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EMPLOYMENT AND WORKPLACE RELATIONS LEGISLATION AMENDMENT (WELFARE TO WORK AND OTHER MEASURES) ACT 2005 - SCHEDULE 5

Youth allowance

Part   1 -- RapidConnect

Social Security Act 1991

1   Subsection 544A(1)

Repeal the subsection, substitute:

Requirement to enter into agreement

  (1)   Subject to this section, the Secretary may require a person who is not a party to a Youth Allowance Activity Agreement to enter into such an agreement if:

  (a)   the person is receiving, or has made a claim for, a youth allowance; or

  (b)   the Department is contacted by or on behalf of the person in relation to a claim for a youth allowance.

2   At the end of Subdivision A of Division   2 of Part   2.11 of Chapter   2

Add:

547AA   Youth allowance not payable if person fails to attend interview etc. in certain circumstances

General

  (1)   A youth allowance is not payable to a person if:

  (a)   before or after the person made a claim for a youth allowance, the Department is contacted by or on behalf of the person in relation to a claim for a youth allowance; and

  (b)   as a result of the contact, the Department required the person to do one or both of the following:

  (i)   attend an interview with a specified person or organisation at a time and place specified in the requirement;

  (ii)   enter into a Youth Allowance Activity Agreement; and

  (c)   the person fails to comply with that requirement, or those requirements; and

  (d)   the person is not undertaking full - time study and is not a new apprentice.

Note 1:   For undertaking full - time study see section   541B.

Note 2:   For new apprentice see subsection 23(1).

Secretary may decide that this section does not apply

  (2)   This section does not apply to a person if the Secretary is satisfied, in accordance with any guidelines under subsection   ( 3), that it should not apply to the person.

  (3)   The Secretary may, by legislative instrument, make guidelines to be complied with in deciding under subsection   ( 2) whether this section applies to a person.

When this section ceases to apply

  (4)   This section ceases to apply:

  (a)   when the person complies with:

  (i)   that requirement, or those requirements; or

  (ii)   any requirements that the Secretary has required the person to undertake in place of that requirement, or those requirements; or

  (b)   at such earlier time as the Secretary determines, in accordance with any guidelines under subsection   ( 5).

  (5)   The Secretary may, by legislative instrument, make guidelines to be complied with in making determinations under paragraph   ( 4)(b).

This section is unaffected by date of claim

  (6)   To avoid doubt, the fact that a person is taken, because of section   13 of the Administration Act, to have made a claim for a youth allowance on the day on which the Department was contacted by or on behalf of the person in relation to the claim does not affect the operation of this section.


Part   2 -- Participation

Social Security Act 1991

3   After section   540AA

Insert:

540AB   Qualification for youth allowance--claimants with medical conditions affecting their capacity to work

General rule

  (1)   Subject to this Subdivision, a person is qualified for a youth allowance in respect of the period starting in accordance with subsection   ( 2) and ending in accordance with subsection   ( 3) if:

  (a)   the person satisfies the Secretary that throughout the period the person is unemployed; and

  (b)   throughout the period, the person is of youth allowance age (see Subdivision D); and

  (c)   the person has made a claim, or is taken to have made a claim, for youth allowance; and

  (d)   the person satisfies the Secretary that it is likely that the person has a permanent medical condition that would prevent the person from undertaking full - time work; and

  (e)   the person satisfies the Secretary that it would be unreasonable to expect the person to satisfy the activity test until an assessment of the person's capacity to work has been undertaken; and

  (f)   throughout the period, the person:

  (i)   is an Australian resident; or

  (ii)   is exempt from the residence requirement within the meaning of subsection 7(7).

Note 1:   Subdivision G provides for prospective qualification for youth allowance.

Note 2:   Division   2 sets out situations in which youth allowance is not payable even if the person qualifies for it.

Period for which person is qualified

  (2)   The period for which the person is qualified for a youth allowance under this section starts:

  (a)   if the person is already receiving youth allowance when the Secretary becomes aware of the medical condition referred to in paragraph   ( 1)(d)--when the Secretary becomes aware of the medical condition; or

  (b)   otherwise--when the person made, or is taken to have made, the claim for youth allowance.

