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.

3.7.2.20 Substantial change in circumstances for SpB

Substantial change in circumstances

People are generally expected to support themselves during the NARWP. However, some newly arrived persons may qualify for SpB during the NARWP, if they have experienced a substantial change in circumstances beyond their control after arrival in Australia and are able to satisfy the available funds test. This exemption from the NARWP is designed to ensure people can access support if their circumstances have changed and, as a result, they are no longer able to support themselves as planned and are in hardship.

Policy reference: SS Guide 4.2.6 SpB income test & limits

Factors to consider

For a person to be qualified for SpB, the delegate must be satisfied the person is unable to earn a sufficient livelihood for themselves and any dependants. People are required to have attempted to obtain support from all possible alternative sources before being granted SpB. Before SpB can be paid, the delegate must be satisfied that:

  • the change in circumstances is substantial and beyond the person's control and occurred after arrival in Australia, AND
  • they are in financial hardship and are able to satisfy the available funds test (3.7.1.60) (3.7.1.70), AND
  • they have attempted to obtain a sufficient livelihood. For example, they have attempted to obtain support from their sponsor (1.1.S.290), or have attempted to obtain employment, or if sponsored by a business, have attempted to work for their sponsor, AND
  • their available funds or support options were depleted because of the change in circumstances.

Note: The person is not required to seek support from charity organisations. In some cases, it may be unreasonable for a person to attempt to obtain support from certain sources, for example, where the person has experienced family and domestic violence from their sponsor or is unable to work due to illness/disability (they may still be required to attempt to obtain support from other sources if available).

The person may be required to meet mutual obligation requirements (3.11.10) while receiving SpB.

Policy reference: SS Guide 9.2 Visa subclasses & payment eligibility for visas issued after 1/9/94

Confirmation of changed circumstances

All people claiming to be in hardship due to substantially changed circumstances must substantiate their claim with documentation. If necessary, a referral should be obtained for a social worker assessment and assistance.

Example: A claim that a pre-arranged job fell through would have to be substantiated by evidence both that a job offer existed and that at the time it was withdrawn, the person was in Australia. Such evidence could include dated letters/emails from the prospective employer containing the job offer and later advising the job is no longer available.

Example: A claim that a person has suffered an illness or disability that prevents them from working would have to be substantiated by medical evidence. Such evidence could include a letter from the person’s doctor or other medical documentation.

Policy reference: SS Guide 8.1.4.60 Special payments - documentation required, 8.1.7.20 Social worker involvement - specific payments

Available funds

A person's available funds should NOT be taken to be depleted purely because they:

  • cannot obtain or maintain employment, unless there is an exceptional delay in recognition of qualifications in Australia (1.1.A.320) (see 'Recognition of overseas qualifications' below)
  • have purchased a principal residence
  • cannot establish a business, or
  • are limited by the amount of funds they can bring with them when leaving their former country of residence.

Explanation: It is reasonable to expect that they would be aware of any regulations imposed by their former country of residence, as well as labour market or other conditions in Australia, and make appropriate arrangements for their support in Australia, before migrating.

Recognition of overseas qualifications

Delays of up to 2 years are possible when overseas qualifications need to be recognised in Australia. If verification has been obtained by Australia Education International - NOOSR (AEI-NOOSR), this would NOT be regarded as an exceptional delay.

Explanation: The delays are due to requirements for meeting English standards and trade proficiency, and depend on a person's English language ability and level of tertiary or trade qualification.

Timing of the substantial change in circumstances

A change of circumstances is only relevant for the purposes of the SSAct section 739A(7) if that change of circumstances occurs after the person has first arrived in Australia.

Example: After arriving in Australia, a person suffers a serious long-term illness, which prevents them from working. The illness is deemed severe enough to be considered a substantial change in circumstances and the person has no other means of support so SpB is paid.

Example: A person is granted a permanent visa offshore and has been offered employment in Australia to commence upon arrival. Before arriving in Australia, the offer of employment is withdrawn. This is NOT a substantial change of circumstances beyond the person's control for the purposes of SSAct section 739A(7) because it occurred before the person arrived in Australia and SpB would NOT be paid.

Example: A person is granted a temporary partner visa offshore and migrates to Australia to marry their Australian citizen partner, even though the partner had become unemployed (employer bankruptcy) BEFORE the visa holder left their country. Two weeks after arrival the visa holder applies for SpB due to financial hardship. As the substantial change (that is, the partner's unemployment) occurred BEFORE the visa holder arrived in Australia, this is NOT considered a substantial change in circumstances beyond the person's control under SSAct section 739A(7) and SpB would NOT be paid.

Example: A New Zealand citizen in Australia on a SCV is granted a permanent resident visa onshore. Before the visa is granted, the person's employer becomes bankrupt. This may be considered a substantial change of circumstances beyond the person's control for the purposes of SSAct section 739A(7), because it occurred after the person first entered Australia.

