Centrelink and participation failures

1. Centrelink and participation failures Welfare Rights Centre, Sydney April 2008

2. Welfare Rights Centre • community legal centre specialising in social security law • provides information, advice and representation to individuals in all social security matters • policy/law reform • Publications:- Independent Social Security Handbook - Rights Review - Factsheets and Self Help kits/forms • community education • covers most of NSW • free service- 9211 5300/1800 226 028, TTY 9211 0238 • advice Mon, Wed, Thurs & Fri: 9am to 1pm; Tues: 1pm to 5pm www.welfarerights.org.au

3. Participation Failures Since 1 July 2006 a new penalty regime has applied to the following; • All people receiving Newstart/Youth Allowance (unemployed), including “principal carers” and people with a “partial capacity to work”; • Parenting Payment (single) recipients (who claimed after 1 July 2006) whose youngest child is between 6 and 8; • Parenting payment recipients who claimed payment before 1 July 2006, from 1 July 2007 or when their youngest child turns 7, whichever is later • Some people receiving Special Benefit who have an activity agreement (mostly Temporary Protection Visa holders) • People receiving Austudy or Youth Allowance (student).

4. There are two types of failures which lead to different penalties • “Participation failure” – may lead to suspension of payment until compliance • “Serious participation failure” – immediate 8 week non payment

5. Newstart/Youth Allowance “principal carer” “partial capacity to work” - Different, less onerous participation requirements - Supplementary payments and concession cards

6. Partial capacity to work assessment Job Capacity Assessment • Determines a person’s capacity for work in hour bandwidths • Undertaken by allied health professionals – not necessarily matched to persons illness/disability • DHS – mainly government providers, some private

7. Participation failures • Failure to comply with reasonable requirement • Failure to satisfy activity test (not PP) • Failure to comply with terms of an activity agreement (not Austudy or PP) • Failure to comply with requirement to enter into an activity agreement (not Austudy) • Failure to attend job interview (not Austudy) • Failure to commence, complete, participate in Work for the Dole ( not Austudy)

8. Failure to continue involvement in a Labour Market Program (not Austudy) • Failure to comply with a notice to seek certain number of jobs (not Austudy or PP) • Failure to supply ECC’s (not Austudy or PP) • Failure in relation to lodging and completing the Job Seeker Diary (not Austudy or PP) • Failure to comply with requirement to undertake another activity • Failure to undertake particular paid work – PP only

9. no failure should be imposed if the person has a reasonable excuse Matters Centrelink should consider • Homelessness/unstable accommodation • Lack of literacy/language skills • Mental illness/psychiatric illness • Physical illness, self or dependent • Unexpected caring responsibilities • Drug/alcohol dependency • Clash with paid employment • Clash with job interview • Lack of availability of transport, child care • Lack of awareness of requirement

10. Any illness, impairment or condition requiring frequent treatment • Cognitive or neurological impairment • Death of family member • Recent release from prison • No failure if the requirement was to undertake “Unsuitable” work

11. When do the penalties take effect • No penalty in 1st fortnight, but “participation failure” can be recorded • Rescheduled requirement – if attend no penalty if fail to attend (without reasonable excuse) payment suspended until compliance • Failures to attend in 2nd fortnight will attract further recorded “participation failures”

12. Serious participation failures • 3 participations failures in 12months • Voluntarily becoming unemployed • Becoming unemployed due to misconduct • Refusing or failing to accept a suitable job offer • Failing to commence, participate in or complete full time work for the dole

13. Financial Case Management Payment of essential expenses during 8 week non payment period to value of payment the person would otherwise receive. Available to: • People with “vulnerable dependents” • People who are “exceptionally vulnerable”

14. Appeals • Original Decision Maker 13 weeks to preserve back-pay • Authorised Review Officer 13 weeks to preserve back-pay • Social Security Appeals Tribunal 28 days • Administrative Appeals Tribunal 28 days • Federal Court (errors of law only) * time limits differ for Family Assistance decisions * no time limits for appealing debts up to the SSAT

15. The numbers 8 week non payment penalties • 2006/2007 15, 509 people • July 2007 to February 2008 25,359 people

16. The numbers Financial case management – • in 2006/2007 992 people accessed FCM • by December 2007 1,682 (total) had accessed FCM This is 6% of people with a serious failure Of those eligible for FCM one in three declined