3.1.7.10 Who is affected by the SWPP
Summary
People claiming certain social security payments MAY be subject to the SWPP (1.1.S.455) if they or their partner have engaged in seasonal work (1.1.S.60) or intermittent work (1.1.I.195) in the 6 months before lodging a claim.
The SWPP applies to the following payments:
- jobseeker payment
- YA (full-time student, Australian Apprentice and other)
- austudy payment
- disability support pension
- carer payment
- SpB (nominated visa holders), and
- parenting payment.
Act reference: SSAct section 16A(1)-'seasonal work preclusion period'
Policy reference: SS Guide 3.1.7.20 SWPP provisions
Payments the SWPP does NOT apply to
The SWPP does NOT apply to:
- age pension
- CP for a woman who transfers from WP under section 198AD
- SpB (other than nominated visa holders), or
- DSP (permanently blind).
Note: SpB cannot be paid to a claimant to whom JSP is not payable because of the SWPP, or who would not get JSP if they were to claim, because of the SWPP.
Act reference: SSAct section 729(2) Qualification for SpB
Social Services Legislation Amendment (Welfare Reform) Act 2018 Schedule 3 item 98(5) Saving and transitional provisions-WP
SWPP affected people & partners
CP (other than a woman who transfers from WP under section 198AD) and DSP claimants (other than the permanently blind) are subject to the SWPP. Claimants for other pensions are not. If the non-affected pensioner has a partner who is subject to the SWPP, any earnings of the pensioner from seasonal or intermittent work, or during their partner's seasonal or intermittent work period, may be included in the calculation of the SWPP for the affected person. This is explained in the following table.
| If the SWPP affected claimant … | and the pension partner … | then … |
|---|---|---|
| IS a seasonal/intermittent worker | is NOT a seasonal/intermittent worker | the SWPP applies. The SWPP calculation includes the pensioner's income during the partner's seasonal work period. |
| IS a seasonal/intermittent worker | IS a seasonal/intermittent worker | the SWPP applies. The SWPP calculation includes the pensioner's income during the partner's seasonal work period. |
| is NOT a seasonal/intermittent worker | IS a seasonal/intermittent worker | the SWPP MAY still apply. The SWPP calculation is based on the pensioner's seasonal work earnings and their partner's income during the seasonal work period. |
Overseas workers
If the seasonal/intermittent work occurs overseas, the SWPP can still be applied. The amount earned overseas is converted to Australian dollars, using the exchange rate that applied at the time the income was earned.
Exemption from the SWPP
A person may be exempt from the SWPP if they were an intermittent worker (as opposed to a seasonal worker) and were in receipt of income support payments for a continuous period exceeding 12 months on the day before the person commenced the intermittent work.
The exemption may apply whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after 20 September 2006.
A person may also be exempted from the SWPP if the person is undertaking:
- an activity as part of Stream C employment services, OR
- a rehabilitation program (DES - DMS - see note below), OR
- an activity as part of the CDP for a person who would otherwise have been referred to DES - DMS, if not for the person being placed in CDP.
Note: Stream C employment services will be discontinued from 4 July 2022. A person whose Stream C exemption commenced prior to 4 July 2022 will continue to have that exemption applied until the stated end date.
Note: Under the definitions in the SSAct and the Disability Services Act 1986, a 'rehabilitation program' means DES - DMS.
People undertaking an activity as part of CDP will be eligible for the exemption based on their ESAt (1.1.E.104). The ESAt is used to determine a job seeker's barriers to employment, work capacity, and referral to an appropriate employment services program. CDP participants may be exempt from the SWPP if their ESAt indicates that they would have been referred to DES - DMS.
A person may also be exempted from the SWPP if the person is making a claim for JSP or YA within 14 weeks of their partner's death, or if the person was pregnant when their partner died, within 14 weeks of their partner's death or before the pregnancy ends, whichever is the longest period.
Act reference: SSAct section 16A(1)(aa)-'seasonal work', section 553C(6) Exemption for death of person's partner (YA), section 633(6) Subsection (2) does not apply … (JSP)
Waiver of the SWPP
The SWPP can be waived if the claimant is in severe financial hardship and the hardship is a result of unavoidable or reasonable expenditure.