The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

3.11.14.50 Compliance failures & penalties - general rules

Introduction

The RAES commenced on 1 November 2025, replacing the CDP. The service operates in RAES regions (formerly CDP regions). The RAES supports participants with the skills, mentoring and training they need to take up job opportunities, including those created through the Remote Jobs and Economic Development (RJED) program. Relevant information is being continually updated in the Social Security Guide.

This section concerns information on general rules around compliance failures and penalties under the compliance arrangements set out in SS(Admin)Act Part 3 Division 3A (otherwise known as the Job Seeker Compliance Framework). These arrangements only apply to job seekers on participation payments who are declared program participants (that is, RAES participants) under the Social Security (Declared Program Participant) Determination 2025.

Multiple failures

A participant can only be subject to one penalty on a particular day. However, a participant may commit multiple failures within an instalment (or payment) period. For example, a participant may fail to attend a job interview in the first week of their instalment period, which is a NSNP failure, and miss a scheduled and then a rescheduled appointment with their provider in the second week, which would put them in a reconnection failure period. A participant may also commit multiple failures in relation to the same activity.

Example: If a participant fails to attend 2 job interviews scheduled for 2 different days in the same instalment period, they may incur 2 NSNP failures for each of the 2 days on which they failed to attend a job interview.

During a reconnection failure period, a participant cannot incur a connection failure or a NSNP failure. However, they can have their payment suspended and can incur a reconnection failure by failing to meet a further reconnection requirement.

During a serious failure period (3.11.14.40), a decision-maker cannot determine that a job seeker has committed another serious failure (noting that a serious failure period ends on commencement of a compliance activity (that is, a waiver re-engagement appointment - see 3.11.14.60) and a participant again becomes subject to all failure types). An unemployment non-payment period may be incurred during a serious failure period (with the 2 non-payment periods running concurrently where they overlap).

Example: A participant incurs a serious failure and allowance is not payable for 8 weeks. The participant chooses not to undertake a compliance activity, but 3 weeks after the start of the serious failure period they commence employment, which they voluntarily leave a week later without good reason. At the end of their serious failure period, they reapply for payment. The participant must serve an 8-week unemployment non-payment period. As this commences from the date of unemployment, 4 weeks of the non-payment period have already been served concurrently with the serious failure period. The participant therefore has 4 weeks of the unemployment non-payment period left to serve.

During an unemployment non-payment period, only another unemployment non-payment period may be applied (with the 2 non-payment periods running concurrently where they overlap).

Act reference: SS(Admin)Act section 42M Serious failure for persistent non-compliance

Inability to recover an outstanding penalty amount due to a participant not being in receipt of a participation payment

Where a participant who has an unrecovered penalty amount cancels their participation payment or transfers to a different payment type, the penalty amount will be maintained for a period of 26 weeks pending a return to a participation payment. Where the participant is still not in receipt of a participation payment after 26 weeks the outstanding penalty is fully and permanently waived. Where a participant recommences a participation payment within the 26-week period, but once again cancels before it can be fully recovered, the 26-week period will begin again.

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