NEISâAssistance and NEIS Business Mentoring Guideline
Transcription
NEISâAssistance 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 2 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 3 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 4 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 7 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 8 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 9