Targeted Compliance Framework financial penalties and payment cancellations 001-18030209

Generally, a payment deduction for a first or second mutual obligation failure will affect the participation payment for the period in which the mutual obligation failure occurred.

A first and a second financial penalty in the failure group may be applied in the same entitlement period.

Where a second financial penalty has been applied, the job seeker will not receive a participation payment for this entitlement period.

A third mutual obligation failure cannot be applied for the same instalment period in which a 100% payment deduction has been applied.

Note: there is no reduction in the monthly points target, minimum job search or other compulsory requirements where the job seeker has incurred a first or second penalty.

The date of effect of the payment cancellation resulting from:

• failure to re-engage within 4 weeks of a mutual obligation failure or work refusal failure is the date the re-engagement requirement was notified
• a third mutual obligation failure or work refusal failure is generally the start of the instalment period in which the failure occurred. Where reporting for this instalment period has already been completed, the cancellation will apply from the start of the next available instalment period
• an unemployment failure is the next payment period after the decision is made

The non-compliance cancellation codes and reasons are:

• CDR - Customer failed to re-engage - a participation suspension has been applied and re-engagement has not occurred within 4 weeks of the reconnection requirement deemed date of notification
• TCP - Mutual obligation or work refusal penalty
• TCU - Unemployment failure penalty
• TCF - Did not meet provider requirement - record has been suspended for more than 13 weeks following failure to meet a provider requirement and a CDR cancellation has not occurred
• TCW - Provider work refusal failure - record has been suspended for more than 13 weeks following a provider reported work refusal failure and a CDR cancellation has not occurred

Note: legitimate non-compliance cancellations are non-restorable. The job seeker will need to reclaim to restart payment. If a job seeker has met their requirements but their payment is cancelled due to system issues refer to PST for investigation and correction. See Step 7 in Table 1 of Re-engaging job seekers - Targeted Compliance Framework for more information.

The post-cancellation non-payment period commences from the date of effect of the non-compliance cancellation.

The duration of the post-cancellation non-payment period is 4 weeks.

When an unemployment failure is identified as part of a new claim, the unemployment preclusion period commences from the date of unemployment, which is generally the day after date last worked.

The duration of the unemployment preclusion period is 4 weeks.

Job seekers may have self-served part, or all, of an unemployment preclusion period before claiming payment.

A claimant may also self serve a potential preclusion period if a concurrent waiting period exceeds the length of the unemployment preclusion period.

The amount of Family Tax Benefit (FTB) payable to the job seeker or their partner, including Rent Assistance (RA) paid with FTB, is not affected by the unemployment preclusion period.