Special Employment Advance (SEA) 103-05050030

Issue customer with Application for Special Employment Advance (SU514).

Customers are able to print the form themselves from the Services Australia website.

See Resources for links to the form from the Intranet and from the Services Australia website.

Tell the customer they can:

• lodge the SU514 and supporting documents using the Document Lodgement Service (DLS), or
• they will need to attend a service centre to lodge their completed claim

Note: customers cannot use self service options to claim or repay a SEA advance.

If the customer is claiming a SEA advance due to:

• Income not received, see Step 1 in Table 3
• Return to work expenses, see Step 1 in Table 2

The total amount of SEA payment for a customer applying for SEA due to a definite offer of employment is the smallest of the following amounts:

• $500
• The amount of financial help that is needed for the customer to be able to take up the employment (essential expense)
• If the customer has already been paid a SEA, the difference between the outstanding SEA amount and $500

Less

• excess liquid assets

Has the customer received a firm offer of employment where the work will last more than 6 weeks?

Firm offer means customer has a definite start date. If there is no documentation, and staff has any doubt about the validity of the information, contact should be made with the employer.

• Yes, go to Step 3
• No, reject claim. For coding using:
• the Advance Payment workflow in Process Direct go to Step 1 Table 4
• the Manage Advance in Process Direct go to Step 1 Table 5

In cases where a customer needs the SEA to take up a definite offer of employment it must be established that without the service or item, it would not be possible for the person to accept the offered employment.

Some examples may include:

• work boots
• registration of a car, where the job is not serviced by public transport
• moving expenses
• protective clothing, and
• up-front childcare expenses

Note: it is not recommended that the SEA be made available to purchase a car.

Example: Sunglasses would not be considered essential for an outdoor job, unless wearing sunglasses has been designated as essential by the employer or workplace standards authority.

Can the customer start work without the item/service?

• Yes, reject claim. For coding using:
• the Advance Payment workflow in Process Direct see Step 1 Table 4
• the Manage Advance in Process Direct see Step 1 Table 5
• No, go to Step 4

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

In the case of return to work expenses, a SEA will only be paid to a self-employed customer where they can show the expense relates to a specific contract or job.

The customer must satisfy the requirement of a firm job offer of employment for 6 weeks. Customers who contract or sub-contract for services such as a labourer or builder may qualify for a return to work SEA as a distinct return to work contract can be verified.

Will the unreceived income reduce the customer's maximum basic rate of payment by at least 50% taking into account any working credit or income bank? See Resources page for examples of how to calculate.

• Yes, go to Step 7
• No, reject claim. For coding using:
• the Advance Payment workflow in Process Direct go to Step 1 Table 4
• the Manage Advance in Process Direct go to Step 1 Table 5

Does the customer meet the test for severe financial hardship?

Note: this is the same test used in assessing whether to waive a waiting period.

• Yes, customer is eligible for SEA
• No, reject claim for SEA. For coding using:
• the Advance Payment workflow in Process Direct go to Step 1 Table 4
• the Manage Advance in Process Direct go to Step 1 Table 5

For example, a JobSeeker Payment (JSP) customer is due to report on 16 June and be paid their JSP on 17 June. The customer worked for the week 7-11 June and will not be paid until 22 June. The customer cannot apply for SEA until the end of payment period - 16 June.

Has the customer contacted before the end of the payment period?

• Yes, claim to be rejected and customer advised to wait until reporting date. See Step 1 in the Coding the advance table
• No, go to Step 2

Will the customer receive their income within 2 days of making the claim for SEA?

• Yes, claim to be rejected. For coding using:
• the Advance Payment workflow in Process Direct go to Step 1 Table 4
• the Manage Advance in Process Direct go to Step 1 Table 5
• No, go to Step 3

The total amount of the SEA payable to a customer is the smallest of the following amounts:

• the amount requested, or
• the reduction in basic entitlement caused by the unreceived income in the relevant fortnight after taking into account any working credits or income bank which can offset the unreceived income, or
• $500, or
• if the customer already has a SEA, the difference between the outstanding SEA amount and $500

The amount of the advance paid cannot be more than the rate of payment the customer would receive that fortnight (including add-ons) before the income reduction.

For example, a customer receives $620.80 basic benefit and $20.00 rent assistance each fortnight. They earn $1,250 in a fortnight but have not received it yet. The $1,250 would prevent any payment for that fortnight. The customer applies for a SEA advance of $500. The maximum SEA payable is $500.00.

Will the unreceived income reduce the customer's maximum basic rate of payment by at least 50% taking into account any working credit or income bank? See Resources page for examples of how to calculate.

