Serious failure hardship provisions 001-10120070

Payment may be reinstated during a serious failure period under hardship provisions when a CDP participant:

• does not have the capacity to attend a waiver re-engagement appointment with their CDP provider, and
• serving the serious failure period would cause the CDP participant to be in severe financial hardship

CDP participants are only eligible for payment under hardship provisions during a serious failure period if they do not have any capacity to attend a waiver re-engagement appointment. Capacity to attend the waiver re-engagement appointment should be based on the CDP participant’s current circumstances, including current exemptions from mutual obligation requirements.

As a general rule, a CDP participant has some capacity to attend a waiver re-engagement appointment if they do not have an exemption from mutual obligation requirements. If an exemption is appropriate but it is yet to be granted, a waiver should only be recorded under hardship provisions after the exemption is granted.

Note: the CDP participant is not required to agree to attend a waiver re-engagement appointment for an assessment under serious failure hardship provisions to take place.

Severe financial hardship means a CDP participant:

• has a dependent child or is a member of a couple and has liquid assets below $5,000 (including their partner's liquid assets), or
• is not a member of a couple and has liquid assets below $2,500

CDP participants may test their eligibility for payment under hardship provisions at any time during a serious failure period.

When a CDP participant is assessed as eligible for payment under hardship provisions, payment will be fully reinstated from the date the Participation Solutions Team (PST)-skilled Service Officer (WNPPD) determines the waiver should take effect. As general rule the waiver will take effect from the date it is requested by the CDP participant.

When payment is reinstated under hardship provisions, the CDP participant will be considered a fully eligible CDP participant for the purpose of accessing employment services. These CDP participants will not be required to comply with their mutual obligation requirements for the period they are exempt from mutual obligation requirements.

When a CDP participant does not qualify for payment under hardship provisions in the first instance due to their level of liquid assets, they can approach Services Australia at any time during the course of the Serious Failure period for a reassessment of hardship.

The rules that relate to unavoidable or reasonable expenditure for the Liquid Assets test will be applied in these situations. Prior to applying the reasonable expenditure test, the Participation Solutions Team (PST)-skilled Service Officer (WNPPD) may be required to ascertain whether the CDP participant still has no capacity to attend a waiver re-engagement appointment.

The Participation Solutions Team (PST)-skilled Service Officer (WNPPD) is responsible for:

• determining whether a CDP participant is eligible for payment under hardship provisions during a serious failure period, and
• ending the serious failure period if hardship provisions apply

The assessment of hardship by the PST-skilled Service Officer (WNPPD) may occur either during the course of finalising the determination to apply a serious failure or at any other stage while the CDP participant is serving the serious failure period.