A
New Enterprise Incentive Scheme (NEIS)
Assistance and NEIS Business Mentoring
Guidelines
V 1.1
Disclaimer
This document is not a stand-alone document and does not contain the entirety of NEIS Panel Members’
obligations. It should be read in conjunction with the Employment Services Deed 2012—2015 and any
relevant Guidelines or reference material issued by the Department of Employment under or in
connection with the Employment Services Deed 2012—2015.
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Table of Contents
Document Change History......................................................................................................... 3
Summary.................................................................................................................................... 3
NEIS Business Mentoring ........................................................................................................... 5
Additional NEIS Business Mentoring ......................................................................................... 6
Alternative NEIS Business Mentoring plans .............................................................................. 7
Commercial Viability test .......................................................................................................... 8
NEIS External Income Test ......................................................................................................... 9
NEIS Business Insurance .......................................................................................................... 10
Change of Circumstances ........................................................................................................ 10
Additional Information ............................................................................................................ 11
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NEIS Assistance and NEIS Business Mentoring Guidelines
Document Change History:
Version
Start Date
Effective
Date
1.1
1 Jul 2014
1 Jul 2014
End Date
Change & Location
Amended to reflect maximum period of NEIS Allowance
reduced to 39 weeks.
Original version of document.
1.0
1 Mar 2014
1 Mar 2014
30 Jun 2014
Note: This document is a compilation of the previous NEIS
Business Mentoring Guidelines, Operating the NEIS Business
Advice, Providing NEIS Business Mentoring and Support
Advice, Assessing the Commercial Viability of NEIS Businesses
Advice, NEIS External Income Testing Advice, NEIS Business
Insurance Advice and Changes in NEIS Participant
Circumstances Guidelines.
Summary
This document sets out the obligations for NEIS Panel Members (referred to as NEIS providers) in providing
NEIS Assistance (including NEIS Business Mentoring) to NEIS Participants to assist them in establishing and
running viable NEIS Businesses.
NEIS assists eligible job seekers to start and run their own small businesses by providing accredited small
business training, business advice, and mentoring for up to 52 weeks and income support for up to
39 weeks.
Where a job seeker shows interest in self-employment and appears to have a viable business idea, the Job
Services Australia (JSA) provider should discuss the option of participating in NEIS with the job seeker.
The JSA provider determines whether NEIS is an appropriate activity for the job seeker and then assesses
whether the job seeker is NEIS Eligible so that they can be referred to a NEIS provider. In most instances, the
department’s IT System will identify a job seeker as being NEIS Eligible or not. For more information about
NEIS Eligibility, refer to the NEIS Eligibility Guidelines available from the Provider Portal.
Where it is determined by the NEIS provider that the job seeker is not NEIS Eligible, the job seeker’s NEIS
Business Idea does not meet NEIS Business Eligibility Criteria, or NEIS is not an appropriate activity for the
job seeker, the NEIS provider will explain the reasons to the job seeker in writing within 10 business days of
the decision. The NEIS provider will then refer the job seeker back to their JSA provider.
Where it is determined that the job seeker should participate in NEIS, the JSA provider must either purchase
NEIS Services from a NEIS provider or, if they are also a NEIS provider, deliver NEIS Services.
NEIS Assistance is to support the NEIS Participant in having the best chance of making a successful and viable
small business at the end of their NEIS participation.
Note: participation in NEIS is competitive and job seekers are not automatically accepted into NEIS, even if
they meet all eligibility. Similarly, NEIS providers do not have to accept all NEIS referrals for job seekers from
JSA providers.
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Employment Services Deed 2012—2015 clauses



Clause 86.4 of Section 4B—New Enterprise Incentive Scheme Panel Member Services
Annexure D—New Enterprise Incentive Scheme
Annexure E—Definitions
Reference documents relevant to these Guidelines



Documentary Evidence Guidelines
Employment Pathway fund Guidelines
NEIS Allowance Supporting Material
Explanatory note
1. All capitalised terms have the same meaning as in Employment Services Deed 2012—2015 (the Deed)
2. In this document, ‘must’ means that compliance is mandatory and ‘should’ means that compliance
represents best practice.
NEIS Assistance is available to NEIS Participants as long as they comply with their NEIS Participant Agreement
and don’t have their NEIS Participant Agreement suspended or terminated. NEIS Assistance includes:
 Payment of NEIS Allowance and NEIS Rental Assistance (if eligible)
 NEIS Business Mentoring
 Monthly contacts and advice and counselling.
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NEIS Business Mentoring
The NEIS Business Mentoring component of NEIS Assistance includes assistance and advice about
organisational, financial and marketing issues to help the NEIS Participant develop their NEIS Business.
NEIS Business Mentoring is provided by the NEIS provider or the NEIS provider may employ a mentor with
proven small business skills and experience.
Who is Responsible
What is Required:
1. NEIS provider
The NEIS provider must provide NEIS Business Mentoring to NEIS
Participants for the first 52 weeks they are operating their NEIS Business.
The NEIS Business Mentor must:
NEIS Business Mentoring
Visits
Employment Services Deed
2012—2015 clause references:

