Social Security Legislation Amendment (Job Seeker Compliance) Act 2011

Administered by Department of Social Services

Legislation au C2011A00048 In force Act

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Social Security Legislation Amendment (Job Seeker Compliance) Act 2011

 

No. 48, 2011

 

 

 

 

 

An Act to amend the Social Security (Administration) Act 1999, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendments

Social Security (Administration) Act 1999

 

 

 

Social Security Legislation Amendment (Job Seeker Compliance) Act 2011

No. 48, 2011

 

 

 

An Act to amend the Social Security (Administration) Act 1999, and for related purposes

[Assented to 27 June 2011]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Social Security Legislation Amendment (Job Seeker Compliance) Act 2011.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

27 June 2011

2.  Schedule 1

The later of:

(a) the day after this Act receives the Royal Assent; and

(b) 1 July 2011.

1 July 2011 (paragraph (b) applies)

Note:  This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—Amendments

 

Social Security (Administration) Act 1999

1  At the end of section 42A

Add:

 The Secretary may also determine that a participation payment is not payable to a person for a period because of certain failures. However, once that period ends, the person may be able to receive back pay.

2  At the end of subsection 42C(4) (before the note)

Add:

 ; or (c) the day is in a reconnection failure period for the person.

3  Subsection 42C(4) (at the end of the note)

Add “For the purposes of paragraph (4)(a), see also section 42UA (about prior notification of excuses).”.

4  Paragraph 42E(2)(a)

Omit “, and the notice did not inform the person of the effect of section 64”.

5  Subsection 42E(4) (at the end of the note)

Add “For the purposes of paragraph (4)(a), see also section 42UA (about prior notification of excuses).”.

6  Section 42G

Repeal the section, substitute:

42G  Reconnection requirements

  If:

 (a) the Secretary determines that a person commits a connection failure; or

 (b) a person fails to participate, on a day, in an activity that the person is required to undertake by an employment pathway plan that is in force in relation to the person; or

 (c) a person fails to attend an appointment that the person is required to attend by an employment pathway plan that is in force in relation to the person; or

 (d) a person fails to comply with a requirement that was notified to the person under subsection 63(2) or (4);

then:

 (e) if, in relation to a failure referred to in paragraph (b) or (c), the Secretary determines, under subsection 42SA(1), that a participation payment is not payable to the person—the Secretary must require the person to comply with a requirement (the reconnection requirement); or

 (f) in any other case—the Secretary may require the person to comply with a requirement (the reconnection requirement).

Note: The Secretary must notify the person of the effect of not complying with the reconnection requirement (see section 42K).

7  Subsection 42H(3) (at the end of the note)

Add “For the purposes of subsection (3), see also section 42UA (about prior notification of excuses).”.

8  Subsection 42H(5)

Omit “, provided that the penalty amount may not be deducted until at least the instalment after the first instalment made following notification to the person of the reconnection failure”.

9  Paragraph 42J(1)(a)

Omit “commits a reconnection failure”, substitute “fails to comply with a reconnection requirement imposed on the person”.

10  Subsection 42J(2)

Omit “paragraph (1)(b)”, substitute “subsection (1)”.

11  Subsection 42J(2)

After “comply with the”, insert “reconnection requirement or”.

12  Subsection 42K(1)

Repeal the subsection, substitute:

 (1) The Secretary must notify the person that a failure to comply with a reconnection requirement or a further reconnection requirement imposed on the person might result in either or both of the following:

 (a) a penalty amount being deducted from the person’s participation payment;

 (b) the person’s participation payment not being payable to the person for a period.

13  Subsection 42K(2)

Omit “the day”.

14  After Subdivision E of Division 3A of Part 3

Insert:

Subdivision EA—Immediate non‑payment of participation payments for certain failures

42SA  Immediate non‑payment of participation payments for certain failures

 (1) The Secretary may determine that a participation payment is not payable to a person if:

 (a) the person fails to participate, on a day, in an activity that the person is required to undertake by an employment pathway plan that is in force in relation to the person; or

 (b) the person fails to attend an appointment that the person is required to attend by an employment pathway plan that is in force in relation to the person; or

 (c) the person fails to comply with a reconnection requirement or a further reconnection requirement.

