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Social Security Legislation Amendment (Strengthening the Job Seeker Compliance Framework) Act 2014

Social Security Legislation Amendment (Strengthening the Job Seeker Compliance Framework) Act 2014

Administered by Department of Employment and Workplace Relations

Legislation au C2014A00131 In force Act

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No. 131, 2014

An Act to amend the law relating to social security, and for related purposes

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Main amendments

Part 1—Amendments commencing 1 January 2015

Social Security (Administration) Act 1999

Part 2—Amendments commencing 1 July 2015

Social Security (Administration) Act 1999

Social Security Legislation Amendment (Strengthening the Job Seeker Compliance Framework) Act 2014

No. 131, 2014

An Act to amend the law relating to social security, and for related purposes

[Assented to 12 December 2014]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Social Security Legislation Amendment (Strengthening the Job Seeker Compliance Framework) Act 2014.

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
Provisions	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.	12 December 2014
2. Schedule 1, Part 1	1 January 2015.	1 January 2015
3. Schedule 1, Part 2	1 July 2015.	1 July 2015

Note: This table relates only to the provisions of this Act as originally enacted.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 Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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

Part 1—Amendments commencing 1 January 2015

Social Security (Administration) Act 1999

1 After paragraph 42G(c)

Insert:

(ca) a person fails to attend an appointment that the person is required to attend by a notice under subsection 63(2); or

2 Paragraph 42G(d)

Omit “a requirement”, substitute “any other requirement”.

3 Paragraph 42G(e)

Omit “paragraph (b) or (c)”, substitute “paragraph (b), (c) or (ca)”.

4 After paragraph 42SA(1)(b)

Insert:

(ba) the person fails to attend an appointment that the person is required to attend by a notice under subsection 63(2); or

5 Subsection 42SA(1) (notes 1 and 2)

Repeal the notes, substitute:

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

6 Paragraph 42SA(2)(a)

Repeal the paragraph, substitute:

(a) for a failure referred to in paragraph (1)(a), (b) or (ba):

(i) if the person complies with the reconnection requirement imposed on the person under paragraph 42G(e) because of that failure—the day before the day on which the person so complies; or

(ii) if the person fails to comply with the reconnection requirement imposed on the person under paragraph 42G(e) because of that failure—the day before the day on which the person first commits the failure to comply with that reconnection requirement; or

(aa) for a failure referred to in paragraph (1)(c)—the day before the day on which the person complies with a reconnection requirement or further reconnection requirement; or

7 Paragraph 42SA(2)(b)

After “paragraph (a)”, insert “or (aa)”.

8 After subsection 42SA(2)

Insert:

(2AA) If:

(a) a participation payment is not payable to a person for a period (the non‑payability period) under subsection (2) because of the person’s failure to attend an appointment with the person’s employment provider; and

(b) on a day (the relevant day), the Secretary requires the person to attend a rescheduled appointment with the person’s employment provider; and

then, despite subsection (2), the non‑payability period is taken to end under that subsection at the end of the relevant day.

Note 1: The requirement to attend the rescheduled appointment will be a reconnection requirement or further reconnection requirement.

Note 2: For business day, see section 2B of the Acts Interpretation Act 1901.

(2A) If:

(a) a participation payment is not payable to a person for a period under subsection (2); and

(b) the participation payment is payable to the person for any days occurring before that period begins;

then, despite any other provision of the social security law, the Secretary may withhold payment of the participation payment to the person for those days until that period ends.

8A At the end of section 42SA

Add:

(4) The Secretary must notify the person of a determination under subsection (1). The Secretary may do so in any way that the Secretary considers appropriate.

9 After subsection 64(1)

Insert:

(1A) Subsection (1) does not apply if:

(a) the person is receiving a participation payment; and

(b) the person fails to attend an appointment that the person is required to attend by a notice under subsection 63(2); and

12 Application and transitional provisions

(1) The amendments made by items 1, 3, 4, 6, 8 and 9 apply in relation to failures that are first committed on or after the commencement of those items (where the requirements arose before, on or after that commencement).

