3.1.13 Compliance Framework for Participation Payments

Introduction

People who are declared program participants (i.e. CDP participants) under the Social Security (Declared Program Participant) Determination 2018, and in receipt of participation payments are subject to the compliance arrangements set out in SS(Admin)Act Division 3A.

Social security law defines 'participation payments' as:

• newstart allowance,
• YA, unless the recipient is a full-time student or a new apprentice,
• PP, if the recipient is subject to participation requirements, and
• SpB, if the person is a nominated visa holder.

In this section of the Guide, people receiving participation payments are referred to as job seekers.

Objectives of the compliance framework

The purpose of the compliance legislation is to encourage job seekers to meet their mutual obligation requirements. That is, to do all that they can to find work and participate in employment services and other activities designed to improve their job prospects. Job seekers who have a good reason for not meeting their requirements should not be penalised. Job seekers who do not meet their mutual obligation requirements should be reconnected with employment services as quickly as possible.

Role of providers

CDP providers do not make compliance decisions under social security law. Providers report non-compliance to DHS, for DHS to make compliance penalty decisions. Providers are to consider the above objectives when deciding whether to report non-compliance. Guidelines for providers emphasise the discretion they have to consider strategies such as giving a job seeker another chance to attend an appointment or letting them make up time missed from an activity, if they believe this will be a more effective way of re-engaging the job seeker than compliance action.

Role of DHS

The legislation gives DHS officers, as delegated decision makers, some discretion when deciding if a job seeker has a reasonable excuse for failing to meet their requirements and in deciding if they have been persistently non-compliant. This discretion is limited, however, if a job seeker fails to give prior notice of their excuse when it was reasonable to expect them to do so.

Even where no reasonable excuse exists, the legislation also gives DHS the discretion not to apply a NSNP failure, a connection failure, a non-attendance failure, a reconnection failure or a serious failure, despite the failure being applicable. The discretion not to apply a penalty even where a job seeker has no reasonable excuse for their actions should be exercised only in very limited and exceptional circumstances.