3.11.14.60 Ending a serious failure period

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.

Mutual obligation settings that applied under the CDP will remain the same in the RAES.

Note: Participation in activities under RAES is voluntary and will continue to be listed as voluntary in Job Plans. As such, participants can no longer be compelled to engage in an activity to end (or 'waive') a serious failure period (refer to 3.11.14.40 for information on serious failures).

This section concerns information on serious failure requirements and ending serious failure periods early, 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 participants on participation payments who are declared program participants (that is, RAES participants) under the Social Security (Declared Program Participant) Determination 2025.

Overview

A participant’s serious failure (3.11.14.40) period can be ended by complying with a serious failure requirement. Attending a waiver re-engagement appointment with their RAES provider constitutes complying with a serious failure requirement.

The day on which a participant’s serious failure period ends is:

• if the jobseeker begins to comply with a serious failure requirement (that is, agrees to attend a waiver re-engagement appointment) – the day before the participant begins to comply
• if a determination has been made to end a serious failure period on request, and the participant does not have the capacity to undertake a waiver re-engagement appointment and serving the serious failure period would cause the participant to be in severe financial hardship - the day before the request was made
• if Services Australia makes a determination to end a serious failure period on their own initiative, as the participant does not have the capacity to undertake any serious failure requirement and serving the serious failure period would cause the participant to be in severe financial hardship - the day before the determination was made.

Failure to attend the waiver re-engagement appointment

If a participant fails to attend the waiver re-engagement appointment, Services Australia will reinstate their serious failure period and their income support ceases to be payable for 8 weeks from the day of their failure to attend the waiver re-engagement appointment. In other words, the period the participant received income support before they were due to attend the re-engagement requirement is not included in the 8-week serious failure period.

Ending a serious failure period when a suitable waiver re-engagement appointment cannot be arranged

Services Australia may waive the serious failure period when a suitable waiver re-engagement appointment cannot be arranged. This may happen when a participant is no longer eligible for RAES due to a change in address, or the participant has already negotiated a re-engagement appointment before requesting the waiver.

Ending a serious failure period when a participant lacks the capacity to attend a waiver re-engagement appointment

Services Australia may end or not commence a serious failure period if it determines that the participant does not have the capacity to attend a waiver re-engagement appointment and serving the serious failure period would cause severe financial hardship.

Severe financial hardship

If Services Australia determines that the participant does not have the capacity to undertake the serious failure requirement (that is, attend a waiver re-engagement appointment), Services Australia must decide if serving the 8-week serious failure period would place the participant in severe financial hardship. If it would, Services Australia must reinstate the participant’s payment. A participant is considered to be in severe financial hardship if the value of the participant's liquid assets does not exceed:

• $2,500 if they are not a member of a couple and do not have a dependent child, or
• in any other case - $5,000.

The definition of what can be considered liquid assets (1.1.L.50) is the same as that used for the liquid assets test.

If the participant has served some of their non-payment period before they meet the above thresholds, the date the non-payment period ends is the day before the decision is made that the participant is in severe financial hardship. Where the participant has been unable to notify a change of circumstances through no fault of their own (for example, unexpected hospitalisation or as a result of a natural disaster), the delegate may reinstate payment from an earlier date where it can be shown that the participant was in severe financial hardship from that date.

When a participant does claim to be in severe financial hardship after Services Australia has determined they do not meet the definition of severe financial hardship, the rules relating to reasonable expenditure (outlined in 1.1.U.20) that are used for the liquid assets test apply.