Serious failure hardship provisions 001-10120070

Eligibility for payment under hardship provisions should be considered when:

• a serious failure is applied
• the Community Development Program (CDP) participant contacts either before the serious failure period commences, or at any time during the serious failure period
• it is identified the CDP participant does not have the capacity to attend a waiver re-engagement appointment and they will be exempt from mutual obligation requirements for the entire serious failure period, and
• the CDP participant will be in severe financial hardship if required to serve the serious failure period

A request for an assessment of eligibility under hardship provisions can occur in the following situations:

• during the course of investigating and finalising a serious failure, or
• at any stage while the CDP participant is currently serving a serious failure period

When the CDP participant requests an assessment under hardship provisions, they must be referred to a Participation Solutions Team (PST)-skilled Service Officer (WNPPD).

When finalising or confirming a recommendation to apply a serious failure in the Review decision workflow screen due to the screen indicating further action is required to either:

• adjust penalty period and waive, or
• waive only

The PST-skilled Service Officer (WNPPD) updates the serious failure they will be automatically directed to the Waiver Consideration screen. Go to Step 4.

When the CDP participant requests an assessment for hardship provisions while serving the serious failure period, go to Step 3.

In Process Direct:

• select Customer Summary from the Process Direct Landing page
• enter the customer’s CRN, select Go
• go to the Participation Compliance Hub (BIPCW) screen
• from the Completed/provider compliance actions table, select relevant Compliance workflow for the completed serious failure
• the Completed Compliance Actions screen will display
• select Review Decision
• update the review requested date
• select one of the following options from the Status field:
• adjust Penalty Period and waive
• waive only
• select the remaining mandatory fields and update where needed
• select Next to go to the Waiver Consideration screen

Record the date the CDP participant contacted to request payment under hardship provisions in the What was the date of contact for assessment of waiver? field from the calendar.

Note: this field will pre-populate with the system date, however, if a CDP participant requested payment under hardship provisions earlier than this date, the date of contact should be used to ensure any entitlement to arrears is correct.

Capacity must be assessed for the entire duration of the existing serious failure period.

The following must be considered:

• Capacity should be based on the CDP participant’s current circumstances, including current exemptions from mutual obligation requirements
• A CDP participant has some capacity to attend a waiver re-engagement appointment if they do not have an exemption from mutual obligation requirements for the entire duration of the existing serious failure period
• If the CDP participant has a current exemption from mutual obligation requirements for part, but not all, of the existing serious failure period, see Waiving a serious failure period
• 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 for the entire duration of the existing serious failure period

Does the CDP participant have capacity to attend a waiver re-engagement appointment (Serious Failure Requirement)?

Note: record response in the Does the customer have the capacity to undertake a Serious Failure Requirement? field on the Waiver Consideration screen.

• Yes, the CDP participant is not eligible for payment under hardship provisions. Go to Step 7
• No, go to Step 6

Gather evidence to establish the level of the CDP participant's Liquid Assets.

Severe financial hardship means a CDP participant:

• has a dependent child or is a member of a couple and has liquid assets below $5000. This includes the partner's liquid assets, or
• is not a member of a couple and has liquid assets below $2500

Information regarding Liquid Assets recorded on the CDP participant's record and other supporting evidence should be used to determine the level of the CDP participant and their partner's liquid assets.

• When a CDP participant has previously had a claim for hardship rejected due to not meeting the financial hardship provisions and is seeking a new assessment due to reduced Liquid Assets, test this reduction against the reasonable expenditure test as per the liquid assets test
• When a CDP participant's expenditure is determined reasonable and the CDP participant's Liquid Assets fall below the $2,500 or $5,000 limit, they will meet the financial hardship provisions

Note: if the CDP participant was given time to supply supporting evidence, check the CDP participant still has no capacity to attend a waiver re-engagement prior to applying the reasonable expenditure test.

Will the CDP participant experience severe financial hardship serving the non-payment period?

Note: record response in the Will serving the non payment period cause the customer severe financial hardship? field on the Waiver Consideration screen.

• Yes, see Table 2
• No, the CDP participant is not eligible for payment under hardship provisions. Go to Step 7

On the Waiver Consideration screen, select Do not waive the non-payment period from the What is the decision on this waiver action? field.

Further information should be included in the free text box to indicate the reason/s why a waiver could not be recorded. If evidence has been requested to support a hardship waiver, this should also be recorded in the free text box.

• Once completed select Save & Exit
• Complete the Receipt Date and Channel fields, select Save
• Select Assess and address any errors/warnings on the Errors (SWE) screen
• Finalise the transaction by selecting Assess again, then select Finish
• Record details of the update on the Finalise screen
• Select Finalise to complete the transaction

Notify the CDP participant of the decision not to make payment under hardship provisions and explain their review and appeal rights. For further information, see Payment Pending Review (PPR) or decision to apply a penalty for non-compliance.

If the CDP participant has the capacity to attend a waiver re-engagement appointment and has agreed to do so, see Waiving a serious failure period.

Procedure ends here.

From Please select the reason for waiving the penalty period, select the appropriate option:

• Serious failure period hardship - full (SHF). This option should be selected when the serious failure period has not commenced and the CDP participant:
• does not have the capacity to attend a waiver re-engagement appointment, and
• serving the serious failure period would cause the person to be in severe financial hardship
• Serious failure period hardship - partial (SHP). This option should be selected when the serious failure penalty has commenced and the CDP participant:
• does not have the capacity to attend a waiver re-engagement appointment, and
• serving the serious failure period would cause the person to be in severe financial hardship

Record the date the Penalty End Date is to cease.

On the Waiver Consideration screen, select Waive the non-payment period from the What is the decision on this waiver action? field.

Further information should be included in the free text box to indicate the reason/s why a waiver was recorded under this provision including the period the CDP participant is exempt from mutual obligation requirements and the CDP participant's financial circumstances.