New Enterprise Incentive Scheme (NEIS)
Personal and Business Eligibility Guidelines
V 1.0
.
Disclaimer
This document is not a stand-alone document and does not contain the entirety of Job Services Australia providers, Disability Employment
Services providers or NEIS Panel Members’ obligations. It should be read in conjunction with the Employment Services Deed 2012–2015 or
Disability Employment Services Deed 2012–2015 and any relevant guidelines or reference material issued by the department under or in
connection with the relevant Deeds
NEIS Personal and Business Eligibility Guidelines
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Table of Contents
NEIS Personal and Business Eligibility Guidelines
Document Change History
Summary
Flow Chart: Assessing NEIS Eligibility
Background
Interviewing and assessing the prospective NEIS participant
NEIS providers’ obligations in assessing a job seeker’s NEIS Eligibility
NEIS providers’ obligations in assessing a job seeker’s NEIS Business Idea
Assessing NEIS Business Plans
Using a NEIS Advisory Committee (NEISAC)
Where the department has identified ineligible or inappropriate NEIS Businesses
NEIS provider’s obligations in assessing NEIS Business Plans
Additional Information
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NEIS Personal and Business Eligibility Guidelines
Document Change History
Version
Start Date
Effective Date
1.0
27 Mar 14
27 Mar 14
End Date
Change & Location
Original version of document. This document is a
compilation of Assessing NEIS Personal Eligibility and
the NEIS Business Idea Guidelines, Approving or
Rejecting NEIS Business Plans Advice, Assessing NEIS
Business Plans Guidelines, Assessing the Commercial
Viability of NEIS Businesses Advice and Interviewing
a Job Seeker for the NEIS Advice.
Summary
This document provides advice to NEIS Panel Members (referred to as NEIS providers) on eligibility requirements
for Fully Eligible Participants and Disability Employment Services (DES) Participants (referred to as job seekers)
who have been referred by a Job Services Australia (JSA) provider or DES provider.
Employment Services Deed 2012—2015 (the Deed) clauses


Clause 3 Annexure D—New Enterprise Incentive Scheme
Annexure E—Definitions
Reference documents relevant to these Guidelines



NEIS Assistance Guidelines.
Records Management Instructions Guidelines
Documentary Evidence for Claims for Payments Guidelines
Explanatory note



All capitalised terms have the same meaning as in the Deed
In this document, ‘must’ means that compliance is mandatory and ‘should’ means that compliance
represents best practice.
‘Job seeker’ refers to both Fully Eligible Participants and DES Participants.
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Flow Chart: Assessing NEIS Eligibility
1. Receive referral from JSA or DES provider
2. Interview perspective NEIS participant
2a. Assess personal eligibility
2b. Assess business idea eligibility
3. Assess NEIS Business Plan
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Background
Job seekers are referred to NEIS providers from JSA or DES providers to undertake NEIS Training and NEIS
Assistance.
Before the job seeker is referred to the NEIS provider, the JSA or DES provider will conduct some initial personal
eligibility checks and decide, in conjunction with the job seeker, whether self-employment is a suitable activity.
However, participation in NEIS is competitive and NEIS providers do not have to accept all NEIS referrals for job
seekers, even where a job seeker may meet eligibility.
NEIS providers are encouraged to maintain good working relationships with their local JSA and DES providers,
who have responsibility for referring job seekers and who may invite NEIS providers to participate in information
sessions and inform job seekers about NEIS and self-employment.
Interviewing and assessing the prospective NEIS participant
To start NEIS Training and commence in NEIS Assistance, job seekers must be NEIS Eligible and must have a NEIS
Business Idea that meets NEIS Business Eligibility Criteria. Where job seekers do not meet the required eligibility,
they cannot commence NEIS Training or NEIS Assistance. The NEIS provider must explain to the job seeker why
they are not eligible to participate in NEIS and refer them back to their JSA or DES provider.
NEIS providers’ obligations in assessing a job seeker’s NEIS Eligibility
Who is Responsible
1. JSA or DES provider
NEIS provider
Discuss NEIS with the job seeker.
What is Required
Where a job seeker shows an interest in self-employment, the JSA or DES
provider should discuss with the job seeker the option of participating in
NEIS as part of the negotiation or update of the job seeker’s Employment
Pathway Plan.
Where the job seeker directly approaches the NEIS provider, the NEIS
provider should, following a brief discussion about NEIS, refer the job
seeker to a JSA or DES provider to discuss the possibility of undertaking
NEIS. This should occur before any action is taken to enrol the job seeker
in NEIS Training.
2. JSA or DES provider
NEIS provider
Determine that the job seeker is NEIS
Eligible.
Employment Services Deed 2012–
2015 clause references:
 72.1
 Clause 2.1(a) of Annexure D
Disability Employment Services Deed
2012–2015 clause reference:
 137A.1
Where the JSA or DES provider must determine whether the job seeker is
NEIS Eligible.
Job seeker eligibility criteria
NEIS Eligible means that a job seeker:
 is at least 18 years of age at the time of commencing NEIS Assistance

is in receipt of an eligible allowance, specified by the department

is not approaching conversion to the Age Pension (as this is not an
eligible allowance)

is available to participate in NEIS Training and work Full-Time in the
proposed NEIS Business

