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.

3.1.7.100 Example of waiving the SWPP - partnered recipients

Example

Jarrad and Stacey 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, Jarrad had a SWPP of 8 weeks applied, which meant Stacey also had a SWPP of 8 weeks. The SWPP end date is 15 May 2026.

On 30 April 2026, Jarrad and Stacey contact Centrelink and claim they do not have any money left to support themselves. Jarrad's mother passed away and they had to fly interstate to attend the funeral. Jarrad and Stacey have $500.00 in available funds, and their maximum payment rate is $740.30 each per fortnight. The request for waiver is determined as follows:

StepAction$
1

Assess severe financial hardship (1.1.S.125):

$740.30 × 2

RESULT: Jarrad and Stacey are in severe financial hardship as their available funds are less than 2 weeks' worth of the maximum payment rate.

 

1,480.60

2

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

The following expenses were unavoidable or reasonable:

  • 2 airline tickets ($1,500.60), and
  • a bill from the funeral home ($6,400.00).

RESULT: $7,900.60 was unavoidable or reasonable.

 

 

 

7,900.60

3

Determine the couple's notional funds for the SWPP:

Number of remaining SWPP weeks = 16 days ÷ 7 = 2.29 weeks

2.29 × (2 × $2,011.40 (AWOTE))

 

9,212.21

4

Determine whether the unavoidable or reasonable expenditure placed Jarrad and Stacey in hardship:

Notional funds for SWPP − unavoidable or reasonable expenditure

$9,212.21 − $7,900.60

= $1,311.61 (this is less than Jarrad & Stacey's combined maximum payment rate of 2 × $740.30)

RESULT: Residual seasonal work earnings.

 

1,311.61

5

Decide whether the SWPP can be waived.

Is the residual seasonal work earnings less than twice maximum payment rate?
$1,311.61 is less than $1,480.60
yes = SWPP can be waived

RESULT: Jarrad and Stacey'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.

Policy reference: SS Guide 3.1.7.80 Waiver of the SWPP, 3.1.7.50 Sample calculations - SWPP

Last reviewed: