NEIS—Assistance and NEIS Business Mentoring Guideline

NEIS—Assistance and NEIS Business Mentoring
Guideline
Document change history
Version
Start date
Effective date
1.0
01 07 15
01 07 15
End date
Change and location
Original version of document
Explanatory Note
All capitalised terms have the same meaning as in the jobactive Deed 2015–2020. In this document, ‘must’
means that compliance is mandatory and ‘should’ means that compliance represents best practice and that
compliance is discretionary.
Disclaimer
This Guideline is not a stand-alone document and does not contain the entirety of Employment Services
Providers’ obligations.
It must be read in conjunction with the Deed and any relevant Guidelines or reference material issued by
Department of Employment under or in connection with the Deed.
Summary
These Guidelines are for New Enterprise Incentive Scheme Provider (NEIS Provider) and detail the core elements
and requirements in delivering NEIS Assistance to NEIS Participants—including five NEIS Business Mentoring
visits, monthly contacts, and business advice and counselling for the duration of the NEIS Participant
Agreement—and where applicable, the payment of NEIS Allowance for up to 39 weeks and NEIS Rental
Assistance for up to 26 weeks to eligible NEIS Participants.
Note: Reference to ‘NEIS Allowance’ throughout these Guidelines includes NEIS Rental Assistance, where
relevant.
Policy Intent
NEIS Assistance is provided to NEIS Participants to ensure they have the best chance of establishing a successful
and viable small business at the end of their NEIS participation.
Relevant Deed clause/s
The relevant clauses in the jobactive Deed 2015–2020 (the Deed) include:



Annexure A1—Definitions
Section 3D—Records management
Part C—New Enterprise Incentive Scheme Services.
Relevant References
Reference documents relevant to this Guideline include:
 Learning Centre website
 Documentary Evidence Guideline
NEIS Assistance and NEIS Business Mentoring Guideline
TRIM ID: EM15/000990
Effective Date: 1 July 2015
1


NEIS – Assistance and Business Mentoring Guideline
NEIS Training Guideline.
More information about Providers’ obligations for the delivery of NEIS Services can be found on the Provider
Portal. If additional information or advice is required, NEIS Providers are advised to contact their Account
Manager.
NEIS Business Mentoring
Process
Details
NEIS Business Mentoring
visits
The NEIS Provider must provide NEIS Business Mentoring to NEIS Participants for the
52 weeks they are operating their NEIS Business, including:
Deed clause references:
 Clause 129.3 to
Clause 129.5


providing a minimum of five visits
delivering mentoring face-to-face at the NEIS Business premises, except
where:
o the NEIS Business is home based or mobile, or
o the NEIS Business is located in an area where NEIS Business
Mentoring visits are not practical.
NEIS Providers must deliver the NEIS Services they committed to deliver in their
tender. Alternative mentoring arrangements may, however, be negotiated with the
Department where face-to-face visits are not possible due to distance and/or the
business type. Requests to deliver NEIS Business Mentoring via alternative means
should include the method of communication (for example, Skype, video
conferencing) and the reason for alternative arrangements. The Department will
consider such requests on a case by case basis and advise the NEIS Provider if it
approves the alternative mentoring arrangements.
Note: The NEIS Provider may agree to defer the first NEIS Business Mentoring visit if
the NEIS Participant commenced their NEIS Business within the last five weeks of their
first Financial Quarter. If the first visit is deferred, the NEIS Provider must record ‘Visit
not conducted this quarter’ in the Department’s IT Systems.
The NEIS Provider can decide when in the Financial Quarter they conduct the visit.
They may choose to conduct it early in the next Financial Quarter to check the
previous Financial Quarter’s operations. Mentoring visits must:
 take place each Financial Quarter that the NEIS Participant is operating their
NEIS Business
 be recorded in the Department’s IT Systems.
The NEIS Provider must provide the Department with additional information related
to NEIS Business Mentoring, if required.
Initial visit
Deed clause references:
 Clause 129.3 to 129.6
The NEIS Provider’s initial visit with the NEIS Participant must:


be conducted within the first four weeks of operation of the NEIS Participant’s
NEIS Business to ensure:
o the NEIS Business is operating according to the approved NEIS
Business Plan
o the NEIS Business’s insurance is in place and has been current from
the NEIS Commencement date.
be recorded in the Department’s IT Systems.
Note: The initial visit is one of the five required NEIS Business Mentoring visits a NEIS
Provider must conduct.
NEIS Assistance and NEIS Business Mentoring Guideline
TRIM ID: EM15/000990
Effective Date: 1 July 2015
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Process
Details
Monthly contacts
NEIS Providers must contact each NEIS Participant at least monthly during the period
of their NEIS Participant Agreement. Monthly contacts must:
Deed clause references:
 Clause 129.6
 Clause 129.7




include a check that the NEIS Participant is still operating their NEIS Business
according to their NEIS Business Plan
include a check that the NEIS Business’s insurance is still current and obtain
proof if in doubt
offer and provide any business advice and counselling to assist the NEIS
Participant in operating their NEIS Business
be recorded in the Department’s IT Systems.
NEIS Provider monthly contacts can be conducted using any communication method.
Commercial Viability test The NEIS Provider must collect the NEIS Participant’s NEIS Financial Information in
Deed clause references:
 Annexure 1A
 Clauses 129.7 to
129.10
order to check whether the NEIS Business is Commercially Viable as defined in the
Deed.
If the NEIS Business is identified as not Commercially Viable:

the NEIS Participant must be advised that a recommendation to terminate
their NEIS Participant Agreement will be made in the Department’s IT Systems

the NEIS Provider should note the communication or conversations with the
NEIS Participant and keep the note on the file.
If the NEIS Business is identified as potentially Commercially Viable but at risk of
failure without remedial action, the NEIS Provider must:

develop an action plan in consultation with the NEIS Participant to improve
the performance of the NEIS Business and include a timeframe to reassess
(this could include reassessing whether the NEIS Business is Commercially
Viable in the third Financial Quarter, where the assessment at the second
Financial Quarter showed that the NEIS Business was not Commercially
Viable)

review the action plan at monthly contacts and NEIS Business Mentoring visits
to see if it has been successful and if the issue cannot be resolved,
recommend termination of the NEIS Business via the Department’s IT
Systems.
Note: Refer to NEIS suspensions, recommencements and termination section
of this Guideline for further information.

NEIS External Income Test
Process
Details
NEIS External Income
Test
The NEIS External Income Test checks the total gross NEIS External Income earned
during a Financial Quarter. NEIS Participants are allowed to earn additional income
separate to their NEIS Allowance, but only up to a certain amount. This is checked by
conducting an NEIS External Income Test at the end of each Financial Quarter.
Deed clause references:
 Clause 129.7 to
129.11
The NEIS External Income Test must be conducted within five Business Days of the
NEIS Participant submitting their NEIS Income Statements. NEIS Income Statements
show the NEIS Participant’s gross NEIS External Income and includes their income and
expenses and running balance.
If the NEIS Participant started less than four weeks before the end of the Financial
Quarter, they do not need to submit a NEIS Income Statement for that Financial
Quarter. Sources of External Income can be found in Attachment A.
Calculating the amount of NEIS Allowance in a Financial Quarter
NEIS Assistance and NEIS Business Mentoring Guideline
TRIM ID: EM15/000990
Effective Date: 1 July 2015
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Process
Details
A NEIS Participant will not pass the NEIS External Income Test if their total gross NEIS
External Income during the Financial Quarter exceeds twice the rate of NEIS
Allowance for that same period.
For testing purposes, there are usually six fortnightly pays in any Financial Quarter.
Please refer to the NEIS Allowance Payment Dates Calendar on the Provider Portal to
check. NEIS Providers can determine the approximate figure by doubling the current
fortnightly rate by two and multiplying by the number of pays in that Financial
Quarter. If NEIS Providers need the exact figure, they can contact their local
departmental NEIS pay officer.
Failing the NEIS External Income Test will result in suspension of the NEIS Participant’s
NEIS Allowance and NEIS Rental Assistance for the Financial Quarter in which the test
was conducted or for the balance of their NEIS Participant Agreement period if it is
the last NEIS Income Statement. The NEIS Participant must submit a NEIS Income
Statement for the Financial Quarter for which they have been Suspended in order to
assess the continuing suspension or reinstatement (if applicable) of their NEIS
Allowance and NEIS Rental Assistance in the next Financial Quarter.
Where an NEIS Participant fails the NEIS External Income Test the NEIS Provider must
advise the Department via the Department’s IT Systems within five Business Days.
Note: Refer to NEIS suspensions, recommencements and termination section of this
Guideline for further information.
NEIS Business Insurance
Process
NEIS Business insurance
Deed clause references:
 Clause 129.6(c)(i)
 Clause 129.11
Details
NEIS Business insurance is what has been included in the approved NEIS Business Plan
and could include a number of different insurance covers, depending on the nature of
the business. NEIS Providers must not have approved NEIS Business Plans that do not
include NEIS Business insurance and evidence that the insurance will be current from
the NEIS Business Commencement date.
All proposed NEIS Businesses must have public liability insurance and consider other
insurances including professional indemnity, product liability or other relevant
insurances as appropriate. Such policies normally provide insurance covering the NEIS
Participant’s legal liability if someone who is not an employee or a family member
(third party) suffers injury, damage to property, or death as a result of their business
operations.
Change of Circumstances
Process
Details
Change of Circumstances A NEIS Participant’s change of circumstances could affect their entitlement to NEIS
Deed clause references:
 Clause 129.11
Assistance. NEIS Providers must notify the Department via the Department’s IT
Systems to avoid any possible overpayment of NEIS Allowance to the NEIS Participant.
Overpayments could be attributed to the NEIS Provider if they fail to notify the
Department within the five Business Days.
Changing the NEIS Business Plan
It is possible for a NEIS Participant to amend their NEIS Business Plan after they have
started NEIS Assistance; however, the core elements of the NEIS Business must
remain unchanged. It is not acceptable to completely change the nature of the NEIS
NEIS Assistance and NEIS Business Mentoring Guideline
TRIM ID: EM15/000990
Effective Date: 1 July 2015
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Process
Details
Business (e.g. from cleaning to photography). In this example, the NEIS Participant
would need to be terminated if they cannot continue with the original NEIS Business
Plan.
The NEIS Provider must:
 ensure that the proposed changes will not jeopardise the NEIS Business’s
Commercial Viability or ongoing viability
 seek departmental approval for changes to NEIS Business Plans where:
o there is overseas travel to purchase stock or earn business
income
o there are changes to the business activities or diversification
of business operations, or
o dissolving a NEIS Business partnership.
Death of a NEIS Participant
If this occurs, the NEIS Provider needs to view confirmation that the NEIS Participant
has died and then recommend a termination in the Department’s IT Systems.
Confirmation of death can include an email or letter from a relative or a death notice
from a newspaper or website.
Transferring to NEIS Allowance
Process
Details
NEIS Participant
commencing a NEIS
Allowance
Most NEIS Participants transfer to NEIS Allowance from their Department of Human
Services (DHS) or Department of Veterans’ Affairs (DVA) income support payment.
The NEIS Provider must obtain a written request from the NEIS Participant stating
their wish to transfer to NEIS Allowance, and this must include:




the date of effect
an updated NEIS Eligibility Certification Form which includes their bank
account details
a completed Tax File Number Declaration Form with a signed date no more
than one month old
a completed NEIS Rental Assistance Form from DHS, if applicable.
The local departmental NEIS pay officer will provide a letter to the NEIS Participant
providing details of their new payment status.
NEIS Participants can only receive a total of 39 weeks of NEIS Allowance. NEIS Rental
Assistance can only be entered for the balance of the first 26 weeks of NEIS
Assistance. NEIS pay systems will automatically calculate the entitlement and
payment will be made in the next fortnightly pay run.
NEIS Allowance change
NEIS Providers must receive the following from the NEIS Participant in order for the
Department to pay them NEIS Allowance and NEIS Rental Assistance (if eligible):




signed and witnessed NEIS Participant Agreement
signed NEIS Eligibility Certification Form which shows their bank details
Tax File Number Declaration Form
Eligibility for NEIS Rental Assistance Form.
The NEIS Provider must enter the relevant details into the Department’s IT Systems.
Transferring from a DVA
pension, DSP, Carer
NEIS Participants who choose to continue receiving their DVA pension or DSP, Carer
Payment or PPS payments from DHS will have only one opportunity to transfer to
NEIS Assistance and NEIS Business Mentoring Guideline
TRIM ID: EM15/000990
Effective Date: 1 July 2015
5
Process
Payment or PPS
payment to NEIS
Allowance
Details
NEIS Allowance during NEIS Assistance. If the NEIS Participant transfers to NEIS
Allowance, the Department will pay the NEIS Participant NEIS Allowance fortnightly in
arrears from that time until the end of the NEIS Allowance period. The NEIS Allowance
will not be backdated to the commencement date of NEIS Assistance.
NEIS suspensions, recommencements and terminations
Process
Details
NEIS
suspension/termination
approval process
Where a NEIS Provider finds that the NEIS Participant is in breach of their NEIS
Participant Agreement they must recommend a suspension or termination in the
Department’s IT Systems.
Deed clause references:
 Clause 129.4
Clause 129.6(b)
 Clause 129.9
 Clause 129.11
 Clause 129.12
The suspension or termination is then approved by a local departmental NEIS pay
officer.
The approval of a suspension will either:
 Suspend a NEIS Participant’s NEIS Allowance
or

