NEIS FAQs (frequently asked questions)
About the allowance
Do I have to swap to the NEIS allowance from my current payments?
Yes, unless you are receiving one of the following:
- Carer Payment
- Disability Support Pension (DSP)
- Parenting Payment Single (PPS)
- War Widow(er) pension or Partner Service pension from Department of Veterans’ Affairs (DVA).
You can choose whether to stay on these payments or swap to the NEIS allowance. However, any income earned by your NEIS business may affect your continuing eligibility and/or rate of payment under the income and assets test.
Do I pay tax on the NEIS allowance?
Yes, so you must consider this in your financial projections.
Can I receive rent assistance while I’m on the NEIS allowance?
If you were eligible for rent assistance before you began NEIS then you can continue to receive this extra allowance for 26 weeks (6 months).
Do you provide grants or loans to help start my business?
No. If you are organising a loan or business partnership which will change your circumstances compared to when you applied, you need to let us know.
Am I eligibile if I’m receiving the Family Tax Benefit?
No, if you are only receiving FTB you are not eligible. You should talk to Centrelink about your options.
The eligible Centrelink benefits include:
- Newstart
- Parenting Payment
- Disability Support Pension
- Youth Allowance
About my business
Am I still eligible if I’ve already started my business?
Yes, as long as you are not “commercially operating”. You can register the business name and ABN, register for GST, and organise business cards, stock, leases and so on.
What does “commercially operating” mean?
Hobby activities and small-scale businesses such as weekend market stalls may be considered to not be commercially operating. If the business income has been minimal, and only used as supplementary income, you may be eligible.
If your business matches one or more of these descriptions it may be considered to be commercially operating:
- Business activity is undertaken in a business-like manner and there is a reasonable expectation of profit.
- The business is of reasonable commercial size in comparison with other businesses in the same field.
- There is and has been repetition and continuity of activity.
- There is a commercial relationship with customers.
Each case is assessed individually so talk to us about your situation.
Can I buy a business or join a franchise?
No. Businesses must be new to be eligible for NEIS.
Can I go into business with a partner?
Yes. If the other person is not eligible for NEIS then you must control 51% or more of the business. In all cases a NEIS partnership agreement must be signed.
What sort of business can I run?
The business can be in any area as long as it is:
- legal
- reputable
- in an area of shortage.
Each case is assessed individually so talk to us about your plans.
Pre-NEIS training
Do I still have to report to Centrelink during training?
Yes, you must submit your forms, but as the training is an “approved activity” you are not required to look for work. When filling in your forms:
- Write ‘no’ in the area asking if you looked for work
- Write ‘yes’ in the area asking if you took part in an approved activity
- Enter ‘Pre-NEIS Training’ as the type of activity.
If Centrelink or your Job Services Australia provider asks you for an interview during training you must comply.
Am I automatically entitled to join the NEIS program when I have completed training?
No, your business plan must be approved in order for you to commence the NEIS allowance. When you have finished your business plan and financials we assess them to determine whether you have met the criteria for NEIS.
What do I do if I haven’t finished my business plan and financials at the end of the course?
The pre-NEIS training gives you up to 13 weeks’ exemption from looking for work, which includes the 4 weeks of course time.
During NEIS
Am I allowed to work at another job or study while on NEIS?
Yes, as long it does not interfere with working full time in your business. You must not exceed the allowed external income threshold and you must declare all external income on your income statements.
Can I travel while on NEIS?
Yes, if the travel is part of your business plan. In this situation your allowance will not be affected. You can also undertake limited travel which is not in the business plan but is related to the operation of the business, however your allowance will be suspended during this time. Travel which is not business-related means you would not be working in the business so this is not acceptable.
Can I lose my allowance?
Yes, there are some circumstances in which your allowance can be suspended or terminated. You must:
- fulfill all mentoring requirements
- submit income statements as scheduled
- work full time in the business
- advise us of all changes to your circumstances including external income earned.
