No Show, No Pay failure penalties 001-10120020

In Customer First:

Has the stimulus for the instalment period in which the failure occurred been processed yet?

• Yes, the penalty amount for the instalment period is confirmed, however, any updates to income or earnings for the period in which the failure occurred may affect the penalty amount until it is fully recovered, go to Step 2
• No, the penalty amount is an estimate only, go to Step 3

When a Community Development Program (CDP) participant does not receive an amount of participation payment for the instalment period in which the failure occurred, after the application of any income and assets test, the No Show, No Pay failure must be rejected, and if the failure is already applied, it will need to be revoked.

A No Show, No Pay failure can be applied if the reason the CDP participant did not receive any participation payment, is due to deductions or withholdings resulting from:

• the recovery of penalty amounts for previous failures
• debts
• advance payments
• Centrepay deductions

Was the CDP participant eligible for a basic payment amount (including any participation supplements and/or Energy Supplement paid fortnightly) after the relevant income and assets tests is applied?

• Yes, go to Step 3
• No, the No Show, No Pay failure should be rejected/revoked. See Rejecting a potential failure. Procedure ends here

In Process Direct:

• select Customer Summary from the Process Direct Landing page
• enter the customer's CRN, select Go
• in the customer's record, go to the Penalty Amount Summary (BIPB) screen

The system will automatically calculate the penalty amount and display this on the Penalty Amount Summary and Penalty Amount Details screens, with the formula used by the system to calculate the penalty amount. The formula will display as either A, B, C, D, E, M or X.

However, when the system has been unable to automatically set or review a penalty amount, or where a formal review of a decision has resulted in a 'non-standard' penalty amount calculation, the Participation Solutions Team (PST)-skilled Service Officer will need to manually calculate the penalty amount.

When manual calculation of a No Show, No Pay penalty is required, the formula will display as M on the Penalty Amount screen.

Is a manual calculation of the No Show, No Pay penalty required?

• Yes, go to Step 4
• No, procedure ends here

The calculation of a No Show, No Pay penalty will depend on the length of the instalment period.

Is the instalment period in which the No Show, No Pay failure occurred less than 14 days in duration or has a reconnection failure applied in the instalment period?

• Yes, go to Step 6
• No, go to Step 5

To manually calculate the penalty amount:

• Return to the customer's record in Customer First
• Go to the Daily Rate Components (RAC) screen from the Daily Rates Summary (RATS) screen and add all the following together:
• the daily rates of basic benefit after application of any relevant income and asset for each day of the entitlement period
• any Approved Program of Work Supplement
• Language Literacy and Numeracy Supplement (LLNS)
• Energy Supplement when received as a fortnightly instalment
• The No Show, No Pay penalty for each No Show, No Pay failure in this instalment period is 10% of the total basic benefit after the application of any relevant income and assets test, participation supplementary payments payable and Energy Supplement (when received as a fortnightly instalment) for the period
• Note: Daily Rate Components and the Daily Rates Summary screens cannot be accessed in Process Direct unless within a transaction

See the Resources page for an example of this calculation.

Procedure ends here.

In these situations, 2 penalty amount calculations are used. The penalty amount recovered will be the lesser of the 2 penalty amounts calculated in Step 7 and 8.

Go to the Daily Rate Components (RAC) screen from the Daily Rates Summary (RATS) screen and add all the following:

• income and asset affected daily rates of basic benefit for the period
• any Approved Program of Work Supplement
• Language Literacy and Numeracy Supplement (LLNS)
• Energy Supplement when received as a fortnightly instalment

Less any reconnection failure period penalty.

Multiply the figure by 1.4.

Divide this figure by the number of calendar days in the instalment period (less any reconnection failure calendar days).

Go to the Daily Rate Components (RAC) screen from the Daily Rates Summary (RATS) screen and add all the following:

• income and asset affected daily rates of basic benefit for the period
• any Approved Program of Work Supplement
• Language Literacy and Numeracy Supplement (LLNS)
• Energy Supplement when received as a fortnightly instalment

Less any reconnection failure period penalty.

Divide this figure by the number of business days in the instalment period (less any reconnection failure calendar days).

Where the instalment period is less than 14 days, the actual penalty amount for a No Show, No Pay failure is the lesser of the two calculation amounts at Step 7 and 8. The system will automatically calculate the penalty amount and display this on the Penalty Amount Summary and Penalty Amount Details screens.

In Process Direct:

• From the customer's record, go to the Participation Compliance Hub (BIPCW) screen
• Participation Compliance Hub screen displays the Outstanding compliance actions table, the Completed/provider compliance actions table and Generate compliance action
• Select Review Decision from the Completed/provider compliance actions table
• Update all mandatory fields
• From Please indicate why the penalty needs to be adjusted?, select either:
• incorrect system calculation, or
• variation to penalty as a result of review
• Select adjust penalty amount
• enter calculated amount in the appropriate field
• Once amounts updated, select Save & Exit
• Complete Date of Receipt and Channel fields. Select Save
• Select Assess
• On the Errors (SWE) screen, address and errors or warnings. Select Assess. Select Finish
• Record details of the update in DOC and select Finalise to complete activity

See the Resources page for a manually calculated example of when a reconnection failure period is applied in the same instalment period as a No Show, No Pay failure.