Chapter 10. Agreement Breaches, Suspensions and Terminations

When a Provider determines that a Participant may have breached their Small Business Coaching Agreement or has exceeded the External Income Test, the Provider must consider recommending that the Department suspends or terminates the Participant’s involvement in Small Business Coaching.

The Department’s approval of a request for a suspension will either:

• suspend the Participant’s Self-Employment Allowance (and Self-Employment Rental Assistance if applicable) if they fail the External Income Test, or

• suspend the Participant’s Small Business Coaching Agreement (including payment of Self-Employment Allowance and Self-Employment Rental Assistance where relevant) for all other suspension reasons.

  Participants have the timeframe advised in their suspension notification, to resolve the suspension, from the date the suspension is approved by the Department and notification sent. Providers must not recommend termination from Small Business Coaching prior to this date, unless a written request is received from the Participant.

The Department’s approval of a request for a termination will end the Participant’s Small Business Coaching Agreement.

This Chapter outlines the relevant timeframes and processes involved in suspending or terminating a Participant accessing Small Business Coaching.

(Deed Reference(s): Clause 91.5)

If the Provider identifies that the Participant has breached their Small Business Coaching Agreement and that it is not yet appropriate to terminate the Participant (see Terminating a Participant), the Provider must generally recommend the suspension of the Participant.

The exception to the Provider’s obligation to recommend a suspension is where a Participant has breached their Small Business Coaching Agreement due to illness or other personal issues and the Participant is likely to begin complying with their Small Business Coaching Agreement in less than a week's time. A Participant may remain unsuspended for a maximum of 5 Business Days throughout their Period of Small Business Coaching while not working their Required Hours due to these reasons only.

The Provider should not recommend a suspension where a Participant’s circumstances change but the Participant is still able to comply with their Small Business Coaching Agreement.

Once the Provider has identified that it is appropriate to recommend the suspension of a Participant, they must identify the category of the suspension and the date from which the suspension will apply in accordance with Table 10‑A.

Note: Participants in receipt of Self-Employment Allowance (and Rental Assistance, if applicable) may be eligible for backpay, where they continue to operate their business for the specified suspension reasons identified in Table 10‑A, providing the suspension has been resolved and a recommencement request is approved by the Department.

If a suspension duration has passed, termination will occur and no backpay can be paid.

Table 10‑A: Suspension categories and key dates

Example: Steve is a Small Business Coaching Participant operating a food truck small business. He falls ill for a week and is unable to operate his food truck as a result. He is however able to continue working in his Business by developing his Business’ social media presence and catching up on his bookkeeping. As a result, Steve’s Provider does not recommend to the Department that Steve’s Small Business Coaching Agreement is suspended for the week that Steve is unwell.

• System step — The Provider must enter a recommended suspension in the Department’s IT Systems, in accordance with Table 10‑A, within 5 business days from the date a Participant does not comply with their Small Business Coaching Agreement. If the Department agrees with the suspension recommendation, notification will be sent to the Participant advising them of the approved suspension. The notification will also inform the Participant how long they have to resolve the suspension issue before further action is taken, such as the termination of their Small Business Coaching Agreement.

• System step — The Provider may be liable for any overpayment of Self-Employment Allowance and/or Self-Employment Rental Assistance to a Participant if they fail to enter the suspension recommendation within 5 Business Days. Failure to notify may also result in the recovery of any Business Progress Fees paid to the Provider following their failure to notify.

Participants should be terminated from Small Business Coaching if they are suspended for the relevant maximum duration specified in Table 10‑A. The Provider must not recommend a termination until the timeframe advised in the suspension notification has passed, unless termination from Small Business Coaching has been requested by the Participant in writing. Providers may be liable for any overpayment of Self-Employment Allowance and/or Self-Employment Rental Assistance on Termination if suspension dates are not followed.

Where the Provider believes there are relevant extenuating circumstances, they may contact the Department at SBCAllowanceReviewTeam@dewr.gov.au to request an extension to the Participant’s suspension. These requests will be considered on a case-by-case basis. Extension requests will be considered if the suspension period will not result in the Participant exceeding the maximum suspensions duration of 13 weeks, unless an exception applies as noted below.

Maximum cumulative periods of suspension for a Participant

Participants may be suspended for a total of 13 weeks (cumulative) during their Period of Small Business Coaching. There are 3 exceptions to this rule:

• Suspensions due to Failed External Income Test (FINT) do not contribute to the maximum suspensions period of 13 weeks. Multiple back-to-back 13-week FINT suspensions can occur while the Participant continues to access Small Business Coaching.

• If the Participant chooses to take leave for the birth or adoption of a child, they may be suspended under the category Parental Leave (RISP) for a maximum of 18 weeks. The Participant must be the primary carer. Suspensions under the RISP category do not contribute to the maximum suspensions period of 13 weeks.

• Where the Department is made aware of extenuating circumstances and an extension beyond the 13 week duration is in the best interest of the Participant and their business, for example medical or compassionate reasons.

During suspensions where the Participant has failed the External Income Test and has been suspended from payment of Self-Employment Allowance, the Provider must continue providing the business support identified in the Supporting Participants in Small Business Coaching Chapter.

