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.
- Not complying with a reasonable request to attend an interview, provide information, or attend a medical assessment when notified.
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.
- Failing to satisfy the activity test.
- Failing to enter into a Preparing for Work Agreement or failing to comply with a term of an agreement.
- If you have signed a Preparing for Work Agreement, failing to look for the required number of jobs per fortnight, failing to keep a job seeker diary, and failing to return the job seeker diary to Centrelink when required.
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.
- Failing to attend a job interview.
- If you have been unemployed for less than 2 years, failing to undertake or complete a Work for the Dole Program when required or failing to comply with the conditions of such a program.
- Failing to undertake or complete a labour market program or being removed from a program for misconduct.
- Failing to apply for the required number of jobs or to obtain employer verification of your contacts.
- Failing to undertake another activity in place of the one that led to a previous failure.
You can be penalised for the following ‘participation failures’ by having your payment suspended for 8 weeks.
- Having three or more participation failures in 12 months.
- Being unemployed due, directly or indirectly, to a voluntary act, unless it was reasonable.
- Being unemployed because of misconduct as a worker.
- Refusing or failing without reasonable excuse to accept a suitable job offer.
- If you have been unemployed for 2 years or more, failing to undertake or complete a Work for the Dole Program when required or to comply with the conditions of such a program.
You can be penalised for the following ‘participation failure’ by having your payment suspended for 26 weeks.
- Moving to an area of lower employment prospects.
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)
- any illness, impairment or condition that requires frequent treatment, including any episodic or unpredictable illness
- any cognitive or neurological impairment
- any psychiatric or psychological impairment or mental illness
- any drug or alcohol dependency.
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
