WorkWelfareWills

9. Penalties

If you fail the activity test or do not meet a Centrelink requirement, you can be penalised. However, a penalty should not be imposed if the requirement is unreasonable or you are not reasonably able to comply with it.

There are several levels of penalties. You can be penalised for the following ‘participation failures’ by having your payment suspended until the matter is resolved or until you and Centrelink agree on a suitable alternative activity.

In this situation, Centrelink must tell you that you may be penalised if you do not comply. For example, you cannot be penalised if Centrelink sends you a letter asking you to attend an interview without telling you that you may be penalised for not attending.

When you first apply for an activity-tested payment, you will not be paid if you do not attend your initial appointment with a Job Network Provider. However, not attending will not count as a participation failure.

Centrelink may also require you to ask any employers you contact to fill in a form. However, you should not be penalised if they refuse to do so.

You can be penalised for the following ‘participation failures’ by having your payment suspended for 8 weeks.

You can be penalised for the following ‘participation failure’ by having your payment suspended for 26 weeks.

When deciding whether to apply a penalty on a person with a disability, Centrelink must take into account the following issues (plus others not listed here)

If any of the above issues mean that the person had a reasonable excuse for not meeting the requirement and Centrelink is satisfied that ‘the matter had a significant effect on the person’s capacity to comply with the requirement or provision’, no participation failure should be recorded and no penalty should apply.

Some of these matters may only be settled on appeal.

Next Section: Social security appeals system

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