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Definition

The type of financial penalty applied to a participant's payment for failing to meet their mutual obligation requirements.

Representation

Values

Value Meaning Start Date End Date
Permissible Values 1st Mutual Obligation Failure (50 per cent reduction) Participants already in the Penalty zone who commit a Mutual Obligation Failure have their fortnightly participation payment reduced by 50%
2nd Mutual Obligation Failure (100 per cent reduction) Participants already in the Penalty zone who commit a second Mutual Obligation Failure have their fortnightly participation payment reduced by 100%
3rd Mutual Obligation Failure (4 weeks preclusion) Participants already in the Penalty zone who commit a third Mutual Obligation Failure have their participation payment cancelled and must serve a four-week non-payment period before reapplying for their payment.
Work Refusal Failure If a participant fails to accept or commence a suitable job without a Reasonable Excuse as determined by Services Australia, they will receive a Work Refusal Failure resulting in payment cancellation with a four-week non-payment period under the Targeted Compliance Framework.
Unemployment Failure If a participant voluntarily leaves suitable employment or is dismissed from employment due to misconduct without a Reasonable Excuse as determined by Services Australia, they will have their participation payment cancelled and serve a four or six-week non-payment period depending on whether relocation assistance was paid to help the participant take up employment.

Related content

Relation Count
Data Elements implementing this Value Domain 2