Mutual obligation requirements exemptions 001-09120000

Job seekers must meet mutual obligation requirements (unless exempt), if they are in receipt of:

• JobSeeker Payment
• Youth Allowance (job seeker)
• Parenting Payment Single with mutual obligation requirements
• Special Benefit with mutual obligation requirements

Different exemption rules and coding may apply for job seekers in receipt of Special Benefit (SpB).

Reasons to exempt job seekers:

• temporary incapacity for all work due to illness or injury (except where the reasons are wholly or mainly attributable to drug or alcohol dependency or misuse, regardless of the job seeker's location)
• expectant job seekers
• getting Dad and Partner Pay (DAP)
• special circumstances including but not limited to:
• major disruption to their home
• major personal crisis
• declared natural disaster
• temporary carer
• they are under an Extended Supervision Order (ESO) or Community Service Order
• in a Remote Australia Employment Service (RAES) region where the reasons are wholly or mainly attributable to drug or alcohol dependency or misuse
• principal carer exemption for special family circumstances including but not limited to:
• caring for a child with a disability
• affected by family and domestic violence
• caring for a relative child under a Family Court order
• job seekers with mutual obligation requirements whose livelihood is drought affected
• principal carer of a large family of 4 or more dependent children
• principal carer home schooling
  Note: if the eligibility criteria is met, parents or guardians home schooling their children may qualify for the Assistance for Isolated Children (AIC)
• principal carer is a foster carer
• principal carer providing distance education
• refugees (for the first 12 weeks after arrival)
• death of a partner
• claiming Disability Support Pension (DSP) when a job seeker has submitted a claim for DSP, and:
• is already receiving JSP or YA, or
• has also claimed JobSeeker Payment (JSP) or Youth Allowance (YA) Provisional

When a job seeker contacts after the death of their partner, they are eligible for a Bereavement mutual obligation exemption. Partner death details are to be recorded on the Miscellaneous Details (NMIS) screen. The Bereavement Period - Partner exemption (BPP) is recorded from the date of death of the partner for 14 weeks. If the bereaved is pregnant at the time of the partner's death, they will have a Bereavement Period - Pregnant Partner (BPE) exemption for 14 weeks from the date of the partner's death, or to the end of the pregnancy, whichever is later once verification of pregnancy is provided.

If this is the initial contact after the death of a partner, see Centrelink - Notification, confirming and recording a death for more information about available services and referrals.

Customers may be eligible for Partner Bereavement Payment (PBV) if their partner dies. PBV can be assessed as either part of a new claim or when an existing recipient contacts. For more information, see Partner Bereavement Payment (PBV).

DSP Claim submission date is on or after 1 November 2025

The system will attempt to automatically apply the Claiming DSP exemption on the Activity and Exemption Summary (AEX) screen for 104 weeks for customers who:

• are not a NZ non-protected SCV holder
• have submitted a claim for JSP or YA Provisional, or
• are already in receipt of JSP or YA, and
• have submitted a DSP claim

The start date of the exemption is the later of the:

• DSP claim submission date
• DSP claim re-indexed date, or
• JSP/YA provisional claim assessment date

Due to task locking, the system may be unable to automatically apply the exemption. In these cases a ZCOC _CLM_DSP_EXE work item is created and allocated to a Service Officer for manual completion. The Work Item can be identified with a:

• Work Type = Claiming DSP Exemption, and
• Keyword = DSPCLMEX

See JobSeeker Payment (JSP) and Youth Allowance (YA) (Provisional) for processing instructions to action the work item.

DSP Claim submission date is before 1 November 2025

If the Claiming DSP exemption is not recorded on the AEX screen, this will need to be manually applied. See JobSeeker Payment (JSP) and Youth Allowance (YA) (Provisional) for processing instructions.

