The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

2.2.7 Activities considered as 'work' for PLP

Introduction

Qualifying work (1.1.Q.20) includes paid work, paid leave, a previous PLP and/or DAPP period or previous flexible PLP days.

Paid work

Paid work includes work performed as an employee, including full-time, part-time, casual, seasonal or contract work, or through self-employment, where the person is engaged in some form of gainful activity for reward or financial gain. Financial reward or gain includes the provision of goods or services for hire or reward under a contract for services, carrying on a business, including as a partnership or enterprise, or working for a trust operating as a business. The fact that a business enterprise has not yet become profitable should not prevent the activity of operating the business from counting as work.

Paid work includes work for non-cash benefit, for example, the use of a car, employer contributions of rent on a home or to school fees. Qualifying work may include ongoing or non-going activities, or activities which may not universally be regarded as work for all purposes. For example, activities such as the following count as work for PLP purposes:

  • jury service
  • time spent as a full-time member of the armed services or as a Defence Reservist
  • work by prisoners in formal prisoner employment programs - the features of this work are that it is genuine employment in the community with a real employer, which attracts the same employment conditions as other employees in the business
  • farm labour undertaken as part of exceptional circumstances relief payment
  • work at an Australian Disability Enterprise, and
  • operating a business while receiving payments under the New Enterprise Incentive Scheme.

Paid work does not include income earned for activities, which essentially do not involve personal exertion, for example, passive income, such as income gained from interest or by holding a share portfolio.

Exception: Receipt of interest by a person may be taken to be paid work if the person's principal business consists of lending money or the interest is received in relation to a debt due to the person for goods supplied or services rendered in the course of the person's business.

The fact that a claimant has an ABN indicates that income is not being earned passively.

An activity which is in the nature of volunteering does not constitute paid work even if the person directly or indirectly agrees to take an honorarium, gratuity or similar payment.

Similarly, an activity required to be performed by the person as a condition for receipt of a social security payment, as defined in SSAct, is not paid work. For example, work for income support only, such as 'Work for the Dole', which is an approved program of work for income support payments, does not constitute qualifying work for PLP purposes.

Act reference: PPLAct Part 2-3 Division 3—The work test

PPL Rules Part 2 Division 3—Matters relating to the work test

Paid leave

Paid leave has its ordinary meaning, that is, it is leave taken from work on a day that the person would ordinarily be at work except for being absent on that day with pay. It would include, for example, paid recreation, carer's, sick, maternity or bereavement leave. Leave paid out on termination of a person's employment does not count as qualifying work because a person cannot take leave from their employment after that employment has terminated. For example, a payout of accrued annual leave where a person has resigned or has been made redundant is not paid leave from their employment and therefore does not count as qualifying work for PLP.

The PPL Rules also provide that a person is taken to be on paid leave where the person receives a payment for workers' compensation or accident compensation for that day from an entity other than the employer. The payment must be in respect of the person's employment, meaning that the payment must be made to compensate a person for an injury or illness suffered at, or as a consequence of, the person's employment. Where an employee is on paid leave from their employment or is absent from work and receiving worker's compensation, the employee's normal hours of work count as qualifying work for PLP purposes.

Act reference: PPLAct Part 2-3 Division 3—The work test

PPL Rules Part 2 Division 3—Matters relating to the work test

Policy reference: PPL Guide 2.1 PLP eligibility overview

Previous period of PLP and/or DAPP

A person can count the days in a PPL and/or DAPP period for a previous child as qualifying work for a new claim. From 1 July 2020, a person can count paid flexible PPL days (1.1.F.70) for a previous child as qualifying work for a new claim.

Jobkeeper payment

From 30 March 2020, a day on which a person is entitled to jobkeeper payment can count as qualifying work for the purposes of the work test for PLP.

Act reference: PPLAct section 34 When a person performs qualifying work, section 35A Hours of qualifying work on a flexible PPL day

PPL Rules Part 2 Division 3—Matters relating to the work test

Policy reference: PPL Guide 2.1 PLP eligibility overview

COVID-19 disaster payment

For claims on or after 4 September 2021, a day on which a person is entitled to the COVID-19 disaster payment from 3 June 2021 can count as a day of qualifying work for the purposes of the work test for PLP.

Act reference: PPLAct section 34 When a person performs qualifying work, section 35C Hours of qualifying work on a day in a COVID-19 Australian Government payment period

PPL Rules Part 2 Division 3—Matters relating to the work test

Policy reference: PPL Guide 2.1 PLP eligibility overview

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