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SOCIAL SECURITY LEGISLATION AMENDMENT (FURTHER STRENGTHENING JOB SEEKER COMPLIANCE) BILL 2015

 

 

 

2013-2014-2015 

 

The Parliament of the 

Commonwealth of Australia 

 

HOUSE OF REPRESENTATIVES 

 

 

 

 

Presented and read a first time 

 

 

 

 

Social Security Legislation Amendment 

(Further Strengthening Job Seeker 

Compliance) Bill 2015 

 

No.      , 2015 

 

(Employment) 

 

 

 

A Bill for an Act to amend the law relating to social 

security, and for related purposes 

   

   

 

 

No.      , 2015 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

i 

 

Contents 

Short title ........................................................................................... 1

 

Commencement ................................................................................. 1

 

Schedules ........................................................................................... 2

 

Schedule 1--Amendments

 

3

 

Social Security (Administration) Act 1999

 

3

 

 

 

 

 

No.      , 2015 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

1 

 

A Bill for an Act to amend the law relating to social 

security, and for related purposes 

The Parliament of Australia enacts: 

1  Short title 

 

  This Act may be cited as the Social Security Legislation 

Amendment (Further Strengthening Job Seeker Compliance) Act 

2015

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 

10 

column 2 of the table. Any other statement in column 2 has effect 

11 

according to its terms. 

12 

   

   

 

 

2 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

No.      , 2015 

 

 

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. 

 

2.  Schedule 1 

1 July 2016. 

1 July 2016 

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 

10 

concerned, and any other item in a Schedule to this Act has effect 

11 

according to its terms. 

12 

Amendments  Schedule 1 

   

 

 

No.      , 2015 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

3 

 

Schedule 1

--Amendments 

   

Social Security (Administration) Act 1999 

1  Section 42A 

Repeal the section, substitute: 

42A  Simplified outline of this Division 

•  

The Secretary may determine that a person commits a no 

show no pay failure or a serious failure. 

•  

A person commits such a failure by failing to comply with his 

or her obligations in relation to a participation payment. The 

10 

participation payments are newstart allowance, and for some 

11 

people, youth allowance, parenting payment or special benefit. 

12 

•  

For a no show no pay failure, a penalty amount is deducted 

13 

from the person's participation payment. 

14 

•  

For a serious failure, a participation payment is generally not 

15 

payable to the person for 8 weeks, although in certain 

16 

circumstances a shorter period applies. 

17 

•  

The Secretary may also determine that a person is unemployed 

18 

as a result of a voluntary act or misconduct. If the Secretary 

19 

does so, a participation payment is not payable to the person 

20 

for either 8 or 12 weeks, depending on the circumstances. 

21 

•  

The Secretary may also determine that a participation payment 

22 

is not payable to a person for a period because of certain 

23 

failures. Once that period ends, the person may be able to 

24 

receive back pay. 

25 

2  Subdivision B of Division 3A of Part 3 (heading) 

26 

Repeal the heading, substitute: 

27 

Schedule 1  Amendments 

   

 

 

4 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

No.      , 2015 

 

Subdivision B--No show no pay failures relating to 

participation in activities or to job interviews etc. 

3  Section 42C (heading) 

Repeal the heading, substitute: 

42C  No show no pay failures relating to participation in activities or 

to job interviews etc. 

4  Subsection 42C(4) 

After "determine", insert ", under that subsection,". 

5  Paragraph 42C(4)(c) 

Repeal the paragraph, substitute: 

10 

 

(c)  in respect of that day, there is a penalty amount, for the 

11 

person, because of a determination under 

12 

subsection 42SC(1). 

13 

6  Subsection 42C(5) 

14 

Omit ", provided that the penalty amount may not be deducted until at 

15 

least the instalment after the first instalment made following notification 

16 

to the person of the no show no pay failure". 

17 

7  Section 42D 

18 

After "determines", insert "under section 42C". 

19 

8  Subdivision C of Division 3A of Part 3 

20 

Repeal the Subdivision. 

21 

9  Paragraph 42M(1)(a) 

22 

Omit "(including by committing no show no pay failures, connection 

23 

failures or reconnection failures)". 

24 

10  Section 42NC 

25 

Repeal the section. 

26 

Amendments  Schedule 1 

   

 

 

No.      , 2015 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

5 

 

11  Subsection 42P(1) 

Repeal the subsection, substitute: 

Participation payment not payable during serious failure period 

 

(1)  If the Secretary determines that a person commits a serious failure, 

a participation payment is not payable to the person during the 

person's serious failure period. 