  (3)   The period for which the person is qualified for a youth allowance under this section ends:

  (a)   if the person has failed to comply with a requirement to enter into a Youth Allowance Activity Agreement--on the day on which the person so failed; or

  (b)   in any other case--when the person enters into a Youth Allowance Activity Agreement.

Extending the meaning of who is unemployed

  (4)   The Secretary may, for the purposes of this section, treat a person as being unemployed throughout a period if:

  (a)   during the period, the person undertakes:

  (i)   paid work that, in the Secretary's opinion, is suitable for the person to undertake; or

  (ii)   any other activity;

    as a result of which he or she would, but for this subsection, not be taken to be unemployed; and

  (b)   the Secretary is of the opinion that, taking into account:

  (i)   the nature of the work or other activity; and

  (ii)   the duration of the work or other activity; and

  (iii)   any remuneration received for the work or other activity; and

  (iv)   any other matters relating to the work or other activity, or to the person's circumstances, that the Secretary considers relevant;

    the activity should be disregarded.

  (5)   However, the activity must not be or include an activity of a kind that the Secretary determines under subsection   ( 6).

  (6)   The Secretary may determine, by legislative instrument, kinds of activities that are not to be taken into account for the purposes of subsection   ( 4).

4   Paragraphs 541(1)(c) and (d)

Repeal the paragraphs, substitute:

  (c)   throughout the period, the person complies with the terms of a Youth Allowance Activity Agreement applying to the person.

5   Subsection 541(1) (notes 1 and 2)

Repeal the notes, substitute:

Note:   See section   541D on paid work that is unsuitable.

6   Subsection 541(1A)

Omit "CSP", substitute "PSP".

7   After subsection 541(1A)

Insert:

Certain principal carers and people with partial capacity to work

  (1B)   A person who:

  (a)   is the principal carer of at least one child; or

  (b)   has a partial capacity to work;

is taken to satisfy the activity test in respect of a period if, during the period, the person is engaged for at least 30 hours per fortnight in paid work that the Secretary regards as suitable.

Note 1:   For principal carer see subsections 5(15) to (24).

Note 2:   For partial capacity to work see section   16B.

8   Subsections 541(2) and (2A)

Repeal the subsections, substitute:

Requirement to undertake paid work

  (2)   A person also satisfies the activity test in respect of a period if:

  (a)   the Secretary is of the opinion that, throughout the period, the person should undertake particular paid work, other than paid work that is unsuitable to be done by the person; and

Note:   See section   541D on paid work that is unsuitable.

  (b)   the Secretary notifies the person that the person is required to act in accordance with the opinion; and

  (c)   the person complies, throughout the period, with the Secretary's requirement.

  (2A)   To avoid doubt, the work that the person is required to undertake under subsection   ( 2) may involve a number of hours per week that differs from the number of hours of work per week that the person is required to seek to comply with a Youth Allowance Activity Agreement between the Secretary and the person.

  (2B)   A person cannot be taken to satisfy the activity test throughout a period if the person fails to comply with a requirement under subsection   ( 2):

  (a)   whether or not the person complies with subsection   ( 1) or (1A); and

  (b)   whether or not another provision of this Act under which the activity test is satisfied, or taken to be satisfied, applies (or would apart from this section apply) to the person.

9   Saving certain notices under subsection 541(2)

If:

  (a)   before the commencement of this item, the Secretary had notified a person under subsection 541(2) of the Social Security Act 1991 that the person was required to act in accordance with an opinion of the Secretary of the kind referred to in paragraph 541(2)(a) of that Act; and

  (b)   at the time of that commencement, the period to which the requirement relates had not come to an end;

the notice continues in force after that commencement as if it were a notice under paragraph 541(2)(b) of that Act as amended by this Act.

10   Paragraphs 541A(a) and (b)

Omit "to take reasonable steps".

11   Section   541A (note)

Repeal the note.

12   Section   541C

Repeal the section.

13   After paragraph 541D(1)(b)

Insert:

  (ba)   the person is the principal carer for one or more children, and does not have access to appropriate care and supervision for the children at the times when the person would be required to undertake the work; or

Note:   For principal carer see subsections 5(15) to (24).

14   Paragraph 541D(1)(d)

Repeal the paragraph.

