EXPLANATORY STATEMENT

Issued by the authority of the Secretary of the Department of Employment and Workplace Relations

Social Security Act 1991

Social Security (Declared Program Participant) Determination 2025

Authority

The Social Security (Declared Program Participant) Determination 2025 (the Determination) is made by the Secretary of the Department of Employment and Workplace Relations (the Secretary) under subsection 28C(1) of the Social Security Act 1991 (the Social Security Act).

Purpose and operation

The purpose of the Determination is to provide that participants in the Remote Australia Employment Service (RAES) are ‘declared program participants’ for the purposes of the social security law. Community Development Program (CDP) participants have been declared program participants due to the Social Security (Declared Program Participant) Determination 2018 (the 2018 determination).

The CDP will cease on 31 October 2025 and be replaced by RAES which commences on 1 November 2025. RAES is designed to better support job seekers in remote Australia in upskilling, finding pathways to work and contributing to their community.

The Determination means that persons participating in RAES are declared program participants for the purposes of the social security law in the same way that CDP participants have been declared program participants due to the 2018 determination.

Declared program participants are subject to what is known as the Job Seeker Compliance Framework (JSCF) in Division 3A of Part 3 of the Social Security (Administration) Act 1999 (the Administration Act). Recipients of participation payments who are not declared program participants are subject to what is known as the Targeted Compliance Framework (TCF) in Division 3AA of Part 3 of the Administration Act.

Subsection 28C(1) provides that the Secretary may make a determination for the purposes of the definition of ‘declared program participant’ in subsection 23(1) of the Social Security Act. The determination may provide for the operation of the social security law in relation to a person who becomes, or ceases to be, a declared program participant at a particular time including in relation to things that happened before that time (subsection 28C(2) of the Social Security Act). A participant becomes a declared program participant if they meet the applicable provisions in relation to an employment services program as specified by the Determination (subsection 23(1) of the Social Security Act).

RAES has been designed and implemented in parallel to broader reform across Government including the Employment White Paper, the Inquiry into Workforce Australia Employment Services, reforms to Disability Employment Services and work of the Economic Inclusion Advisory Committee. Under RAES, there will be no changes to compliance settings. RAES participants will continue to be required to regularly engage with their provider but participation in activities will remain voluntary. However, there will be a strengthened focus on engagement to encourage meaningful participation in activities.

RAES aims to improve the social and economic conditions of all participants in certain remote geographical areas and communities in Australia. RAES applies to all participants located in those areas regardless of a participant’s attributes such as race, ethnicity or social group. The Determination aligns with the objects of RAES by ensuring that appropriate compliance decisions are made with respect to those participants as they enter or exit RAES.

For clarity, as Disability Support Pension is not a participation payment, people receiving Disability Support Pension are not subject to the compliance frameworks set out in Divisions 3A and 3AA of Part 3 of the Administration Act. These recipients, therefore, are not affected by the arrangements in the Determination relating to movement between compliance frameworks.

Impact analysis

The Determination is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact. The Office of Impact Analysis has determined that detailed analysis is not required under the Australian Government's Policy Impact Analysis Framework.

Commencement

The Determination will commence on 1 November 2025.

Consultation

The Department consulted with the National Indigenous Australians Agency and Services Australia about the Determination.

RAES has been designed in partnership with remote communities through consultations, lessons learnt from job trials and testing new ways to create jobs in specific remote communities.

RAES has also been informed by consultation with remote community members, job seekers, peak bodies, First Nations people, CDP providers, CDP participants and other key stakeholders with an interest in remote employment.

Over the past few years, the Government has heard from thousands of people in more than 200 remote communities about the best way to replace the CDP. This was to enable the creation of a jobs program that communities want, supported by employment services that help young people and job seekers get ready for work. Community consultation and engagement were identified as critical for ensuring job creation efforts align with local priorities and cultural practices.

Broadly, feedback indicated that:

the new remote employment service should be participant-centred with case management to focus on the participant’s job readiness pathway;
the new remote employment service should be planned and led by communities; and
the relationships between providers and participants should be based on reciprocity.

