3.1.7.100 Example of Waiving the SWPP - Partnered Recipients

Example

Derrick and Jean are members of a couple (1.1.M.120) and both have finished seasonal work. Both lodged a claim for NSA. Due to their earnings from seasonal work, Derrick had an SWPP of 8 weeks applied, which meant Jean also had an SWPP of 8 weeks. The SWPP end date is 3 March 2016.

On 17 February 2016, Derrick and Jean contact Centrelink and claim they do not have any money left to support themselves. Derrick's mother had passed away and they had to fly interstate to attend the funeral. Derrick and Jean have $500.00 in available funds, and their maximum payment rate is $472.60 each per fortnight. The request for waiver is determined as follows:

Step Action $
1 Assess severe financial hardship (1.1.S.125):

$472.60 multiplied by 2

Result: Derek and Jean ARE in severe financial hardship as their available funds are less than 2 weeks worth of the maximum payment rate.

$945.20

2 Determine whether the expenditure was unavoidable or reasonable (1.1.U.20).

The following expenses WERE unavoidable or reasonable:

  • 2 airline tickets, and
  • a bill from the funeral home.

Result: $6,215.00 was unavoidable or reasonable.

$975.00

$5,240.00

$6,215.00

3 Determine the couple's notional funds for the SWPP:

Number of remaining SWPP weeks = 16 days divided by 7 = 2.29 weeks

2.29 multiplied by (2 × $1,484.50 (AWOTE))

$6,799.01

4 Determine whether the unavoidable or reasonable expenditure placed Derek and Jean in hardship:

$6,799.01 minus $6,215.00

Result: Residual seasonal work earnings.

$584.01

5 Decide whether the SWPP can be waived.

Result: Derrick's and Jean's SWPPs CAN be waived as their residual seasonal work earnings are less than twice the maximum payment rate. The waiver can ONLY be applied from the date the couple claimed they were in hardship.

 

Explanation: In regard to Step 2 above, it should be noted that, for SWPP, no additional allowance is made for reasonable costs of living. This is because the length of the SWPP is based on the AWOTE amount. Therefore, the person has in effect already been allowed an amount equal to AWOTE as a reasonable cost of living for the period prior to the application for waiver.

Last reviewed: 21 March 2016