Obligations failures - partners
If a client or partner fails to comply with their obligations, MSD must initiate an obligations failure. MSD must be satisfied that the client or partner would have had no good and sufficient reason for their failure based on the information available.
For social obligations, MSD must consider whether the client and their partner (if any) has taken all reasonable steps to meet their social obligations and must go through the regular engagement and support process before considering that the client has failed their obligation.
Note primary clients getting Emergency Benefit may have work obligations or work preparation obligations assigned as conditions of grant. Only the partner may have an obligation failure applied for failing to meet their work obligations, work preparation obligations or drug test obligations.
For more information see:
- Failing more than one obligation at the same time
- Work obligations - partners
- Work preparation obligations - partners
- Social obligations
- Regular engagement and support process
- All reasonable steps to meet social obligations
- Drug test obligations - partners
- Good and sufficient reason before initiating an obligations failure
- Youth activity obligations failures
Note for a partner who has full-time or part-time work obligations leaving part-time work averaging less than 20 hours per week, without good and sufficient reason or through misconduct, is also an obligations failure, but may not be specified in the partner's work obligations.
Once MSD has decided that the client or partner has failed their obligations, MSD must initiate an obligations failure. The client or partner will then be sent a letter stating that their benefit will be sanctioned and that their benefit will only be increased or resumed if they:
- complete a recompliance activity
- dispute the decision to impose the sanction and you accept that they have a good and sufficient reason for not meeting their obligations
- lodge a Review of Decision and you reconsider your position and agree with the client's review or
- lodge an appeal to the Medical Appeal Board (drug test failure only)
Once a client has completed their recompliance activity, their benefit can be increased or resumed from the date MSD is satisfied the client started the activity.
For some clients, if it’s their first obligation failure they may be eligible for a non-financial sanction instead of a financial sanction. For more information, see: Non-financial sanctions.
All clients have a five working day notice period to dispute or recomply before the sanction is imposed. If a client or partner recomplies within the five working day notice period their benefit is not sanctioned but the obligations failure is recorded. For more information see:
- When the sanction is imposed
- Counting previous obligations failures
- Failing more than one obligation at the same time
Clients have not failed their obligations if they do not complete or undertake Voluntary Work or Activity in the Community.
Effect on rates payable
For financial sanctions, the reduction, suspension and cancellation applies to the main benefit the client or partner is getting. For couples it applies to each person's portion of the married rate of benefit. For young partners, the effect of a sanction on the client's assistance depends on whether the client has children and is youth money managed or not.
The effect on supplementary assistance depends on the level of sanction imposed, the type of supplementary assistance, and whether the client or partner has dependent children.
Non-financial sanctions do not affect the rate payable for a client or partner.
For more information see:
Legislation
- Procedure for imposing sanction sections 252 - 256 Social Security Act 2018
- Obligations that carry sanction for failure to comply section 233 Social Security Act 2018
- Person who fails to comply with requirement to undergo work ability assessment is subject to sanction section 119 Social Security Act 2018
- Person who fails to comply with work-preparation obligation subject to sanction section 126 Social Security Act 2018
- Failure to comply with work-test obligations sections 153 - 154 Social Security Act 2018
- Person who fails to comply with requirement to attend interview is subject to sanction section 161 Social Security Act 2018
- Case management support for beneficiary in breach of obligation in relation to dependent children section 267 Social Security Act 2018