15   Paragraphs 541D(1)(e) and (f)

Repeal the paragraphs, substitute:

  (e)   the work would be covered by the Australian Fair Pay and Conditions Standard, but the terms and conditions for the work would be less generous than the minimum terms and conditions for the work under the Australian Fair Pay and Conditions Standard; or

  (f)   the work would not be covered by the Australian Fair Pay and Conditions Standard, but, if it were so covered, the terms and conditions for the work would be less generous than the minimum terms and conditions for the work under the Australian Fair Pay and Conditions Standard; or

16   After subsection 541D(1)

Insert:

  (1AA)   A person has, for the purposes of paragraph   ( 1)(ba), access to appropriate care and supervision for a child at a particular time if, at that time:

  (a)   the child could be provided with care by an approved child care service (within the meaning of the Family Assistance Administration Act), and provision of that care would, in the Secretary's opinion, be appropriate in the circumstances; or

  (b)   the child c ould be provided with other care that the person considers to be suitable; or

  (c)   the child could be attending school, and attendance at that school would, in the Secretary's opinion, be appropriate in the circumstances.

  (1AB)   For the purposes of paragraph   ( 1)(ba), a time when the person would be required to undertake the work includes reasonable amounts of time that would be needed for the person to travel from the person's home to the place of work and from the place of work to the person's home.

  (1AC)   The Secretary must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether, for the purposes of paragraph   (1)(i), particular paid work is unsuitable for a person.

  (1AD)   To avoid doubt, a determination under subsection   (1AC) does not limit the matters that the Secretary may take into account in deciding whether, for the purposes of paragraph   (1)(i), particular paid work is unsuitable for a person.

17   Subsections 541D(2) and (3)

Repeal the subsections.

18   Sections   541E and 541F

Repeal the sections.

19   Paragraph 542(d)

Repeal the paragraph, substitute:

  (d)   the person has a domestic violence or other special family circumstances exemption under section   542F; or

  (da)   the person has a disabled children or other family circumstances exemption under section   542FA; or

  (d b )   the person has a new claimants exemption under section   542FB; or

20   Paragraph 542B(1)(d)

Omit "take reasonable steps to".

21   Subsection 542B(2)

Omit "take reasonable steps to".

22   Subsection 542B(3)

Repeal the subsection.

23   After section   542B

Insert:

542BA   Time limit for temporary incapacity exemptions--capacity to undertake activity

General

  (1)   A person ceases to have a temporary incapacity exemption if the Secretary is satisfied that, although the person meets the requirements of section   542A, the person should undertake one or more activities that the Secretary regards as suitable for the person.

When cessation occurs

  (2)   The cessation occurs:

  (a)   if the person has been required to enter into a Youth Allowance Activity Agreement but has failed to enter that agreement--when the person so failed; or

  (b)   in any other case--when the person has entered into such an agreement.

Section   542C unaffected by this section

  (3)   This section does not prevent a person ceasing to have a temporary incapacity exemption under section   542C.

24   At the end of section   542C

Add:

Section   542BA unaffected by this section

  (8)   This section does not prevent a person ceasing to have a temporary incapacity exemption under section   542BA.

Note:   The heading to section   542C is altered by adding at the end "-- maximum exemption period ".

25   Section   542F

Repeal the section, substitute:

542F   Domestic violence or other special family circumstances exemption

General

  (1)   A person has a domestic violence or other special family circumstances exemption in respect of a period that the Secretary determines under this section in relation to the person.

Circumstances in which a determination may be made

  (2)   The Secretary may make a determination under this section in relation to the person if the Secretary is satisfied that:

  (a)   the person:

  (i)   is the principal carer of one or more children; and

  (ii)   has ceased to be a member of a couple in the period of 26 weeks before the determination; and

  (iii)   was subjected to domestic violence in that period of 26 weeks (whether or not the domestic violence was connected with ceasing to be a member of that or any other couple); and

  (iv)   has not again become a member of a couple; or

  (b)   the person is the principal carer of one or more children, and there are special circumstances relating to the person's family that make it appropriate to make the determination.

Note:   For principal carer see subsections 5(15) to (24).

  (2A)   The Secretary must, by legislative instrument, specify matters that the Secretary must take into account in deciding whether there are special circumstances relating to a person's family that make it appropriate to make a determination under this section.