Given that the above consultation occurred and that the only purpose of the Determination is to provide that persons participating in RAES are declared program participants for the purposes of the social security law in the same way that CDP participants have been declared program participants due to the 2018 determination, it was considered unnecessary to undertake further consultation specifically on the Determination.

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Social Security (Declared Program Participant) Determination 2025

The Social Security (Declared Program Participant) Determination 2025 (‘the Determination’) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Department consulted with the National Indigenous Australians Agency and Services Australia about the Determination.

RAES has been designed in partnership with remote communities through consultations, lessons learnt from job trials and testing new ways to create jobs in specific remote communities.

Broadly, feedback indicated that:

the new remote employment service should be participant-centred with case management to focus on the participant’s job readiness pathway;
the new remote employment service should be planned and led by communities; and
the relationships between providers and participants should be based on reciprocity.

Human rights implications

The Determination engages the following human rights:

the rights of equality and non-discrimination in Article 2(2) of the International Covenant on Economic, Social and Cultural Rights (ICESCR), Article 26 of the International Covenant on Civil and Political Rights (ICCPR), Article 2 of the Convention on the Rights of the Child (CRC), and Article 5 of the International Convention on the Elimination of All Forms of Racial Discrimination (CERD);
the right to social security in Article 9 of the ICESCR, and the right of the child to benefit from social security in Article 26 of the CRC; and
the right to an adequate standard of living in Article 11 of the ICESCR.

The rights to equality and non-discrimination

Article 2(2) of the ICESCR, Article 26 of the ICCPR and Article 2 of the CRC recognise the right to equality and non-discrimination on a range of grounds including of race, sex, colour, language, national or social origin or ‘other status’. Place of residence within a country is considered to fall within ‘other status’ for the purposes of these articles.

Article 5 of the CERD reinforces this general prohibition and provides that States ‘undertake to prohibit and to eliminate racial discrimination in all its forms and to guarantee the right of everyone, without distinction as to race, colour, or national or ethnic origin, to equality before the law’.

The Determination engages the rights to equality and non-discrimination because declared program participants will be subject to appropriate compliance mechanisms. Participation payment claimants or recipients who are not declared program participants will be subject to the targeted compliance framework under Division 3AA of Part 3 of the Administration Act for all activities.

This Determination, therefore, may result in differential treatment for people in different locations and in certain employment services programs because RAES supports job seekers in remote Australia. The Determination aligns with broader policy objectives to support job seekers in remote Australia.

The rights to equality and non-discrimination are subject to the international human rights law principle of ‘legitimate differential treatment’. This principle allows particular groups of people to be treated differently where the treatment is aimed at achieving a legitimate objective, is based on reasonable and objective criteria and is proportionate to the objective to be achieved. This is addressed further below.

The Government acknowledges the outcome of and claims made in Dawson v Commonwealth of Australia (No 2) [2021] FCA 1636. In settling this matter, the Government expressed an intention to take all necessary or appropriate legislative and administrative action to design, implement and evaluate a new program to replace the CDP and reflect key learnings in the new program.

The introduction of the Determination represents a necessary step to implement the RAES and reform employment services in remote areas. The Determination ensures that appropriate compliance actions may be taken with respect to declared program participants. In doing so, this enables the Government to provide an employment service which is fit for purpose with regard to the employment barriers that exist in remote areas and appropriately tailored to achieve the legitimate objective of benefiting remote job seekers and communities.

The RAES program provides employment services to job seekers in remote Australia who face unique obstacles such as fewer job opportunities and disadvantages arises from their remote locations. These factors and the lack of a labour market in remote Australia when compared with the opportunities for employment available in other parts of Australia, mean it is appropriate to establish effective arrangements for these remote job seekers.

The Determination is therefore reasonable, necessary and proportionate to achieve the legitimate objective of applying a compliance framework that the Secretary considers is most appropriate for persons in certain employment services programs.