Clause 5.1 & 5.2 of
Annexure D
2. NEIS provider
Initial Visit
3. NEIS provider
Monthly Contacts
4. NEIS provider
Financial Quarter Visits

provide a minimum of five visits

deliver mentoring face-to-face

deliver mentoring at the NEIS Business premises, except where:
o the NEIS Business is home based or mobile
o the NEIS Business is located in an area where NEIS
Business Mentoring visits are not practicable
o the NEIS Participant commences their NEIS Business
within the last five weeks of the first Financial Quarter.
Where this occurs, the NEIS provider may agree with the
job seeker to defer the first Financial Quarter visit to the
second Financial Quarter, and conduct the final visit in
the fifth Financial Quarter.
NEIS Business Mentoring visits must be recorded in the department’s IT
systems.
The NEIS providers’ initial visit must:

be conducted within the first four weeks of operation

include a check that the NEIS Business Insurance is in place and
has been current from the NEIS Commencement Date

record the visit in the department’s IT systems.
NEIS provider monthly contacts can be conducted via any form of
communication methods.
Monthly contacts must:

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 Insurance is still current
and cite proof if in doubt

be recorded 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 operations. Financial Quarter
visits must:

take place each Financial Quarter that the NEIS Participant is
operating their NEIS Business
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 be recorded in the department’s IT systems.
Note: In the departments IT system, ‘Visit not conducted this quarter’ is
only displayed on the ‘First Quarter’ tab when a NEIS Participant’s period
of NEIS Assistance extends into the fifth Financial Quarter due to their
commencement date.
Additional NEIS Business Mentoring
It may be appropriate for some job seekers to receive additional monthly mentoring support to ensure they
have the best chance of establishing a viable NEIS Business. Similarly, where the NEIS Participant’s personal
circumstances change in the later stage of NEIS Assistance, it may be appropriate for them to receive
supplementary mentoring to help them get their NEIS Business on track.
Who is Responsible
What is Required:
5. NEIS provider
Some NEIS Participants may require additional assistance to:
JSA provider
DES provider
Additional mentoring and
support for Streams 3, 4 or
Indigenous Australian job
seekers where appropriate
Employment Services Deed
2012—2015 clause reference:

Clause 86.4 (b) of
Section 4B


source appropriate insurance
navigate Commonwealth, state/territory and local government
legislative requirements, or
 any other requirements affecting the operation of their
business.
In these circumstances it would be expected that the NEIS provider
would guide the NEIS Participant through the associated procedures,
including helping them make appointments, and in some cases,
accompanying them to the relevant premises.
In addition, it may be appropriate to source a new mentor with specific
skills or arrange for the NEIS Participant to consult with specialist
business professionals who may be better placed to help them develop
their NEIS Business.
If the NEIS provider, in consultation with the JSA or DES provider,
decides that additional mentoring and support is required, they should
negotiate this with the referring JSA or DES provider. Additional
payments can be negotiated once the NEIS Participant commences in
NEIS Assistance or at any point during the operation of the NEIS
Business.
For JSA referred NEIS Participants
The NEIS provider can negotiate with the referring JSA provider to
provide additional mentoring and support for Streams 3, 4 or Aboriginal
and Torres Strait Islander NEIS Participants where they consider it to be
appropriate. Funds to cover additional mentoring and support are
drawn from the Employment Pathway Fund (EPF)—General and are
payable on top of the NEIS provider payment.
The NEIS provider should request additional funds via a tax invoice to
the JSA provider. Claims for additional funds can be submitted until the
expected end date for NEIS Assistance.
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Who is Responsible
What is Required:
Upon receipt of the tax invoice, the JSA provider will review the funding
request in accordance with EPF policy, then approve or reject the
request, and advise the NEIS provider accordingly.
In general, JSA providers must not unnecessarily withhold additional
support for Streams 3, 4 and Aboriginal and Torres Strait Islander job
seekers. While the objective of any additional support is to address the
job seeker’s barriers to employment, it is also about tailoring the
support to the individual job seeker’s needs, and as such, all requests
should be dealt with on a case by case basis. Where a decision is made
to withhold support, the JSA provider should document the reasons and
discuss the reasons for this decision with the NEIS provider.
For DES referred NEIS Participants
The NEIS provider can negotiate with the referring DES provider for
payments to provide additional mentoring and support to NEIS
Participants where they consider it to be appropriate.
Handling of disputes between the NEIS provider and the JSA or
DES provider
In the event of a dispute between the NEIS provider and the JSA or DES
provider, the matter should immediately be referred to a person in
each organisation other than the original decision maker for review, for
example, senior management. These individuals should work closely
together to resolve the issue in a timely manner.
Where the issue cannot be resolved, the matter should immediately be
referred to the departmental contract manager by the JSA or DES
provider. Departmental contract managers should be provided with
copies of all relevant documentation and will take into consideration
the merits of the position of both organisations with the demonstrated
needs of the job seeker being the primary concern. The department
contract manager’s decision should be taken as final.
Where the request is subsequently rejected by the department’s
contract manager, the JSA or DES provider should advise the NEIS
provider of the reason and continue to work closely with the NEIS
provider to monitor and possibly review the request for additional
assistance at some time over the course of the NEIS Participants period
of NEIS Assistance.
Alternative NEIS Business Mentoring plans
Where NEIS Business Mentoring is not conducted at the NEIS Business premises, the NEIS provider must
negotiate an alternative NEIS Business Mentoring plan with the department.
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Who is Responsible
What is Required:
6. NEIS provider
The process for seeking an exemption from the standard NEIS Business
Mentoring arrangements is:
1. the alternative NEIS Business Mentoring plan should set out
the planned number of visits and location(s)(e.g. local coffee
shop) if different from the contractual requirements, any
proposed communication tools (e.g. Skype, video conference)
and reasons for the proposed alternative arrangement
2. the NEIS Business Mentoring plan should be agreed to by both
the NEIS provider and the NEIS Participant before being
submitted to the department
Alternative NEIS Business
Mentoring plans
3. Departmental contract managers will assess the alternative
NEIS Business Mentoring plan, and let the NEIS provider know
in writing if it is approved.
Commercial Viability test
The NEIS provider must conduct a Commercial Viability test to identify NEIS Businesses experiencing difficulty
and develop a remedial plan to improve their chances of meeting the Commercial Viability criterion.
Who is Responsible
What is Required:
7. NEIS provider
The NEIS provider must collect the NEIS Participant’s NEIS Financial
Information to be able to complete this Commercial Viability test.
Employment Services Deed
2012—2015 clause
references:Clause 7.9 of
Annexure D
The Commercial Viability test:

must be conducted at the end of the second and third Financial
Quarters

must identify if the NEIS Business is potentially Commercially
Viable or not Commercially Viable.
If the NEIS Business is identified as not Commercially Viable:

the NEIS Participant must be advised that a recommendation
to terminate their participation will be made to the
Department

the NEIS provider should note the communication/
conversations with the NEIS Participant and keep on 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 the Commercial Viability in the third
Financial Quarter