During all other types of suspension, the Provider should maintain contact with the suspended Participant to determine the likelihood of the Participant recommencing Small Business Coaching and their business being on track to be Operating Commercially 12 months following the Participant’s Small Business Coaching Commencement (if recommenced).

Once the Participant has resolved the issue that led to them being suspended, the Provider must ask the Department to recommence the Participant.

Where the Provider identifies that a Participant was incorrectly suspended, the recommencement date must be the same date as the suspension start date to ensure the Participant receives their full payment in arrears.

For Participants in receipt of Self-Employment Allowance and Self-Employment Rental Assistance, who are suspended and receive backpay once the suspension reason is resolved (specified in Table 10‑A), the recommencement date should be the same as the suspension start date providing the suspension start date is within 28 days. If the period of suspension is longer than 28 days, the recommencement date recommended by the Provider should be no more than 28 days, unless a termination recommendation is required.

Where the Participant was suspended under the category Failed External Income Test and then passes the External Income Test in a subsequent Financial Quarter, the recommencement date will be the first day of the Financial Quarter in which the relevant External Income Test was conducted.

Where the Participant was suspended under the category Insurance missing or inadequate (NINS) and the Participant provides evidence of insurance which shows there was no break in insurance coverage, the recommencement date should be the same as the NINS suspension start date. If the evidence provided shows insurance was not in place for a period (there was a break in insurance coverage), the Participant’s recommencement date should be the date the insurance coverage started as per the evidence of insurance. The Participant will not be eligible for any backpay for the period they were not insured if they are in receipt of Self-Employment Allowance/Rental Assistance For all other suspension categories, the recommencement date will be the date the Participant began complying with their Small Business Coaching Agreement once again. Upon the Participant’s recommencement, their Small Business Coaching Agreement end date is extended to reflect the number of days the Participant was suspended, to allow for 52 weeks participation in the service.

Before asking the Department to recommence a Participant from any suspension reason, the Provider must ensure the Participant’s Business Insurance is current.

Upon approval of a recommencement recommendation, an email notification will be sent to the Participant advising them of the approved recommencement.

Example:

Jane’s Provider tries to contact Jane on 8 August to conduct a scheduled Business Mentoring contact, but Jane does not respond. After another failed attempt to contact Jane on 11 August, Jane’s Provider recommends the suspension of Jane’s Small Business Coaching Agreement under the category ‘Not Engaging with Mentoring’, with a suspension start date of 11 August.

Jane returns her Provider’s call and participates in Business Mentoring on 16 August. Jane’s Provider confirms that Jane’s Business Insurance is still in place, and the Provider recommends the recommencement of her Small Business Coaching Agreement effective 11 August. As Jane currently receives Self-Employment Allowance, she receives 4 days backpay to account for allowance not paid during the suspension period.

• System step — The Provider must enter the recommended recommencement in the Department’s IT Systems.

Before recommending a termination, the Provider must first consider whether a suspension is appropriate to allow the Participant time to comply with their Small Business Coaching Agreement.

The Provider must recommend the termination of a Participant’s Small Business Coaching Agreement when the Participant:

• has requested to exit Small Business Coaching

• has been suspended for the maximum duration specified in Table 10-A and has not been recommenced

• has been suspended for the maximum cumulative period of suspensions (as specified in the Agreement Breaches, Suspensions and Terminations Chapter) and has not been recommenced, or

• the Participant is in breach of their Small Business Coaching Agreement and is no longer eligible for Small Business Coaching (for example, if the Participant’s Business is no longer on track to be Operating Commercially 12 months following the Participant’s Small Business Coaching Commencement).

To terminate a Participant from Small Business Coaching, the Provider must enter the appropriate termination date in the Department’s IT Systems as identified below.

• If the Department has notified the Provider that a Participant must be terminated on a particular date, the relevant date must be used.

• If the Participant is on a current suspension (other than for failing the External Income Test), the termination date will be the day before the suspension start date.

• The date the Participant requested to be terminated (written evidence from the Participant is required).

• Otherwise, the termination date will be the date the Participant began breaching the terms of their Small Business Coaching Agreement.

If the Department agrees with the recommendation, an email notification will be sent to the Participant advising them of the approved termination.

• System step — The Provider must enter the recommended termination in the Department’s IT Systems within 5 Business Days of becoming aware of a relevant change in circumstances. The Provider may be liable for any overpayment of Self-Employment Allowance and/or Self-Employment Rental Assistance to a Participant if they fail to notify the Department of any changes to a Participant’s circumstances within 5 Business Days. Failure to notify may also result in the recovery of any Business Progress Fees paid to the Provider following their failure to Notify.

• System step — The Provider must enter Quarterly Reviews into the Department’s IT Systems within 14 days and before recommending termination.

If the Provider recommends a suspension or termination and it is approved by the Department, the Participant may ask for the decision to be reviewed. If the Participant requests a review of their suspension or termination, the Department must have the decision reviewed by an independent reviewer.

The Department must advise the Participant of the result of the review in writing within 15 Business Days of the Participant’s request. The Department only reviews a decision once—there is no further process if the Participant is dissatisfied with the outcome of the Department’s review.

The Commonwealth Ombudsman may investigate how the Department reached a decision or how the Department managed a request for review. However, the Ombudsman cannot substitute a new decision.