• Discuss with Francis the availability of Self-Employment Assistance and the possibility that such a program can provide the skills required to set up a business
• Consider the availability of short courses if Francis is interested in skills upgrading
• Advise Francis that the mutual obligation requirements must still be satisfied if they remain on JSP and operate a business at the same time, unless the self-employment can be approved as an activity to fully meet the mutual obligation requirements
• Explain to Francis the effect any business income will have on JSP
• Explain Working Credits to Francis and how employment income is treated as Francis may have income other than from self-employment
• Advise Francis to declare any income from the business once operational
• Offer information on state based small business organisations
• If Francis does not want to be on JSP any longer, advise that the payments will be cancelled

Actions to take for Francis

• If Francis wants to participate in Self-Employment Assistance, see New Enterprise Incentive Scheme (NEIS) and Self-Employment Assistance
• If Francis wants to know if the self-employment can be approved as an activity to fully meet the mutual obligation requirements, see Self-employment as an approved activity to satisfy mutual obligation requirements
• If Francis' self-employment is not an approved activity, do the following:
• Apply the mutual obligation requirements
• Reclassify Francis's Job Seeker Snapshot result. See Conducting a Job Seeker Snapshot interview
• Assess Francis' business income once operational
• Explain to Francis how the income test works, see JobSeeker Payment and Youth Allowance job seeker Income Test
• If Francis no longer wishes to remain on JSP, then cancel the payment