The right to social security and the right to an adequate standard of living

Article 9 of the ICESCR recognises the right of everyone to social security. The right to social security requires parties to establish a social security system and, within their maximum available resources, ensure access to a social security scheme that provides a minimum essential level of benefits to all individuals and families that will enable them to acquire at least essential health care, basic shelter and housing, water and sanitation, foodstuffs, and the most basic forms of education. Article 26 of the CRC recognises the right of every child to benefit from social security.

The right to social security is important in realising many of the other rights in the ICESCR, including the right to an adequate standard of living under Article 11.

Article 11(1) of the ICESCR recognises the right of everyone to an adequate standard of living including adequate food, water and housing, and to the continuous improvement of living conditions.

Article 4 of the ICESCR provides that countries may only subject economic, social and cultural rights to such limitations ‘as are determined by law only in so far as this may be compatible with the nature of these rights and solely for the purpose of promoting the general welfare in a democratic society’. The Committee on Economic, Social and Cultural Rights has stated that such limitations must be proportionate and the least restrictive alternative should be adopted where several types of limitation are available; and where such limitations are permitted, they should be of limited duration and subject to review.

The Determination provides for what happens in respect of compliance action for social security participation payment recipients that was taken when a person was, or was not, a declared program participant, and what happens when the person then becomes, or ceases to be, a declared program participant. The Determination, therefore, engages the right to social security and the right to an adequate standard of living.

For a person who has their payment suspended because they committed a failure, the effect of this Determination is that their suspension ends when they change status and move between compliance frameworks. This does not limit the rights to social security or an adequate standard of living. Rather, this part of the Determination may promote these rights in providing access to a participation payment when previously there was no such access for the duration of a payment suspension period.

Where more serious compliance action was taken and a person subsequently becomes or ceases to be a declared program participant under the RAES by changing employment services, the effect of the Determination is to continue that action:

for a person who receives a serious failure penalty or is subject to an unemployment non-payment period before moving out of the RAES program and ceasing to be a declared program participant, the penalty or non-payment period would continue as if they had not moved. In addition, such a person retains access to waiver and payment pending review provisions, as if they had not moved; and
for a person who is not in RAES and is subject to a payment reduction or cancellation, an unemployment preclusion period, or post cancellation non-payment period and moves into RAES, this penalty or non-payment period continues to apply as if the person had not moved.

The effect of the Determination is that no new obligations or new requirements are imposed on a person. While the continuance of certain compliance action engages the rights to social security and an adequate standard of living, those rights are not limited by this Determination.

Further, persons who move into or out of RAES will maintain their rights of review under social security law.

Conclusion

This Determination is compatible with human rights because to the extent that it may limit human rights, those limitations are reasonable, necessary and proportionate.

Secretary of the Department of Employment and Workplace Relations

Social Security (Declared Program Participant) Determination 2025

Explanation of Provisions

Section 1 – Name

This section provides that the name of the Determination is the Social Security (Declared Program Participant) Determination 2025 (the Determination).

Section 2 – Commencement

This section provides a table setting out the commencement for the whole of the Determination. The Determination commences on 1 November 2025.

Section 3 – Authority

This section provides that the Determination is made under subsection 28C(1) of the Social Security Act 1991 (the Social Security Act).

Section 4 – Schedules

Section 4 provides that any instrument specified in a Schedule to the Determination is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the Determination has effect according to its terms.

The Determination includes one Schedule, which repeals the Social Security (Declared Program Participant) Determination 2018.

Section 5 – Definitions

Subsection 5(1) defines terms used in the Determination. The note to section 5 alerts the reader to the fact that some expressions used in the Determination are defined in the Social Security Act or the Social Security (Administration) Act 1999 (the Administration Act).

For example, the Employment Department is defined in subsection 23(1) of the Social Security Act to mean the Department administered by the Minister administering Division 3AA of Part 3. The effect of the Administrative Arrangements Order dated 13 May 2025, read with section 19 of the Acts Interpretation Act 1901, is that the Department of Employment and Workplace Relations is the Employment Department.

