Centrelink and participation failures Welfare Rights Centre, Sydney April 2008

Welfare Rights Centre community legal centre specialising in social security law provides information, advice and representation to individuals in all social security matters policy/law reform Publications:- Independent Social Security Handbook - Rights Review - Factsheets and Self Help kits/forms community education covers most of NSW free service / , TTY advice Mon, Wed, Thurs & Fri: 9am to 1pm; Tues: 1pm to 5pm

Participation Failures Since 1 July 2006 a new penalty regime has applied to the following; –All people receiving Newstart/Youth Allowance (unemployed), including “principal carers” and people with a “partial capacity to work”; –Parenting Payment (single) recipients (who claimed after 1 July 2006) whose youngest child is between 6 and 8; –Parenting payment recipients who claimed payment before 1 July 2006, from 1 July 2007 or when their youngest child turns 7, whichever is later –Some people receiving Special Benefit who have an activity agreement (mostly Temporary Protection Visa holders) –People receiving Austudy or Youth Allowance (student).

There are two types of failures which lead to different penalties –“Participation failure” – may lead to suspension of payment until compliance –“Serious participation failure” – immediate 8 week non payment

Newstart/Youth Allowance “principal carer” “partial capacity to work” - Different, less onerous participation requirements - Supplementary payments and concession cards

Partial capacity to work assessment Job Capacity Assessment –Determines a person’s capacity for work in hour bandwidths –Undertaken by allied health professionals – not necessarily matched to persons illness/disability –DHS – mainly government providers, some private

Participation failures Failure to comply with reasonable requirement Failure to satisfy activity test (not PP) Failure to comply with terms of an activity agreement (not Austudy or PP) Failure to comply with requirement to enter into an activity agreement (not Austudy) Failure to attend job interview (not Austudy) Failure to commence, complete, participate in Work for the Dole ( not Austudy)

Failure to continue involvement in a Labour Market Program (not Austudy) Failure to comply with a notice to seek certain number of jobs (not Austudy or PP) Failure to supply ECC’s (not Austudy or PP) Failure in relation to lodging and completing the Job Seeker Diary (not Austudy or PP) Failure to comply with requirement to undertake another activity Failure to undertake particular paid work – PP only

no failure should be imposed if the person has a reasonable excuse Matters Centrelink should consider -Homelessness/unstable accommodation -Lack of literacy/language skills -Mental illness/psychiatric illness -Physical illness, self or dependent -Unexpected caring responsibilities -Drug/alcohol dependency -Clash with paid employment -Clash with job interview -Lack of availability of transport, child care -Lack of awareness of requirement

–Any illness, impairment or condition requiring frequent treatment –Cognitive or neurological impairment –Death of family member –Recent release from prison –No failure if the requirement was to undertake “Unsuitable” work

When do the penalties take effect No penalty in 1 st fortnight, but “participation failure” can be recorded Rescheduled requirement – if attend no penalty if fail to attend (without reasonable excuse) payment suspended until compliance Failures to attend in 2 nd fortnight will attract further recorded “participation failures”

Serious participation failures –3 participations failures in 12months –Voluntarily becoming unemployed –Becoming unemployed due to misconduct –Refusing or failing to accept a suitable job offer –Failing to commence, participate in or complete full time work for the dole

Financial Case Management Payment of essential expenses during 8 week non payment period to value of payment the person would otherwise receive. Available to: –People with “vulnerable dependents” –People who are “exceptionally vulnerable”

Appeals Original Decision Maker 13 weeks to preserve back-pay Authorised Review Officer 13 weeks to preserve back-pay Social Security Appeals Tribunal 28 days Administrative Appeals Tribunal 28 days Federal Court (errors of law only) * time limits differ for Family Assistance decisions * no time limits for appealing debts up to the SSAT

The numbers 8 week non payment penalties –2006/ , 509 people –July 2007 to February ,359 people

The numbers Financial case management – – in 2006/ people accessed FCM –by December ,682 (total) had accessed FCM This is 6% of people with a serious failure Of those eligible for FCM one in three declined