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Social security law provides for a temporary incapacity exemption from the activity test for any job seeker who has an inability to work for 8 hours or more per week due to a medical condition, which is supported by medical evidence and is unable to undertake any program of assistance or suitable activity.
To apply for an exemption, a job seeker must provide the delegate with an approved medical certificate that is signed by a medical practitioner and states the medical practitioner's diagnosis and prognosis, that the person is incapacitated for work for 8 hours or more per week due to a medical condition and the period for which the person is incapacitated for work.
Where the delegate is of the view that the temporary incapacity does not prevent the job seeker from undertaking some type of activity, consideration should be given first to adjusting or reducing the job seeker's usual requirements in preference to exempting the job seeker from the activity test.
For example, many job seekers who are injured or have an episodic medical condition may still be able to take part in services to help them prepare for a job, even if they are temporarily unable to work or participate in their usual work experience, training or study activity.
If job seekers are able to participate in job preparation or another suitable activity, they will be expected to do so. Participating in suitable activities will help job seekers' to remain active and be job ready when they recover from the temporary condition. Requirements will be flexible to ensure they do not exceed job seekers' capacity.
However, if it is not appropriate for the job seeker to undertake job preparation or any other activity, an exemption may be applied.
Example: A person recovering in hospital, including recovery from surgery, would not be able to undertake any suitable activities.
A job seeker who submits a medical certificate may require an assessment of their work capacity (via the ESAt process) to inform a decision on their ability to participate in a suitable activity.
Taking into account the job seeker's medical condition(s), the job seeker's work capacity will be assessed to determine if the job seeker has temporary reduced work capacity or partial capacity to work (1.1.P.56). If the job seeker has a temporary reduced work capacity, the assessor will specify the duration of the reduced work capacity. The assessor will provide recommendations on what, if any, suitable activities the job seeker could undertake, taking into account their capacity for work. Where possible, the assessor will also directly refer the job seeker to that activity.
A new referral to an assessor will not normally be required if the job seeker already has a current assessment of their work capacity, and if there has not been any significant change in their medical condition(s) since that assessment. An assessment is current if it was completed in the last 2 years.
An exemption can only be granted for the period stated on the medical certificate or for a maximum of 13 weeks, whichever is the lesser. A further exemption can be granted, if the job seeker continues to meet all criteria for a temporary incapacity exemption, i.e. the incapacity is temporary and the job seeker is unable to work 8 or more hours per week or undertake any suitable activity.
If the circumstances on which the initial period of exemption were based remain in effect (as substantiated by an additional, valid medical certificate), then it may be appropriate for the delegate to grant subsequent exemptions from participation requirements for one or more further periods (also not exceeding 13 weeks).
Where a job seeker who is seriously ill and undergoing treatment has been given an initial exemption of 13 weeks, it may be appropriate for the delegate to grant a subsequent exemption (not exceeding 13 weeks) without requiring the job seeker to provide an additional medical certificate. The delegate may continue to grant subsequent exemptions without additional medical certificates until the job seeker's exemption period reaches the period stated on their medical certificate or until a maximum of 52 weeks from the date that the first exemption was granted, whichever is the lesser.
A delegate may only grant subsequent exemptions without requiring the job seeker to provide an additional medical certificate if the job seeker continues to meet all criteria for a temporary incapacity exemption and:
A job seeker may be considered seriously ill if they have one of the following medical conditions:
Example: Miriam is an NSA recipient and was recently diagnosed with breast cancer. Miriam submits a signed medical certificate which states her medical condition and that she cannot do any work of 8 hours or more per week for 12 months while undergoing chemotherapy. Miriam is exempted from the activity test for the first 13 weeks. Because of the serious nature of Miriam's illness, the intensive medical treatment that she will require and the low likelihood of Miriam's condition significantly improving within 12 months, Centrelink informs Miriam that three subsequent exemptions of 13-week periods can be granted without requiring her to provide new medical certificates, until an exemption period of 52 weeks is reached.
If the circumstances on which the initial period of exemption were based remain in effect and the job seeker provides an additional, valid medical certificate, the delegate may grant a subsequent exemption from activity test requirements for the period on the medical certificate, or 13 weeks, whichever is the lesser. If the job seeker's additional medical certificate extends beyond 13 weeks and the job seeker remains seriously ill and is still recovering and/or undergoing treatment, the delegate may grant an additional period of exemption without requiring a further medical certificate. The total of the exemption periods granted on the basis of this additional medical certificate must not exceed 26 weeks.
Example: Miriam remains seriously ill after 52 weeks and submits an additional medical certificate for 26 weeks. An exemption of 13 weeks is granted and, because Miriam is still seriously ill, Centrelink informs Miriam that she will be granted a subsequent exemption of 13 weeks without requiring her to provide a new medical certificate.
After the additional 26 week period, all subsequent applications for temporary incapacity exemptions of up to 13 weeks must be supported by an additional, valid medical certificate.
Example: Miriam is still unwell after her additional 26 week exemption period. Miriam may submit a medical certificate for an exemption of up to 13 weeks and, after this period, must provide a new medical certificate to claim any further exemptions.
After consideration of all evidence (possibly including an assessment of a job seeker's medical condition(s) and work capacity), a delegate may determine that a job seeker has a reduced work capacity (work capacity of less than 30 hours per week) due to their temporary medical condition, but is able to work at least 8 hours per week and/or undertake suitable activities. These job seekers are not eligible for an activity test exemption. They will be required to meet appropriate activity test requirements, which take into consideration their individual circumstances and any barriers they may have, particularly their medical condition.
Example: While a person attends their own medical rehabilitation due to injury, their other activities with their employment services provider may be reduced or modified.
Job seekers with temporary reduced work capacity of 0-7 or 8-14 hours per week can meet their requirements by attending a quarterly interview with Centrelink, if their period of reduced work capacity is 13 weeks or longer, and meeting the terms of their EPP. They can volunteer to accept a referral to a suitable program of assistance but cannot be penalised for not accepting a referral. When their temporary reduced work capacity period ends, they are required to meet their usual activity test requirements.
Activity test requirements for job seekers not eligible for an exemption who are able to work 15 or more hours per week may include:
It is expected that most job seekers who are temporarily ill or injured have existing EPPs in place that can be varied.
Example: The number of job searches may be reduced from 10 per fortnight to 2 while a job seeker recovers from an injury.
In other instances, new activities may become suitable during the period of reduced capacity.
Example: A job seeker may attend a quarterly interview with Centrelink.
In other cases, where a job seeker has been assessed via the ESAt process, the assessor may recommend to the job seeker a short term intervention that responds specifically to their injury or illness.
Example: The job seeker may be recommended to undertake a pain management course.
If a person makes a claim for DSP they can be paid NSA while their claim for DSP is being determined. This payment of NSA pending DSP is referred to as NSA provisional.
NSA provisional is a non-activity tested payment. Other than the activity testing, qualifications for NSA provisional are essentially the same as for activity tested NSA with the following additions:
Act reference: SSAct section 603C Incapacitated person not required to satisfy activity test (NSA), section 542A Temporary incapacity exemption (YA), section 540A Qualification for youth allowance-claimants for disability support pension, section 593(1C) Qualification for newstart allowance
Policy reference: SS Guide 3.2.1.10 Qualification for NSA, 1.1.E.104 Employment services assessment (ESAt)
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Last reviewed: 1 July 2011