Note 1: If paragraph (1)(a) or (b) applies, a reconnection requirement must be imposed for that failure (see section 42G).

Note 2: The participation payment may not be payable to the person if the person fails to comply with a notice under section 63: see section 64.

 (2) The participation payment is not payable to the person for the period beginning on the day the person first commits the failure and ending at the end of:

 (a) the day before the day on which the person notifies the Secretary that the person intends to comply with:

 (i) for a failure referred to in paragraph (1)(a) or (b)—the reconnection requirement imposed on the person under paragraph 42G(e) because of that failure; or

 (ii) for a failure referred to in paragraph (1)(c)—the reconnection requirement or the further reconnection requirement referred to in that paragraph; or

 (b) if the Secretary determines that an earlier day is more appropriate than the day that would otherwise apply under paragraph (a)—that earlier day.

 (3) If a period ends under subsection (2) in relation to a person, then, subject to the social security law, the participation payment becomes payable to the person for that period.

15  After section 42U

Insert:

42UA  Prior notification of excuse

 (1) This section applies in relation to the following failures of a person:

 (a) a failure to participate, on a day, in an activity that the person is required to undertake by an employment pathway plan that is in force in relation to the person;

 (b) a failure to comply with a serious failure requirement imposed on the person, where the requirement was to undertake an activity on a day or to attend an appointment, or contact a person, at a particular time;

 (c) a failure to comply with a requirement notified to the person under subsection 63(2), where the requirement was to attend an office of the Department, to contact the Department or to attend a particular place for a particular purpose;

 (d) a failure to attend an appointment that the person is required to attend by an employment pathway plan that is in force in relation to the person;

 (e) a failure to comply with a reconnection requirement or a further reconnection requirement, where the requirement was to undertake an activity on a day or to attend an appointment, or contact a person, at a particular time.

 (2) For the purposes of subparagraph 42C(4)(a)(ii), paragraph 42E(4)(a) or subsection 42H(3), in deciding whether the person has a reasonable excuse for the failure, the following table has effect:

 

Prior notification of excuse

 

For this failure:

An excuse cannot be a reasonable excuse unless:

1

A failure referred to in paragraph (1)(a) or (d)

(a) before the start of the activity on the day concerned or before the time of the appointment, the person notified the excuse to the person or body specified in the employment pathway plan as the person or body to whom prior notice should be given if the person is unable to undertake the activity or attend the appointment; or

(b) the Secretary is satisfied that there were circumstances in which it was not reasonable to expect the person to give the notification

2

A failure referred to in paragraph (1)(b) or (e)

(a) before the start of the activity on the day concerned or before the time of the appointment or contact, the person notified the excuse to the person or body notified by the Secretary as the person or body to whom prior notice should be given if the person is unable to undertake the activity, attend the appointment or make the contact; or

(b) the Secretary is satisfied that there were circumstances in which it was not reasonable to expect the person to give the notification

3

A failure referred to in paragraph (1)(c)

(a) before the end of the time specified under subsection 63(2), the person notified the excuse to the person or body notified by the Secretary as the person or body to whom prior notice should be given if the person is unable to attend the office, contact the Department or attend the place; or

(b) the Secretary is satisfied that there were circumstances in which it was not reasonable to expect the person to give the notification

Note: Despite subsection (2), the Secretary may decide for other reasons that the excuse is not a reasonable excuse.

16  After section 42Y

Insert:

42YA  Relationship between Subdivisions of this Division

  No Subdivision of this Division limits any other Subdivision of this Division.

17  Subdivision G of Division 3A of Part 3

Repeal the Subdivision.

18  Subsection 63(7) (note)

Repeal the note.

19  Paragraph 64(1)(e)

Before “the Secretary”, insert “except if the person is receiving, or has made a claim for, a participation payment—”.

20  Application

(1) The amendments made by items 2 and 8 apply in relation to determinations made on or after the commencement of those items.

(2) The amendment made by item 4 applies in relation to notifications made on or after the commencement of that item.

(3) A requirement imposed under section 42G of the Social Security (Administration) Act 1999 before the commencement of this item has effect, on and after that commencement, as if it had been imposed under section 42G of that Act as amended by this Act.

