Supported Wage System (SWS) 008-04030080

A person is eligible to participate in the SWS if:

• the job under consideration is covered by an award, industrial agreement or legislative provision which permits employment for pro-rata wages under the SWS, and
• the person is an Australian citizen or a permanent resident, and
• the person is at least 15 years of age, and
• the person has no outstanding workers compensation claim against the current employer, and
• the person must meet impairment criteria for Disability Support Pension (DSP), i.e. have a rating of 20 points or more under the Impairment Tables for DSP, or meet manifest eligibility criteria for DSP. Continuing Inability to Work (CITW) is not assessed

The Department of Social Services (DSS) assesses eligibility for the SWS. Services Australia may assist DSS by confirming if a job seeker is receiving DSP, or meets impairment criteria for DSP.

If a customer is not on DSP and does not have a current and valid assessment of their impairment rating, staff can refer them for a Job Capacity Assessment (JCA). Before making a JCA referral, staff must first determine whether the customer meets manifest eligibility criteria for DSP. For example, if the customer has an intellectual disability and shows medical evidence that clearly indicates an IQ of less than 70, Services Australia should be able to confirm to DSS that the customer meets impairment criteria for DSP without a JCA.

Customers who are not receiving DSP should be invited to claim, but do not have to claim DSP in order to be assessed for SWS. Staff should make the customer aware that while receiving a supported wage they may be entitled to partial pension subject to the normal income and assets test.

If a JCA is required to assist DSS in assessing SWS eligibility for a customer who does not wish to claim DSP, the JCA referral must be made using the 'SWS' referral reason. For more information, see Supported Wage System (SWS) medical assessment process.

When a customer commences SWS or declares income from SWS with a date of event on or after 1 July 2006, their income is coded on the Employment Income Details (EAN) screen.

Before 1 July 2006 the SWS income was coded on the Pensions Supported Wage Details (PDW) screen. Only corrections can be made to this information.

See Coding income from the Supported Wage System (SWS).

A payment of $1,000 can be made to employers (including public sector employers) to offset the cost of employing a worker with a disability under the SWS.

An employer payment is not available where the employer has recovered a wage subsidy for the placement.

The Wage Subsidy Scheme encourages employers to provide job opportunities under open employment conditions to eligible people with disability, illness or injury by subsidising wages for up to 13 weeks.

The wages subsidies are administered by and paid to employers by disability employment service providers funded by DSS.

Funding of up to $5,000 may also be available for essential workplace modifications or special or adaptive equipment that will assist people with disability, illness or injury obtain jobs.

This funding is separate from the SWS and is available through the Workplace Modifications Scheme administered by DSS.

For more information on the Workplace Modification, see Employment Assistance Fund and for Wage Subsidy Schemes, see Disability Wage Subsidies.

The employer pays the assessed wage and superannuation as required.

The payment of the assessed wage is made to the worker in the same way as other workers who are employed by that employer who do not participate in the SWS.

People who receive a supported wage may also require specialised assistance and/or training at work.

Funds are available in SWS to provide this support via a range of support agencies.

Alternatively funds can be paid to employers to assist with the cost of support by co-workers.

For more information about SWS employers can call the DSS - Assessment Team (free call from anywhere in Australia). The Resources page has a link to contact details.

The major benefits of the scheme are:

• Where an employee is commencing in a new position an employer payment of $1,000 can be paid to offset the cost of employing a person with disabilities, illnesses or injuries
• Up to $5,000 for workplace modifications
• Funds are available within the SWS for on the job support. This is usually paid to a disability employment service which provides the support

Customers receiving Disability Support Pension (DSP), JobSeeker Payment (JSP), Youth Allowance (YA) (Job seeker) or 'Parenting Payment (PP) and working 15 hours or more per week under SWS can qualify for MOB at the higher rate.

They must also meet the base qualification for MOB.

DSP customers will automatically be excluded from having participation requirements if they participate in SWS. When SWS ends, customers may be required to attend DSP participation interviews and sign a DSP Participation Plan if they meet the DSP participation requirements criteria. They will also be required to include a compulsory activity in their Participation Plan.