The customer will remain exempt from meeting mutual obligation requirements until their DSP claim is finalised or withdrawn. If the DSP claim is finalised or withdrawn the claiming DSP exemption will automatically end and the customer will need to meet mutual obligation requirements.

Note: Service Officers retain the ability to manually end date the claiming DSP exemption for those choosing to participate in an employment service on a voluntary basis.

A customer with a pending CP and/or CA claim may be granted JSP with an exemption from mutual obligation requirements. This exemption can apply while the pending claim:

• is being determined, or
• remains undetermined and the customer has a previous CAR exemption

See Exempting job seekers from their mutual obligation requirements due to caring responsibilities.

An exemption cannot be granted where the reasons are wholly or mainly attributable to drug or alcohol dependency or misuse. Record a Non-Applied Exemption decision. See the Resources page for a list of Non-Applied Exemption types and codes.

Drug or alcohol misuse often relates to Temporary Incapacity (medical certificate) exemptions. Do not apply a Major Personal Crisis exemption if drug or alcohol dependency or misuse caused the crisis.

These job seekers remain connected to their provider and need to meet their mutual obligation requirements. Providers negotiate requirements for job seekers to overcome their barriers to work and record them in the Job Plan. Drug or alcohol treatment programs may meet mutual obligation requirements. Tell job seekers of the benefits of staying linked to their provider. Do not suggest lodging a medical certificate with:

• different medical conditions, or
• excluding drug or alcohol dependency or misuse

Drug or alcohol dependency or misuse Non-Applied Exemptions do not apply to Remote Australia Employment Service (RAES) job seekers.

Job seekers getting DAP and an income support payment with mutual obligation requirements can ask for a Special Circumstances (SCI) exemption. The exemption can be for up to 2 weeks while caring for a child who has entered their care.

Referring job seekers to providers as a Fully Eligible Participant (FEP), and those who volunteer in employment services, is possible for:

• expectant customers
• job seekers:
• with a Community Service Order or under an Extended Supervision Order (ESO)
• with caring responsibilities
• having a major personal crisis or disruption at home
• principal carers who:
• have a large family
• provide home schooling or distance education
• are foster parents
• care for children where the job seeker is a relative (not a parent), under a Family Court Parenting Order

Use discretion in deciding if a provider referral is suitable while one of these exemptions is current. If a referral is suitable, explain the voluntary nature and benefits of the referral.

Job seeker registration stays active during a mutual obligation requirements exemption. Going to a provider interview is voluntary when exempt.

Providers may not be able to process items on the job seeker's Services Australia record during the exemption. Lifting the exemption allows providers to action items. If job seekers do not attend, the exemption coding is a reasonable excuse for not attending.

For voluntary participation with the provider during the exemption, job seekers must give their contact details to the provider. If they do not, the provider cannot help them, as the contact details will not be available on the provider system.

Refer job seekers to RAES for voluntary assistance if they live in a designated remote area.

Job seekers with mutual obligation requirements can fit into more than one of the following groups:

• mature age 55+ job seekers
• job seekers with a partial capacity to work (PCW)
• principal carers
• job seekers in receipt of Carer Allowance (CA)

If they do, apply the group that suits the job seeker the most, depending on their circumstances.

For example, a job seeker getting JobSeeker Payment (JSP) who is mature age 55+ and has full-time care of a dependant child under 16, they fit into the mature age 55+ and principal carer groups, but would benefit more by being assessed as a principal carer.

Job seekers with Restricted Access recorded can be exempt from mutual obligation requirements. They can get a Special Circumstances (SCI) exemption. The SCI exemption end date and the next Restricted Access review date should align if possible. If the dates cannot align, the SCI exemption end date should be no more than 12 months. Tell the job seeker that Restricted Access limits their access to employment services and about the impact of the exemption.

Restricted Access limits employment services provider access to job seeker details. Job seekers who choose to remain connected to their provider must give the provider their contact details. If they do not, the provider cannot help them, as their contact details will not be available on the provider system.