A bit of info for all those that think there are hundreds of thousands of lazy gits sat at home playing on their play stations all day while we go out to work to pay their wages -
Who this applies to
Demerits and financial penalties apply to:
What mutual obligation requirements are
Mutual obligation requirements are tasks and activities you agree to do, to help you find a job.
Mutual obligation requirements were suspended in some areas due to COVID-19 but have now resumed in all states and territories.
Who has mutual obligation requirements
You have mutual obligation requirements if you get any of these:
How demerits work
If you don’t meet your mutual obligation requirements you may have your payment suspended and you could get a demerit.
You’ll need to talk to your provider before your payment can start again. If they decide you don’t have a reasonable excuse they’ll give you a demerit but you won’t lose any money.
Each demerit lasts 6 months from the date you get it.
If you get 3 demerits in 6 months
You’ll need to attend a Capability Interview to discuss your circumstances and why you're not meeting your requirements.
If you get 5 demerits in 6 months
You’ll need to have a Capability Assessment. This makes sure your requirements are reasonable for your circumstances.
You may also have a Capability Assessment if you don’t go to a job interview and you don’t have a reasonable excuse.
What happens in the penalty zone
In the penalty zone there are no demerits. Instead, you may get a financial penalty if you don’t meet your requirements.
Your payment will be suspended and you’ll need to talk to your provider about why you didn’t meet your requirements. If your provider decides you don’t have a reasonable excuse they’ll refer it to us.
If it’s your first or second penalty you can either:
If you get a penalty you’ll:
We can’t waive these penalties.
If you meet your requirements for 3 months, you’ll return to the green zone with no demerits.
Watch the compliance system videos about understanding financial penalties on the jobactive website.
Who this applies to
Demerits and financial penalties apply to:
- job seekers, including those on Youth Allowance, in jobactive, Disability Employment Services or online employment services
- compulsory ParentsNext participants.
What mutual obligation requirements are
Mutual obligation requirements are tasks and activities you agree to do, to help you find a job.
Mutual obligation requirements were suspended in some areas due to COVID-19 but have now resumed in all states and territories.
Who has mutual obligation requirements
You have mutual obligation requirements if you get any of these:
- JobSeeker Payment
- Youth Allowance as a job seeker
- Parenting Payment and are a compulsory ParentsNext participant
- Parenting Payment single after your youngest child turns 6
- Special Benefit paid under certain conditions.
- a sole trader or other self-employed customer
- getting JobSeeker Payment or Youth Allowance as a job seeker.
How demerits work
If you don’t meet your mutual obligation requirements you may have your payment suspended and you could get a demerit.
You’ll need to talk to your provider before your payment can start again. If they decide you don’t have a reasonable excuse they’ll give you a demerit but you won’t lose any money.
Each demerit lasts 6 months from the date you get it.
If you get 3 demerits in 6 months
You’ll need to attend a Capability Interview to discuss your circumstances and why you're not meeting your requirements.
If you get 5 demerits in 6 months
You’ll need to have a Capability Assessment. This makes sure your requirements are reasonable for your circumstances.
You may also have a Capability Assessment if you don’t go to a job interview and you don’t have a reasonable excuse.
What happens in the penalty zone
In the penalty zone there are no demerits. Instead, you may get a financial penalty if you don’t meet your requirements.
Your payment will be suspended and you’ll need to talk to your provider about why you didn’t meet your requirements. If your provider decides you don’t have a reasonable excuse they’ll refer it to us.
If it’s your first or second penalty you can either:
- talk to us about your reasons before we make a decision
- accept the penalty without talking to us.
If you get a penalty you’ll:
- lose half of your fortnightly payment for the first penalty
- lose all of your fortnightly payment for the second penalty
- have your payment cancelled if you get a third penalty.
We can’t waive these penalties.
If you meet your requirements for 3 months, you’ll return to the green zone with no demerits.
Watch the compliance system videos about understanding financial penalties on the jobactive website.