Act reference: SSAct section 739A(7) Newly arrived resident's waiting period

Sponsored migrants

A sponsored migrant is a migrant who has been nominated for migration to Australia by a sponsor. The sponsor may be an employer (in the case of skilled visas) or a family member (in the case of family visas). Sponsored migrants must have made every effort to get adequate support from their sponsor before being granted SpB, unless it would be unreasonable for them to do so (for example, in cases of family/domestic violence).

The onus is on the person to ensure that they have support in place for the duration of the NARWP. In the event that this support is to be provided by a family member sponsor, it is the responsibility of the visa holder to ensure that the sponsor is in a position to do so.

If the migrant is also subject to an AoS, SpB is only payable during the NARWP in cases where there has been a substantial change in circumstances after arrival in Australia and the person who provided the AoS (usually the sponsor, but may be someone else) is unable or unwilling to provide support or it would not be reasonable for the migrant to accept their support.

A non-sponsored migrant is a migrant who has not been nominated for migration to Australia by a sponsor.

Changed circumstances that WOULD be considered substantial for the purposes of SpB

Many changes in circumstances apply equally to sponsored and non-sponsored migrants and partner visa holders.

The following table provides some examples of circumstances that WOULD be considered a substantial change for the purpose of qualification for SpB. The substantial change in circumstances MUST have occurred after the person arrived in Australia. This is not an exhaustive list and there may be other examples of a change in circumstances that could be considered substantial for the purpose of SpB qualification.

Change in circumstanceand …
A sponsor, partner or SpB claimant has a prolonged illness or injuryis unable to work and/or there are significant medical costs being incurred by the SpB claimant or the partner.
Sponsor or partner loses job through no fault of their ownthe job was lost after arrival of the SpB claimant.
SpB claimant loses job through no fault of their ownthe job was lost after their arrival in Australia.
Sponsor or partner diesthe SpB claimant has no other means of support.
SpB claimant and partner separatethe SpB claimant has experienced domestic/family violence and has no other means of support.
SpB claimant or partner gives birth to, adopts or otherwise becomes responsible for a dependent childthe child has a severe medical condition or a severe disability such that the SpB claimant or partner is unable to work or incurs significant additional costs.
Dependent child of the SpB claimant or partner develops a severe medical condition, disability or sustains a serious injurythe SpB claimant is unable to work and/or there are significant medical costs being incurred by the SpB claimant or the partner.
Sponsor or partner becomes a long-term prisoner, or is confined long term to a hospital, psychiatric institution or nursing homethe SpB claimant has no other means of support.
Sponsor or partner has been notified as a missing person or has abandoned the SpB claimantthe SpB claimant has no other means of support.
SpB claimant has experienced family or domestic violencehas no other means of support.
SpB claimant has been granted permanent residency resulting in their Australian citizen child no longer being eligible for SpBhas no other means of support.

Where family or domestic violence is involved, the claimant should be referred to a social worker. A social worker should assess and document the claimant's situation. The information provided by the social worker should contribute to a decision about qualification for SpB, but the delegate, NOT the social worker, makes the final decision about qualification.

Changed circumstances that are NOT substantial for the purposes of SpB

The following situations would generally NOT be considered a substantial change in circumstances for the purpose of qualification for SpB where no other extenuating circumstances (such as family and domestic violence or trauma) are involved.

  • Claimant and partner are separated but living under one roof.
  • Claimant and partner separate due to breakdown of the relationship.
  • Partner misrepresents their circumstances (financial, physical, material) and the partner visa holder chooses to end the relationship because of this.
  • Partner leaves work to study or train, engages in an unprofitable business, or makes another lifestyle choice that impacts on the couple financially.

Example: Upon arrival in Australia the person finds that the partner has embellished claims of their circumstances, living standards and financial support and the person decides to leave. The person lodges a claim for SpB. As the onus is on the person to fully investigate the situation into which they are migrating, this is NOT considered to be a substantial change in circumstances beyond the person's control and SpB is NOT paid.

Example: The SpB claimant and the partner decide to have a child. The birth of a child (including multiple births) is NOT considered to be a substantial change in circumstances as it is a choice over which the couple did have control and SpB is NOT payable.

While there is an expectation that a claimant and their partner are responsible for the decisions affecting their individual situations, mitigating circumstances may exist that require additional deliberation when assessing an individual's claim for SpB. The delegate has the authority to consider all available information regarding the claimant's individual circumstances before deciding if there was a substantial change in circumstances that was beyond the person's control.

Changed circumstances no longer apply

Where a person has been granted SpB during the NARWP due to a substantial change in circumstances and those circumstances subsequently change prior to completion of the NARWP, an exemption from the NARWP may no longer be warranted. Advice from a social worker should be sought or a referral should be made if necessary (for example, where the original substantial change in circumstances was related to family or domestic violence).

Example: A person was granted SpB during the NARWP because they suffered from a prolonged illness and were not able to work. The person subsequently recovers and is able to work again. As the substantial change in circumstances no longer exists, SpB ceases to be payable for the remainder of the NARWP.

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