  (2B)   To avoid doubt, an instrument made under subsection   (2A) does not limit the matters that the Secretary may take into account in making a determination under subsection   (2).

Duration of period

  (3)   The period that the Secretary determines under this section must be the lesser of:

  (a)   the period that the Secretary considers to be appropriate; or

  (b)   16 weeks.

  (4)   Any such period may be followed by one or more other periods (not exceeding 16 weeks) determined under this section in relation to the person.

  (5)   The period that the Secretary determines under this section must, despite subsection   ( 3), be 16 weeks if the determination:

  (a)   is made on grounds referred to in paragraph   ( 2)(a) (or on grounds that include those grounds); and

  (b)   is the first determination made on those grounds (or on grounds that include those grounds) in connection with the particular cessation referred to in subparagraph   ( 2)(a)(ii).

Revocation of determination

  (6)   The Secretary may revoke a determination under this section in relation to a person if the Secretary is satisfied that the grounds on which the determination was made no longer exist.

  (7)   Subsection   ( 6) does not affect any operation that subsection 33(3) of the Acts Interpretation Act 1901 has in relation to a determination under this section.

542FA   Disabled children or other family circumstances exemption

General

  (1)   A person has a disabled children or other family circumstances exemption in respect of a period that the Secretary determines under this section in relation to the person.

Circumstances in which a determination may be made

  (2)   The Secretary may make a determination under this section in relation to the person if the Secretary is satisfied that the person is the principal carer of one or more children:

  (a)   who suffer from a physical, intellectual or psychiatric disability or illness; and

  (b)   whose care needs are such that the person should, for the period specified in the determination, not be required to satisfy the activity test.

Note:   For principal carer see subsections 5(15) to (24).

  (3)   The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that the person is the principal carer of one or more children, and that:

  (a)   the person is a registered and active foster carer; or

  (b)   the person is a home educator of that child, or one or more of those children; or

  (c)   the person is a distance educator of that child, or one or more of those children.

Note 1:   For principal carer see subsections 5(15) to (24).

Note 2:   For registered and active foster carer see section   5B.

Note 3:   For home educator see section   5C.

Note 4:   For distance educator see section   5D.

  (3A)   The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that the person is the principal carer of 4 or more children.

Note:   For principal carer see subsections 5(15) to (24).

  (4)   The Secretary may make a determination under this section in relation to the person if the Secretary is satisfied that:

  (a)   the person is a person included in a class of persons specified under subsection   ( 5); and

  (b)   the person's circumstances are such that the person should not be required to satisfy the activity test for the period.

  (5)   The Secretary may, by legislative instrument, specify classes of persons in respect of whom determinations under this section may be made.

Duration of period

  (6)   The period that the Secretary determines under this section must be the lesser of:

  (a)   the period that the Secretary considers to be appropriate; or

  (b)   12 months.

  (7)   Any such period may be followed by one or more other periods (not exceeding 12 months) determined under this section in relation to the person.

Revocation of determination

  (8)   The Secretary may revoke a determination under this section in relation to a person if the Secretary is satisfied that the grounds on which the determination was made no longer exist.

  (9)   Subsection   ( 8) does not affect any operation that subsection 33(3) of the Acts Interpretation Act 1901 has in relation to a determination under this section.

542FB   New claimants exemption

General

  (1)   A person has a new claimants exemption in respect of the period to which subsection   ( 4) applies if:

  (a)   during the period, the person undertakes:

  (i)   paid work that, in the Secretary's opinion, is suitable for the person to undertake; or

  (ii)   any other activity; and

  (b)   the Secretary is of the opinion that, taking into account:

  (i)   the nature of the work or other activity; and

  (ii)   the duration of the work or other activity; and

  (iii)   any remuneration received for the work or other activity; and

  (iv)   any other matters relating to the work or other activity, or to the person's circumstances, that the Secretary considers relevant;

    it would be unreasonable to expect the person to satisfy the activity test for the period.

Work or other activities that are not to be taken into account

  (2)   However, the work or other activity must not be or include any work or other activity of a kind that the Secretary determines under subsection   ( 3).