(2) For the purposes of paragraph 42SA(2A)(b) of the Social Security (Administration) Act 1999, as inserted by this Part, disregard days occurring before the commencement of this item.

Part 2—Amendments commencing 1 July 2015

Social Security (Administration) Act 1999

20 Section 42A

Omit:

• 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.

substitute:

• The Secretary may also determine that a participation payment is not payable to a person for a period because of certain failures. Once that period ends, the person may be able to receive back pay. For a failure to attend an appointment, a penalty amount may be deducted from the person’s participation payment.

21 At the end of subsection 42SA(3)

Add:

Note: For a failure referred to in paragraph (1)(b) or (ba), a penalty amount may be deducted from the person’s participation payment: see Subdivision EC.

22 After Subdivision EB of Division 3A of Part 3

Insert:

Subdivision EC—Non‑attendance failures

42SC Non‑attendance failures

(1) The Secretary may determine that a person commits a non‑attendance failure if the Secretary makes a determination under subsection 42SA(1) because of the person’s failure referred to in paragraph 42SA(1)(b) or (ba).

(2) Despite subsection (1), the Secretary must not determine that a person commits a non‑attendance failure if the person satisfies the Secretary that the person has a reasonable excuse for the person’s failure referred to in paragraph 42SA(1)(b) or (ba).

Note: The Secretary must take certain matters into account for the purposes of subsection (2) (see section 42U). See also section 42UA (about prior notification of excuses).

Determining an instalment period

(3) The Secretary must include in a determination under this section the instalment period in which a penalty amount (see section 42T) for the non‑attendance failure is to be deducted from the person’s instalment of a participation payment.

42SD Deduction of penalty amount

If the Secretary determines that a person commits a non‑attendance failure, the person’s penalty amount (see section 42T) for the non‑attendance failure is to be deducted from the person’s instalment of a participation payment for the instalment period determined under subsection 42SC(3).

Note: The balance of the penalty amount is to be deducted from instalments of the participation payment for any later instalment periods, or from any instalments of any other participation payment paid to the person (see section 42V).

23 Subsection 42T(1)

Omit “or a reconnection failure”, substitute “, a reconnection failure or a non‑attendance failure”.

24 After subsection 42T(3)

Insert:

(3A) The method determined for a non‑attendance failure that a person commits must not provide for a penalty amount, in respect of a day in the non‑attendance failure penalty period, that is more than the following:

Note: Any amount withheld under subsection 42SA(2A) for days in the instalment period remains an amount payable to the person for the instalment period.

(3B) For the purposes of subsection (3A), the non‑attendance failure penalty period is the period:

(a) beginning on the day the person is notified by the Secretary of the determination under subsection 42SA(1); and

(b) ending on the day the period under subsection 42SA(2) ends.

25 At the end of subsection 42U(1)

Add:

; or (e) a non‑attendance failure (see subsection 42SC(2)).

26 Subsection 42UA(2)

After “or 42H(3)(a)”, insert “or subsection 42SC(2)”.

27 Section 42V

Omit “or a reconnection failure”, substitute “, a reconnection failure or a non‑attendance failure”.

28 Section 42V

Omit “or 42L”, substitute “, 42L or 42SD”.

29 Section 42X

Omit “or a reconnection failure”, substitute “, a reconnection failure or a non‑attendance failure”.

30 Subclause 1(1) of Schedule 1

Insert:

non‑attendance failure has the meaning given by subsection 42SC(1).

31 Subclause 1(1) of Schedule 1 (definition of penalty amount)

Omit “or a reconnection failure”, substitute “, a reconnection failure or a non‑attendance failure”.

32 Application provision

Subsection 42SC(1) of the Social Security (Administration) Act 1999, as inserted by this Part, applies in relation to failures referred to in paragraph 42SA(1)(b) or (ba) of that Act that are first committed on or after the commencement of this item (where the requirements arose before, on or after that commencement).