Subsection 4(1) defines Remote Australia Employment Service provider to mean an organisation that performs functions or provides services from time to time for the purposes of the social security law under the Head Agreement for the Remote Australia Employment Service, whether or not the organisation also acts in other capacities. This reflects the fact that some RAES providers may also perform functions or provide services from time to time for the purposes of the social security law under other agreements, for example, a RAES provider may also perform functions or provide services under the Workforce Australia Services Deed of Standing Offer 2022 - 2028.

Subsection 4(1) defines relevant payment as a participation payment or disability support pension.

Subsection 4(2) provides, for the purposes of the Declaration, a person is serviced by a Remote Australia Employment Service provider if a Remote Australia Employment Service provider (in its capacity as a Remote Australia Employment Service provider) is recorded in the Employment Department’s Information Technology system as the person’s employment services provider. The purpose of this is to provide clarity as to which compliance framework a person is subject.

Section 6 – Declared program participants

Subsection 6(1) outlines who is a declared program participant for the purposes of the Determination and s 28C(1) of the Social Security Act. A person becomes a declared program participant if the person has claimed or is receiving a relevant payment, and is serviced by a RAES provider. This is subject to sections 7 and 8 of the Determination which specify when a person becomes, or ceases to be, a declared program participant.

Recipients of relevant payments who have participation requirements under the social security law are usually serviced by employment services providers. Participants in remote geographical areas of Australia are predominantly serviced by RAES providers.

The effect of subsection 6(1) is that such people will be declared program participants for the purposes of the social security law. People who are serviced by other employment services providers (such as Workforce Australia providers) will not be declared program participants for these purposes.

Subsection 6(2) deems a person to be ‘receiving a relevant payment’ during a period in which the person’s relevant payment is payable, not payable, or reduced to nil. This overrides the usual deeming provisions for a period in which a person is taken to be receiving a payment under subsections 23(2) and (4) of the Social Security Act. This subsection ensures that, for the purposes of section 6, a person whose payment is either not payable or reduced to nil for a period, will continue to be a declared program participant during that period.

For example, if a person who is receiving a jobseeker payment is a declared program participant and has had that payment reduced to nil because of compliance action taken under Division 3A of Part 3 of the Administration Act, the person does not cease to be a declared program participant simply due to that compliance action.

Section 7 – When a person becomes a declared program participant

This section sets out when a person becomes a declared program participant.

Subsection 7(1) sets out that where a person has claimed or is receiving a relevant payment and is serviced by a RAES provider on the day on which the Determination commences, the person will become a declared program participant on the same day.

Subsection 7(2) sets out that where a person has claimed or is receiving a relevant payment and begins to be serviced by a RAES provider after the commencement of the Determination, the person will become a declared program participant on the day after the day on which the RAES provider (in its capacity as a RAES provider) becomes recorded as the person’s employment services provider in the Employment Department’s Information Technology System.

Subsection 7(3) deems a person to be ‘receiving a relevant payment’ during a period in which the person’s relevant payment is payable, not payable, or reduced to nil.

Section 8 – When a person ceases to be a declared program participant

Section 8 provides that a person ceases to be a declared program participant at the end of the day on which a RAES provider (in its capacity as a RAES provider) ceases to be recorded as the person’s employment services provider in the Employment Department’s Information Technology system.

The effect of sections 7 and 8 is that a person may become, or cease to be, a declared program participant on more than one occasion.

The following is an example of how sections 6, 7 and 8 are intended to operate:

Customer A is receiving jobseeker payment and is serviced by a RAES provider on 1 November 2025. They become a declared program participant on 1 November 2025 due to subsections 6(1) and 7(1) of the Determination;
on 23 November 2025, the RAES provider ceases to be recorded as Customer A’s employment services provider in the Department’s IT system. Customer A ceases to be a declared program participant at the end of 23 November 2025 because of section 8 of the Determination; and
on 6 December 2025, Customer A is still in receipt of jobseeker payment and a RAES provider is again recorded as their employment services provider in the Department’s IT system on that day. Customer A again becomes a declared program participant on 6 December 2025 because of subsection 7(2) of the Determination.

