18.104.22.168 Example of waiving the SWPP - partnered recipients
Derrick and Jean are members of a couple (1.1.M.120) and both have finished seasonal work. Both lodged a claim for JSP. Due to their earnings from seasonal work, Derrick had a SWPP of 8 weeks applied, which meant Jean also had a SWPP of 8 weeks. The SWPP end date is 15 October 2022.
On 30 September 2022, 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 $608.70 each per fortnight. The request for waiver is determined as follows:
|1||Assess severe financial hardship (1.1.S.125):
$608.70 × 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.
|2||Determine whether the expenditure was unavoidable or reasonable (1.1.U.20).
The following expenses WERE unavoidable or reasonable:
RESULT: $7,070.60 was unavoidable or reasonable.
|3||Determine the couple's notional funds for the SWPP:
Number of remaining SWPP weeks = 16 days ÷ 7 = 2.29 weeks
2.29 × (2 × $1,769.80 (AWOTE))
Determine whether the unavoidable or reasonable expenditure placed Derek and Jean in hardship:
Notional funds for SWPP − unavoidable or reasonable expenditure
$8,105.69 − $7,070.60
= $1,035.09 (this is less than Derek & Jean's combined maximum payment rate of 2 × $608.70)
RESULT: Residual seasonal work earnings.
Decide whether the SWPP can be waived.
Is the residual seasonal work earnings less than twice maximum payment rate?
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.