Note 1: 

For a determination under subsection 42M(1), the Secretary may end a 

serious failure period under section 42Q. 

Note 2: 

For a determination under subsection 42M(1), the Secretary may 

determine that a participation payment is payable, despite this section, 

10 

under section 42R. 

11 

Note 3: 

The Secretary may continue the participation payment pending the 

12 

outcome of an application for review (see sections 131 and 145). 

13 

12  Subsection 42P(3) 

14 

After "determines", insert "under subsection 42M(1)". 

15 

13  Subsection 42Q(1) 

16 

Omit "The Secretary may end a person's", substitute "If the Secretary 

17 

determines under subsection 42M(1) that a person commits a serious 

18 

failure, the Secretary may end the person's". 

19 

14  Subsection 42Q(3) 

20 

Repeal the subsection. 

21 

15  Subsection 42R(1) 

22 

Omit "The Secretary may determine that, despite a person's", substitute 

23 

"If the Secretary determines under subsection 42M(1) that a person 

24 

commits a serious failure, the Secretary may determine that, despite the 

25 

person's". 

26 

16  Before paragraph 42SA(1)(a) 

27 

Insert: 

28 

 

(aa)  the person fails to comply with a requirement, under 

29 

section 501, 544A, 605 or 731L of the 1991 Act, to enter into 

30 

an employment pathway plan; or 

31 

Schedule 1  Amendments 

   

 

 

6 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

No.      , 2015 

 

17  After paragraph 42SA(1)(b) 

Insert: 

 

(baa)  an employment pathway plan is in force in relation to the 

person and the person fails to satisfy the Secretary that the 

person has undertaken adequate job search efforts in relation 

to a period worked out in accordance with the plan; or 

18  Paragraph 42SA(1)(c) 

Repeal the paragraph, substitute: 

 

(c)  the Secretary is satisfied that, during an appointment 

mentioned in paragraph (b) or (ba) that the person attended, 

10 

the person acted in an inappropriate manner such that the 

11 

purpose of the appointment was not achieved. 

12 

19  Subsection 42SA(1) (note) 

13 

Repeal the note, substitute: 

14 

Note 1: 

For paragraph (1)(baa), see also subsections (1B) to (1D). 

15 

Note 2: 

For paragraph (1)(c), see also subsections (5) to (7). 

16 

20  Before subsection 42SA(1A) 

17 

Insert: 

18 

Exception--section 42SB applies 

19 

21  After subsection 42SA(1A) 

20 

Insert: 

21 

Adequate job search efforts 

22 

 

(1B)  For the purposes of paragraph (1)(baa), the question whether a 

23 

person has undertaken adequate job search efforts in relation to a 

24 

particular period is to be worked out in accordance with a 

25 

determination in force under subsection (1C). 

26 

 

(1C)  The Secretary must, by legislative instrument, make a 

27 

determination for the purposes of subsection (1B). 

28 

 

(1D)  If the Secretary makes a determination under subsection (1) 

29 

because of paragraph (1)(baa) applying, the Secretary must notify 

30 

Amendments  Schedule 1 

   

 

 

No.      , 2015 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

7 

 

the person, in any way that the Secretary considers appropriate, of 

requirements the person must comply with. Those requirements 

must be related to undertaking job searches. 

22  Subsection 42SA(2) 

Repeal the subsection, substitute: 

Period participation payment is not payable 

 

(2)  The participation payment is not payable to the person for the 

period worked out in accordance with the following table: 

 

Non-payability period 

Item 

Column 1 

If this paragraph 

applies: 

Column 2 

The period begins on 

this day: 

Column 3 

The period ends at the 

end of this day: 

Paragraph (1)(aa) 

The day the person first 

commits the failure 

The day before the person 

complies with a further 

requirement, under 

section 501, 544A, 605 or 

731L of the 1991 Act, to 

enter into an employment 

pathway plan 

Paragraph (1)(a) 

The day the person first 

commits the failure 

The day before the person 

attends an appointment the 

Secretary, by a notice 

under subsection 63(2), 

requires the person to 

attend because of that 

paragraph applying 

Paragraph (1)(b) 

The day the person first 

commits the failure 

The day before the person 

attends an appointment the 

Secretary, by a notice 

under subsection 63(2), 

requires the person to 

attend because of that 

paragraph applying 

Paragraph (1)(baa) 

The day the person 

fails to satisfy the 

Secretary of the matter 

The day before the person 

satisfies the Secretary that 

the person has complied 

Schedule 1  Amendments 

   