Section 9 – Effect of becoming or ceasing to be a declared program participant during a period in which a participation payment is not payable

Section 9 deals with the effect of becoming or, ceasing to be, a declared program participant during a period in which a participation payment is not payable, except as dealt with by sections 12 and 14. Section 12 deals with the effect of becoming or ceasing to be a declared program participant during an unemployment preclusion period, a serious failure period or an unemployment non-payment period. Section 14 deals with the effect of becoming or ceasing to be a declared program participant during a post-cancellation non-payment period.

When a person’s payment is suspended because they have committed a failure under Divisions 3A or 3AA of Part 3 of the Administration Act (which is not a serious failure), and they subsequently move into or out of RAES, their suspension period will end at that time.

Subsection 9(1) applies in circumstances in which:

a person is not a declared program participant;
the Secretary makes a determination under Division 3AA of Part 3 of the Administration Act (other than a determination under paragraphs 42AF(2)(d) or 42AG(1)(b) or subsections 42AH(1) or 42AH(2) of the Administration Act) which results in the person’s participation payment not being payable for a period;
the person subsequently becomes a declared program participant; and
the period has not ended on the day on which the person becomes a declared program participant.

In those circumstances the period is taken to have ended immediately before the day on which the person becomes a declared program participant. The effect of subsection 9(2) is that the person may receive back pay for the period the payment was not payable.

The following is an example of how section 9 is intended to operate:

Anna is a jobseeker but is not a declared program participant and on 10 November 2025 the Secretary determines that Anna’s participation payment is not payable under paragraph 42AF(1)(a) because she has committed a mutual obligation failure under subsection 42AC(1) of the Administration Act. This results in Anna’s jobseeker payment not being payable for a period (section 42AL); and
on 17 November 2025 Anna becomes a declared program participant while her payment is still not payable.

The period in which Anna’s jobseeker payment was not payable is taken to have ended on 16 November 2025.

The notes following subsection 9(2) alert the reader to section 14 and subsection 12(1) of the Determination, which deal with the circumstances in which a person’s payment is made not payable as a result of a determination made under paragraphs 42AF(2)(d) or 42AG(1)(b) or subsections 42AH(1) or 42AH(2) of the Administration Act.

Subsection 9(3) applies in circumstances in which:

a person is a declared program participant;

either before or after the person becomes a declared program participant the Secretary makes a determination under Division 3A of Part 3 of the Administration Act (other than a determination under sections 42M, 42N and 42NC, or subsection 42S(1) of the Administration Act);
the determination results in a participation payment not being payable to the person for a period;
the person subsequently ceases to be a declared program participant; and
the period has not ended on the day the person ceases to be a declared program participant.

In those circumstances the period is taken to have ended immediately before the day on which the person ceases to be a declared program participant. The effect of subsection 8(4) is that the person may receive back pay for the period the payment was not payable.

The reason paragraph 9(3)(b) refers to the Secretary making a determination ‘either before or after the person becomes a declared program participant’ under the Determination. This is to ensure that the Determination appropriately deals with a person who is a declared program participant but where the relevant determination was made under Division 3A of Part 3 of the Administration Act either:

before 1 November 2025, which is before a person could be a declared program participant under the Determination (noting that participants of CDP were declared program participants under the previous determination and is a different employment program); or
on or after 1 November 2025, when a person could become a ‘declared program participant’ under the Determination.

Section 10 - Reconnection requirements taken to be complied with when a person becomes a declared program participant

The effect of sections 10 and 11 of the Determination is that if a person is subject to a reconnection or further reconnection requirement under Divisions 3A or 3AA of Part 3 of the Administration Act, and they subsequently become or cease to be, a declared program participant, the reconnection or further reconnection requirement will be taken to have been complied with at that time. This is because a job seeker is usually required to re-engage with their activity or provider when given a reconnection requirement. This is not appropriate where a job seeker moves between RAES and other employment services.

For other more serious compliance decisions, such as an instalment reduction or cancellation decision, these will continue to remain in force regardless of whether a person enters or exits the RAES program. The purpose of this is to remove any incentive to move between employment services in order to avoid these more serious compliance actions.