  (3)   The Secretary may determine, by legislative instrument, kinds of work or other activity that are not to be taken into account for the purposes of subsection   ( 1).

Duration of period

  (4)   This subsection applies to the period:

  (a)   starting:

  (i)   when the person made a claim, or is taken to have made a claim, for youth allowance; or

  (ii)   when the person started to undertake the work or other activity;

    whichever happens later; and

  (b)   ending:

  (i)   if the person has been required to enter into a Youth Allowance Activity Agreement but has failed to enter that agreement--when the person so failed; or

  (ii)   in any other case--when the person has entered into such an agreement.

26   Paragraph 544(1)(b)

Omit "take reasonable steps, to the satisfaction of the Secretary, to".

Note:   The heading to subsection 544(1) is deleted.

27   Paragraph 544(1)(b) (note)

Repeal the note.

28   Subsections 544(2) and (2A)

Repeal the subsections.

29   At the end of section   544

Add:

  (4)   For the purposes of this Part, if:

  (a)   a person starts to receive youth allowance on a particular day; and

  (b)   immediately before that day, the person was a party to a Parenting Payment Activity Agreement; and

  (c)   the period covered by the agreement ends after that day;

the agreement has effect on and after that day as if it were a Youth Allowance Activity Agreement.

30   Paragraph 544A(2)(a)

Repeal the paragraph.

Note:   The heading to subsection 544A(2) is replaced by the heading " Persons who have certain exemptions etc. are not to be required to enter agreements ".

31   After paragraph 544A(2)(b)

Insert:

  (ba)   has a domestic violence or other special family circumstances exemption under section   542F; or

  (bb)   has a disabled children or other family circumstances exemption under section   542FA; or

32   After subsection 544A(2)

Insert:

Persons who have a temporary incapacity exemption

  (2A)   A person who has a temporary incapacity exemption under section   542A is not to be required to enter into a Youth Allowance Activity Agreement unless subsection 542BA(1) applies to the person.

33   Subsection 544A(4)

Omit "a notice in writing", substitute "notice".

34   Paragraph 544A(4)(c)

Omit "set out in the notice".

35   Subsection 544B(1)

Repeal the subsection, substitute:

Suitable activities

  (1)   Subject to sections   544C and 544D, a Youth Allowance Activity Agreement with a person is to require the person to undertake one or more activities that the Secretary regards as suitable for the person.

  (1A)   However, an agreement must not require the person to undertake an activity of a kind that the Secretary determines under subsection   ( 1B).

  (1B)   The Secretary m ust determine, by legislative instrument, kinds of activities that agreements must not require persons to undertake.

  (1C)   To avoid doubt, a determination under subsection   (1B) does not limit the Secretary's discretion to exclude other kinds of requirements from a particular agreement under subsection   (1).

36   Application of subsection 544B(1A)

Subsection 544B(1A) of the Social Security Act 1991 as amended by this Act does not apply to any Youth Allowance Activity Agreement entered into before the commencement of this item.

37   Paragraph 544B(4)(a)

Repeal the paragraph, substitute:

  (a)   the person's education, experience, skills and age;

  (aa)   the impact of any disability, illness, mental condition or physical condition of the person on the person's ability to work, to look for work or to participate in training activities;

38   Paragraph 544B(4)(e)

Omit ", by reference to what constitutes unreasonably difficult commuting for the purposes of paragraph 541D(1)(g)".

39   Subsections 544B(5A) to (5C)

Repeal the subsections.

40   After subsection 544B(7)

Insert:

Revocation of requirement to participate in an approved program of work

  (7A)   The Secretary may, by notice given to a person whom a Youth Allowance Activity Agreement requires to participate in an approved program of work for income support payment, revoke the requirement to participate in the program if the Secretary:

  (a)   is satisfied that the person is undertaking full - time study; or

  (b)   is satisfied that the person is a person to whom paragraph   ( 7)(c) applies; or

  (c)   forms the opinion that subparagraph   ( 7)(d)(i) or (ii) applies in relation to the performance of that work by the person.

41   Sections   544C to 544E

Repeal the sections, substitute:

544C   Youth Allowance Activity Agreements--principal carers

  (1)   A Youth Allowance Activity Agreement that:

  (a)   is between the Secretary and a person who is the principal carer of at least one child; and

Note:   For principal carer see subsections 5(15) to (24).