[Minister’s second reading speech made in—

House of Representatives on 25 September 2014

Senate on 30 October 2014]

(206/14)

Overview

The Social Security Legislation Amendment (Strengthening the Job Seeker Compliance Framework) Act 2014 was enacted by the Parliament of Australia to amend the existing social security law, particularly targeting job seeker compliance. This Act seeks to address issues within the existing social security framework by introducing stricter compliance measures for job seekers. The primary policy objective behind this Act is to ensure that job seekers adhere to the obligations set forth in their agreements with the Secretary, particularly focusing on attendance at required appointments. By implementing these amendments, the Act aims to strengthen the compliance framework and ensure that job seekers are held accountable for their participation in the social security system. The Act introduces amendments to the Social Security (Administration) Act 1999, effective from 1 January 2015 and 1 July 2015. These amendments include the introduction of penalties for non-attendance at required appointments, the ability to withhold payments for certain failures, and the introduction of a penalty amount deduction for non-attendance failures. The amendments are designed to improve the accountability and effectiveness of the social security system by ensuring that job seekers comply with their obligations.

Scope and Application

The Social Security Legislation Amendment (Strengthening the Job Seeker Compliance Framework) Act 2014 is an Australian Act that amends the law relating to social security. It primarily targets individuals who are recipients of social security benefits, specifically those subject to the Social Security (Administration) Act 1999, by enhancing the compliance framework for job seekers. This Act applies across Australia, impacting all entities and individuals who fall under the purview of the Social Security (Administration) Act 1999, including Centrelink, which administers the social security payments. The amendments introduced by this Act took effect in two phases, with the first set of amendments commencing on 1 January 2015, and the second set on 1 July 2015. The Act extends its application through subordinate instruments, allowing for further detailed regulations and rules to be established by the Secretary of the Department of Social Services. This legislation does not explicitly state any exclusions, exemptions, or thresholds; however, it does provide specific provisions for reasonable excuses and penalty amounts in relation to non-attendance failures, ensuring a balanced approach to compliance enforcement.

Key Provisions

The Social Security Legislation Amendment (Strengthening the Job Seeker Compliance Framework) Act 2014 introduces significant changes to the Social Security (Administration) Act 1999. Starting from 1 January 2015, it adds new reasons for non-payment of participation payments, such as failing to attend required appointments, and it modifies the conditions under which a reconnection requirement must be imposed (sections 1 and 3). The Act also introduces a new condition where a participation payment is not payable if the person fails to attend an appointment and the rescheduled appointment is more than two business days after the original missed appointment (section 8). It is important to note that if a participation payment is not payable for a certain period due to such failures, the Secretary may withhold payment for any days before that period begins until the non-payability period ends (section 8A). These changes apply to failures committed on or after the commencement of these items, irrespective of when the requirements arose (section 12(1)). The obligations imposed on the parties under this Act include strict adherence to appointment attendance requirements for job seekers. Job seekers are now required to attend all scheduled appointments with their employment providers, failure to do so could lead to non-payment of participation payments and the imposition of reconnection requirements. The Secretary is obligated to notify job seekers of any determinations related to their participation payments (section 4). Furthermore, the Secretary is tasked with determining if a job seeker commits a non-attendance failure, which can lead to a penalty deduction from their participation payments (section 42SC). The Secretary must also consider any reasonable excuses for non-attendance before making such a determination (section 42SC(2)). Breach of the provisions introduced by this Act can result in both civil and criminal consequences. Non-payment of participation payments due to failure to attend required appointments or other specified failures can be enforced through civil penalties. Additionally, the Secretary has the authority to deduct a penalty amount from the job seeker's participation payment for non-attendance failures (section 42SD). The Act also imposes limits on the amount of penalty that can be deducted, ensuring that it does not exceed the maximum allowable under the provisions (section 42T(3A)). The precise nature and extent of any penalties or consequences would be detailed in the relevant sections of the Social Security (Administration) Act 1999 as amended by this Act.

Area of Law: Social Security Law
Instrument: Act
Concepts: Commencement Provisions; Prohibited Conduct; Penalty Provisions; Regulatory Standards; Reporting & Disclosure Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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