Section 10 applies in circumstances in which:

a person is not a declared program participant;
the Secretary imposes a reconnection requirement under section 42AM of the Administration Act;
the person subsequently becomes a declared program participant; and
on the day the person becomes a declared program participant the person has not complied with the requirement, the suspension period has not ended early, and 4 weeks has not passed since the person was notified of the reconnection requirement.

In those circumstances the person is taken to have complied with the reconnection requirement immediately before the day the person becomes a declared program participant.

Section 11 - Reconnection requirements and further reconnection requirements taken to be complied with when a person ceases to be a declared program participant

Section 11 applies in circumstances in which:

a person is a declared program participant;
either before or after the person becomes a declared program participant the Secretary imposes a reconnection requirement under section 42G of the Administration Act or a further reconnection requirement under section 42J of the Administration Act;
the person subsequently ceases to be a declared program participant; and
the person has not complied with either requirement (as is relevant) at the time the person ceases to be a declared program participant; and
the period for complying has not elapsed.

In those circumstances the person is taken to have complied with the reconnection requirement or further reconnection requirement immediately before the day the person ceases to be a declared program participant.

For the same reason discussed in relation to paragraph 9(3)(b), subsection 11(b) refers to the Secretary making a determination ‘either before or after the person becomes a declared program participant’. This is to ensure that the Determination deals with the situation where a person is a declared program participant but where the relevant determination was made under Division 3A of Part 3 of the Administration Act either:

before 1 November 2025, which is before a person could be a declared program participant under the Determination (noting that participants of CDP were declared program participants under the previous determination and in a different employment program); or
on or after 1 November 2025, when a person could become a ‘declared program participant’ under the Determination.

Section 12 - Effect of becoming or ceasing to be a declared program participant during a period in which a participation payment is not payable for certain failures

Section 12 deals with the effect of becoming or ceasing to be a declared program participant during an unemployment preclusion period, a serious failure period, or an unemployment non-payment period. The effect of section 12 is that these periods continue as if the person had not moved, ensuring that they are treated the same as recipients who do not move, or move but remain in the same employment service. The purpose of this is to remove any incentive to move between employment services in order to avoid these compliance actions.

Subsection 12(1) provides that an unemployment preclusion period imposed on a person will continue to apply even if the person subsequently becomes a declared program participant.

Subsection 12(1) applies in circumstances in which:

a person is not a declared program participant and makes a claim for a participation payment;
the Secretary makes a determination under subsection 42AH(2) of the Administration Act because the person commits an unemployment failure and the result is that a participation payment is not payable to the person for a period (the ‘unemployment preclusion period’); and
the person subsequently becomes a declared program participant and the unemployment preclusion period had not ended when the person becomes a declared program participant.

In those circumstances the participation payment (whether or not the same as the participation payment that was claimed) is not payable for the unemployment preclusion period.

Further, section 42AQ of the Administration Act (with the exception of paragraph 42AQ(a)) applies to the person as though the person was not a declared program participant until the end of the unemployment preclusion period.

Paragraphs 42AQ(b) and (c) respectively provide that a person is taken to be receiving the participation payment for the unemployment preclusion period for the purposes of:

sections 63 and 64 of the Administration Act. Section 63 deals with a requirement to attend or contact the Department, attend a particular place for a particular purpose (such as undergoing a medical examination), or providing information to the Secretary and the notifying of such a requirement. Section 64 deals with the effect of a person who fails to comply with such a requirement; and
any other provisions of the social security law or the A New Tax System (Family Assistance) Act 1999 determined by the Minister under subsection 42AR(2) for the purposes of paragraph 42AQ(c).

This means that a person can be required to comply with certain provisions of the social security law that apply to a person ‘receiving’ a relevant payment even though the person is subject to an unemployment preclusion period.

The following is an example of how subsection 12(1) is intended to operate:

on 2 November 2025, Stephen makes a claim for jobseeker payment. He is not a declared program participant;
on 3 November 2025, Stephen resigns from his job and commits an unemployment failure;
on 6 November 2025 the Secretary makes a determination under section 42AH(2) with the effect that jobseeker payment or any other participation payment is not payable to Stephen for four weeks beginning on 3 November 2025, the day Stephen committed the unemployment failure (the ‘unemployment preclusion period’); and
on 17 November 2025 Stephen becomes a declared program participant, but jobseeker payment, and any other participation payment, is still not payable for the duration of the unemployment preclusion period;
Stephen is still taken to be receiving jobseeker payment for that period for the purposes of sections 63 and 64 of the Administration Act and any of the provisions of the social security law determined by the Minister for the purposes of paragraph 42AQ(c) of the Administration Act.

