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.

3.6.6.10 Qualification for MOB

Qualification (1.1.Q.10) criteria

To qualify for MOB, a recipient must meet the criteria listed in the following table. Where more detail about a criterion is required, the second column indicates where you will find this.

Criterion More detail
ALL of the following basic eligibility criteria
Be handicapped (1.1.H.20), AND -
Be at least 16 years of age, AND -
Satisfy the travel test, AND 3.6.6.60 Travel test for MOB
Be an Australian resident and in Australia, at the time of lodging the claim, AND 3.1.1 Residence requirements
Be unable to use public transport (1.1.P.490) without substantial assistance (1.1.S.380), due to their disability, either permanently or for an extended period (1.1.E.220), AND

A recipient who qualifies for MOB because of their inability to use public transport without substantial assistance, may still qualify, even if they DO NOT:

  • actually use public transport
  • have public transport available to them
  • actually receive substantial assistance
  • incur any actual travel costs.

Assessment of 'substantial assistance' is based on evidence supplied by the recipient's treating doctor.

3.6.6.30 Assessment of medical criteria for MOB
For the standard rate: Be undertaking any combination of vocational training, voluntary work, independent living/ life skills training and gainful employment for at least 32 hours every 4 weeks on a continuing basis, OR

3.6.6.40 Assessment of gainful employment for standard rate MOB

3.6.6.50 Assessment of vocational training for standard rate MOB

3.6.6.52 Assessment of independent living skills/life skills training for standard rate MOB

3.6.6.53 Assessment of voluntary work for standard rate MOB

3.6.6.54 Assessment of 32 hours every 4 weeks rule for standard rate MOB

3.6.6.55 Assessment of continuing basis for standard rate MOB
Be undertaking job search activities under an agreement with an employment service provider, OR Recipients undertaking job search activities under an agreement with an employment services provider (e.g. Workforce Australia, DES, CDP) may qualify for MOB, unless they are suspended from the program.
Be participating in DES - DMS, OR Recipients who are participating in DES - DMS are considered to be undertaking a 'vocational rehabilitation program' and may qualify for the standard rate of MOB regardless of the specific activities being undertaken as part of the program.

Be receiving JSP, YA or Austudy and meet mutual obligation requirements or satisfy study requirements associated with these payments.

Exception: JSP, YA and Austudy recipients who are exempt from mutual obligation requirements or meeting study requirements do not satisfy this criterion. If a JSP, YA or Austudy recipient receiving MOB is granted an exemption they would be subject to a 2 week period of grace (3.6.6.100).

3.11 Mutual obligation requirements

3.3.4 Satisfying the activity test for Austudy
For the higher rate: Be receiving DSP, PP (effective from 8 December 2007), JSP or YA (as a job seeker) and ONE of the following:  
Be working 15 hours or more per week in the open labour market, OR

Self-employment can be considered as work for MOB if the work is equivalent to work of 15 hours or more per week for wages that are at or above the relevant minimum wage.

Be looking for work of 15 hours or more per week under a Job Plan, or an agreement with an employment service provider or Services Australia.

 3.6.6.80 Notification & recipient obligations for MOB
Be working at least 15 hours per week in the open labour market for productivity based wages through the SWS.

Work performed by a person in the course of supported employment (Australian Disability Enterprises) does not meet this criterion. However, a person working in both supported employment and the open labour market may be eligible if they are working in the open labour market for 15 hours or more per week.

If a DSP, PP, JSP or YA (other) recipient's income from work increases such that their payment is no longer payable, they will retain the higher rate of MOB while they continue to meet the other MOB requirements.

From 1 July 2012, recipients of DSP will be able to work up to 30 hours per week without losing qualification for DSP. If a DSP recipient works over 30 hours, they will cease to be eligible for DSP but they will retain eligibility for the higher rate of MOB, provided all other criteria for MOB are also met.

A person cannot receive both rates of MOB at the one time.

A person may have their rate of MOB adjusted on notification of a change of circumstance. A new claim is not required.

Act reference: SSAct section 7(2) An Australian resident is …, section 1035 Qualification for MOB (rate specified in subsection 1044(1)), section 1035(1)(d) A person is qualified for a MOB …, section 1035A(8) JSP, YA, DSP and PP recipients, section 1036 MOB not payable at 2 rates

Policy reference: SS Guide 3.6.6.100 Termination of MOB, 4.7.1.20 Assessment of income for sole traders & partnerships, 1.1.R.133 Relevant minimum wage (DSP, MOB, Partial capacity to work & CA)

More detail on looking for work of 15 hours or more per week under a Job Plan, or an agreement with an employment service provider or Services Australia

To meet this eligibility criterion for the higher rate of MOB, recipients must be undertaking job search activities under a Job Plan, or an agreement with Services Australia or an employment service provider including Workforce Australia, DES and the CDP.

An agreement can be a Job Plan (for recipients with mutual obligation requirements) or a voluntary agreement (for recipients without mutual obligation requirements).

Job search activities mean activities the person is undertaking under a Job Plan, or an agreement with an employment service provider or Services Australia.

For recipients with mutual obligation requirements, job search activities are:

  • activities to look for work of 15 hours or more per week at or above the relevant minimum wage, OR
  • activities in a Job Plan which aim to make the recipient ready to look for work of at least 15 hours per week at or above the relevant minimum wage (such as vocational rehabilitation, pre-vocational assistance, vocational training, voluntary or community work and other requirements undertaken as part of a work experience activity requirement).

For DSP and PP recipients without mutual obligation requirements, job search activities are:

  • activities to look for work of 15 hours or more per week at or above the relevant minimum wage.

Act reference: SSAct section 1035A(3) A person satisfies this subsection if …, section 1035A(6) JSP, YA or PP recipients

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