Sanctions for a couple with dependent children - both fail their obligations
Couples with dependent children who both fail their obligations at the same time do not have their whole benefit sanctioned. Instead, a maximum financial sanction of 50% of the total benefit may be imposed. The balance of the benefit payable is known as 50% protection.
Note if a client has more than one obligation failure initiated on the same day, only one sanction can be imposed on the client. For the sanction to be lifted, the client must successfully dispute or recomply with all the obligation failures.
Grade 1 sanction
If both clients fail their obligations for the first time, each person's portion of the benefit is reduced by 50% until they recomply, unless they have a non-financial sanction imposed. The couple will continue to get a maximum of 50% of their married rate of benefit.
While their benefit is reduced, the couple can continue to get Extra help. The couple will continue to get the full couple rate of Winter Energy Payment as they are still getting a qualifying benefit.
For more information see:
Grade 2 sanction
If both clients fail their obligations a second time, 50% of the couple's benefit is suspended. The couple will continue to get a maximum of 50% of their married rate of benefit until they recomply.
While part of the benefit is suspended, the couple can get 50% of any Extra help they are entitled to. However, they can get the full rate of the Winter Energy Payment as they are still getting a qualifying benefit.
Note if a client has more than one obligation failure initiated on the same day, only one sanction can be imposed on the client. For the sanction to be lifted, the client must successfully dispute or recomply with all the obligation failures.
Grade 3 sanction
If both clients fail their obligations a third time, 50% of the couple's benefit is cancelled. The couple will continue to get a maximum of 50% of their married rate of benefit until they recomply.
If both clients are subject to a non-entitlement period for 13 weeks, both clients may get a provisional benefit if they start a 6-week approved activity or programme of activities.
While part of the benefit is cancelled, the couple gets 50% of any extra help they are entitled to. However, they can get the full rate of the Winter Energy Payment as they are still getting a qualifying benefit.
For more information see:
Processing 50% payments
When both clients fail their obligations at the same time the couple must continue to get a maximum of 50% of their married rate of benefit unless one of the couple has a non-financial sanction imposed. This must be paid manually, and will depend on which client failed their obligations first.
For more information see:
- Sanctions [no link find out why] process
One client recomplies first
If the primary client recomplies first, their portion of benefit and supplementary assistance must be resumed or regranted. The partner's benefit must remain sanctioned until they recomply.
If the partner recomplies first, their portion of benefit and extra help is not able to be resumed or regranted as the primary record is not current.
For information on how to process this see:
- Recompliance [no link find out why] process
50% protection and reduction of income
The 50% protection is applied to half the main benefit rate (eg the married rate) before any reduction of income. Any income will reduce benefit by 35 cents for every $1.00 of total income over $160.00 per week from the 50% protection payment.
For more information see:
Client does not recomply
If either client has not recomplied after 2 weeks, MSD will need to contact them to discuss financial assistance and recompliance. If they still have not recomplied at 4 weeks MSD will need to send a letter advising they need to attend an appointment to discuss ongoing entitlement to benefit.
For more information on this process see:
- Sanction period - Two week intervention [no link find out why]
- Sanction period - Four week intervention [no link find out why]
Legislation
- Hierarchy of sanctions sections 236-239 Social Security Act 2018
- Notice relates to single failure section 253 Social Security Act 2018
- Variation for failure to comply with work-test obligation to accept offer of suitable employment section 244 Social Security Act 2018
- Variation for breach of work-test obligation by 1 spouse or partner section 245 Social Security Act 2018
- Variation for breach of work-test obligation by both partners or spouses section 246 Social Security Act 2018
- Variation for suspension or cancellation of benefit or non-entitlement period affecting couple with 1 or more dependent children section 247 Social Security Act 2018
- How benefits are paid section 337 Social Security Act 2018
- Regulations: payments section 442 Social Security Act 2018
- Apportionment Regulation 191 Social Security Regulations 2018