  (b)   requires the person to undertake, as an activity, looking for part - time paid work that the Secretary regards as suitable;

must require the person to undertake looking for such part - time work of at least the appropriate number of hours per week.

  (2)   The appropriate number of hours per week is:

  (a)   15; or

  (b)   such other number as the Secretary determines to be appropriate having regard to the person's circumstances.

544D   Youth Allowance Activity Agreements--people with partial capacity to work

  (1)   A Youth Allowance Activity Agreement that:

  (a)   is between the Secretary and a person who has a partial capacity to work; and

Note:   For partial capacity to work see section   16B.

  (b)   requires the person to undertake, as an activity, looking for part - time paid work that the Secretary regards as suitable;

must require the person to undertake looking for part - time work of at least the appropriate number of hours per week.

  (2)   The appropriate number of hours per week is:

  (a)   15; or

  (b)   such other number as the Secretary determines to be appropriate having regard to the person's circumstances.

544E   Youth Allowance Activity Agreements--suspension of agreements for people with certain exemptions

    A Youth Allowance Activity Agreement between the Secretary and a person is taken to be suspended during any period in respect of which the person:

  (a)   has a domestic violence or other special family circumstances exemption under section   542F; or

  (b)   has a disabled children or other family circumstances exemption under section   542FA.

42   Subsection 546(1)

After "for a period", insert "determined by the Secretary".

43   Paragraph 546(1)(d)

Repeal the paragraph, substitute:

  (d)   the Secretary is satisfied that the person should be qualified under this section for youth allowance for the period.

44   Subsections 546(3) to (7)

Repeal the subsections.


Part   3 -- Compliance

Social Security Act 1991

45   At the end of Subdivision A of Division   2 of Part   2.11 of Chapter   2

Add:

547AB   Situations where allowance not payable for failure to comply with certain requirements

    A youth allowance is not payable to a person if the person refuses or fails, without reasonable excuse, to comply with a requirement made of the person under section   67, 68 or 192 of the Administration Act.

46   Subdivision D of Division   2 of Part   2.11 of Chapter   2

Repeal the Subdivision, substitute:

Subdivision D -- Situations where allowance not payable because of youth allowance participation failure

550   Youth allowance participation failures

Meaning of youth participation failure

  (1)   A person commits a youth allowance participation failure if the person:

  (a)   fails to comply with a requirement:

  (i)   that was notified to the person under subsection 63(2) or 64(2) of the Administration Act; and

  (ii)   that was reasonable; and

  (iii)   the notification of which included a statement to the effect that a failure to comply with the requirement could constitute a youth allowance participation failure; or

  (b)   fails to satisfy the activity test; or

  (c)   fails to comply with a requirement to enter into a Youth Allowance Activity Agreement; or

  (d)   fails to comply with a term of a Youth Allowance Activity Agreement between the Secretary and the person; or

  (e)   fails to attend a job interview; or

  (f)   fails:

  (i)   to commence, complete or participate in an approved program of work for income support payment that the person is required to undertake; or

  (ii)   to comply with the conditions of such a program; or

  (g)   fails to continue his or her involvement in a labour market program because he or she:

  (i)   voluntarily ceases to take part in the program; or

  (ii)   is dismissed from the program for misconduct; or

  (h)   is issued with a notice under subsection 550A(1) and fails to comply with it within the period specified in the notice; or

  (i)   fails to comply with subsection 550A(2); or

  (j)   fails to comply with a requirement included in a Youth Allowance Activity Agreement between the Secretary and the person to:

  (i)   undertake a certain number of job searches per fortnight; and

  (ii)   keep a record of the person's job searches in a document referred to in the agreement as a job seeker diary; and

  (iii)   return the job seeker diary to the Department at the end of the period specified in the agreement; or

  (k)   fails to comply with a requirement to undertake another activity referred to in paragraph 550B(1)(b).

Reasonable excuse

  (2)   Despite subsection   ( 1), a failure of a kind referred to in that subsection is not a youth allowance participation failure if the person satisfies the Secretary that the person had a reasonable excuse for the failure.