is not an undischarged bankrupt

has not, at any time, received NEIS Assistance for a similar business
activity


has not received NEIS Assistance in the previous two years
is either a Fully Eligible Participant who is:
o
an Aboriginal or Torres Strait Islander job seeker
o
receiving Stream Services under Stream 3 or 4, or
o
if receiving Stream Services under Stream 1 or 2, is proposing a
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Who is Responsible
What is Required
NEIS Business that is in an area of Skills Shortage*

is not in Stream 1 (Limited)

or is a DES Participant in the Employment Assistance Phase

is any other person or persons advised to the NEIS provider by the
department in writing from time to time.
* Note: JSA/DES providers are not responsible for checking whether a job
seeker’s NEIS Business Idea is in an area of Skills Shortage. This is the
responsibility of the NEIS provider.
Undischarged bankrupt
In assessing whether a job seeker is NEIS Eligible, the NEIS provider must
check if the job seeker is an undischarged bankrupt. It is up to the job
seeker to self-disclose this information to the NEIS provider.
An undischarged bankrupt is a person who has been declared bankrupt
and has hence been under the control of the Bankruptcy Act 1966, and
has not yet been discharged by the relevant trustee or official from
further obligations to repay debts under the Act. This also applies to a
person who is declared bankrupt in another country.
Structural Adjustment Programmes
Job seekers with access to Structural Adjustment Programmes (SAPs) are
eligible to apply for NEIS. SAP-eligible job seekers do not need to be on
income support payments to access NEIS services. However, they will
only be eligible for NEIS Allowance payments and NEIS Rental Assistance
if they were receiving income support or Rental Assistance immediately
prior to commencing in NEIS Assistance.
If job seekers are serving a Liquid Assets Waiting Period (LAWP), they
may wish to consider waiting for this period to finish before applying for
NEIS Assistance, so that they may be eligible to receive NEIS Allowance.
SAP-eligible job seekers must be referred to NEIS via their JSA or DES
provider.
Non-protected New Zealand Category Visa holders
Individuals who hold a non-protected New Zealand Category Visa (which
was introduced in February 2011) are not eligible for NEIS.
3. NEIS provider
Ensure that the job seeker is NEIS
Eligible
Employment Services Deed 2012–
2015 Clause Reference:
 Clause 2.1(a) of Annexure D
Where a job seeker is referred by a JSA or DES provider, the NEIS
provider must ensure that the job seeker is NEIS Eligible and meets the
following criteria.
Eligible allowances
The NEIS provider must ensure that the job seeker is in receipt of one of
the following allowances or income support payments:

BVA Bereavement Allowance

CAR Carer Payment*

CDP Community Development Employment Projects

DSP Disability Support Pension*

NSA Newstart Allowance
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Who is Responsible
What is Required

PPP Parenting Payment Partnered

PPS Parenting Payment Single*

PTA Partner Allowance

SNS Special Benefit under NSA conditions

SPL Special Benefit

SYT Special Benefit under YTA conditions

WSP Partner Service Pension (DVA allowance)*

WDA Widow Allowance

WID Widow B Pension

WFA Wife Pension Age

WFD Wife Pension DSP

WWP War Widow(er) Pension (DVA allowance)*

YAL Youth Allowance
* Recipients of these payments may be able to remain on them while
receiving NEIS Assistance.
Working Full-Time in the NEIS Business
Full-Time means the minimum number of hours, as assessed by the NEIS
provider, that the job seeker must work in their NEIS Business each week
in order for the NEIS Business to be assessed as Commercially Viable*.
Full-Time participation in NEIS is generally 35 hours per week for most
job seekers. However, for those job seekers with a restricted work
capacity and who cannot work 35 hours per week, the NEIS provider
should take into account:

the job seeker’s Partial Capacity to Work, as determined by an
Employment Services Assessment (ESAt) and viewed in the
department’s IT Systems

the job seeker’s normal activity test or participation requirements as
required under the Social Security Act 1991.
The NEIS provider should also consider the following:

job seekers cannot be required to participate beyond their Partial
Capacity to Work (PCW) ‘with intervention’ bandwidth. However,
they may volunteer to participate above their PCW bandwidth
(‘baseline’ or ‘with intervention’). NEIS providers should speak with
the referring JSA or DES providers to discuss the job seekers’ PCW to
identify any restrictions listed in their ESAts. NEIS providers must
ensure job seekers’ agreement to undertake additional hours is
voluntary

Principal Carer Parent recipients (NSA, YA or PP) with participation
requirements are required to seek part-time work of at least 15
hours per week, but are not required to seek Full-Time employment,
or employment of more than 25 hours per week
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Who is Responsible
What is Required

Carer Payment recipients should not be assessed as being able to
work for more than 25 hours per week with the exception of carers
who continue to provide care while working from the home in which
they provide care

NEIS providers should carefully consider the commercial viability of
NEIS Business Ideas proposed by job seekers with an assessed Partial
Capacity to Work of 0-7 hours as determined by an ESAt (irrespective
of their income support payment)

Where the NEIS provider considers it to be appropriate, the NEIS
provider may choose to contact the JSA or DES provider to discuss a
job seeker’s Partial Capacity to Work and whether the proposed NEIS
Business is suitable for the job seeker

