Cancellation of payment after a compliance related suspension 001-10120100
For Participation Solutions Team (PST) - skilled staff only.
This document outlines the policy and processes that apply when a payment is cancelled because a Community Development Program (CDP) participant has failed to re-engage or contact their provider following compliance action.
CDP participant failed to re-engage (CDR) cancellations
A CDP participant's participation payment will be cancelled CDR if they do not comply with a reconnection or further reconnection within 29 days of the requirement first being issued. This may be notified by Services Australia or a CDP provider as a result of a Non-Attendance Report (NAR).
The date of effect of the cancellation is usually the day after the date paid to (DPT+1). However, if the CDP participant needs to attend a re-engagement appointment for a reconnection or further reconnection, the cancellation may be deferred until the next entitlement period end date after the 29 days if:
- the Online Diary displays an appointment outcome of No Result Entered (NRE). The cancellation is deferred to provide more time for the provider to record attendance for any re-engagement appointments the CDP participant was expected to attend during the entitlement period, or
- the CDP participant is due to attend a re-engagement appointment after the 29 days. If the CDP participant does not attend this appointment, cancellation will be deferred to close of business on the day after the appointment
If both of the above apply, cancellation will occur on the later of the 2 dates:
- the next Entitlement Period End Date (EPED), or
- the day after the appointment date
Did not contact provider to re-engage (DCP) cancellations
A CDP participant's participation payment will be cancelled DCP if:
- a Non-Attendance Report (NAR) has been submitted, and
- the CDP participant fails to contact their CDP provider and agree to a reconnection appointment within 29 days of the start of the instalment period in which the NAR is received
The date of effect of the cancellation will be the later of:
- the NAR incident date, or
- the day after the date paid to (DLP+1)
CDP participant does not contact following suspension
If a 'DNA participation appointment' (APA) suspension has been applied and the CDP participant does not contact Services Australia to accept the reconnection requirement, the suspension will be maintained. Payment will generally cancel DNL or FRP, but will be auto-cancelled after 13 weeks if still suspended.
If a 'Non-Attendance Report Received' (ANR) suspension has been applied and the CDP participant does not contact their provider to discuss the suspension and accept a reconnection requirement, the suspension will be maintained until their payment is auto-cancelled DCP after 29 days.
Manual cancellation
While CDR and DCP cancellations should occur automatically in most cases, these cancellation reasons can be manually recorded if necessary.
Manual cancellation may be required if:
- the CDP participant has not attended a re-engagement appointment within 29 days, and the system did not cancel payment on the next EPED after the 29 days
- an issue has occurred with the auto-cancellation, and manual processing is required. For example, manual NAR restoration or CDR cancellation reviews. For more information, see Outstanding participation compliance activities requiring manual follow-up action
CDP participant contact following CDR or DCP cancellation
If payment has been cancelled CDR or DCP, the CDP participant is deemed to have lost qualification for their participation payment due to an ongoing failure to meet their mutual obligation requirements.
- Payment restoration is not appropriate where the cancellation has been correctly applied
- To receive the payment again, the CDP participant will need to re-claim and re-test their eligibility
If they re-claim within 14 days of the cancellation date, the claim start date must not be backdated to the date of cancellation. The claim start date will need to be amended to the date of claim. In this case, the start date of the claim will be the date the claim is lodged. For more details, see Start Day.
Restoration after cancellation
Service Officers outside the Participation Solutions Team (PST) are not to restore a record that has been cancelled CDR or DCP.
PST-skilled staff may restore a record following a CDR or DCP cancellation if there is evidence to indicate the CDP participant:
- contacted and/or attended a re-engagement appointment, but this was not identified before the CDR or DCP cancellation due to:
- incorrect or incomplete coding by Services Australia and/or CDP provider, or
- a system issue or error. For example, delays in the transfer of information between the Department of Employment and Workplace Relations (DEWR) and Services Australia's IT systems
- is no longer required to re-engage, as:
- they did not have capacity to meet their mutual obligation requirements on the incident date and throughout the 29 day period, or
- their circumstances changed after the incident date, and as a result the participant did not have capacity to meet the requirement
This evidence must establish the original requirement (triggering suspension of payment) has been met or there is evidence the CDP participant no longer needs to meet the re-engagement requirement.
If the CDP participant contacts and wants to request an explanation or apply for a formal review of a CDR or DCP cancellation decision, see Non-compliance with compulsory requirements - reviews and appeals.
Related links
Compliance action initiated by Community Development Program (CDP) providers
Re-engaging to a Community Development Program (CDP) provider
Finalising Community Development Program (CDP) re-engagement requirements
Non-compliance with compulsory requirements - review and appeals
Outstanding participation compliance activities requiring manual follow-up action