  (2A)   The Secretary must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether, for the purposes of subsection   (2), a person had a reasonable excuse for committing a youth allowance participation failure.

  (2B)   To avoid doubt, a determination under subsection   (2A) does not limit the matters that the Secretary may take into account in deciding whether, for the purposes of subsection   (2), a person had a reasonable excuse for committing the youth allowance participation failure referred to in subsection   (1).

Subsequent failures in the same instalment period

  (3)   Despite subsection   ( 1), if a failure of a kind referred to in that subsection occurs in an instalment period of the person in which the person has already committed a youth allowance participation failure, the failure is not a youth allowance participation failure if:

  (a)   the instalment period is the person's first instalment period for youth allowance; or

  (b)   the instalment period is not the person's first instalment period for youth allowance, and:

  (i)   the person did not commit a youth allowance participation failure in the immediately preceding instalment period of the person; or

  (ii)   in respect of each youth allowance participation failure that the person committed in the immediately preceding instalment period of the person, the person acted in accordance with a requirement of the Secretary notified in respect of that failure.

Failures covered by section   547AA

  (4)   Despite subsection   ( 1), a failure of a kind referred to in that subsection is not a youth allowance participation failure if it results in youth allowance not being payable to the person under section   547AA.

Full - time study

  (5)   Paragraphs   ( 1)(c) to (j) do not apply to a failure if the person is undertaking full - time study.

Note:   For undertaking full - time study see section   541B.

New apprentices

  (6)   Subsection   ( 1) does not apply to a failure if the person is a new apprentice.

Note:   For new apprentice see subsection 23(1).

Failures relating to participation in approved programs of work

  (7)   Paragraph   ( 1)(f) does not apply to a failure if:

  (a)   the person is under 60; and

  (b)   a determination under paragraph 28(4)(b) is in force in relation to the person.

Effect of paragraph   ( 1)(j)

  (8)   Paragraph   ( 1)(j) does not limit the scope of paragraph   ( 1)(d).

550A   Requiring a person to apply for job vacancies

General

  (1)   The Secretary may notify a person in writing (other than a person who is undertaking full - time study or who is a new apprentice) that the person must apply for a particular number of advertised job vacancies in the period stated in the notice, being a period of not less than 14 days.

Note 1:   For undertaking full - time study see section   541B.

Note 2:   For new apprentice see subsection 23(1).

Statements confirming job applications

  (2)   The person must give the Secretary a written statement from each employer whose job vacancy the person applied for that confirms that the person applied for the job vacancy.

Form of statements

  (3)   The statement from the employer must be in a form approved by the Secretary.

Exemption from giving the Secretary statements

  (4)   Subsection   ( 2) does not apply to a person if the Secretary is satisfied that there are special circumstances in which it is not reasonable to expect the person to give the statement referred to in that subsection.

550B   Allowance not payable because of youth allowance participation failure

General

  (1)   A youth allowance is not payable to a person, for the period starting in accordance with section   550C and ending in accordance with section   550D, if:

  (a)   the person commits a youth allowance participation failure; and

  (b)   the Secretary requires the person:

  (i)   to comply with the requirement, or undertake the activity, to which the youth allowance participation failure relates; or

  (ii)   to comply with a particular requirement, or undertake a particular activity, in place of the requirement or activity to which the failure relates;

    during the participation failure instalment period for the failure, or at a particular time during that period; and

  (c)   the person fails to comply with the requirement.

However, paragraphs   ( b) and (c) do not apply in relation to a youth allowance participation failure of a kind referred to in paragraph 550(1)(h), (i) or (j).

Reasonable excuse etc.

  (2)   This section does not apply in relation to the failure if:

  (a)   the Secretary is satisfied that the person had a reasonable excuse for the failure referred to paragraph   ( 1)(c); or

  (b)   the Secretary is for any other reason satisfied that subsection   ( 1) should not apply to the failure.

  (2A)   The Secretary must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether, for the purposes of paragraph   (2)(a), a person had a reasonable excuse for a failure of a kind referred to in paragraph   (1)(c).

  (2B)   To avoid doubt, a determination under subsection   (2A) does not limit the matters that the Secretary may take into account in deciding whether, for the purposes of paragraph   (2)(a), a person had a reasonable excuse for the failure referred to in paragraph   (1)(c).