Where a NEIS provider makes the assessment that a job seeker’s
NEIS Business Idea requires the job seeker to work more than their
minimum required hours, the NEIS provider may request that the job
seeker obtain a medical clearance stating that the job seeker is able
to work the required hours in their proposed business. This may have
ramifications for the job seeker’s ongoing eligibility for their
respective income support payment and the job seeker is strongly
encouraged to discuss their options with Centrelink before
consideration is given to enrolling the job seeker in NEIS Training.
*Note: see below for information on Commercial Viability.
Similar business activity
The NEIS provider must ensure that the job seeker has not received NEIS
Assistance for a similar business activity and has not received NEIS
Assistance in the previous two years. ‘Similar business activity’ means
that more than 50 per cent of gross turnover of the proposed NEIS
Business involves a previously NEIS-assisted business.
Areas of Skills Shortages
If the job seeker is a JSA client from Streams 1 or 2 and is not an
Aboriginal or Torres Strait Islander job seeker, the NEIS provider must
check that proposed NEIS Business is in an area of Skills Shortage and use
their discretion to determine whether the NEIS Business Idea meets one
of the following:

fills a need in an industry, including the service industry, where there
are skills shortages/current and emerging skills in demand

is in a business area that services or supplies industries where there
are skills shortages/current and emerging skills in demand

produces locally, and competes with or substitutes for goods
imported domestically or exported internationally

services gaps in critical supplies to the area

is innovative (i.e. meets or advances the Government’s agenda).
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Who is Responsible
What is Required
Participating in NEIS Assistance
The NEIS provider should also tell job seekers that if accepted into NEIS
Assistance:

the NEIS Participant must participate in the NEIS Business Mentoring
provided

the NEIS Participant must conduct their NEIS Business in accordance
with the approved NEIS Business Plan and seek approval from the
NEIS provider before varying the NEIS Business Plan

the NEIS Participant must advise the NEIS provider of any change in
their circumstances (refer to NEIS Assistance and NEIS Business
Mentoring Guidelines)

if an overpayment of NEIS Allowance occurs during their period of
NEIS Assistance, for whatever reason, the department may offset
that debt against any other payments due to the NEIS Participant
under their NEIS Participant Agreement. The department may
recover the whole amount of the debt at once unless the NEIS
Participant, when notified by the department of an overpayment,
contacts the department to arrange repayment via an instalment
plan.
Additional assistance for job seekers
The NEIS provider should assess, through discussion with the job seeker
and taking into consideration any advice from the referring JSA or DES
provider, whether the job seeker would benefit from additional NEIS
Business Mentoring or other support if approved to participate in NEIS.
For example, the NEIS provider may determine that the job seeker
requires additional assistance to develop their NEIS Business Idea to
ensure it meets NEIS Business Eligibility Criteria. Additionally, the NEIS
provider may determine where the job seeker requires additional NEIS
Business Mentoring and support during NEIS Assistance.
Any additional assistance is to be negotiated between the NEIS provider
and the JSA or DES provider once the job seeker commences in NEIS
Assistance or at any point during the term of the job seeker’s NEIS
Participant Agreement. For JSA client job seekers in Streams 3 and 4 and
Aboriginal and Torres Strait Islander job seekers, the NEIS provider can
negotiate with the referring JSA provider for additional funding through
the Employment Pathway Fund.
Collecting personal information from a job seeker
Collection of personal information must be done in accordance with the
Privacy Act 1988, in particular, the Information Privacy Principles. Before
collecting any personal information from a job seeker, the NEIS provider
must tell them (in writing) the purpose for the collection and use of the
information.
If at the conclusion of the interview the job seeker wishes to participate
in NEIS, the NEIS provider must have them complete and sign a NEIS
Application Form. When signed, this form will be an important record of
the applicant’s declaration of eligibility, including business eligibility, in
the case of any dispute arising.
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NEIS providers’ obligations in assessing a job seeker’s NEIS Business Idea
Who is Responsible
What is Required
4. NEIS provider
Where a job seeker has been assessed as NEIS Eligible, the NEIS provider
must assess the job seeker’s NEIS Business Idea to ensure it meets NEIS
Business Eligibility Criteria.
Assess the job seeker’s NEIS
Business Idea to ensure that it meets
NEIS Business Eligibility Criteria
Employment Services Deed 2012–
2015 Clause Reference:
 Clause 2.1(b) of Annexure D
 Annexure E—Definitions
NEIS Business Eligibility Criteria are that the proposed NEIS Business:

is not currently operating on a commercial basis

will be independent

is lawful and capable of withstanding public scrutiny

has been assessed as Commercially Viable by the NEIS provider

will not compete directly with existing businesses unless it can be
demonstrated that there is an unsatisfied demand for the product or
service, or the product or service is to be provided in a new way

will be established, located and operated solely within Australia

satisfies any other requirements as set out in Guidelines

will be structured in such a way that the job seeker has and will
maintain a controlling interest over the NEIS Business for the
duration of the job seeker’s NEIS Participant Agreement.
The NEIS provider must also consider the following in their assessment of
NEIS Business Ideas.
Not operating on a commercial basis
The proposed NEIS Business must not have commenced commercial
activities before approval for NEIS Assistance. If a proposed NEIS
Business is already operating before approval for NEIS Assistance and
meets one or more of the following criteria, then the NEIS Business
Eligibility Criterion of not operating on a commercial basis has not been
met:

