What counts as 'seasonal work' and how might it affect my payments?

In Plain English

Seasonal work is work that happens at certain times of the year, like fruit picking or working during the tourist season. If you've been doing seasonal work and then apply for certain government payments like JobSeeker or Youth Allowance, there might be a "seasonal work preclusion period." This means there could be a delay before you start receiving payments. The length of this delay depends on how much you earned from seasonal work in the 6 months before applying, and how long you worked. The more you earned and the longer you worked, the longer the delay might be. However, if you were already receiving income support payments for a continuous period of more than 12 months before starting the seasonal work, this preclusion period might not apply to you.

Detailed Explanation

The Social Security Act 1991 defines "seasonal work" and its impact on various payments.

Definition of Seasonal Work:

The Act allows the Secretary to determine what specific intermittent work qualifies as "seasonal work" via legislative instrument (Social Security Act 1991 subsection 1(2)).

Seasonal Work Preclusion Period:

  • General Rule: If an individual (or their partner, if claiming as a couple) has engaged in seasonal work within the 6 months before claiming certain payments (JobSeeker, Youth Allowance, etc.), a "seasonal work preclusion period" may apply (Social Security Act 1991 subsections 3, 4). This period delays the start of the payments.
  • Calculating the Preclusion Period: The length of the preclusion period (in weeks) is calculated based on a method statement that considers:
    • The amount of "seasonal work income" earned during relevant periods of seasonal work (Social Security Act 1991 subsection 5, Step 3). "Work income" means gross income from seasonal work less allowable deductions under income tax laws (Social Security Act 1991 Chunk 75). Lump sum payments not yet received are disregarded.
    • The "relevant AWOTE" (Average Weekly Ordinary Time Earnings) for the calendar year in which the claim was lodged (Social Security Act 1991 subsection 5, Step 5).
    • The number of weeks spent in seasonal work ("seasonal work weeks") and any intervening periods between seasonal work periods or between a period of seasonal work and the claim date ("intervening weeks") (Social Security Act 1991 subsection 5, Steps 6, 6A, 6B, 6C).
    • The calculation involves dividing seasonal work earnings by the relevant AWOTE to determine "AWOTE weeks," calculating "self-supported weeks" (seasonal work weeks + intervening weeks), and subtracting self-supported weeks from AWOTE weeks. The result is the number of weeks in the preclusion period (Social Security Act 1991 subsection 5, Step 7).
  • Exemption: Paragraph (aa) of the definition of seasonal work in subsection (1) does not apply to a person undertaking seasonal work if the person was receiving income support payments (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this section) in respect of a continuous period exceeding 12 months immediately before the person commenced the seasonal work (Social Security Act 1991 Chunk 75).

Qualifying Seasonal Horticultural Work:

The Social Security (Qualifying Seasonal Horticultural Work) Determination 2017 defines specific kinds of seasonal work related to harvest crops that may qualify job seekers on Newstart Allowance and Youth Allowance (other) for an income exemption, where the first $5,000 of income earned in the 2017-18 and 2018-19 financial years would not be counted for the income test.

Qualifying Agricultural Work:

The Social Security (Qualifying Agricultural Work) Determination 2020 defines specific kinds of agricultural work that can allow young people claiming Youth Allowance student payments to be considered independent if they earn $15,000 through employment in the agricultural industry between 30 November 2020 and 31 December 2021, subject to a parental income threshold.