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People receiving income support payments for unemployed people, have an obligation to meet an activity test. Meeting the activity test is a condition of receiving payment.
A person satisfies the activity test if the person:
A person may also be required to satisfy the activity test through:
As well as meeting their general requirements under the activity test - that is, to be actively seeking and prepared to accept suitable paid work - job seekers also have an ongoing mutual obligation to participate in additional activities when required to do so.
These activities may include actively looking for work and/or undertaking other activities which are designed to help them become ready for work in the future. The activity test is designed to be flexible and allow for requirements to be individually tailored according to a person's individual circumstances and needs. For example, requirements can be adjusted to recognise that persons with a disability or who have been out of the work force for some time because of child care responsibilities may need to undertake a range of activities to help prepare them to become work ready and self supporting. The activity test also recognises that the primary focus for job seekers, who are not early school leavers, should be finding work.
Note: The activities that a person needs to undertake to satisfy their obligations must be included in an EPP.
It is a basic qualification provision that a job seeker must be willing and able to satisfy the activity test. For this reason, where it is clear that a person who is claiming an allowance does not intend to meet their activity test requirements, payment should not be granted.
If a job seeker receiving income support indicates that they no longer intend to meet their activity test requirements, their payment should be cancelled until the delegate is satisfied that the job seeker does intend to meet their activity test requirements. The compliance provisions also allow sanctions to be imposed on job seekers who refuse or fail to meet their activity test requirements.
Example 1: A person who expresses an intention to limit their job search in some way or who refuses to register with a JSA provider should have their claim rejected or their payment cancelled.
Example 2: An early school leaver refuses to undertake an appropriate approved course of training or education should have their claim rejected or their payment cancelled.
Despite any intention to satisfy the activity test, a person whose circumstances mean that they cannot meet their activity test requirements should also have their payment rejected or cancelled (although in some cases their circumstances may mean that they qualify for an exemption from the activity test, in which case payment can be granted or can continue).
Actively seeking suitable work generally means full-time work but a job seeker who is capable of full-time work should seek and be willing to accept and undertake any suitable work, including part-time and casual work.
Job seekers who are not able to work full-time or are restricted to a limited range of duties because of incapacity are expected to look for work up to their capacity. If a person in this situation is undertaking work up to their capacity they are considered to be satisfying the activity test. If the level of the person's incapacity changes their activity test requirements will be adjusted to reflect the change in their capacity to work. The level of the person's capacity must be confirmed by an ESAt/JCA or medical evidence.
Job seekers who are classified under SSAct section 16B as having a partial capacity to work because of a physical, intellectual or psychiatric impairment must look for work to their capacity but satisfy the activity test if they work at least 30 hours per fortnight (3.2.9).
Job seekers with partial capacity to work of 0-7 or 8-14 hours per week can meet their requirements by attending a quarterly interview with Centrelink and meeting the terms of their EPP. They can volunteer to accept a referral to a suitable program of assistance.
Note: Early school leavers with a partial capacity to work or who are principal carer parents, with part-time participation requirements, will generally need to participate in activities for 15 hours per week.
Act reference: SSAct section 16B Partial capacity to work, section 544DA(4) Youth Allowance Employment Pathway Plans-early school leavers
Job seekers classified under SSAct section 5 as a principal carer of a child must, unless exempted, satisfy the activity test by complying with approved activities outlined in their EPP (1.1.E.103).
A principal carer must participate in one or a combination of approved activities for at least 30 hours per fortnight.
Approved activities for principal carers include:
Principal carer job seekers who are meeting their requirements through paid work, study or a combination of paid work and study for a total of at least 30 hours per fortnight are not required to remain connected to their employment services provider or accept any offers of suitable paid work.
Principal carers who are undertaking voluntary work by itself or in combination with other suitable activities to meet the activity test must remain connected to an employment services provider. They will be required to accept any suitable paid work that fits around any study, that is outlined in their EPP, and is appropriate in respect of their caring responsibilities. To ensure compliance this activity must be entered into the principal carer's EPP.
Principal carers who are also early school leavers must comply with the early school leaver policy when including activities in their EPPs.
