You may have heard from a friend that there is a Government program that pays you to run a business while you earn as much as you want and are thinking it sounds too good to be true!
Well, the fact is that it is true, but there are some restrictions and eligibility criteria you should be aware of before jumping in.
What exactly is the Self-Employment Allowance?
Self-Employment Allowance (formerly NEIS allowance) is a payment that supports eligible Participants while they develop their own business. It is paid at the same rate as the single, no children rate of JobSeeker Payment. The rate of payment is not affected by the income earned by a Participant through their Business.
When you are accepted onto Small Business Coaching you will be paid the Self-Employment Allowance for up to 9 months while participating in Self-Employment Assistance. Your Centrelink payment will reduce by the rate of Self-Employment Allowance, if you are receiving a higher amount of payment from Centrelink you will continue to receive the difference from Centrelink.
What is the current rate of Self-Employment Allowance?
The rate of the allowance will be the same as the current rate of the Single, no children rate of Jobseeker payment. Search the Services Australia (Centrelink) website to find the current rate.
Am I eligible to receive the Self-Employment Allowance?
To be eligible to receive Self-Employment Allowance, you must be receiving an eligible Income Support Payment from Centrelink on the calendar day before they transfer into small business coaching (i.e. the 12-month mentoring part of the Self Employment Assistance program).
It is worth noting that when you commence the coaching program you will TRANSFER to the Self-Employment Assistance allowance and will not receive both payments.
What are the eligible Centrelink payments for Self-Employment Allowance?
- Jobseeker Payment
- Parenting Payment Single
- Carers Payment
- Parenting Payment Partnered
- Disability Support Pension
If you are receiving a different income support payment, please contact us to discuss your eligibility.
What if I’m not receiving any Centrelink payments?
Firstly, check your eligibility for an income support payment from Centrelink i.e. Jobseeker payment as you may find you are eligible. Unfortunately, if you are unable to get in receipt of an eligible payment you will not be able to receive Self-Employment Allowance. You can however still receive free small business training and mentoring as part of the Self-Employment Assistance Program.
So, I can earn as much as I like?
While you are receiving a Self-Employment Allowance you can earn as much as you like in your approved business. There is a limit however on how much you can earn externally to the business in Part-time or casual income. This is capped at twice the Self-Employment Allowance per quarter so you must be mindful not to exceed this.
What about rent assistance? Will I lose this when I transfer to Self-Employment Allowance?
No, participants who start Small Business Coaching, and continue to receive an income support payment, can continue to receive Rent Assistance from Services Australia (Centrelink). If you switch to Self-Employment Allowance and your Centrelink payment stops you can swap to Self-Employment rental assistance for up to 6 months from your coaching start date. If you receive rent assistance as part of the Family Tax benefit, this will remain with Centrelink and will not transfer over.
How do I receive a Self-Employment Allowance?
You will automatically receive the allowance when you commence small business coaching on the Self-Employment Assistance program. Applications for the program can be submitted via our website www.absinstitute.com.au. You will need to complete your business plan and financials before commencing the coaching and we can help you to do this through our small business training or by providing you with templates and guidance to complete.