the NEIS provider must review the action plan at monthly
contacts and NEIS Business Mentoring visits to see if it has
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Who is Responsible
What is Required:
been successful.
NEIS External Income Test
NEIS Participants are allowed to earn additional income separate to their NEIS Business but only up to a certain
amount. This is checked through conducting a NEIS External Income Test at certain times.
The NEIS External Income Test checks the total gross NEIS External Income earned during a Financial Quarter. If
the NEIS External Income earned exceeds double the amount of NEIS Allowance for that same Financial
Quarter, the participant has not passed the test and will not be paid NEIS Allowance for the next Financial
Quarter.
Who is Responsible
8. NEIS provider
Employment Services Deed
2012—2015 clause
references:Clause 7.8(a) of
Annexure D
What is Required:
The NEIS External Income Test must be conducted within five Business
days of the NEIS Participant submitting their NEIS Income Statements.
NEIS Income Statements shows the participant’s gross NEIS External
Income and includes their income and expenses and running balance.
Calculating the amount of NEIS Allowance in a Financial Quarter
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 double check. Doubling the current
fortnightly rate by two and multiplying by the number of pays in that
Financial Quarter will give you a good guide to work from. If you need
the exact figure, please contact your local departmental NEIS Pay
Officer.
What if the NEIS Participant started less than four weeks before the
end of a Financial Quarter
The NEIS Participant does not need to submit a NEIS Income Statement
for that Financial Quarter.
Not Passing the NEIS External Income Test
A NEIS Participant has not passed the NEIS External Income Test if their
total gross NEIS External Income during the Financial Quarter exceeds
twice the rate of NEIS Allowance for the same period.
Upon failure of the NEIS External Income Test, the NEIS Participant’s
NEIS Allowance and NEIS Rental Assistance will be suspended 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 of their NEIS
Allowance and NEIS Rental Assistance in the following Financial
Quarter.
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Who is Responsible
What is Required:
Note: The NEIS provider must recommend the suspension in the
department’s IT Systems.
Refer to Attachment A for further information on sources of NEIS
External Income.
NEIS Business Insurance
NEIS providers must not approve NEIS Business Plans that do not include NEIS Business Insurance and the
evidence that the insurance will be current from the NEIS Commencement Date. The NEIS Business Insurance is
what has been included in the approved NEIS Business Plan. There must be at least one type of cover. This
could include a number of different insurance covers depending on the nature of the business.
NEIS providers should emphasise to prospective NEIS Participants at their initial interview of the requirement to
have business insurance from the commencement date of the NEIS Business and that the policy must remain
continuous for the period of NEIS Assistance.
It would be prudent for all proposed NEIS Businesses to consider the need for public liability insurance or a
professional indemnity insurance policy. 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
The NEIS provider must notify the Department in writing, within five Business Days of any change in a NEIS
Participant’s circumstances that could affect the NEIS Participant’s entitlement to NEIS Assistance.
Who is Responsible
What is Required:
9. NEIS provider
A NEIS Participant’s change in circumstances could affect the NEIS
Participant’s entitlement to NEIS Assistance. It is important that the
NEIS provider notify the department to avoid any possible
overpayment of NEIS Allowance to the NEIS Participant.
o Overpayments could be attributed to the NEIS provider
if they fail to notify the department within the five
Business Days.
The NEIS provider must include these details on the Department’s IT
systems.
Employment Services Deed
2012—2015 clause references:
Clauses 7.10 and 7.11 of
Annexure D
Changing the NEIS Business Plan
It is possible for a NEIS Participant to amend their NEIS Business Plan
after they have started NEIS Assistance. The core elements of the NEIS
Business must remain unchanged. It is not acceptable to completely
change the nature of the NEIS 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
Idea. The NEIS provider must:
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Who is Responsible
What is Required:

ensure that the proposed changes will not jeopardise the
Commercial Viability or ongoing viability

seek departmental approval for changes of NEIS Business Plans
where:
o there is overseas travel to purchase stock or earn
business income
o changes to the principal business activities or
diversification of business operations
o dissolving a NEIS Business partnership.
Basing and Operating the NEIS Business overseas Full-Time
This is not allowed. The NEIS Participant’s NEIS Business must be
located and operated solely within Australia during the period the NEIS
Participant is receiving NEIS Assistance.
NEIS Participant going overseas to make sales and/or earn
business revenue
It is acceptable for NEIS Participants to go overseas to purchase stock,
make sales, or generally earn business income relevant to the NEIS
Business.
Any overseas business-related travel must have been identified in the
approved NEIS Business Plan, and NEIS Participants should seek
financial advice as to any potential tax implications.
The NEIS Participant must be reminded that they still need to comply
with their NEIS Participant Agreement, including submitting NEIS
Financial Information and be available for mentoring and monthly
contacts.
NEIS Participant is declared bankrupt
The department will consider the circumstances of the bankruptcy. A
termination is likely to be pursued because the NEIS Participant is not
allowed to be an undischarged bankrupt.
Death of a NEIS Participant
When this circumstance arises the NEIS provider needs to sight
confirmation that the NEIS Participant has passed away and then
recommend a termination in the department’s IT systems. This can
include an email/letter from a relative or a death notice from a
newspaper/website.
The last working day that they ran their NEIS Business is to be used as
the termination date. If the NEIS Participant passes away on a
weekend, the Friday should be used as the last working day.
Additional Information
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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 departmental
contract manager.
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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:
• interest
• dividends
• rent from investment property
• earnings from employment (casual/part-time)
outside the NEIS Business
• any lump sum compensation, redundancy or
termination payment (see note on next page)
• 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 Allowance
• NEIS Rental Assistance
• Department of Social Services
allowances/pensions
• Centrelink Allowances/Pensions
• DVA allowances/pensions
• the income of the NEIS Participant’s partner
NEIS Business income
 Lump-sum Superannuation payment
 Inheritance
 Periodic Superannuation Payments
Note: 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.
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 NIES External Income Test. However, where a settlement or
part settlement includes an amount for lost earnings or lost earnings capacity, then this amount is treated as
NEIS External Income.
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.
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