the 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.
Part-time operation of a proposed NEIS Business before approval for
NEIS Assistance should not be considered to determine whether the
proposed NEIS Business meets eligibility. Many job seekers have
potential income generating hobby activities that through NEIS may be
converted into viable NEIS Businesses. Also, job seekers can go about
supplementing their DHS payments by having small scale business
ventures (for example, weekend market stalls). Given the low volume of
sales/business activities undertaken at this stage (i.e. they could be said
to be part-time), claiming that such ventures are operating commercially
would be incorrect.
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Who is Responsible
What is Required
NEIS providers, in discussion with job seekers, should determine if the
income generated from business activities was income supplementation,
or whether the business activities were conducted on a commercial
basis.
Where a NEIS provider has made a determination that the business has
not operated on a commercial basis, then the NEIS provider must retain
an accurate and complete record of this decision on the job seeker’s file,
including information supplied by the job seeker and/or other parties.
The NEIS Business is independent
The proposed NEIS Business must be owned and operated solely or
primarily by the NEIS Participant(s), who hold a controlling interest, and
must not be subject to control by others. The proposed NEIS Business
may not be independent if an agreement has been made with another
party for use of its trade name and/or business system and practices, the
provision of a specialised sales or service strategy, and administrative or
promotional assistance in exchange for a once-only payment, periodic
fees or commissions.
A proposal may not be independent if the business is operating solely or
primarily as:

a subsidiary

a franchise

a not-for-profit entity

an agent for another enterprise

a part of a multi-level marketing arrangement

a supplier of labour, products or services to one business in an
exclusive contractual arrangement.
Group Businesses
Two or more individuals can form a partnership, company, group
enterprise or co-operative enterprise. Joint enterprises with non-NEIS
Eligible partners are permissible provided that the NEIS Participant(s)
hold and maintain a controlling interest in the business.
Where a Stream 1 or 2 job seeker is proposing to enter into a partnership
with a Stream 3 or 4 job seeker or DES Participant, the Skills Shortage
area criteria are to be waived for the Stream 1 or 2 job seeker. This is to
ensure that the Stream 3 or 4 job seeker or DES Participant is not
disadvantaged when seeking to enter into a partnership with a Stream 1
or 2 job seeker.
Controlling interest
The job seeker should show to the NEIS provider that:

they are in a position to assert managerial control (refer below) over
the direction that the NEIS Business will take for the term of the job
seeker’s NEIS Participant Agreement

where the business entity consists of both NEIS job seekers and nonNEIS job seekers, the percentage of NEIS job seekers should, at the
time of approval of the NEIS Business Plan and throughout the
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Who is Responsible
What is Required
course of the job seeker’s NEIS Participant Agreement, be equal to
or greater than the percentage of non-NEIS job seekers

each job seeker will maintain an interest in the ownership of the
working capital and the income of the business that is equal to or
greater than the individual level of ownership of each other member
of the NEIS Business.
Managerial control exists where at the time of each job seeker’s
commencement and for the duration of the NEIS Participant Agreement,
any of the following circumstances apply:

Sole trader: A job seeker should be able to provide evidence that
they are self-employed and entitled to all profits and are responsible
for all losses of the NEIS Business.

Partnership: A job seeker should provide evidence that they are a
partner in the business, and that the job seeker(s) in that partnership
collectively:
o
are in a position to make and enforce managerial decisions over
the direction that the partnership will take
o
have an interest in the partnership that is equal to or greater in
percentage than the non-NEIS job seekers in the partnership.
In the case of a NEIS Business where two of the partners are a
married couple, their marriage certificate does not satisfy the above
requirements.


Trading trusts: A job seeker should provide evidence that they are a
trustee of a trading trust, and that the job seeker(s) who are trustees
of the trading trust collectively:
o
are in a position to make and enforce managerial decisions over
the direction that the trading trust will take
o
have an interest in the trading trust that is equal to or greater in
percentage than the non-NEIS job seekers who are also trustees
of the trading trust.
Company: A job seeker should provide evidence that they are a
director of a company, and that the job seeker(s) in that company
collectively hold a controlling interest in the company as directors
such that the NEIS job seeker(s):
o
are in a position to make and enforce managerial decisions over
the direction that the company will take
o
have an interest in the company that is equal to or greater in
percentage than the non-NEIS job seekers as directors of the
company.
Capable of withstanding public scrutiny
The NEIS provider must ensure that any proposed NEIS Business is
capable of withstanding public scrutiny. This means that the proposed
NEIS Business won’t bring NEIS, the NEIS provider or the Commonwealth
Government into disrepute and that the NEIS Business complies with
relevant local and Commonwealth Government regulations, is lawful and
is being operated under appropriate qualifications.
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Who is Responsible
What is Required
It is essential that NEIS providers are fully aware of the importance of
maintaining the integrity of NEIS and to ensure high standards are met
when making judgements about the appropriateness of the business
when approving NEIS Business Ideas. NEIS providers have discretion to
approve NEIS Business Ideas where they meet all NEIS Business Eligibility
Criteria, but should consult with their departmental Contract Manager if
they have concerns as to whether a proposed NEIS Business Idea meets
this criterion.
NEIS Business Ideas that may not meet this criterion include:

psychic related business (such as mobile Tarot reading, psychic or
hypnotic surgery, aura washing, clairvoyance, numerology)

gambling

management of greyhound or other racing syndicates

graphic or violent films and violent multimedia material

sales or distribution of weapons (for example, guns)

