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Definition

The occurrence of an individual failing to meet a mutual obligation requirement. This may then lead to resolution time, a payment suspension or if the participant is in the penalty zone, a financial penalty. Where it is determined that the participant did not have a reasonable excuse, they may also incur a demerit. 

Comments

Participants subject to the Targeted Compliance Framework commit a Mutual Obligation Failure when or if they fail to:

  • agree a Job Plan (or Participation Plan for ParentsNext participants);
  • undertake satisfactory Job Search effort;
  • meet their monthly Points Target;
  • undertake a satisfactory Job Referral when requested to do so by their Provider;
  • attend punctually, and behave in an appropriate manner, at an appointment (either with their Provider, or a third party);
  • attend punctually, and behave in an appropriate manner, at an activity outlined in their Job Plan or Participation Plan;
  • attend punctually, and behave in an appropriate manner, at a Job Interview.

For further information on Mutual Obligation Failures, including punctual attendance and inappropriate behaviour (e.g. misconduct) at Requirements, please refer to the Guide to Social Security Law. Not all TCF participants will be subject to the full range of Mutual Obligation Requirement types listed above (e.g. ParentsNext participants will not be compelled to undertake job search). A Mutual Obligation Failure will generally result in payment suspension until the participant complies with the Requirement. A Mutual Obligation Failure will only result in a Demerit if the participant is in the Green/Warning Zone and had no valid reason for their Failure, and will only result in a Financial Penalty if the participant is in the Penalty Zone and Services Australia determines that the participant did not have a reasonable excuse for committing the Failure.

Related content

Relation Count
Data Elements implementing this Object Class 8
Data Element Concepts implementing this Object Class 8
As a broader class of 0
As a specialisation class of 0