• Yes, go to Step 5
• No, reject claim. For coding using:
• the Advance Payment workflow in Process Direct go to Step 1 Table 4
• the Manage Advance in Process Direct go to Step 1 Table 5

The amount of the advance paid cannot be more than the rate of payment the customer would receive that fortnight (including add-ons) before the income reduction.

For example, a customer receives $320 basic benefit and $60.00 rent assistance each fortnight. They earn $1000 in a fortnight but have not received it yet. The $1000 would prevent any payment for that fortnight. The customer applies for a SEA advance of $500. As the total payment is $380, the maximum SEA payable is $380.

• Yes, go to Step 7
• No, go to Step 8

Self-employed customers must also have their employment details verified.

Customers who are setting up a new business will generally not qualify for SEA because they will find it difficult to demonstrate what their earnings are going to be in the future.

Self-employment and income averaging

If the customer is declaring income from the same source as already assessed, the method of assessing income that normally applies to the customer's self-employment should be used to determine the impact of earnings on the customer's Maximum Basic Rate (MBR) of entitlement. If the income is averaged out over a period longer than a fortnight, then this figure is used to determine their MBR.

For example, the customer who is a contract cleaner has averaged income from self-employment of $150 per fortnight. The customer has not been paid for a $400 contract. The customer's income would be assessed as $150 for the fortnight and not $400, and as this would not cause the necessary rate reduction, the customer would not be eligible for SEA. The method of assessing the customer's income must not be altered specifically to qualify for the SEA.

Does the customer meet the test for severe financial hardship?

Note: this is the same test used in assessing whether to waive a waiting period.

• Yes, customer is eligible for SEA
• No, reject claim for SEA
• For coding using:
• the Advance Payment workflow in Process Direct go to Step 1 Table 4
• the Manage Advance in Process Direct go to Step 1 Table 5

For all SEA claims

• Key START in the Super Key, select Enter
• Select Advance Payments from the Task Selector
• On Advance Payments overview screen:
• Select the advance payment type field, select Special Employment Advance
• Select Next
• On the Special employment advance screen
• Via which contact channel is the customer requesting this Advance? Select the appropriate option

Does a warning message appear advising the automatic rejection of the SEA Advance?

• Yes, go to Step 2
• No, go to Step 3

A warning message displays advising the customer’s circumstances have been checked and the following automatic rejection reasons has been identified. The customer may not be eligible for an advance due to: Person has overpayment or debt

Override rejection? Select Yes or No

• If Yes is selected, complete the following fields:
• Override rejection reason? Use the drop down menu to select the appropriate option
• Which of these statements best explains your situation? Select the appropriate option
• Details about the employer: complete all fields with employer details
• Reject/Withdraw claim? Automatically defaults to Person has overpayment or debt. Use the drop down menu to select the appropriate option if necessary
• Select Next to continue, go to Step 4
• If No is selected, complete the following fields:
• Details about the employer: Fields can be left blank
• Reject/Withdraw claim? Automatically defaults to Person has overpayment or debt
• Select Next
• The Advance payment application result page will display
• Advise the customer the outcome of the Advance
• Select Next
• Select Assess and address any errors/warnings on the Errors (SWE) screen
• Select Assess
• Select Finish
• Record details of the update
• Select Finalise
• Procedure ends here

On the Special employment advance screen, complete the following fields:

• Which of these statements best suits your circumstance? select the appropriate option:
• You are returning to work but need help with tools or equipment to start
• You are short of money because you (or your partner) have worked but haven’t been paid and the earnings will significantly reduce your payment
• Details about the employer:
• Business name
• Address
• Contact name
• Contact phone number
• Type of work indicated
• Select Next

Go to Step 4.

A different question set will display depending on the type of SEA advance selected.

Details about the employment 

• On what date is the job expected to commence? key in the relevant date
• Is this a firm offer of employment? If:
• No is selected claim will automatically reject Claim withdrawn, go to Step 5
• Yes selected:
• Is the employment likely to last for more than 6 weeks? If:
• No claim will automatically reject Job will not last six weeks, go to Step 5
• Yes selected:
• What is the amount (before tax) you expect to earn each week? key the amount in the text field

Details of the essential item needed to start work

• What items/services do you need the money for? select the appropriate option
• What is the expected cost of these items/services you require to start work? Enter the amount in the text field
• If you are not able to pay for these items/services are you still able to start work? Select Yes or No. If:
• Yes is selected, claim will automatically reject Cannot confirm expense for job go to Step 5
• No is selected:
• Will this amount reduce the customer’s Centrelink Payment by at least 50%? Select Yes or No. If:
• No is selected, claim will automatically reject Earnings will not reduce rate by 50% or more, go to Step 5
• Yes is selected, go to Step 6

• A warning message displays advising SEA claim will be rejected
• Reject/Withdraw Claim: Automatically defaults to with the reason
• Select Next
• The Advance payment application result page displays
• Select Next
• Select Assess and address any errors/warnings in the Errors (SWE) screen
• Select Assess
• Select Finish. Record details of the update
• Select Finalise
• Discuss with the customer why their SEA claim is rejected

Procedure ends here

• Complete the following:
• How much money do you have? (This includes cash, money in bank account/s or shares) Key the amount in the text box field
• Thinking about your current fortnightly income and your expenses; how much money will you have left to repay your advance at the end of every fortnight?, Key the amount in the text box field

Note: A warning message displays advising the customer how much they are eligible to apply for. Discuss with the customer.

