Social Security (Satisfaction of the Activity Test - Classes of Persons) (DEEWR) Specification 2009 (No. 1)

Overview

The Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Specification 2009 (No. 1) is a legislative instrument made under subsections 541(1AB) and 601(4A) of the Social Security Act 1991. It was enacted to address a gap in the existing social security provisions by specifying certain classes of persons who would be exempt from satisfying the activity test, which is a requirement for eligibility for certain social security benefits. This specification was introduced to ensure that individuals who genuinely face significant barriers to employment, such as those receiving Stream 4 employment services, those with a low capacity to work, and principal carers of children, are not unfairly disadvantaged in their access to social security benefits. The instrument was prepared by the Department of Education, Employment and Workplace Relations and came into effect on 1 July 2009.

Scope and Application

The Social Security (Satisfaction of the Activity Test – Classes of Persons) Specification 2009 (No. 1) is a legislative instrument made under the Social Security Act 1991, commencing on 1 July 2009, and specifies certain classes of persons who are exempt from satisfying the activity test for social security benefits. The instrument applies to individuals receiving Stream 4 employment services, those who have a low capacity to work, and principal carers of one or more children. It is intended to support these groups by recognising their unique circumstances and the potential barriers they face in meeting traditional employment requirements. The instrument’s scope is national, as it is made under the Commonwealth Act and thus applies across Australia. The definition of 'low capacity to work' is particularly comprehensive, taking into account various impairments that hinder an individual’s ability to work 15 hours per week without ongoing support. This specification can be amended through subordinate instruments, as evidenced by the 2010 Amendment, which introduced further clarity and adjustments to the classes of persons covered.

Key Provisions

The Social Security (Satisfaction of the Activity Test – Classes of Persons) (DEEWR) Specification 2009 (No. 1) specifies the classes of persons who are exempt from the activity test under sections 541(1AA)(b)(i) and 601(4)(b)(i) of the Social Security Act 1991. According to section 4 of the specification, the classes of persons exempted include those receiving Stream 4 employment services, persons with a low capacity to work, and principal carers of one or more children. The definition of a person with a low capacity to work is provided in section 3 of the specification. To have a low capacity to work, a person must have a physical, intellectual, psychological, or psychiatric impairment that prevents them from doing 15 hours per week of work independently of a program of support, as defined in the specification. The Act imposes certain obligations on the parties or entities it governs. Firstly, it requires the Secretary to be satisfied that a person has a low capacity to work, as defined in section 2 of the specification. Secondly, it requires the Secretary to be satisfied that a person is receiving Stream 4 employment services or is a principal carer of one or more children. These obligations are necessary to determine whether a person is exempt from the activity test under the Act. Failure to comply with these obligations may result in the person being subject to the activity test, which may affect their eligibility for social security benefits. The Social Security Act 1991 provides for various offences, penalties, or civil/criminal consequences for breach. For example, section 541(1AB) of the Act provides for a maximum penalty of 20 penalty units for each day that a person fails to comply with the activity test. Similarly, section 601(4A) of the Act provides for a maximum penalty of 20 penalty units for each day that a person fails to comply with the requirements of the Act. These penalties are in addition to any other civil or criminal consequences that may apply under the Act or other legislation. It is important for parties or entities governed by the Act to be aware of these consequences and to take steps to ensure compliance with the Act.