Subsection 12(2) provides that a person’s participation payment will remain not payable if that person was subject to a serious failure period and subsequently ceases to be a declared program participant.

Subsection 12(2) applies in circumstances in which:

a person is a declared program participant;
either before or after the person becomes a declared program participant:
- the Secretary has made a determination that the person has committed a serious failure under sections 42M (for persistently failing to comply with certain obligations) or 42N (for refusing or failing to accept an offer of suitable employment); and
- has made a determination under section 42NC of the Administration Act (a determination must be made unless the person does not have capacity to undertake a serious failure requirement and serving the serious failure period would cause severe financial hardship) that results in a participation payment not being payable to the person for a period under subsection 42P(2) (the ‘serious failure period’); and
the person subsequently ceases to be a declared program participant and the serious failure period has not ended.

In those circumstances a participation payment (whether or not the same as the participation payment that was claimed) is not payable for the serious failure period.

Further, the Secretary may continue to exercise the powers in sections 42Q, 42R, 131 and 145 in relation to a person to whom subsection 12(2) applies:

section 42Q of the Administration Act provides that the Secretary may end a person’s serious failure period early;
section 42R of the Administration Act provides that the Secretary may determine that a participation payment is payable to a person during the serious failure period in some circumstances; and
sections 131 and 145 of the Administration Act provide that the Secretary may declare that a payment is to continue pending the determination of a review of certain decisions, including certain decisions to cancel or suspend a social security payment.

The effect of this subsection is that the serious failure period does not end simply because the person ceases to be a declared program participant.

The following is an example of how subsection 12(2) is intended to operate:

Don has persistently failed to comply with his obligations in relation to his jobseeker payment;
on 20 October 2025, the Secretary made determinations under sections 42M and 42NC in relation to Don with the result that his jobseeker payment was not payable for a serious failure period of 8 weeks, scheduled to end on 15 December 2025;
on 1 November 2025, Don became a declared program participant by operation of sections 6 and 7 of the Determination;
on 23 November 2025, Don ceases to be a declared program participant. Don’s jobseeker payment or any other participation payment remain not payable until the end of the serious failure period; and
on 24 November 2018, the Secretary exercises the power in section 42Q to end Don’s serious failure period with effect from that day.

Subsection 12(3) sets out that, where a person to whom subsection 12(2) of the Determination applies is subject to a ‘serious failure requirement’ under subsection 42P(3) of the Administration Act when they cease to be a declared program participant, the person is taken to have complied with the serious failure requirement when the serious failure period ends.

Subsection 12(4) provides that a declared program participant’s participation payment will remain not payable if that person was subject to an unemployment non-payment period and subsequently ceases to be a declared program participant.

Subsection 12(4) applies in circumstances in which:

a person is a declared program participant;
either before or after the person became a declared program participant, the Secretary makes a determination under subsection 42S(1) of the Administration Act (that the person is unemployed as a result of their voluntary act or misconduct as an employee) that results in a participation payment not being payable to a person for a period (the ‘unemployment non-payment period’); and
the person subsequently ceases to be a declared program participant and the unemployment non-payment period has not yet ended on the day the person ceases to be a declared program participant.

In those circumstances a participation payment (whether or not the same as the participation payment that was claimed) is not payable to the person for the unemployment non-payment period.

Further, subsection 42S(4) and sections 131 and 145 of the Administration Act apply to the person as though the person remains a declared program participant for the person’s unemployment non-payment period:

subsection 42S(4) of the Administration Act provides that the Secretary may end the person’s serious failure period early; and
sections 131 and 145 of the Administration Act provide that the Secretary may declare that a payment is to continue pending the determination of a review of certain decisions, including certain decisions to cancel or suspend a social security payment.