providing a platform for the promulgation of political, religious (for
example, theology, teaching of beliefs, evangelistic ministries) or
philosophical points of view

racial or religious vilification

sex industry related activities, products or publications (print and
electronic)

offensive language or genitalia used in names of businesses and logo
graphics or any other part of the anatomy described or displayed in
an offensive way

supporting illegal drug use or the construction or sale of equipment
that could be used for illegal drug use

supporting home-based tattooing.
When approving NEIS Business Ideas for businesses providing alternative
natural therapies, care should be taken to assess that the operator of the
business holds appropriate certification, where appropriate, and that the
business will be Commercially Viable and operate under state and
Commonwealth legislative requirements. NEIS providers should ensure
that they have a full understanding of the services to be delivered, to
ensure that the risks to the Commonwealth are minimised.
In relation to a proposal for a NEIS Business that requires certification,
job seekers must hold and maintain, and NEIS providers must sight,
appropriate professional body certificates and/or active membership to
assist in satisfying the ‘public scrutiny’ requirement. The NEIS provider
must also discuss with the job seeker the requirement to obtain
appropriate insurance for the proposed NEIS Business insurance (that is,
insurance that would provide coverage recognised as industry standard
within the industry in which the NEIS Business will be operating) that
must be taken out as at the commencement date of the NEIS Business,
and that the policy must be maintained during the term of the job
seeker’s NEIS Participant Agreement*
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Who is Responsible
What is Required
* Note: a job seeker with a criminal record may find it difficult to obtain
insurance. It is recommended that preliminary enquiries should be made
with insurance brokers to check whether insurance is likely to be
secured. This should be done prior to NEIS Training, to avoid the
situation where the job seeker completes NEIS Training but cannot start
the business due to lack of insurance.
Will be lawful
The NEIS provider must ensure the proposed NEIS Business will be
lawful. A business is not considered to be lawful if it does not comply
with all relevant statutes, regulations, by-laws and requirements of any
Commonwealth, state, territory, or local authority. This will also include:
 relevant police checks where the business would, for example, be
working with children or the elderly
 registration of business name
 acquisition of ABN
 registration for GST purposes.
The NEIS Business Plan should include evidence that the job seeker has
researched any federal, state, territory and local government legislative
requirements affecting their business operation, including in relation to
occupational health and safety, environmental issues, equal employment
opportunity, industrial relations, anti-discrimination and relevant
industry codes of practice.
Commercially Viable
The NEIS provider must assess that the proposed NEIS Business will be
Commercially Viable. Commercially Viable means that the proposed NEIS
Business is likely to provide a net income at least equal to the single, 22
or over, no children rate of Newstart Allowance by the end of 52 weeks
from commencement on NEIS Assistance, for each participant in the NEIS
Business.
This rate may be pro-rated where the NEIS provider determines that the
job seeker is able to work in their NEIS Business less than 35 hours per
week in line with their activity test or participation requirements under
the Social Security Act 1991.
The commercial viability of the NEIS Business Idea can be determined
primarily through the forecasted cashflow for the second year of the
NEIS Business’s operation, which is a mandatory element for all NEIS
Business Plans.
In assessing whether the NEIS Business Idea is Commercially Viable, the
following factors must also be taken into account by the NEIS provider:

Revenue from sales should be based on thorough market research
and realistic sales forecasts. Provision must be made for seasonal
fluctuations and low initial sales.

All relevant cost factors should be included in the expenses section
of the cashflow. In particular, any borrowings required to start up
the business must be included as outgoings, although these may be
spread across several years if necessary, in which case the cashflow
projection should be extended for that period.

Personal living costs of each job seeker should be included.
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Who is Responsible
What is Required
Purchase or take-over of a non-operational business
This is allowed. However, a proposal for the purchase or takeover of a
non-operational business is limited to the purchase of equipment only.
The purchase or takeover must not involve acquisition of goodwill or
branding.
Approval is subject to:

an independent evaluation—at the NEIS Prospective Participant’s
expense—by a qualified business valuer to ensure goodwill is not
included in the purchase price

evidence being sighted that the business has ceased to operate or
trade, including the date of business closure.
Will not compete directly with existing businesses unless it can be
demonstrated that there is an unsatisfied demand for the
product or service, or the product or service is to be provided in a
new way
The NEIS provider must ensure that job seeker provides details of any
potential competitors in their NEIS Business Plan to allow the NEIS
provider to analyse the impact of the proposed NEIS Business on those
existing enterprises. Following review by the NEIS provider, if there are
obvious problems, or if the applicant has not provided sufficient
information on competition issues, the NEIS provider must not approve
the NEIS Business Plan until more information is provided.
How a NEIS Business meets the competition test
While acknowledging that it can be difficult to assess the exact impact
that a NEIS Business may have on existing businesses, there are a
number of ways this can be achieved and a number of factors to
consider:

Knowledge of the local region—the NEIS provider (or its
independent NEIS Advisory Committee) will need a comprehensive
knowledge of small business activity in the relevant local
geographical region and/or specialised fields of industry, which will
enable them to make informed decisions about competition issues. If
they do not have sufficient relevant information to deal with a
particular case, they should seek expert advice from, for example,
the local chamber of commerce.

