18.104.22.168 Termination of MOB
Payment of MOB must cease when a recipient no longer satisfies the qualification criteria. However, the date of cessation depends upon the reason the recipient no longer qualifies. In any case, payment of MOB continues for a period after the disqualifying event. This period is known as the 'period of grace'. The reasons for termination of MOB include:
- termination of employment
- not meeting the 32 hours every 4 weeks rule
- cessation of vocational training (1.1.V.60)
- cessation of voluntary work
- cessation of combination of activities
- cessation of JSP, YA or Austudy
- exemption from the JSP or YA activity test
- death of recipient
- leaving Australia permanently
- receipt of a funded package of support through the NDIS
- cessation of job search activities with an employment services provider
- cessation of registration with an employment services provider, OR
- cessation of participation in DES - DMS.
These reasons are explained in more detail in the rest of this topic.
Termination of employment
MOB recipients whose employment is terminated, are considered not employed from the day following the date specified in the formal notification. This provision applies to gainful employment (1.1.G.10), voluntary employment, and recipients employed by outside organisations, but who work from home.
When the period of grace applies
The following table explains when the recipient is regarded as having ceased gainful employment. In ALL these cases, the period of grace commences on the day of the disqualifying event.
|If …||then the recipient is regarded as having ceased gainful employment on …|
|no formal notification is necessary||the day last worked.|
|a recipient discontinues self-employment||the day self-employment ceases.|
a recipient takes paid leave before the termination of their employment
Example: A recipient takes 2 weeks paid leave before terminating employment on 31 July 1998. They are therefore qualified for MOB until 31 July, and the period of grace starts on the following day.
|the termination date.|
the employment is terminated:
|the day the employment was terminated.|
Not meeting the 32 hours every 4 weeks rule (standard rate)
Recipients cease to be qualified for MOB if they do not meet the 32 hours every 4 weeks rule. Refer to 22.214.171.124. The period of grace commences the day after they are no longer qualified.
Example: A recipient does paid work for 24 hours in a 4 week period. This recipient averages 6 hours a week and does not meet the 32 hours every 4 weeks rule to qualify for MOB. The period of grace starts the day after they are no longer qualified.
Cessation of vocational training
MOB recipients who abandon a course are considered to have ceased vocational training. The following table explains the assessment of the date from which training ceased. In ALL these cases, the period of grace commences on the day they are considered to have ceased training.
|If the recipient …||then they are considered to have ceased vocational training on the day …|
|gives formal notification to the training institution||on which formal notification is given.|
|does not give, or is not required to give formal notification||of last attendance.|
|abandons the course during a vacation||that decision is made.|
Cessation of voluntary work
MOB recipients who are no longer participating in voluntary work on a continuing basis for a charitable, welfare or community organisation are considered to have ceased voluntary work. The period of grace commences on the day they are considered to have ceased voluntary work.
Cessation of job search activities
For recipients who cease job search activities, the period of grace commences on the day of cessation of the job search part of the EPP.
Period of grace
The following table lists the periods of grace and in what circumstances they would apply:
|The period of grace is …||if the recipient …|
is receiving MOB at the standard rate and ceases to:
is receiving MOB at the higher rate and ceases:
is receiving a 12 week period of grace payment, and:
As part of the Australian Government's response to the COVID-19 pandemic, the grace period for MOB has been extended from 12 weeks to 18 weeks where the recipient ceases their qualifying activity (e.g. lost their job or worked, volunteered or undertook training for less than 32 hours in a 4 week period) and from 2 weeks to 18 weeks where the recipient is working from home and does not satisfy the travel test.
Extensions will be for 18 weeks or until 31 March 2021, whichever occurs first.
Application of period of grace when moving between rates
A period of grace would apply when moving from the higher to the standard rate of MOB. However, if moving from the standard to the higher rate, no period of grace applies and the person would begin receiving the higher rate from the date of effect.
Example 1: Kylie is receiving the higher rate of MOB because she is receiving NSA and working 15 hours a week. Her hours drop to 10 hours per week. As Kylie meets the 32 hours over a 4 week period, she is eligible to receive MOB at the standard rate. Kylie will continue to receive the higher rate for 12 weeks after which she will receive the standard rate.
Example 2: John is a DSP recipient and is also receiving the standard rate of MOB as he is undertaking voluntary work of 32 hours over a 4 week period. John accepts a permanent paid job of 15 hours per week. He would begin to receive the higher rate from the date he begins his job.
Policy reference: SS Guide 126.96.36.199 Qualification for MOB
People in gaol or psychiatric confinement
People who go to gaol or psychiatric confinement do not get a period of grace because MOB is not payable.
Act reference: SSAct section 1046 Continuation of MOB when person ceases to be qualified, section 1158 Some social security payments not payable …
People assisted under the NDIS
People who start receiving a funded package of support under the NDIS do not get a period of grace because MOB is not payable.
Death of recipient/partner
MOB does not contain any bereavement assistance provisions.
MOB recipients are subject to work/training and medical reviews. These reviews are detailed in the linked policy reference.
Act reference: SSAct section 1046 Continuation of MOB when person ceases to be qualified
Policy reference: SS Guide 188.8.131.52 MOB Reviews, 3.1.4.05 Payability during periods in gaol or psychiatric confinement, 184.108.40.206 Situations that constitute being in gaol or psychiatric confinement, 220.127.116.11 Assessment of 32 hours every 4 weeks rule for standard rate MOB