Section 13 – Effect of becoming or ceasing to be a declared program participant during an instalment period in which an instalment is to be reduced or a penalty is to be deducted

Section 13 deals with the effect of becoming or ceasing to be a declared program participant during an instalment period in which an instalment is to be reduced or where a penalty is to be deducted. The effect of section 13 is that these payment reductions or penalties continue as if the person had not moved, ensuring that they are treated the same as recipients who do not move, or move but remain in the same employment service. The provisions ensure that there is no incentive to move between employment services in order to avoid a reduction or a penalty.

Subsection 13(1) provides that any reduction of any instalment of a person’s participation payment remains in accordance with applicable provisions of Division 3AA of Part 3 of the Administration Act, despite that person subsequently becoming a declared program participant.

Subsection 13(1) applies in circumstances in which:

a person is not a declared program participant;
the Secretary makes a determination under Division 3AA of Part 3 of the Administration Act that results in one or more instalments of a person’s participation payment being reduced during a reduction period; and
the person subsequently becomes a declared program participant and the reduction period has not ended when the person becomes a declared program participant.

In those circumstances the instalment of the person’s participation payment for the reduction period is reduced in accordance with the provisions in Division 3AA.

Further, subsection 42AN(6) of the Administration Act continues to apply to the person as though the person was not a declared program participant. That subsection provides that the participation payment remains payable for the reduction period even if the amount of the instalment is reduced to nil.

Subsection 13(2) provides that penalty amounts in relation to one or more instalments of a participation payment will continue to be deducted in accordance with the applicable provisions of Division 3A of Part 3 of the Administration Act, despite the person subsequently ceasing to be a declared program participant.

Subsection 13(2) applies in circumstances in which:

a person is a declared program participant;
either before or after the person becomes a declared program participant, the Secretary makes a determination under Division 3A of Part 3 of the Administration Act that results in a penalty amount being deducted from one or more instalments of the person’s participation payment during a penalty amount period; and

the person subsequently ceases to be a declared program participant and the penalty amount period has not ended when the person becomes a declared program participant.

In those circumstances the penalty amount is deducted in accordance with the provisions in Division 3A.

Further, sections 42W and 42X of the Administration Act continue to apply to the person as though the person remained a declared program participant until the end of the instalment period or periods:

section 42W provides that, to avoid doubt, a penalty amount is not a debt owed to the Commonwealth. If this did not apply, in some circumstances, a penalty would become a debt; and
section 42X provides that a participation payment remains payable even if it is reduced to nil as a result of deducting a penalty amount for certain failures. This has advantages for a person in respect of other payments, for example, a person is exempt from means testing for Family Tax Benefit if a participation payment is payable.

Section 14 – Effect of becoming a declared program participant during a period in which a participation payment is cancelled

Section 14 provides that the cancellation of a participation payment under Division 3AA of Part 3 of the Administration Act, continues in circumstances in which a person subsequently becomes a declared program participant.

This provision will apply in circumstances in which:

a person is not a declared program participant;

the Secretary makes a determination under Division 3AA of Part 3 of the Administration Act in relation to the person which results in the cancellation of the person’s payment; and
the person subsequently becomes a declared program participant and the ‘post cancellation non-payment period’ has not ended on the day the person becomes a declared program participant.

In those circumstances the participation payment remains cancelled and a participation payment (whether or not the same as the participation payment that was cancelled) is not payable to the person for the person’s post cancellation non-payment period.

Further, subsection 42AP(6) and section 42AQ of the Administration Act apply to the person as though the person was not a declared program participant until the end of the post-cancellation non-payment period. Those provisions provide that the person is still taken to be receiving a participation payment during the period for certain purposes, including provisions of the social security law that confer certain entitlements on income support recipients.

Schedule 1 – Repeals

Schedule 1 repeals the 2018 determination.

Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument. Subsection 33(3) of the Acts Interpretation Act 1901 applies to the Act.

Social Security (Declared Program Participant) Determination 2025

Administered by Department of Employment and Workplace Relations

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