Suspension of JobSeeker Payment (JSP) and Youth Allowance (YA) 001-19051511

Payments may be suspended if a customer is temporarily not qualified for payment or the payment is not payable as a result of:

• changes in their circumstances
• failure to comply with the requirements for payment, or
• information that has not been provided to ensure payments are directed correctly (such as a valid address or bank account details)

Before a payment is suspended:

• an appropriate request for information must have been issued and
• the claimant/recipient and/or their partner or correspondence nominee must have provided the requested information/action within the time allowed to respond. See Requesting information (CLK)

A decision to suspend a payment potentially has a great impact on a customer and must be made in accordance with legislation and the relevant process. Suspensions placed on customers' records that do not follow the correct process may cause financial hardship and distress to customers. For example: if requested information is not provided but no follow up action taken, Service Officers should consider the length of time since the request was made. It may be more appropriate to reissue the request.

Suspension does not necessarily indicate a loss of qualification, and full arrears may be issued if payment is subsequently restored.

Reasons for suspension of payment include (but are not limited to):

• a direct credit payment was returned from the financial institution
• the customer failed to reply to correspondence
• the customer failed to attend an interview
• a customer has separated from their partner
• a customer or their partner is in prison or psychiatric confinement
• the customer's mail has been returned to Centrelink 'whereabouts unknown'
• employment income or an increase in assets

Before suspending a payment due to employment income, consider if the customer can retain certain benefits for a period of time:

• Working Credits may enable the customer to keep some of their income support payment while they are working
• If the customer's income reduces their fortnightly rate to nil and some of that income is employment income, the payment may remain current at nil rate for up to 12 fortnights and they may retain certain benefits

Before a payment is suspended, information must be requested from the customer under the appropriate section of the Social Security (Administration) Act; section 63, 67, 68, or part 5, division 1. The Decision Maker (DM) must be satisfied that there is sufficient evidence that the customer is either temporarily not qualified for the payment or the payment is not payable.

For information on requesting information, see Requesting information (CLK).

All decisions to suspend JSP and YA job seekers are made under section 80 of the Social Security (Administration) Act.

Nominee arrangements

If the customer has a correspondence nominee, contact must be attempted with the nominee before the payment is suspended.

Notification of suspension

Customers must be advised of the decision to suspend their payment. If an automatic letter is not issued by the system a manual Q134 or Q999 letter must be sent and include:

• the reason for the suspension
• date of effect
• the information or documentation required to enable payments to be restored
• reference to the relevant act, and
• the customer's review and appeal rights

When the payment is suspended additional appropriate actions are also required. For example: issue letter, code manual review, DOC the decision.

Unfavourable decisions

When making an unfavourable decision, speak to the customer:

• explain the decision
• give them a chance to provide more information, and
• advise their review and appeal rights

Customer contacts after suspension

Explain the reason for suspension. Also provide information about the required documentation or advise the customer what is required so the payment can be restored.

The date of effect of a decision to suspend a customer's payment depends on the specific circumstances relating to the suspension. If the customer or their partner informs the agency of a change in circumstances, generally the date of effect is the date on which the event or change in circumstances occurred. An exception exists with respect to events and changes in circumstances concerning employment or non-employment income, when a working credit balance applies.

If the customer fails to provide requested information when responding to a section 63 or section 68 notice, the date of effect of the adverse determination is the date the determination was made. The 'date of determination' in these instances means the date it is determined the customer has failed to respond to the notice within the reasonable timeframe. Where the customer has already been paid for the 'date of determination', the date of effect for the suspension will be Date Paid To (DPT) plus 1.

Suspended payments are reviewed within 13 weeks of the suspension. If a customer does not contact or provide requested information, the suspended payment may be cancelled as a result of the review and notification of the cancellation will be issued.

A payment may be restored when the customer re-establishes their qualification for the payment or provides the required information.

For information on:

• restoring payments, see Restoration of JobSeeker Payment (JSP), Youth Allowance (job seeker) and Special Benefit (SpB)
• cancelling payments, see Cancellation of payments (CLK)

If a vulnerable and at risk customer remains without income support payment for a minimum of 6 weeks due to an automatic suspension or cancellation, the customer may be eligible for manual intervention. Customers who are overseas permanently are not eligible for this initiative.

For more information, see Manual review after automatic payment suspension and cancellation of vulnerable customers.