(4) Paragraphs 42G(b), (c) and (d) of the Social Security (Administration) Act 1999, as amended by this Act, apply in relation to failures that are first committed on or after the commencement of this item (whether the requirements arose before, on or after that commencement).

(5) The amendments made by items 9, 14, 15 and 19 apply in relation to failures that are first committed on or after the commencement of those items (whether the requirements arose before, on or after that commencement).

(6) The amendments made by items 12 and 13 apply in relation to requirements imposed under section 42G or 42J of the Social Security (Administration) Act 1999 on or after the commencement of those items.

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 23 March 2011

Senate on 14 June 2011]

(44/11)

 

Overview

The Social Security Legislation Amendment (Job Seeker Compliance) Act 2011 was enacted by the Parliament of Australia to address deficiencies in the enforcement of job seeker compliance requirements within the social security system. The Act amends the Social Security (Administration) Act 1999 to enhance the mechanisms by which job seeker obligations are enforced, ensuring that participants are held accountable for their compliance with the specified requirements. This includes provisions for the immediate non-payment of participation payments for certain compliance failures and the imposition of reconnection requirements to address such failures. The policy objective of the Act is to improve the integrity and effectiveness of the social security system by ensuring that participants actively engage in their required activities and appointments, thereby facilitating their transition into sustainable employment. The Act introduces several key amendments, including the ability for the Secretary to determine that a participation payment is not payable due to certain failures, with potential for back pay once the failure period ends. It also mandates the imposition of reconnection requirements for specific failures and modifies the criteria for determining reasonable excuses for non-compliance. These amendments aim to create a more robust framework for managing job seeker compliance, ultimately supporting the broader goal of reducing dependency on social security payments and encouraging job seekers to take proactive steps towards employment.

Scope and Application

The Social Security Legislation Amendment (Job Seeker Compliance) Act 2011 amends the Social Security (Administration) Act 1999 to introduce measures that strengthen compliance with job seeker obligations and participation in employment pathway plans. This Act applies to individuals who are recipients of participation payments under the Social Security Act, and to those who are subject to employment pathway plans. The amendments introduced by this Act are applicable on a national level, as they pertain to the federal social security system. Certain provisions apply to determinations and failures made on or after the specified commencement dates, with some provisions retroactively applying to requirements imposed before the commencement of the Act. The Act does not explicitly state any exclusions or exemptions but modifies existing provisions to enhance compliance mechanisms. The application of the Act can be further refined through subordinate instruments, although the primary text does not detail such extensions or restrictions.

Key Provisions

The Social Security Legislation Amendment (Job Seeker Compliance) Act 2011 amends the Social Security (Administration) Act 1999 to introduce new compliance measures for job seekers. The main operative sections of this Act pertain to the imposition of reconnection requirements and the non-payment of participation payments for certain failures. These amendments are designed to ensure that job seekers comply with their obligations under employment pathway plans. The Act imposes several obligations on job seekers, including the requirement to participate in activities and attend appointments as outlined in their employment pathway plans. If a job seeker fails to participate in an activity or attend an appointment, or if they fail to comply with a reconnection requirement, the Secretary must or may require the job seeker to comply with a reconnection requirement. The Secretary must also notify the job seeker of the consequences of not complying with the reconnection requirement. Furthermore, the Secretary may determine that a participation payment is not payable to the job seeker if they fail to comply with certain requirements, and this non-payment may extend to a period specified by the Secretary. The Act also introduces penalties for breaches of the new compliance measures. If a job seeker fails to comply with a reconnection requirement, they may face the non-payment of participation payments for a specified period. This non-payment is intended to incentivize compliance with employment pathway plans. Additionally, the Act provides that the Secretary may decide for other reasons that an excuse is not a reasonable excuse for a failure to comply with certain requirements. The consequences for breaches of the Act include the non-payment of participation payments and potential penalties. Job seekers who fail to comply with their obligations may have their participation payments withheld for a specified period. The exact penalties and consequences are detailed in the amended sections of the Social Security (Administration) Act 1999, which now include provisions for immediate non-payment of participation payments for certain failures and the imposition of reconnection requirements.

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