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 intended only as a guide to social security payments. 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.

4.3.3.80 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.

Act reference: SSAct section 1075 Permissible reductions of business income

Policy reference: SS Guide 4.7.1.30 Assessment of business deductions & losses for sole traders & partnerships

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