Social Security (Reasonable Excuse) (DEWR) Determination 2006

Administered by Department of Education, Employment and Workplace Relations

Legislation au F2006L00340 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Social Security (Reasonable Excuse) (DEWR) Determination 2006

Summary

This Determination is made under subsections 500ZA(2A); 500ZB(2A); 500ZE(1A); 550(2A); 550B(2A); 551(1A); 624(2A) 626 (2A) and 629 (1A) of the Social Security Act 1991 (the Act).

The purpose of this Determination is to set out matters that the Secretary must take into account in deciding whether a person has a reasonable excuse for committing a participation failure, failing to comply with a requirement or for refusing to accept a suitable offer of employment.  The Determination is relevant for parenting payment, youth allowance (except for people undertaking full-time study or new apprentices) and newstart allowance.

Explanation of the determination

Recipients of parenting payment, youth allowance and newstart allowance may commit a participation failure if they fail to comply with a participation requirement under the Act.  Unless the Secretary is satisfied that the person has a reasonable excuse, job seekers who persist in non-compliance or who refuse to accept a suitable offer of employment may have their social security payment withdrawn until they comply. In deciding whether a person had a reasonable excuse the Secretary must take into account matters which are set out in this Determination.  

Explanation of the provisions

Section 1 sets out the name of the Determination. Section 2 sets out the commencement date of the Determination being 1 July 2006.  This corresponds with the commencement of the provisions of the Act under which the Determination is made.    Section 3 sets out the definitions to be used in the Determination with terms appearing in the Determination having the same meaning as in the Act.

Subsection 4(1) lists the provisions in the Act relating to parenting payment, youth allowance and newstart allowance for which the matters in subsection 4(2) need to be taken into account.   For the purposes of the listed provisions, subsection 4(1) makes it clear that the matters which are listed in subsection 4(2) are to be taken into account only where the Secretary has reason to believe that one or more of the matters is relevant to whether the person had a reasonable excuse for the participation failure or job refusal, as the case may be.

Subsection 4(2) lists each of the individual matters that need to be taken into account  for determining if a person has a reasonable excuse for non compliance or failing to take a job.  However, the effect of  subsection 4(3) is that each of the matters only need to be taken into account where the Secretary is satisfied that the matter had a significant effect on the person’s capacity to comply with the Act to which the failure or refusal of a job relates.

The first matter under paragraph  4(2)(a) the Secretary needs to take account of is the fact that the person was living in a non-permanent location on the streets, using emergency accommodation or  refuge at the time the failure or refusal occurred. This recognises that due to a person’s instability of accommodation and circumstances, it may be more difficult for the person to meet his or her activity test obligations.

 

Under paragraph 4(2)(b), the person’s language and literacy skills need to be taken into account if the lack of such skills is significant.  Such lack of skills is illustrated by an example, being where a person is unable to comprehend an instruction although it is delivered in a form the person is most likely to understand.  This is to take into account that people with very poor literacy skills may be faced with a situation where they have not read and understood what is required of them and therefore fail to comply with a requirement, such as respond to correspondence which, as a result, could lead to a participation failure.

Under paragraph 4(2)(c), any illness of the person that requires frequent treatment must be taken into account.  Such an illness includes an illness that is episodic or unpredictable.  People who have an episodic or unpredictable illness may not always be able to plan ahead to take into account a flare up of their condition.  Paragraph 4(2)(c) recognises that this could lead to a person being unable to attend an appointment or interview.

Paragraphs 4(2)(d) and (e) require that any cognitive, neurological impairment, psychiatric impairment or mental illness of the person are taken into account.  This appreciates that a person may be unable to comply with his or her obligations as a result of one of these conditions.  For example, a neurological impairment may make it very difficult for a person to consistently attend appointments.

Under paragraph (4)(2)(f) any drug or alcohol dependency of the person needs to be considered.  This acknowledges that in some cases such a dependency is so significant that it impacts on the person’s everyday functioning and capacity to comply with income support requirements.

Paragraph 4(2)(g) requires consideration of any unforeseen significant family or caring responsibilities. This takes account of situations where a person is unexpectedly required to meet a family responsibility and it is clear that appropriate alternative arrangements were unable to be made.

Paragraph (4)(2)(h) requires the death of an immediate family member to be taken into account.  This acknowledges that the crisis associated with the death of an immediate family member may inhibit a person’s capacity to comply with the Act, which could lead to a participation failure.

Under paragraph 4(2)(i) if the person has been in gaol for a period of more than 14 days, the person’s release from gaol must be considered where the person has been released in the past 28 days.  This recognises that a person who is recently released from gaol may undergo a period of adjustment which could impact upon the person’s initial capacity to comply with the Act.