Suspend the NEIS Participant Agreement.
The approval of a termination will end the NEIS Participant Agreement.
The Department’s state NEIS pay officers have the delegation to approve
suspensions, recommencements and terminations entered by NEIS Providers in
the Department’s IT Systems. The state NEIS pay officers also send the NEIS
Participant a letter letting them know that they have approved the action and
telling them how long they have to resolve the suspension issue before further
action—such as termination—is taken. NEIS Participants displaying challenging
behaviours may also be recommended for suspension or termination, please refer
to the Servicing of Job Seekers with Challenging Behaviours Guideline for further
information.
Suspension start dates
Deed clause references:
 Clause 129.12
 Clause 129.6 (b)
Timeframes for suspensions
Deed clause references:
 Clause 129.6 (b)
 Clause 129.12
NEIS Providers will enter one of the following suspension start dates:
 the date that the NEIS Participant did not comply with the terms of their
NEIS Participant Agreement or the date that the NEIS Provider identified
non-compliance;
 the date that the NEIS Participant requested to be suspended (for
example, where they are ill); or
 the first day of the Financial Quarter, in which the NEIS Participant did not
pass the NEIS External Income Test.
There are four timeframes that should be used when suspending a NEIS
Participant:
1) Where a NEIS Participant has not shown current proof of NEIS Business
insurance, they should be given 13 Business Days to provide proof.
2) For suspensions where the NEIS Participant has not complied with their NEIS
Participant Agreement, such as not submitting their NEIS Financial
Information on time, one month from the date the suspension (as approved
in the Department’s IT Systems) is considered a reasonable timeframe to fix
the issue that caused the suspension.
3) Where the NEIS Participant is unable to operate their NEIS Business, a
maximum suspension time of 13 weeks is provided to allow for unforeseen
circumstances. NEIS Participants may incur a total of 13 weeks of suspensions
during their period of NEIS Assistance.
NEIS Assistance and NEIS Business Mentoring Guideline
TRIM ID: EM15/000990
Effective Date: 1 July 2015
6
Process
Recommencing a NEIS
Participant after a
suspension
Deed clause references:
 Clause 129.6 (b)
 Clause 129.12
Terminating a NEIS
Participant Agreement
Deed clause references:
 Clause 129.6 (b)
 Clause 129.12
Details
4) The only exception to the maximum 13 week rule is if the NEIS Participant
does not pass the NEIS External Income Test. In this scenario, multiple backto-back 13 week NEIS Allowance suspensions can occur because they are still
operating their business.
There are three scenarios where a NEIS Provider can recommend
recommencement of a Suspended NEIS Participant to the Department:
1) The NEIS Participant has resolved the issue that caused the suspension; for
example, the NEIS Participant provided their NEIS Financial Information. The
recommencement date is the start date of the suspension and their expected
end date is not extended.
2) The NEIS Provider is satisfied that the NEIS Participant has recommenced
operating their NEIS Business and the recommendation for recommencement
starts on that date; for example, the NEIS Participant was temporarily not
operating their NEIS Business due to illness. Another example is where the
NEIS Participant was Suspended for not being able to show proof of current
NEIS Business insurance but they have provided proof of insurance that starts
at a date after the suspension start date. The recommencement date will be
the date the business insurance recommences and this will extend the NEIS
Participant’s expected end date in NEIS Assistance by the length of the
suspension.
3) The NEIS Participant has passed the next NEIS External Income Test. The
recommencement date will be the first day of the next Financial Quarter and
the expected end date is not extended because the NEIS Participant is still
operating their NEIS Business during the period of suspension.
There are two scenarios where a NEIS Provider can recommend to the
Department that the NEIS Participant Agreement be terminated:
1) The NEIS Participant has chosen to stop operating their NEIS Business FullTime (for example, they have returned to study or other work).
2) The NEIS Participant is in breach of their NEIS Participant Agreement and is no
longer eligible for NEIS Assistance (for example, the NEIS Participant did not
provide proof of their current NEIS Business insurance within 13 Business
Days).
Where a NEIS Participant is to be terminated from NEIS Assistance, the NEIS
Provider must enter in the Department’s IT Systems the termination date as:
 the last working day that the NEIS Participant was operating their NEIS
Business (this could be at the NEIS Participant’s request)
 the date that the NEIS Provider was notified by the Department that the NEIS
Participant’s NEIS Participant Agreement should be terminated. In either
scenario, this has to be a working day or
 if on a current suspension, the date before the suspension start date.
The exception to this is where a NEIS Participant is suspended because they
were not able to be contacted. In this scenario, a recommencement from this
suspension must first be entered from the start date of the suspension before
entering a termination, as this suspension stops the whole fortnightly NEIS
payment.
The NEIS Provider should advise the terminated NEIS Participant to return to DHS
and discuss their Employment Services and income support eligibility.
NEIS Assistance and NEIS Business Mentoring Guideline
TRIM ID: EM15/000990
Effective Date: 1 July 2015
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Process
Details
Termination—Rights of
Review
Where the NEIS Provider has recommended a suspension or termination and it
has been approved by the Department, the NEIS Participant may seek a review of
that decision. If a NEIS Participant requests a review of their suspension or
termination, the Department must have the decision reviewed by an independent
reviewer.
An independent reviewer is a person(s) who was not involved in the original
decision to approve the suspension or termination. An appropriate person may be
another departmental contract manager or Account Manager with some
knowledge of NEIS. The departmental contract manager or Account Manager may
consult the NEIS Policy Section within National Office for advice.
The Department must advise the NEIS Participant of the result of the review, in
writing, within 10 Business Days of the NEIS Participant’s request. There is no
further process if the NEIS Participant is dissatisfied with the outcome of the
Department’s review. The Department will only review a decision once.
Commonwealth Ombudsman’s role
The Ombudsman may investigate how the Department reached a decision or the
way in which the Department handled a request for review. The Ombudsman
cannot substitute a new decision for that of the decision maker.
NEIS Fees
Process
Details
NEIS Payments
NEIS Providers may claim:
Deed clause references:
 Clause 130.1 to
 Clause 130.3
 Annexure 1A—
Definitions


