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.

3.11.5.10 Temporary incapacity

Introduction

Social security law provides for a temporary incapacity exemption from mutual obligation requirements for any job seeker who has an inability to work for 8 hours or more per week due to a medical condition, which is supported by medical evidence and who is also unable to undertake another appropriate activity for 8 hours or more a week.

To apply for a temporary incapacity exemption, a job seeker must provide the delegate (generally Services Australia) with an approved medical certificate that is signed by a medical practitioner and states the medical practitioner's diagnosis that the person is incapacitated for work or any other suitable activity for 8 hours or more per week due to a medical condition and the period for which the person is incapacitated. The medical practitioner’s assessment of the duration of incapacity determines the duration of the person’s exemption.

Prior to 1 January 2025, the maximum time limit for a temporary incapacity exemption from mutual obligation requirements was 13 weeks at a time for most medical conditions, or 12 months initially for serious illnesses.

From 1 January 2025, there is no longer a difference in maximum time limits for temporary incapacity exemptions and incapacity due to serious illness exemptions. A medical practitioner’s assessment of the temporary incapacity determines the duration of the person’s exemption (up to and including 2 years).

Example: Basil is recovering from complications from surgery and has received a medical certificate from his doctor indicating that he will not be able to work or undertake another approved activity for 8 hours or more per week for the next 26 weeks. Basil is eligible for a temporary incapacity exemption for the full 26-week period and will not need to submit further medical certificates during this time for the purposes of the exemption.

Many job seekers who are ill, injured or have temporary medical conditions (examples include injuries resulting from accidents, and episodic periods of depression) may still be able to take part in activities to help them overcome barriers to employment or improve their employability (such as participating in approved study), even if they are temporarily unable to work. In addition, they may be able to look for work even if they cannot actually work.

If the job seeker’s medical certificate indicates that the temporary incapacity does not prevent them from undertaking some type of activity, and therefore they are not eligible for an exemption, consideration should be given to adjusting or reducing the job seeker's mutual obligation requirements or activities.

Example: Twenty-six weeks has passed since Basil’s surgery. He is recovering at home and doing recommended exercises however is still experiencing some pain. He provides a new medical certificate indicating that his reduced capacity is expected to last a further 2 months, however, his doctor also indicates that he can do 10 hours per week of activity. Basil is not eligible for a temporary incapacity exemption, but would benefit from a review of his mutual obligations with his employment services provider.

Where a job seeker submits a medical certificate which indicates that any of the medical conditions will be medium or long term in nature (such as with episodic or chronic conditions) an ESAt or JCA may be required to determine the impact of that medical condition on their requirements. Examples of medical conditions which can be considered episodic or chronic include schizophrenia, psychosis, drug and alcohol addiction, depression and anxiety. Physical health conditions that are chronic in nature may also have episodic fluctuations resulting in chronic pain with flare ups.

Note: If a job seeker suffered an illness causing an incapacity that is expected to last more than 2 years, the incapacity could be classed as permanent with their requirements reduced following an ESAt in line with an assessment of a partial capacity to work.

Note: While a medical certificate may indicate drug or alcohol dependency and an ESAt or JCA may be required, exemptions do not apply to circumstances wholly or predominantly attributable to the job seeker's misuse of alcohol or another drug, unless the job seeker is a RAES participant.

Where a medical condition is likely to be temporary or is a minor ailment (such as common cold or influenza etc.) there is no need for an assessment to take place.

Assessment of a medical certificate & referral for an assessment of work capacity - job seekers

A job seeker who submits a medical certificate may require an assessment of their work capacity (via the ESAt process) if the medical evidence shows they have a medium or long-term condition impacting their ability to work 30 hours per week. This assessment will inform a decision on their ability to participate in a suitable activity or activities.

A job seeker’s eligibility for a temporary incapacity exemption is independent of an ESAt assessment.

Example: Sarah provides medical evidence that includes a diagnosis of severe depression. The treating health professional has noted that the condition is permanent, and Sarah is currently unable to participate in any suitable activities due to the impacts of a new medication regime. Sarah is granted a temporary incapacity exemption for the period covered by the medical certificate. She is also referred for an ESAt to ensure there is a current assessment of her expected work capacity once her condition is stabilised.

Taking into account the job seeker's medical condition/s, the job seeker's work capacity will be assessed to determine if the job seeker has a temporary reduced work capacity or a partial capacity to work (1.1.P.65), or both. If the job seeker has a temporary reduced work capacity, the assessor will specify the duration of the reduced work capacity. The ESAt assessor will provide recommendations on what, if any, suitable activities the job seeker could undertake, taking into account their capacity for work.