Competition issues—can arise particularly when there are only a few
(or even only one) existing similar enterprises in a geographic region
or an industry sector. Such competition issues may arise where the
proposed NEIS Business will be located close to an existing
enterprise, or where the NEIS Participant is known to the operator of
an existing business, such as a former employee or family member.

Nature of the labour market—a new business operating in a large
metropolitan labour market may have less impact on existing
businesses than in a small country town where there is limited
demand. For instance, in a metropolitan labour market a new
business may address unsatisfied demand if it is located closer than
existing businesses to customers for whom transport is an issue.
Conversely, a proposed business may be located close to existing
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Who is Responsible
What is Required
businesses but attract a customer base across a wide geographic
area.

Level of demand—is the proposed NEIS Business in an industry in a
growth or decline phase? If the level of demand is increasing, it
would provide the opportunity for new businesses. Conversely, the
proposed business may be in an industry in decline, which could
mean that the level of demand may be insufficient to maintain a new
or even existing business.

Providing products or services in a new way—technological change
or consumer trends constantly lead to updating and revision of
products and services. A new business proposal may demonstrate
that the product or service is different from existing businesses
providing similar products or services and therefore will create a new
or increased demand. This may also include so-called ‘niche markets’
that focus on a specialised component of a broader category of
products or services.
Established, located and operated solely within Australia
In assessing this criterion, the NEIS provider must ensure that the NEIS
Business will be set up in Australia. However, a job seeker can receive
NEIS Assistance for a proposed business to be established in Australia,
even if they were previously self-employed in a similar business in
another country.
A NEIS Business is considered to be operating in Australia when it carries
on business in Australia, that is, the control and the day-to-day
management must be undertaken in Australia and the business must be
physically located in Australia. It is acceptable for job seekers to go
overseas to purchase stock, make sales or generally earn business
income relevant to the NEIS Business as long as its management and
control remain in Australia.
Job seekers must not work on an ongoing basis overseas—all business
travel must be identified in the NEIS Business Plan, which must
demonstrate the reasons for the required travel. Job seekers must be
available for monthly contacts and mentoring visits and have appropriate
travel insurance.
5. NEIS provider
Assist job seeker to further develop
the Business Idea
Where the NEIS provider may reject the NEIS Business Idea, the NEIS
provider should consider whether the NEIS Business Idea has merit, and
if so, proactively assist the job seeker to further develop their NEIS
Business idea to ensure, where possible, it has the best chance of
meeting NEIS Business Eligibility Criteria. In particular, Streams 3, 4 and
Aboriginal and Torres Strait Islander job seekers may require additional
assistance to develop their NEIS Business Ideas.
Where a NEIS Business Idea cannot be further developed to meet all NEIS
Business Eligibility Criteria, the job seeker is not eligible to continue to
NEIS Training. The NEIS provider must explain to the job seeker the
reasons why their NEIS Business Idea is not eligible and refer them back
to their JSA or DES provider.
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Who is Responsible
What is Required
6. NEIS provider
Where the NEIS provider is satisfied that the job seeker is NEIS Eligible
and the NEIS Business Idea meets NEIS Business Eligibility Criteria, the
NEIS provider must then recommend to the JSA or DES provider
whether the job seeker should undertake a Certificate IV in Small
Business Management or Certificate III in Micro-business Operations.
This decision should be made in consultation with the JSA or DES
provider and should take into account the nature of the proposed NEIS
Business and the job seeker’s academic abilities.
Eligibility for NEIS
Employment Services Deed 2012–
2015 Clause Reference:
 Clause 2.1(a) of Annexure D
NEIS Training is dependent on a NEIS Training allocated place being
available to the NEIS provider.
See NEIS Training Guidelines.
7. JSA provider
DES provider
Update Employment Pathway Plan
Employment Services Deed 2012–
2015 clause reference:
 Clause 72.7 (f)
Disability Employment Services Deed
2012–2015 clause reference:
 137A.7 (f)
Where it is determined that the job seeker will undertake NEIS Training,
the NEIS provider must refer the job seeker back to the referring JSA or
DES provider to update the job seeker’s Employment Pathway Plan
indicating that NEIS Training will be undertaken, the certificate level and
the expected start and end dates.
The job seeker must sign the Employment Pathway Plan.
In the event that NEIS Training is not immediately available, the JSA or
DES provider should review and negotiate interim activities in the job
seeker’s Employment Pathway Plan and explain to the job seeker their
participation obligations until NEIS Training commences.
Assessing NEIS Business Plans
NEIS providers can only approve NEIS Business Plans where it is demonstrated that the proposed NEIS Business
meets NEIS Business Eligibility Criteria and is assessed as being Commercially Viable.
A NEIS Business Plan sets out, at a minimum, how the NEIS Business will operate, the business insurance to be
obtained, and a forecast of the cash flow for each Financial Quarter. The focus should be on clearly
demonstrating how the NEIS Business Eligibility Criteria are met and how the NEIS Business will be Commercially
Viable. Some job seekers, such as those in Streams 3 and 4, Aboriginal and Torres Strait Islander job seekers or
DES Participants may require additional assistance to get their NEIS Business Plan to an acceptable standard. Job
seekers should have identified the NEIS Business premises, obtained insurance quotes and included all the
relevant business costs in their NEIS Business Plan.
Using a NEIS Advisory Committee (NEISAC)
A NEIS provider may convene, at its expense, an independent NEISAC to assist in the assessment of job seekers’
NEIS Business Plans, however this practice is not mandatory. If established, the role of the NEISAC should be to
assess NEIS Business Plans against all NEIS Business Eligibility Criteria and to recommend to the NEIS provider
which NEIS Business Plans meet eligibility and are expected to be Commercially Viable within 12 months.
Where the department has identified ineligible or inappropriate NEIS Businesses
It is important that NEIS providers properly assess job seekers’ NEIS Eligibility, NEIS Business Ideas and NEIS
Business Plans. In the event that the department has identified, through monitoring or otherwise, that an
ineligible or inappropriate NEIS Business has commenced, the department may direct the NEIS provider to either
suspend or terminate the NEIS Participant and advise the NEIS Participant of the action. In some circumstances,
where it is shown that the NEIS provider has been neglectful in carrying out thorough eligibility checks or
business monitoring, the department may recover fees paid to the NEIS provider.
Note: Under the Deed, the NEIS provider is responsible for making a decision on whether or not to approve a
NEIS Business Plan. Departmental Contract Managers are available to provide guidance to NEIS providers in cases
where they have concerns or queries about proposed NEIS Businesses.
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NEIS provider’s obligations in assessing NEIS Business Plans
Who is Responsible:
What is Required:
1. NEIS provider
A NEIS Business Plan must be assessed by the NEIS provider and only
approved where all NEIS Business Eligibility Criteria are met and noted in
the NEIS Business Plan.
Assess NEIS Business Plans against
NEIS Business Eligibility Criteria
Employment Services Deed 2012–
2015 clause references:
 Clause 3.2—Annexure D
 Annexure E—Definitions
In assessing the NEIS Business Plan, the NEIS provider should be satisfied
that it:

