Tran and Secretary, Department of Social Services (Social services second review)

This matter concerned an appeal by Mr Tran against the cancellation of his Newstart allowance. The dispute arose because Mr Tran refused to enter into an Employment Pathway Plan (EPP) on 29 January 2015, which the Department of Social Services considered a failure to meet his obligations. The Administrative Appeals Tribunal was required to determine whether Mr Tran was qualified for Newstart allowance from 29 January 2015 onwards, and whether he had a reasonable excuse for refusing to enter the EPP.

The Tribunal considered sections 593 and 605 of the *Social Security Act 1991* (Cth), which stipulate that a person receiving or claiming Newstart allowance may be required to enter into an EPP, and that failure to do so, or failure to be prepared to enter into such a plan, can result in disqualification. Mr Tran admitted he refused to enter an EPP on 29 January 2015 and in the subsequent four weeks, stating his belief that the offered work was unsuitable for his qualifications in financial services. The Tribunal found that this refusal meant Mr Tran did not satisfy the requirements of section 593(1)(c) and 593(1)(e) of the Act.

Furthermore, the Tribunal examined Division 3A of the *Administration Act*, which addresses "connection failures" and the requirement for a "reasonable excuse." Mr Tran's refusal to enter an EPP was identified as a connection failure under section 42E. However, section 42E(4)(a) provides that a connection failure determination cannot be made if the person has a reasonable excuse. The Tribunal concluded, after considering Mr Tran's submissions and evidence, that he did not have a reasonable excuse for his refusal. Consequently, the Tribunal affirmed the decision to suspend and subsequently cancel Mr Tran's Newstart allowance.