 

 

8 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

No.      , 2015 

 

Non-payability period 

Item 

Column 1 

If this paragraph 

applies: 

Column 2 

The period begins on 

this day: 

Column 3 

The period ends at the 

end of this day: 

referred to in that 

paragraph 

with the requirements 

notified to the person 

under subsection (1D) 

Paragraph (1)(ba) 

The day the person first 

commits the failure 

The day before the person 

attends an appointment the 

Secretary, by a notice 

under subsection 63(2), 

requires the person to 

attend because of that 

paragraph applying 

Paragraph (1)(c) 

The day of the 

appointment 

The day before the person 

attends an appointment the 

Secretary, by a notice 

under subsection 63(2), 

requires the person to 

attend because of that 

paragraph applying 

 

(2AAA)  If, in relation to a person and a period under subsection (2), the 

Secretary determines that an earlier day is more appropriate than 

the day that would otherwise apply under column 3 of an item in 

the table in that subsection, then that period ends under that 

subsection at the end of that earlier day. 

23  Paragraph 42SA(2AA)(a) 

Omit "employment provider", substitute "employment service 

provider". 

24  Paragraph 42SA(2AA)(b) 

After "Secretary", insert ", by a notice under subsection 63(2),". 

10 

25  Paragraph 42SA(2AA)(b) 

11 

Omit "employment provider", substitute "employment service 

12 

provider". 

13 

Amendments  Schedule 1 

   

 

 

No.      , 2015 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

9 

 

26  Subsection 42SA(2AA) (note 1) 

Repeal the note. 

27  Subsection 42SA(2AA) (note 2) 

Omit "Note 2", substitute "Note". 

28  Before subsection 42SA(2A) 

Insert: 

Withholding payment 

29  Before subsection 42SA(3) 

Insert: 

When participation payment becomes payable again 

10 

30  Subsection 42SA(3) (note) 

11 

Omit "Note", substitute "Note 1". 

12 

31  Subsection 42SA(3) (note) 

13 

Omit "paragraph (1)(b) or (ba)", substitute "paragraph (1)(aa), (b), (ba) 

14 

or (c)". 

15 

32  At the end of subsection 42SA(3) 

16 

Add: 

17 

Note 2: 

If a period ends under subsection (2) in relation to a person and a 

18 

participation payment becomes payable to the person for that period, 

19 

section 42C may apply in relation to a day in that period. 

20 

33  Before subsection 42SA(4) 

21 

Insert: 

22 

Notification of determination 

23 

34  At the end of section 42SA 

24 

Add: 

25 

Schedule 1  Amendments 

   

 

 

10 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

No.      , 2015 

 

Legislative instrument--paragraph (1)(c) 

 

(5)  The Secretary may, by legislative instrument, determine matters 

that the Secretary must take into account in deciding whether 

paragraph (1)(c) applies in relation to a person. 

 

(6)  If the Secretary makes such an instrument, in deciding whether 

paragraph (1)(c) applies in relation to a person, the Secretary must 

take those matters into account. 

 

(7)  To avoid doubt, subsection (6) does not limit the matters that the 

Secretary may take into account in deciding whether 

paragraph (1)(c) applies in relation to a person. 

10 

35  Subdivision EC of Division 3A of Part 3 (heading) 

11 

Repeal the heading, substitute: 

12 

Subdivision EC--No show no pay failures relating to 

13 

appointments or to entry into employment pathway 

14 

plans 

15 

36  Section 42SC (heading) 

16 

Repeal the heading, substitute: 

17 

42SC  No show no pay failures relating to appointments or to entry 

18 

into employment pathway plans 

19 

37  Subsection 42SC(1) 

20 

Omit "non-attendance failure", substitute "no show no pay failure". 

21 

38  Subsection 42SC(1) 

22 

Omit "the person's failure referred to in paragraph 42SA(1)(b) or (ba)", 

23 

substitute "paragraph 42SA(1)(aa), (b), (ba) or (c) applying". 

24 

39  Subsection 42SC(2) 

25 

Repeal the subsection, substitute: 

26 

 

(2)  Despite subsection (1), the Secretary must not determine, under 

27 

that subsection, that a person commits a no show no pay failure if 

28 

Amendments  Schedule 1 

   

 

 

No.      , 2015 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

11 

 

the person satisfies the Secretary that the person has a reasonable 

excuse for: 

 

(a)  in relation to paragraph 42SA(1)(aa), (b) or (ba)--the 

person's failure referred to in that paragraph; or 

 

(b)  in relation to paragraph 42SA(1)(c)--the manner in which 

the person acted during the appointment referred to in that 

paragraph. 

