Obligations failures

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) have 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 Supported Living Payment may have work preparation obligations if they have been assessed as having a capacity for work. Some primary clients getting Supported Living Payment will have no work preparation obligations. Only the partner may have an obligation failure applied for failing to meet their work obligations or drug test obligations.

For more information see:

• Failing more than one obligation at the same time
• Assessing capacity for work preparation obligation - primary client
• Work or work preparation obligations
• Social Obligations
• Social obligations Regular engagement and support process
• Social obligations All reasonable steps to meet social obligations
• Drug test obligations
• Work with contracted service provider obligation
• Work ability assessment obligation
• 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 client'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 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 agrees 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 or partner 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.

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. The effect on Extra help depends on the level of sanction imposed, the type of Extra help, and whether the client or partner has dependent children.

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.

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