Commonwealth Numbered Acts

EMPLOYMENT SERVICES ACT 1994 No. 176 of 1994 - SECT 40

Prior receipt of allowance and commercial viability of self-employment
40.(1) A Case Management Activity Agreement must not require a person to
undertake as an activity any development of self-employment unless:

   (a)  at all times during the 6 months immediately preceding the undertaking
        of the activity, the person has been, or will have been, receiving
        either of the following:

        (i)    a job search allowance under the Social Security Act 1991;

        (ii)   a newstart allowance under that Act; and

   (b)  the Employment Secretary is satisfied that the activity:

        (i)    will be commercially viable 12 months after the person begins
               the activity; and

        (ii)   is likely to provide the person with sustainable full-time
               employment that will provide the person with a level of income
               at least equivalent to the person's maximum basic rate.

Maximum basic rate

(2) For the purposes of subparagraph (1)(b)(ii), a person's maximum basic rate
is:

   (a)  if the person has not turned 18-the person's maximum basic rate worked
        out under Module B of Benefit Rate Calculator A (within the meaning of
        the Social Security Act 1991); or

   (b)  if the person has turned 18-the person's maximum basic rate worked out
        under Module B of Benefit Rate Calculator B (within the meaning of the
        Social Security Act 1991).

Other conditions

(3) A Case Management Activity Agreement must not require a person to
undertake as an activity any development of self-employment if:

   (a)  the person is to undertake the activity for more than 12 months; or

   (b)  subject to subsection (4), the person has previously been subject to a
        requirement under:

        (i)    that agreement; or

        (ii)   any other Case Management Activity Agreement; or

        (iii)  a Job Search Activity Agreement; or

        (iv)   a Newstart Activity Agreement; to undertake the same activity
               or a similar activity; or

   (c)  at any time during the 6 months immediately preceding the time at
        which the activity is to start, the person has been subject to a
        requirement under:

        (i)    that agreement; or

        (ii)   any other Case Management Activity Agreement; or

        (iii)  a Job Search Activity Agreement; or

        (iv)   a Newstart Activity Agreement; to undertake as an activity
               other development of self-employment.

Special circumstances

(4) Paragraph (3)(b) does not apply if the Employment Secretary determines in
writing that there are special circumstances that justify inclusion of the
activity in the Case Management Activity Agreement.

Activities to which section does not apply

(5) This section does not apply to an activity to which a paragraph of
subsection 39(1) other than paragraph 39(1)(f) or (g) applies.

Definitions

(6) In this section:

"Job Search Activity Agreement" has the same meaning as in the Social
Security Act 1991;

"Newstart Activity Agreement" has the same meaning as in the Social Security
Act 1991.