Obligations failures

If a client fails to comply with their obligations, MSD must initiate an obligations failure. MSD must be satisfied that the client 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 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.

For more information see:

• Failing more than one obligation at the same time
• Work obligations
• Work preparation obligations
• Social obligations
• Social obligations Regular engagement and support process
• Social obligations All reasonable steps to meet social obligations
• Drug test obligations
• Good and sufficient reason before initiating an obligations failure

Note for a client who has 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 client's work obligations.

Once MSD has decided that the client has failed their obligations, MSD must initiate an obligations failure. The client 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 MSD accepts that they have a good and sufficient reason for not meeting their obligations
• lodge a Review of Decision and MSD reconsiders their 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 5 working day notice period to dispute or recomply before the sanction is imposed. If a client recomplies within the 5 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.

The reduction, suspension and cancellation applies to 50% of the main benefit the client is getting. The effect on extra help depends on the type of extra help.

Non-financial sanctions do not affect the rate payable for a client.