Targeted Compliance Framework 001-18030202

The Targeted Compliance Framework is used by Workforce Australia and Disability Employment Services (DES) providers to encourage job seekers to meet their mutual obligation requirements. That is, to do all that they can to find work and/or participate in employment services and other activities designed to improve their employment prospects.

The Targeted Compliance Framework:

• uses payment suspensions to encourage re-engagement by job seekers who miss the occasional requirement but are generally compliant
• supports job seekers who are identified as vulnerable to help ensure their requirements are appropriate for their circumstances
• uses increasing penalties for those job seekers who continue to fail to meet their requirements without a reasonable excuse, ending in payment cancellation for the most non-compliant job seekers

Job seekers and participants are encouraged to remain engaged with their provider and their compulsory requirements. They are also encouraged to:

• ensure their provider is aware of their circumstances, including any circumstances that prevent compliance
• update their electronic calendar by recording a Personal Event to let their provider know of personal obligations
• remain in contact with their provider to meet their compulsory activities and appointments
• contact their provider prior to the scheduled start time if unable to meet a requirement
• record their own attendance at requirements, if required
• accept all offers of suitable work
• contact their provider (including the Digital Service Contact Centre if they are receiving Workforce Australia services online) if they are unable to record their own attendance online

Unemployment and work refusal failures reinforce the community expectation that a person should not expect immediate financial assistance if they:

• voluntarily leave suitable work
• are dismissed from suitable work as a result of misconduct, or
• refuse or fail to commence suitable work

When an unemployment failure is applied:

• customers claiming a participation payment will be subject to a 4 week unemployment preclusion period, affecting their payment start day by up to 4 weeks
• job seekers receiving a participation payment will have their participation payment cancelled with a 4 week post cancellation non-payment period applied. They will need to re-claim a participation payment to receive payments again

When a work refusal failure has been applied:

• job seekers receiving a participation will have their payment cancelled with a 4 week post cancellation non-payment period. The job seeker will need to re-claim a participation payment at the end of the preclusion period to receive payments again

The Targeted Compliance Framework consists of 3 zones for job seekers and participants. These zones are called the:

• Green Zone
• Warning Zone
• Penalty Zone

All job seekers and participants begin their return to work journey in the Green Zone. They remain in the Green Zone as long as they meet their all of their compulsory mutual obligation requirements. No financial penalties will apply to the job seeker or participant in the Green Zone, except for work refusal or unemployment failures.

Job seekers who fail to meet a mutual obligation requirement without a valid reason, accrue a demerit and move into the Warning Zone. Providers (or Employment Services System (ESS)) identify a mutual obligation failure has occurred and the job seeker receives a notice telling them:

• they may have missed a mutual obligation requirement, and
• they must contact their provider within 5 business days to avoid having their payment suspended

If the job seeker does not contact their provider within 5 business days, their payment is suspended. Payment remains suspended until they contact their provider and meet any re-engagement requirements the provider sets.

Once the job seeker contacts to re-engage, the provider will decide if the job seeker did or did not have a valid reason for missing a compulsory mutual obligation requirement. If the provider decided there was not a valid reason, a demerit is recorded The first demerit will move the job seeker from the Green Zone into the Warning Zone.

Generally, where a mutual obligation failure has occurred and the job seeker did not have a valid reason, one demerit is accrued. However, mutual obligation failures relating to job interviews will fast-track a job seeker to the next Targeted Compliance Framework assessment point. Fast-track mutual obligation failures are:

• non-attendance at a job interview
• misconduct at a job interview, or
• failing to act on a job offer

The Targeted Compliance Framework assessments points are the:

• Capability Interview (conducted by the provider), and
• Capability Assessment (conducted by Participation Solutions Team (PST) skilled staff at Services Australia)

No financial penalties will apply to the job seeker or participant in the Warning Zone, except for work refusal or unemployment failures. Each demerit contributes to the job seeker's demerit point count for 6 active months. Job seekers return to the Green Zone automatically when all demerits expire.

Providers continue to monitor a job seeker’s compliance with their mutual obligation requirements in the Warning Zone.