Act reference: SSAct section 5 Family relationships definitions-children, section 541(1AA) Persons who comply with Employment Pathway Plan, section 601(4A) Activity test
Social Security (Satisfaction of the Activity Test - Classes of Person) (DEEWR) Specification 2009 (No. 1)Policy reference: SS Guide 3.2.9.210 Suitable Activity - Principal Carer
Job seekers aged 55 years or over are taken to satisfy the activity test if they undertake at least 30 hours per fortnight of approved voluntary work, paid work (including self employment) or a combination of the 2.
Policy reference: SS Guide 3.2.9.20 Job Search - Overview
Job seekers should not restrict their job search to their usual occupation or work that they would prefer to do. They should seek and be prepared to accept any suitable employment. Job seekers are not expected to take up or look for unsuitable work (1.1.S.410).
If the job seeker is the principal carer of one or more dependent children, consideration of what is suitable work includes the availability of appropriate child care or supervision for the child(ren) during the times the principal carer would be required to work, reasonable travel time between the person's home and the place of work (and vice versa) as well as the financial suitability of the paid work.
Policy reference: SS Guide 3.2.8.60 Unsuitable Work, 1.1.D.70 Dependent child
When a person registers with Centrelink as an unemployed job seeker, they will be required to register with a JSA provider of their choice, unless it is determined that these services are not the most appropriate form of assistance for them. If they are required to register with JSA, they must do this as soon as possible after becoming unemployed or starting to look for work.
A person generally will need to attend an appointment with their chosen JSA provider before they finalise their claim for income support with Centrelink. The JSA provider will register their resume on www.jobsearch.gov.au and provide immediate assistance to help them find a job as quickly as possible. This process is called RapidConnect (1.1.R.05).
If it is determined that a person will be more appropriately assisted by a service other than a JSA provider, they will be required to register with the provider of that service, but grant of payment will not be contingent upon their doing so.
This provision in the legislation allows the Secretary to refer the job seeker to a particular job (e.g. in the harvest industry), even if a job seeker does not wish to do such work.
The work the job seeker is referred to cannot be unsuitable work as specified in the legislation (3.2).
Note: Early school leavers cannot be referred to work that would restrict their capacity to undertake an education or training activity.
Job seekers may also satisfy the activity test by participating in other activities in addition to or sometimes instead of job search. These activities will vary depending on a person's individual needs and circumstances, their capacity to participate and whether they are an early school leaver. They may include an approved program of work for unemployment payment (the legislative term for WFD), or courses or programs designed to help job seekers to look for and obtain work, such as vocational training, work experience, literacy and numeracy or other programs of assistance as outlined by a JCA.
All activities that a person is required to undertake are entered into an EPP (3.2.8.30). An EPP for the purposes of the SSAct and the SS(Admin)Act is an agreement which outlines an individual's requirements under the activity test. All job seekers without an activity test exemption (3.2.11), will have an EPP created when they claim payment.
Any activity included in an EPP must:
Job seekers may suggest activities themselves but these must be consistent with legislation and Government policy. The delegate of the Secretary (that is Centrelink or a JSA provider) determines whether or not the activity is acceptable.
Policy reference: SS Guide 3.2.8.30 What is an Employment Pathway Plan?
In some circumstances a job seeker may be granted an exemption from the activity test. If an exemption is given the job seeker is not required to satisfy the activity test for a particular period of time. Some examples of people who may be given an exemption from the activity test are:
Principal carer parents in particular may not be required to satisfy the activity test in special family circumstances, which include, but are not limited to:
When considering an exemption, from the activity test, consideration should be given to the person's capacity. Often a tailored EPP, taking into account specific needs, such as family and caring responsibilities, and the person's health, will be more appropriate than a complete exemption.
Act reference: SSAct section 601 Activity Test for NSA, section 541 Activity Test (Youth Allowance), section 731A Activity test for SpB, section 542 Situations in which a person is not required to satisfy the activity test, section 544DA Youth Allowance Employment Pathway Plans-early school leavers
Policy reference: SS Guide 3.7.5.20 Who do the SpB Activity Tests Apply to?, 3.2.11 Activity Test for NSA/YA Job Seekers - Exemptions, 3.2.11.50 Activity Test for NSA/YA Job Seekers - Exemption - Parents & Foster Carers with Special Family Circumstances - Overview, 1.1.E.05 Early school leaver (YA), 1.1.A.40 Activity test (NSA, YA (job seekers))
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Last reviewed: 1 July 2011