contains sufficient written evidence that the NEIS Business will not
compete directly with existing businesses unless it can be
demonstrated that there is unsatisfied demand for the product or
service (or the product or service is to be provided in a new way)

shows, through the projected cash flow summary, that the proposed
NEIS Business has the potential to be Commercially Viable, that is
the cash flow projection should indicate monthly growth towards a
level of business income equal to or greater than the single, 22 or
over, no children rate, of Newstart Allowance for each NEIS
Participant in the NEIS Business. A summary of this information
should also be contained in the executive summary of the NEIS
Business Plan.
The accepted practice is for actual commercial viability to be
assessed at the end of the final Financial Quarter of the first year of
NEIS Business operations. This is realistic given that the low starting
point and slow growth of most NEIS Businesses mean that many are
barely breaking even at the end of nine months and are only starting
to generate a small surplus by the end of the first year.
However, it is also important to assess the capacity of the proposed
NEIS Business to continue to replace at least the Basic Rate of
Newstart Allowance throughout the second year. This can be done
primarily through the second year cash flow and is a mandatory
element for all NEIS Business Plans.


identifies appropriate tax obligations and that the NEIS Business will
have adequate funds available to meet those commitments. The
department highly recommends that job seekers have discussions
with a tax accountant to ensure that they meet their legal obligations
under the Australian Taxation system. At the very least, a job seeker
should be made aware that there is a great deal of information
available at ATO website, or that they can seek advice by phoning
the ATO Business Portal on 13 28 66.
includes information about the number of hours the NEIS Participant
will work in their NEIS Business to satisfy the Full-Time requirement

includes written evidence of capacity to lease suitable premises or
that suitable premises will have been secured on commencement,
and details of the physical address of the business

includes written evidence of the availability of finance (if required)

includes written evidence of approval where start-up expenses will
be provided from the JSA provider or DES provider

includes written evidence that licenses identified as being required
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for the operation of the NEIS Business can be obtained

includes evidence of compliance with relevant state or federal
legislation (or industry standard) if the proposed NEIS Business
involves working with children, the aged, or the infirmed

includes written evidence that appropriate insurance has or will be
obtained and maintained for the entire duration of operating the
NEIS Business

includes written evidence that if the NEIS Business will be a
partnership or a family or discretionary trust, that it will be
established and will be in the form of a legal document

includes written evidence of the job seeker’s relevant qualifications
to run the proposed NEIS Business.
A NEIS Business Plan should contain:

a title page

an executive summary of the NEIS Business Plan including
information on how NEIS Business Eligibility Criteria have been met

an overview of the proposed NEIS Business

a situation analysis

a marketing plan

an operations plan

a financial plan including second year cash flow

a management plan

occupational health and safety requirements

appendices that support the content of the NEIS Business Plan and
NEIS Business Eligibility Criteria.
For some proposed NEIS Businesses, it may be unclear whether the NEIS
Business Eligibility Criteria can be met. For instance, it can be difficult to
assess if a business is in direct competition with existing businesses. In
these cases more research and analysis will be needed until the NEIS
provider is satisfied that NEIS Business Eligibility Criteria can be met.
If a NEIS provider is unsure whether a proposed NEIS Business meets
NEIS Business Eligibility Criteria, they should contact their departmental
Contract Manager before approving the NEIS Business Plan.
2. NEIS provider
Approving NEIS Business Plans
In approving a job seeker’s NEIS Business Plan, the NEIS provider must be
Approve or reject each NEIS Business satisfied that it meets all NEIS Business Eligibility Criteria and that the job
Plan
seeker is NEIS Eligible at the time of commencing their NEIS Business.
Employment Services Deed 2012–
2015 Clause references:
If the NEIS Business Plan does not meet NEIS Business Eligibility Criteria,
the NEIS provider should take reasonable steps to assist the job seeker to
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Who is Responsible:
What is Required:

develop their NEIS Business Plan to ensure, where possible, it has the
best chance of being approved. In particular, Streams 3, 4, Aboriginal and
Torres Strait Islander job seekers and DES Participants may require
additional assistance from the NEIS provider to develop their NEIS
Business Plans.
Clauses 3.2, 3.3,
3.4—Annexure D
On approval of the NEIS Business Plan, the NEIS provider must notify the
job seeker in writing within five business days, in accordance with the
requirements set out in clause 3.4 of the Deed.
The NEIS provider should also advise the job seeker to finalise the NEIS
Business start-up arrangements, including obtaining all relevant leases,
licences, state or local council approvals (such as development approvals
and health permits, as appropriate), insurance cover, and other business
start-up requirements.
As the NEIS Participant Agreement requires that the NEIS Participant
operate the NEIS Business in accordance with the NEIS Business Plan, the
job seeker must have already finalised their start-up arrangements prior
to commencement of the NEIS Participant Agreement. Therefore, the
time required to obtain such start-up requirements should be taken into
consideration when the NEIS provider decides upon the start date for the
proposed NEIS Business.
The NEIS provider must arrange a meeting with the job seeker to:
 confirm the job seeker’s NEIS Eligibility and have the job seeker sign
the NEIS Eligibility Certification form, Tax File Number Declaration
form and NEIS Rental Assistance form (if applicable)

explain to the job seeker their obligations under the NEIS Participant
Agreement and advise them to carefully read their NEIS Participant
Agreement

have the job seeker sign the NEIS Participant Agreement

ensure that the job seeker has an appointment with their referring
JSA or DES provider prior to their commencement in NEIS Assistance,
to update their Employment Pathway Plan (EPP) to indicate that NEIS
will be undertaken. NEIS providers may help the job seeker by
making the appointment on the job seeker’s behalf. Note: the EPP
must be updated prior to the job seeker commencing NEIS
Assistance.
The NEIS provider must update the department’s IT system with the
following information:




the NEIS Business ID
proposed start date
‘Yes’ for NEIS Business Plan approval
date of NEIS Business Plan approval.
Additionally, the NEIS provider must forward the following
documentation to the department:
 the signed NEIS Participant Agreement

the NEIS Eligibility Certification Form
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What is Required:

a completed Tax File Number Declaration Form

Confirmation of Eligibility for NEIS Rental Assistance Form, if
applicable.
The NEIS provider must keep copies of NEIS Business Plans and all other
relevant documentation.
Rejecting a NEIS Business Plan
Before rejecting a NEIS Business Plan, the NEIS provider should consider
whether the NEIS Business Idea has merit, and if so, proactively assist the
job seeker to further develop their NEIS Business Plan to ensure, where
possible, it has the best chance of meeting NEIS Business Eligibility
Criteria. In particular, Streams 3, 4 and Aboriginal and Torres Strait
Islander job seekers may require additional assistance to develop their
NEIS Business Plans.
Where the job seeker’s NEIS Business Plan has been rejected, the NEIS
provider must contact the job seeker, in writing, to advise them of the
decision not to approve the NEIS Business Plan, within 10 Business Days
of the decision. The NEIS provider must also advise the job seeker of
their rights to have the decision reviewed.
Upon rejection of the NEIS Business Plan, the NEIS provider must refer
the job seeker back to their JSA or DES provider and contact the JSA or
DES provider to advise of the reasons for the NEIS Business Plan
rejection. The JSA or DES provider will update the job seeker’s EPP and
the NEIS provider must end the NEIS Training activity in the department’s
IT Systems.
Rights of Review
Where a job seeker’s NEIS Business Plan is rejected, or their commenced
NEIS Business is terminated, they can request that the decision be
reviewed. When such a request is made, there are two stages of review:



The NEIS provider must arrange for an independent reviewer who
was not involved in the original decision. The independent person
should have an understanding of NEIS and be familiar with NEIS
Business Eligibility Criteria.
The NEIS provider must advise the job seeker of the result of the
independent review, in writing and within 10 Business Days of job
seeker’s request.
Where the job seeker is dissatisfied with the outcome of the
independent review, they may request for the department to review
the NEIS provider’s decision:
o through their NEIS provider to the departmental NEIS Contract
Manager
o
via the department Customer Service Line
1800 805 260
o
in writing directly to the NEIS Contract Manager at GPO Box
9880 in their capital city.
Should a job seeker ask the department to review the independent
decision through the NEIS provider, the NEIS provider must advise the
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What is Required:
department of the request and submit to the departmental Contract
Manager all relevant associated documents including:

the job seeker’s written request to the department for a review of
the decision made by the independent reviewer or panel, with this
letter stating the reasons why the job seeker is dissatisfied with the
outcome and the basis upon which they seek a further review

the NEIS Business Plan and all attachments

the NEIS provider’s records on how the NEIS Business Plan
assessment decision was reached and any associated file notes

the NEIS provider’s records relating to the outcome of the
independent review

the job seeker’s application for NEIS

any other relevant documentation.
If the job seeker seeks a review directly to the department, the
departmental Contract Manager will contact the NEIS provider to obtain
all relevant documentation.
Additional Information
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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