Repeated non-compliance may trigger the job seeker to reach an assessment point of either the:

• Capability Interview, or
• Capability Assessment

A Capability Interview is:

• an assessment completed by a provider when a job seeker accrues 3 demerits within a 6 month period or the job seeker has been fast tracked
• an assessment of the appropriateness of a job seeker’s requirements based on their individual circumstances

The outcome of a Capability Interview is either, the job seeker:

• returns to the Green Zone (with demerits reset to zero), when their requirements are considered inappropriate for their circumstances, or
• continues in the Warning Zone, when their requirements are considered appropriate for their circumstances

A Capability Assessment is:

• a further assessment completed by a PST-skilled staff when a job seeker accrues 5 demerits in a 6 month period or has been fast tracked
• to ensure the job seeker's requirements are achievable based on their individual circumstances

The outcome of the Capability Assessment is either the job seeker:

• returns to the Green Zone (with demerits reset to zero), due to the job seeker:
• disclosing a new circumstances affecting their ability to meet their current requirements, or
• requirements are otherwise inappropriate for their circumstances
• moves into the Penalty Zone, when their requirements are considered appropriate for their circumstances

Job seekers transition to the Penalty Zone where:

• their provider considers their requirements are appropriate to their circumstances (following a Capability Interview), and
• a Capability Assessment conducted by Services Australia confirms the job seeker is capable of meeting their current Job/Participation Plan requirements

In this zone, job seekers who:

• meet their compulsory requirements for 3 active months, will return to the Green Zone (demerits reset to zero), and
• those who continue to be non-compliant, will face financial penalties or payment cancellation

A mutual obligation failure will restart a job seeker's active month period in the Penalty Zone, whereas work refusal and unemployment failures extend a job seeker's time in the Penalty Zone.

Job seekers who commit a mutual obligation failure in the Penalty Zone, will have their payment suspended immediately, encouraging job seekers to contact their provider to discuss.

If the provider does not believe the job seeker had a valid reason for their non-compliance, they will submit a Provider report for Services Australia to investigate a possible penalty. The Provider report becomes an active failure for investigation by PST staff on the job seeker's reporting date.

Job seekers will need to discuss their reasons for non-compliance during an investigation conducted by PST staff. If reasonable excuse is not established, the failure is applied. The applied failure will result in a financial penalty.

Fully compliant job seekers will automatically return to the Green Zone after 3 active months. ESS monitors and calculates the period a job seeker is in the Penalty Zone. Services Australia has no involvement or responsibility in determining the 3 active month period.

A non-compliance cancellation occurs when a job seeker in receipt of a participation payment:

• fails to accept or commence suitable work (work refusal failure)
• voluntarily leaves suitable work without reasonable excuse (unemployment failure)
• is dismissed from suitable employment due to misconduct as a worker (unemployment failure)
• has a third financial penalty applied for a persistent mutual obligation failure

When payment is cancelled, the job seeker enters a post cancellation non-payment period:

• A post cancellation non-payment period is 4 weeks. During this period a participation payment is not payable. There are no waiver provisions, however the job seeker will maintain concession card and benefit rate Family Tax Benefit (FTB) eligibility
• At the end of, or during, the post cancellation non-payment period, job seekers may reclaim a participation payment. They will be subject to RapidConnect and, if returning to payment at the end of the preclusion period, they return to the Targeted Compliance Framework zone they were in prior to the non-compliance cancellation

Services Australia works with providers to ensure job seekers understand their mutual obligation requirements, and the impact if they do not meet them by:

• referring them to talk to their provider if they are suspended TCF (Did not meet provider requirement) or TCW (Provider work refusal failure)
• recording circumstances impacting job seeker compliance when a job seeker discloses these
• reminding them to talk to their provider about any circumstances that may be affecting their ability to meet their requirements
• reminding them if they cannot meet a requirement, to contact their provider before the requirement
• reminding them if they miss a requirement, to contact their provider as quickly as possible, within 5 business days to avoid payment suspension
• reminding them to record personal events in their Workforce Australia calendar to alert their provider

Participation Solution Team (PST) skilled staff with the WNPPD security resource are responsible for:

• determining if reasonable excuse for a mutual obligation failure has been established
• determining if a work refusal (WNPPD only) or unemployment failure has been committed
• actioning review and appeals outcomes for decisions made under Social Security Legislation
• conducting Capability Assessments

Staff who process job seeker claims and have a UNPP security resource are responsible for determining an unemployment failure at new claim.

Consultation with the PST Virtual Support Queue, PST-skilled social worker or other specialist officer may be appropriate when assessing the impact of a job seeker's circumstances on their capacity to comply. See Accessing a PST-skilled social worker for information on when consultation with a PST-skilled social worker may be appropriate.