Note: An assessment resulting in a temporary reduced work capacity outcome is not an exemption from mutual obligation or participation requirements. It is used to inform a decision on their capacity to participate in a suitable activity or activities.

A new referral to an assessor for the purposes of an ESAt will not normally be required if the job seeker already has a current assessment of their work capacity, and if there has not been any significant change in their medical condition/s since that assessment. An assessment is current if it was completed in the last 2 years and valid if there have not been any significant changes in their medical condition/s.

Not eligible for an exemption from mutual obligation requirements

Where the job seeker is not eligible for an exemption from their mutual obligation requirements, a delegate may determine that a job seeker has a reduced work capacity due to their temporary medical condition. A job seeker who is able to work and/or undertake suitable activities for at least 8 hours per week will be required to meet appropriate requirements, which take into consideration their individual circumstances and any barriers they may have, particularly their medical condition.

Example: While a person attends their medical rehabilitation due to injury, their other activities with their employment services provider may be reduced or modified.

Mutual obligation requirements for job seekers not eligible for an exemption who are able to work 15 or more hours per week may include:

  • referral to, or continuation in employment services
  • undertaking job search - dependent on their capacity
  • another suitable activity that can be undertaken, or
  • continuing with existing requirements that have been modified or reduced (varied) in the job seeker's Job Plan.

Where a job seeker has been assessed via the ESAt process, the assessor may recommend to the job seeker a short term intervention that responds specifically to their injury or illness.

Example: It may be recommended that the job seeker undertake a pain management course.

Note: Exemptions do not apply to circumstances wholly or predominantly attributable to the job seeker's misuse of alcohol or another drug, unless the job seeker is a RAES participant.

Note: Where a Job seeker is undertaking drug and alcohol treatment (voluntarily), this may contribute towards their mutual obligation requirements. They may meet their requirements if they are in residential or full-time treatment.

Act references: SS(Admin)Act section 40L Circumstances making it unreasonable etc. to comply with requirements

Full-time students in receipt of YA (student)

Social security law provides for a temporary incapacity exemption from requirements for a student in receipt of YA (student) who is temporarily unable to continue full-time study due to a medical condition, which is supported by a medical certificate.

To apply for an exemption, a student must provide the delegate with an approved medical certificate from a medical practitioner that states the medical practitioner's diagnosis and prognosis, that the person is incapacitated for full-time study, and the period for which the person is incapacitated for study.

To remain eligible for payment the student must:

  • intend to return to full-time study once their temporary incapacity ceases or their medical certificate expires (whichever occurs first), and
  • remain enrolled in their course of study or registered for the relevant award regardless of whether they are undertaking any of the course subjects or units during their period of incapacity.

Where the medical evidence indicates that the temporary incapacity prevents the student from undertaking a full-time study load, the student may continue to be eligible for payment as a YA student while undertaking no study or part-time study in their course for the period of incapacity stated in the medical certificate.

Higher education students continuing to undertake part-time study in an approved scholarship course while they are temporarily incapacitated from undertaking full-time study remain eligible for the relocation scholarship and SSL.

DSP claimants - qualification for JSP provisional

If a person makes a claim for DSP they can be paid JSP while their claim for DSP is being determined. This payment of JSP pending DSP is referred to as JSP provisional.

JSP provisional is a payment exempt from mutual obligation requirements. Other than this the qualification requirements for JSP provisional are essentially the same as for JSP with the following additions:

  • the person must have an undetermined claim for DSP, AND
  • they must meet the following residential requirement
    • they must have been an Australian resident at the time the injury or illness occurred, OR
    • they must have had 10 years qualifying Australian residence, or a QRE for JSP, OR
    • they were born outside Australia, and when the illness or injury first occurred, they were the dependent of an Australian resident, and later they became an Australian resident themselves while still the dependent child of an Australian resident.

Act reference: SSAct section 542A Temporary incapacity exemption (YA), section 540A Qualification for YA—claimants for DSP, section 593(1C) Qualification for JSP, section 7(2) Australian residence definitions

SS(Admin)Act section 40L Circumstances making it unreasonable etc. to comply with requirements

Policy reference: SS Guide 3.2.1.05 Qualification for JSP, 1.1.E.104 Employment services assessment (ESAt)

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