188.8.131.52 Payments from self-employment programs
Self-employment program payments
Individuals who access self-employment programs (Workforce Australia – Self-Employment Assistance (1.1.W.70) and NEIS (1.1.N.50)) may be eligible to receive an allowance from the DEWR ('self-employment program payments').
The rate of self-employment program payments is equivalent to the basic single rate of JSP. The same rate of payment is payable to a person regardless of whether the person is single or partnered.
Rate of reduction where a person is eligible for a self-employment program payment & a social security payment
If an instalment of both a self-employment program payment and an instalment of a social security payment listed under SSAct sections 1187(1) or 1187(1A) are payable to a person during a pension period, the social security payment will be reduced by the amount of the self-employment program payment.
The amount of rate reduction is to be equal to the amount of the self-employment program payment (section 8(8)(t) and section 1188(1)). This means the deduction is on a dollar for dollar basis.
Act reference: SSAct section 8(8) Excluded amounts-general, section 1187 Reduction in rate of payments under this Act if recipient or partner also receiving payments under a self-employment program, section 1188 Rate reduction under this Part
Effect of self-employment program payments when partnered
Where both a self-employment program payment and an instalment of DSP or Age are payable to a person, and a payment of CP is payable to the person’s partner (in respect of the person receiving the self-employment program payment), the income support payments (of both the person and their partner) are reduced by 50% of the amount of the self-employment program payment each fortnight.
Where a partner of a self-employment program payment recipient receives a payment other than CP (in respect of the self-employment program payment recipient), the self-employment program payment does not affect their payment rate (section 1187(2) and 8(8)(t)).
Act reference: SSAct section 8(8) Excluded amounts - general, section 1187 Reduction in rate of payments under this Act if recipient or partner also receiving payments under a self-employment program, section 1188 Rate reduction under this Part
Income test treatment of business income
Income from a self-employed recipient's business for social security purposes is the gross income with allowable deductions.