 

 

Consultation

The Department of Families, Community Services and Indigenous Affairs and the Department of Education, Science and Training were consulted to ensure a co-ordinated and consistent approach for all social security payments under the Act in respect of matters to be taken into account in deciding whether a person has a reasonable excuse for a  participation failure or refusing to accept a job.

Consultations were undertaken with the following organisations. 

-          National Welfare Rights Network;

-          the Australian Council of Social Service;

-          the National Council of Single Mother and their Children;

-          the Sole Parents’ Union;

-          the Welfare to Work Consultative Forum; and

-          the Disability Advisory Group.

The organisations consulted were provided with a draft of the Determination and were invited to provide comments at a forum held on 13 January 2006 and to provide written comments to the Department of Employment and Workplace Relations.

 

Overview

The Social Security (Reasonable Excuse) (DEWR) Determination 2006 was enacted to address the gap in the Social Security Act 1991 concerning the criteria for determining what constitutes a reasonable excuse for non-compliance with participation requirements by recipients of parenting payment, youth allowance, and newstart allowance. This Determination, made under various subsections of the Act, outlines the factors that the Secretary must consider when deciding whether an individual has a reasonable excuse for not meeting these requirements. The policy objective is to ensure that social security payments are withdrawn from job seekers who persistently fail to comply with the Act only if the Secretary is satisfied that they have a valid reason for their non-compliance. This approach aims to balance the need for compliance with the understanding of the individual circumstances that may impede adherence to the Act's obligations. The Department of Employment and Workplace Relations, along with other relevant departments and organisations, were consulted to ensure a coordinated and consistent approach in applying these considerations.

Scope and Application

The Social Security (Reasonable Excuse) (DEWR) Determination 2006 applies to individuals receiving parenting payment, youth allowance (excluding those undertaking full-time study or new apprentices), and newstart allowance, setting out the matters the Secretary must consider when deciding if a recipient has a reasonable excuse for failing to comply with participation requirements or refusing suitable employment. The scope of this Determination is national, applying across Australia and governed by the Social Security Act 1991. It specifies various factors that the Secretary must take into account, such as living conditions, language and literacy skills, illness, cognitive or neurological impairments, drug or alcohol dependency, family responsibilities, the death of an immediate family member, and recent release from prison. However, these factors are only considered if they significantly affected the individual's capacity to comply with the Act. The determination extends its application through subordinate instruments, ensuring a consistent approach across all relevant social security payments.

Key Provisions

The Social Security (Reasonable Excuse) (DEWR) Determination 2006 provides critical guidance under sections 500ZA(2A), 500ZB(2A), 500ZE(1A), 550(2A), 550B(2A), 551(1A), 624(2A), 626(2A), and 629(1A) of the Social Security Act 1991. It outlines specific circumstances that the Secretary must consider when deciding if a person has a reasonable excuse for non-compliance with participation requirements or refusal of a job offer. The determination applies to recipients of parenting payments, youth allowances, and newstart allowances. The primary goal is to ensure that the Secretary assesses whether an individual's situation justifies a deviation from compliance with social security obligations. The obligations imposed by this Determination on the recipients of social security payments are significant. These individuals must comply with participation requirements, such as job search activities or training programs. If they fail to do so, the Secretary must consider whether there was a reasonable excuse for this non-compliance. The determination lists specific factors, such as living in a non-permanent location, language and literacy difficulties, illness, or family responsibilities, that may serve as reasonable excuses. The Secretary must take these factors into account when making a decision. Additionally, the recipient has an obligation to provide any relevant evidence or information that supports their claim of a reasonable excuse. Failure to comply with participation requirements or refusing a suitable job offer without a reasonable excuse can lead to severe consequences. The Secretary may decide to withdraw social security payments until the recipient complies with the requirements. This withdrawal can significantly impact the recipient's financial stability and access to essential services. For those who persist in non-compliance or refusal, the determination sets out a clear pathway for the Secretary to enforce the participation requirements strictly. The decision to withdraw payments is a significant deterrent and is designed to ensure that recipients remain engaged in the job market and actively seek employment. The Social Security (Reasonable Excuse) (DEWR) Determination 2006 also outlines the potential penalties and consequences for those who breach the provisions of the Act. The primary consequence is the withdrawal of social security payments. This withdrawal continues until the recipient complies with the participation requirements or accepts a suitable job offer. While the determination does not specify a monetary penalty, the financial hardship resulting from the loss of income support can be substantial. Additionally, repeated non-compliance or refusal to accept a job may lead to further enforcement actions, including potential legal proceedings to compel compliance. The seriousness of these consequences underscores the importance of adhering to the participation requirements set forth by the Act.

Legal classification tags

Area of Law
Social Security Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Offence Provisions
Reporting & Disclosure Obligations
Administrative Discretion

Interactions

Authorises

All Versions

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.