80 per cent of the NEIS fee on achievement of a NEIS Commencement
20 per cent of the NEIS fee on achievement of a NEIS Post-Programme
Outcome.
A NEIS Post-Programme Outcome occurs when the Department verifies that a NEIS
Participant is not receiving income support from DHS 13 weeks after cessation of their
NEIS Participation Agreement. For NEIS Participants previously in receipt of Parenting
Payment (Single), Disability Support Pension, Carer Payment or DVA War Widower/s
or Partner Service Pension a NEIS Post-Programme Outcome occurs if the NEIS
Participants are in employment (of at least 20 hours per week) 13 weeks after
cessation of their NEIS Participant Agreement
NEIS Assistance and NEIS Business Mentoring Guideline
TRIM ID: EM15/000990
Effective Date: 1 July 2015
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Attachment A
Sources of NEIS External Income
For the purposes of the NEIS External Income Test, NEIS External Income means any gross income that the
Australian Taxation Office (ATO) would regard as assessable income separate to the NEIS Business income.
NEIS External Income includes, but is not limited
to:
External Income excludes:


NEIS Allowance
interest


NEIS Rental Assistance
dividends


rent from investment property
Department of Social Services
allowances/pensions

earnings from employment (casual
or/part-time) outside the NEIS Business

DHS allowances/pensions


DVA allowances/pensions
any lump sum compensation, redundancy
or termination payment (see note below)

income of the NEIS Participant’s partner

income from beneficial trusts grants—if
the ATO deems them assessable income
(excluding small business grants made to
the NEIS Business and relating to the
operation of the NEIS Business)

NEIS Business income

lump-sum superannuation payment

inheritance.

Periodic Superannuation Payments.
Notes:
1) In some cases, NEIS Business income may include casual, part-time or fixed short-term full-time wages.
Where those earnings directly relate to the core NEIS Business activity, and are included in the NEIS Business
Plan, they are not considered to be NEIS External Income. However, such earnings, or the duration of any
fixed short-term full-time employment, must not be so significant as to affect the independence of the NEIS
Business, i.e. the requirement that the NEIS Participant maintain a controlling interest over the NEIS
Business. Casual or part-time wages not provided for in the NEIS Business Plan are NEIS External Income for
the purposes of the NEIS External Income Test.
2) Lump sum compensation payments: Lump sum compensation payments that do not include a component
for lost earnings or lost capacity to earn are not treated as NEIS External Income under the NEIS External
Income Test. However, where a settlement or part settlement includes an amount for lost earnings or lost
earnings capacity, this amount is treated as NEIS External Income.
3) Lump sum redundancy or termination payment: Redundancy payments or termination payments that
are not, or cannot, be invested in a roll over fund are treated as NEIS External Income under the NEIS
External Income Test.
NEIS Assistance and NEIS Business Mentoring Guideline
TRIM ID: EM15/000990
Effective Date: 1 July 2015
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