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). 

10 

40  Subsection 42SC(3) 

11 

Omit "non-attendance failure", substitute "no show no pay failure". 

12 

41  Section 42SD 

13 

After "determines", insert "under section 42SC". 

14 

42  Section 42SD 

15 

Omit "non-attendance failure" (wherever occurring), substitute "no 

16 

show no pay failure". 

17 

43  Subsection 42T(1) 

18 

Omit ", a reconnection failure or a non-attendance failure". 

19 

44  Before subsection 42T(2) 

20 

Insert: 

21 

No show no pay failures under subsection 42C(1) 

22 

45  Subsection 42T(2) 

23 

After "no show no pay failure", insert "under subsection 42C(1)". 

24 

46  Subsection 42T(3) 

25 

Repeal the subsection. 

26 

47  Before subsection 42T(3A) 

27 

Insert: 

28 

Schedule 1  Amendments 

   

 

 

12 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

No.      , 2015 

 

No show no pay failures under subsection 42SC(1) 

48  Subsection 42T(3A) 

Omit "a non-attendance failure", substitute "a no show no pay failure 

under subsection 42SC(1)". 

49  Subsection 42T(3A) 

Omit "non-attendance failure penalty period", substitute "applicable 

penalty period". 

50  Subsection 42T(3B) 

Repeal the subsection, substitute: 

 

(3B)  For the purposes of subsection (3A), the applicable penalty period 

10 

is the period: 

11 

 

(a)  beginning on the day the person is notified by the Secretary 

12 

of the determination under subsection 42SA(1); and 

13 

 

(b)  ending on: 

14 

 

(i)  the day the period under subsection 42SA(2) ends; or 

15 

 

(ii)  if the Secretary determines under subsection (3C) of this 

16 

section that an earlier day is more appropriate than the 

17 

day that would otherwise apply under 

18 

subparagraph (i)--that earlier day. 

19 

 

(3C)  For the purposes of subparagraph (3B)(b)(ii), the Secretary may 

20 

determine an earlier day if the person satisfies the Secretary that 

21 

the person has a reasonable excuse: 

22 

 

(a)  for item 1 of the table in subsection 42SA(2)--for failing to 

23 

comply with the further requirement mentioned in column 3 

24 

of that item; or 

25 

 

(b)  for item 2 or 3 of that table--for failing to attend the 

26 

appointment mentioned in column 3 of that item; or 

27 

 

(c)  for item 4 of that table--for failing to comply with the 

28 

requirements mentioned in column 3 of that item; or 

29 

 

(d)  for item 5 or 6 of that table--for failing to attend the 

30 

appointment mentioned in column 3 of that item. 

31 

Note: 

The Secretary must take certain matters into account for the purposes 

32 

of subsection (3C) (see section 42U). See also section 42UA (about 

33 

prior notification of excuses). 

34 

Amendments  Schedule 1 

   

 

 

No.      , 2015 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

13 

 

51  Subsection 42T(4) 

Repeal the subsection. 

52  Before subsection 42T(5) 

Insert: 

General rules 

53  Paragraph 42U(1)(a) 

After "paragraph 42C(4)(a)", insert "and subsection 42SC(2)". 

54  Paragraphs 42U(1)(b) and (c) 

Repeal the paragraphs. 

55  Paragraph 42U(1)(e) 

10 

Repeal the paragraph, substitute: 

11 

 

(e)  a failure referred to in paragraph 42T(3C)(a), (b), (c) or (d). 

12 

56  Paragraph 42UA(1)(d) 

13 

Omit "person;", substitute "person.". 

14 

57  Paragraph 42UA(1)(e) 

15 

Repeal the paragraph. 

16 

58  Subsection 42UA(2) 

17 

Omit ", paragraph 42E(4)(a) or 42H(3)(a) or subsection 42SC(2)", 

18 

substitute "or subsection 42SC(2) or 42T(3C)". 

19 

59  Subsection 42UA(2) (table item 2, column headed 

"For 

20 

this failure:") 

21 

Omit "or (e)". 

22 

60  Section 42V 

23 

Omit ", a reconnection failure or a non-attendance failure". 

24 

61  Section 42V 

25 

Omit ", 42L". 

26 

Schedule 1  Amendments 

   

 

 

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Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

No.      , 2015 

 

62  Section 42X 

Before "A", insert "(1)". 

