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.

3.1.7.90 Examples of waiving the SWPP - single people

Relevant AWOTE (1.1.A.375)

The following examples all use the 2026 AWOTE figure of $2,011.40. The payment rates are correct as at 20 March 2026.

Example: Bill is claiming JSP after finishing his intermittent work one week ago. He worked for 12 weeks and earned a total of $30,000.00 He will be subject to a 4-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 $808.70 per fortnight (pf).

Bill's SWPP cannot be waived because his available funds exceed the fortnightly maximum rate payable to him.

Example: Janet claimed YA and is subject to a SWPP of 8 weeks, ending 20 April 2026. On 18 March 2026 Janet claims she is in severe financial hardship. Janet's maximum payment rate is $677.20 pf, and she has $35.00 in the bank. The request for waiver is determined as follows:

StepAction$
1

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

RESULT: Janet is in severe financial hardship as her available funds ($35.00) are less than her fortnightly maximum payment rate ($677.20).

-
2

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

The following expenses were not unavoidable or reasonable:

  • credit card payment ($2,100.00) as the expenses were primarily for luxury items, and
  • groceries ($400.00).

The following expenses were unavoidable or reasonable:

  • car insurance ($2,500.00)
  • house insurance ($815.00)
  • car registration ($1,200.00)
  • medical insurance ($850.00), and
  • car repairs ($4,500.00).

RESULT: $9,865.00 was determined to be unavoidable or reasonable.

 

 

 

 

 

 

 

 

9,865.00

3

Determine Janet's notional funds for her SWPP:

  • Number of remaining SWPP weeks
    = 34 days ÷ 7
    = 4.86 weeks
  • (Remaining SWPP weeks × AWOTE)
    = 4.86 × $2,011.40
    = $9,775.40

 

 

9,775.40

4

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

  • Notional funds for SWPP − unavoidable or reasonable expenditure
    = $9,775.40 − $9,865.00
    = -$89.60 (result is less than zero)

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 her fortnightly maximum payment rate ($677.20). 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 such as groceries. 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: Michael was a contract shearer and claimed JSP when his contract finished. A SWPP of 17 weeks was applied, which is due to end on 19 June 2026. On 4 May 2026, Michael contacts Services Australia and advises he has spent all his earnings. Michael has $258 in available funds, and his maximum payment rate is $808.70 pf. The request for waiver is determined as follows:

StepAction$
1

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

RESULT: Michael is in severe financial hardship as his available funds are less than his fortnightly maximum payment rate.

-
2

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

The following expenses were not unavoidable or reasonable:

  • electricity bill ($408.85), and
  • telephone bill ($124.45).

Michael's car registration ($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
    = 47 days ÷ 7
    = 6.71 weeks
  • (Remaining SWPP weeks × AWOTE)
    = 6.71 × $2,011.40
    = $13,496.49

 

 

13,496.49

4

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

  • = $13,496.49 − $680.00
    = $12,816.49

RESULT: Residual seasonal work earnings.

 

 

12,816.49

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 his fortnightly maximum payment rate ($808.70).

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Policy reference: SS Guide 3.1.7.50 Sample calculations - SWPP

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