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Serious failures are:
A job seeker who refuses a suitable job without a reasonable excuse may have an 8-week penalty imposed. Before imposing an 8-week penalty for refusing an offer of a suitable job the decision maker must consider carefully whether or not the work was suitable and, if it was suitable, if the job seeker had a reasonable excuse for refusing it (see 1.1.U.55 for the definition of unsuitable work).
Centrelink must undertake a CCA before determining that a job seeker has persistently failed to comply with his or her participation requirements.
A number of matters, set out in the Social Security (Administration) (Persistent Non-compliance) (DEEWR) Determination 2009 (No. 1), assist decision makers in deciding whether a job seeker has been persistently non-compliant. However, decision makers should consider all relevant information, including matters not mentioned in the determination.
The decision maker cannot decide that a job seeker has been persistently non-compliant unless:
The term 'persistent' has its ordinary meaning. The non-compliance does not need to be total - a job seeker may be persistently non-compliant over a period despite complying with some of their obligations over that period. Equally, if the job seeker's record indicates that they are genuine in their efforts to find work, despite instances of non-compliance, the decision maker may find that they have not been persistently non-compliant. It is particularly important to consider the job seeker's overall compliance record where their CCA has been automatically triggered by failures that could be considered a single instance of non-compliance.
Example: Three NSNP failures incurred on successive days.
In considering if a job seeker's non-compliance has been persistent, Centrelink can only take into account failures within the job seeker's control that were committed intentionally, recklessly or negligently.
If a job seeker's prior failures predominantly result from failure to give prior notice of a reasonable excuse for not attending an appointment or activity (that is, the job seeker had reasonable excuse for the failures), it would not normally be expected that the decision maker would find that the job seeker has been persistently non-compliant.
The consequence of a serious failure is the application of a serious failure period, which stops the job seeker's participation payment for a period of 8 weeks. All add-on payments that rely on payment of the participation payment stop because the job seeker is not payable during this period. FTB (and RA where it is paid with the FTB) is not affected.
The serious failure period commences on the first day of the first instalment period that begins after the Secretary has made the determination to apply the serious failure.
A job seeker can avert or end a serious failure period early by undertaking a serious failure requirement, known as a compliance activity. The serious failure period ends the day before the job seeker commences a compliance activity. A job seeker 'commences' a compliance activity as soon as they enter an EPP with their provider that includes a compliance activity. However, their allowance will become conditionally payable from the time the job seeker advises Centrelink that they want to undertake a compliance activity, to the date they attend a booked appointment with their provider and negotiate and sign an EPP. While allowance is conditionally payable during that time, Centrelink can reinstate the serious failure period if the job seeker then fails to attend the appointment with their provider or fails to enter the EPP that includes the compliance activity. A job seeker can end a serious failure period at any time.
For example, after serving part of a serious failure period a person may approach Centrelink and agree to undertake a compliance activity for the remainder of the period.
Act reference: SS(Admin)Act section 42M Serious failure for persistent non-compliance, section 42N Serious failure for refusing or failing to accept an offer of suitable employment, section 42P Consequences of serious failure
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Last reviewed: 1 July 2011
