# 3.1.7.90 Examples of waiving the SWPP - single people

## Relevant AWOTE (1.1.A.375)

The following examples all use the AWOTE figure of \$1,145.10. The payment rates are correct as at 20 March 2009.

Example 1: Bill is claiming NSA today, after finishing his intermittent work 2 weeks ago. He had worked for 14 weeks and earned a total of \$25,535.73 and will be subject to a 6 week SWPP. Bill claims that he cannot support himself for this period of time as he has spent most of his earnings, although he has \$2,300 in a bank account. Bill's maximum payment rate is \$453.30 per fortnight (pf).

Bill's SWPP CANNOT be waived because his available funds exceed 2 weeks of the maximum rate payable to him.

Example 2: Janet claimed YA and was subject to an SWPP of 8 weeks, ending 20 April 2009. On 18 March Janet claims she is in severe financial hardship. Janet's maximum payment rate is \$371.40 pf, and she has \$35.00 in the bank. The request for waiver is determined as follows:

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

Result: Janet IS in severe financial hardship as her available funds are less than 2 weeks worth of her maximum payment rate.

\$371.40

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

The following expenses were NOT unavoidable or reasonable:

• credit card payment of \$2,100.00 as the expenses were primarily for luxury items and new clothes, and
• groceries for \$219.00.

The following expenses WERE unavoidable or reasonable:

• car insurance,
• house insurance,
• car registration,
• medical insurance, and
• car repairs.

Result: \$5,600.00 was unavoidable or reasonable.

\$1,180.00

\$815.00

\$855.00

\$650.00

\$2,100.00

\$5,600.00

3 Determine Janet's notional funds for her SWPP:

Number of remaining SWPP weeks = 34 days divided by 7 = 4.86 weeks

(Remaining SWPP weeks multiplied by AWOTE)

4.86 multiplied by \$1,145.10

\$5,565.19

4 Determine whether the unavoidable or reasonable expenditure placed Janet in hardship:

\$5,565.19 minus \$5,600.00

Result: Residual seasonal work earnings.

Less than zero

5 Decide whether the SWPP can be waived.

Result: Janet's SWPP CAN be waived as her residual seasonal work earnings are less than the equivalent of 2 weeks worth of her maximum payment rate (\$371.40). Her SWPP is waived from the date she claimed she was in hardship.

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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 claimant 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.

Example 3: Michael was a contract shearer and claimed NSA when his contract finished. An SWPP of 17 weeks was applied, which is due to end on 19 May 2009. On 4 May 2009, Michael contacts Centrelink and claims he has used up all his earnings. Michael has \$258 in available funds, and his maximum payment rate is \$453.30 pf. The request for waiver is determined as follows:

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

Result: Michael IS in severe financial hardship as his available funds are less than 2 weeks worth of his maximum payment rate.

\$453.30
2 Determine whether the expenditure was unavoidable or reasonable (1.1.U.20).

The following expenses were NOT unavoidable or reasonable:

• electricity bill of \$408.85, and
• telephone bill of \$124.45.

Michael's car registration of \$680.00 WAS unavoidable or reasonable.

Result: \$680.00 was unavoidable or reasonable.

\$680.00

3 Determine Michael's notional funds for his SWPP:

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

(Remaining SWPP weeks multiplied by AWOTE)

2.29 multiplied by \$1,145.10

\$2,622.28

4 Determine whether the unavoidable or reasonable expenditure placed Michael in hardship:

\$2,622.28 minus \$680.00

Result: Residual seasonal work earnings.

\$1,942.28

5 Decide whether the SWPP can be waived.

Result: Michael's SWPP CANNOT be waived as his residual seasonal work earnings are more than the equivalent of 2 weeks worth of his maximum payment rate.

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Last reviewed: 11 August 2014