63  Section 42X 

Omit ", a reconnection failure or a non-attendance failure". 

64  At the end of section 42X 

Add: 

 

(2)  If, under this Division, a participation payment is not payable to a 

person for a period, then, for the purposes of paragraphs 63(1)(a) 

and (3)(a), the person is taken to be receiving that participation 

payment for that period. 

10 

65  Subsection 63(2) 

11 

Omit "within", substitute "at or within". 

12 

66  Subclause 1(1) of Schedule 1 (definition of connection 

13 

failure

14 

Repeal the definition. 

15 

67  Subclause 1(1) of Schedule 1 (definition of further 

16 

reconnection requirement

17 

Repeal the definition. 

18 

68  Subclause 1(1) of Schedule 1 (definition of 

19 

non-attendance failure

20 

Repeal the definition. 

21 

69  Subclause 1(1) of Schedule 1 (definition of no show no 

22 

pay failure

23 

Omit "subsection 42C(1)", substitute "subsections 42C(1) and 

24 

42SC(1)". 

25 

70  Subclause 1(1) of Schedule 1 (definition of penalty 

26 

amount

27 

Omit ", a reconnection failure or a non-attendance failure". 

28 

Amendments  Schedule 1 

   

 

 

No.      , 2015 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

15 

 

71  Subclause 1(1) of Schedule 1 (definition of reconnection 

failure

Repeal the definition. 

72  Subclause 1(1) of Schedule 1 (definition of reconnection 

failure period

Repeal the definition. 

73  Subclause 1(1) of Schedule 1 (definition of reconnection 

requirement

Repeal the definition. 

74  Application and saving provisions 

10 

(1) 

The amendments made by items 4, 5, 6 and 7 apply in relation to 

11 

determinations made under subsection 42C(1) of the Social Security 

12 

(Administration) Act 1999 on or after the commencement of this item. 

13 

(2) 

Despite the amendments made by this Schedule, Subdivisions C, EA 

14 

and F of Division 3A of Part 3 of the Social Security (Administration) 

15 

Act 1999, as in force immediately before the commencement of this 

16 

item, continue to apply on and after that commencement in relation to 

17 

the following: 

18 

 

(a)  a requirement mentioned in paragraph 42E(2)(a), (b), (c), (f) 

19 

or (g) or 42G(b), (c), (ca) or (d) of that Act that arose before 

20 

that commencement; 

21 

 

(b)  a notice issued under subsection 42F(1) of that Act before 

22 

that commencement. 

23 

(3) 

The amendments made by items 10, 11, 12, 13 and 15 apply in relation 

24 

to: 

25 

 

(a)  determinations made under subsection 42M(1) of the Social 

26 

Security (Administration) Act 1999 on or after the 

27 

commencement of this item, where the failures referred to in 

28 

paragraph 42M(1)(a) of that Act occurred before, on or after 

29 

that commencement; or 

30 

 

(b)  determinations made under subsection 42N(1) of the Social 

31 

Security (Administration) Act 1999 on or after the 

32 

commencement of this item, where the refusals or failures 

33 

Schedule 1  Amendments 

   

 

 

16 

Social Security Legislation Amendment (Further Strengthening Job 

Seeker Compliance) Bill 2015 

No.      , 2015 

 

referred to in paragraph 42N(1)(b) of that Act occurred on or 

after that commencement. 

(4) 

The amendment made by item 16 applies in relation to failures that 

occur on or after the commencement of this item, where the 

requirements arose on or after that commencement. 

(5) 

The amendment made by item 17 applies in relation to failures that 

occur on or after the commencement of this item, where the periods 

begin on or after that commencement. 

(6) 

The amendment made by item 18 applies in relation to appointments 

occurring on or after the commencement of this item. 

10 

(7) 

The amendments made by items 22 and 24 apply in relation to 

11 

determinations made under subsection 42SA(1) of the Social Security 

12 

(Administration) Act 1999 on or after the commencement of this item, 

13 

other than determinations made as a result of the continued application 

14 

of Subdivision EA of Division 3A of Part 3 of that Act as mentioned in 

15 

subitem (2). 

16 

(8) 

The amendments made by items 37, 38, 39, 40, 41, 42 and 50 apply in 

17 

relation to determinations made under subsection 42SC(1) of the Social 

18 

Security (Administration) Act 1999 on or after the commencement of 

19 

this item, where the determinations under subsection 42SA(1) of that 

20 

Act were made before, on or after that commencement. 

21 

 


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