Is the claim to be manually rejected?

• Yes go to Step 7
• No, go to Step 8

To manually reject the SEA advance, select

• Reject/Withdraw claim
• Manual rejection reasons are:
• WDR - Withdrawn
• OTH - Other
• The Advance payment application result page displays
• Advise the customer the outcome of the Advance
• Select Next
• Address any errors/warnings
• Select Assess
• Select Finish
• Add additional notes if required
• Select Finalise

Go to Step 9.

• How much money do you need to help meet these work related expenses? Key the amount in the text box field
• This will be on-going until the advance amount is fully repaid: Select the box to confirm the customer Understood
• If your payment stops before you have repaid the Advance, you will still have to repay the amount of the Advance Payment still owing Select the box to confirm the customer Understood
• The Advance payment application result page displays
• Advise the customer the outcome of the Advance
• Select Next
• Address any errors/warnings 0n the Errors (SWE) screen
• Select Assess
• On the Entitlements (ELD) screen :
• Go to the Payment Summary (PS) screen
• Select Execute to view and confirm the Advance payment will be paid
• Select Finish
• Add additional notes if required.
• Select Finalise

• If the SEA is to be paid:
• The advance will be recovered from their payment each fortnight until it is fully repaid
• The new fortnightly rate of payment they will receive. This amount may change as their earnings are reported
• If their payment is cancelled, the balance of the advance will become a debt and will still need to be repaid

Cancelled payments

If the customer's payment has been cancelled, a Special Employment Advance debt is created automatically.

• Run the Manage Advances action in Process Direct
• Select > Manage Advances

Under the Claims tab:

• Select Apply for Advance
• From drop down list, select advance type

The Advance Details screen will automatically display.

Is customer eligible for an advance payment?

• Yes, go to Step 2
• No, go to Step 5

On the Advance Details screen, complete the following information:

• Advance type: (this will populate from advance type selected on the previous screen)
• Contact Method: (select from the drop down list)
• Which of these statements best suits your circumstance?: select the option for why the customer is applying
• You are returning to work but need help with tools or equipment to start
• You are short of money because you or your partner have worked but haven't been paid and the earnings will significantly reduce your payment
• Employer details: business name, address, contact name, phone number, type of work

A different question set will display depending on the type of SEA advance selected.

Returned to work

• When do you expect to start work?: choose the date
• Is this a firm offer of employment?: Yes/No (If 'no' is selected, the claim will be rejected)
• Do you expect the work to last for more than 6 weeks?: Yes/No
• What is the amount (before tax) you expect to earn each week?
• Details of the essential item needed to start work: (free text)
• What items/services do you need the money for? Choose from:
• Clothes/uniforms
• Living expenses
• Tools/equipment
• Transport/vehicle
• How much do you think this will cost?
• If you cannot get this item, can you start work? Yes/No

Income not received/Earnings

• What are the dates for which you (or your partner) have not been paid?
• What is the amount (before tax) of the earnings not received?
• What is the amount your payment will be reduced by the earnings?
• When do you expect to be paid?
• Will this amount reduce your Centrelink payment by at least 50%?: Yes/No

These questions need to be completed for any SEA claim.

• How much money do you have? (This includes cash, money deposited with a bank or other financial institution or shares)
• Thinking about your current fortnightly income and your expenses, such as rent, food, transport, medication, how much money do you have left at the end of every fortnight?
• How much money do you need from Centrelink to help meet these work related expenses? (amount must be between $50 and $500)
• Receiving this advance means your basic payment rate will be deducted by 14 percent each payment until it is paid off. Do you understand?
• Submit

Process the rejection using Manage Advances in Process Direct. The workflow will automatically record a Note.

To manually reject a SEA advance, under the Financial Situation question set

• Reject/Withdraw claim - Manual rejection reasons are
• WDR - Withdrawn
• OTH - Other

• The advance will be recovered from their payment each fortnight until it is fully repaid
• The new fortnightly rate of payment they will receive. This amount may change as their earnings are reported
• If their payment is cancelled, the balance of the advance will become a debt and will still need to be repaid

Cancelled payments

If the customer's payment has been cancelled, a Special Employment Advance debt is created automatically.