Meaning of participation failure instalment period

  (3)   The participation failure instalment period for the youth allowance participation failure is:

  (a)   if the failure is a failure of a kind referred to in paragraph 550(1)(h) or (i), the next instalment period of the person to start after the end of the period specified in the notice under subsection 550A(1) to which the failure relates; or

  (b)   if the failure is a failure of a kind referred to in paragraph 550(1)(j), the next instalment period of the person to start after the end of the period referred to in subparagraph 550(1)(j)(iii); or

  (c)   otherwise--the next instalment period of the person to start after the day on which the Secretary first became aware that the person committed the failure.

Failures covered by section   551

  (4)   This section does not apply to a youth allowance participation failure if section   551 applies to the failure.

550C   When the period of non - payment starts

    The period for which youth allowance is not payable to the person because of section   550B is taken to have started at the start of the participation failure instalment period for the youth allowance participation failure.

550D   When the period of non - payment ends

    The period for which youth allowance is not payable to the person because of section   550B ends when:

  (a)   in accordance with a requirement of the Secretary that the person comply with the requirement, or undertake the activity, to which the youth allowance participation failure related, the person has complied with the requirement or undertaken the activity; or

  (b)   in accordance with a requirement of the Secretary that the person undertake another activity in place of the requirement or activity to which the youth allowance participation failure related, the person has undertaken the other activity; or

  (c)   in accordance with a requirement of the Secretary that the person comply with another requirement in place of the requirement or activity to which the youth allowance participation failure related, the person has complied with the other requirement.

Subdivision E -- Situations where allowance not payable because of repeated or more serious failure

551   Allowance not payable because of repeated or more serious failure

General

  (1)   A youth allowance is not payable to a person, for the period of 8 weeks starting in accordance with section   551A, if the person:

  (a)   commits a youth allowance participation failure (the repeated failure ), having committed youth allowance participation failures (the earlier failures ) on 2 or more other occasions during the period of 12 months preceding that failure; or

  (b)   is unemployed due, either directly or indirectly, to a voluntary act of the person; or

  (c)   is unemployed due to the person's misconduct as a worker; or

  (d)   has refused or failed, without reasonable excuse, to accept a suitable offer of employment; or

  (e)   fails:

  (i)   to commence, complete or participate in an approved program of work for income support payment that the person is required to undertake; or

  (ii)   to comply with the conditions of such a program.

  (1A)   The Secretary must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether, for the purposes of paragraph   (1)(d), a person had a reasonable excuse for refusing or failing to accept a suitable offer of employment.

  (1B)   To avoid doubt, a determination under subsection   (1A) does not limit the matters that the Secretary may take into account in deciding whether, for the purposes of paragraph   (1)(d), a person had a reasonable excuse for refusing or failing to accept a suitable offer of employment referred to in that paragraph.

Reasonable excuse etc.

  (2)   For the purposes of paragraph   ( 1)(a), disregard any earlier failure that is a failure to which subsection 550B(1) does not apply because of subsection 550B(2).

  (3)   Subsection   ( 1) does not apply in relation to the repeated failure if the Secretary is for any other reason satisfied that subsection   ( 1) should not apply to the failure.

Full - time study and new apprentices

  (4)   Paragraphs   ( 1)(b) to (e) do not apply to a failure if the person:

  (a)   is undertaking full - time study; or

  (b)   is a new apprentice.

Note 1:   For undertaking full - time study see section   541B.

Note 2:   For new apprentice see subsection 23(1).

Unemployment due to voluntary act

  (5)   Paragraph   ( 1)(b) does not apply if the Secretary is satisfied that the person's voluntary act was reasonable.

Failures relating to participation in approved programs of work

  (6)   Paragraph   ( 1)(e) applies only if:

  (a)   the person is under 60; and

  (b)   a determination under paragraph 28(4)(b) is in force in relation to the person.

551A   When the period of non - payment starts

Repeated failures

  (1)   The period for which youth allowance is not payable to the person because of paragraph 551(1)(a) is taken to start, or to have started:

  (a)   if the repeated failure is a failure of a kind referred to in paragraph 550(1)(h), (i) or (j)--at the start of the participation failure instalment period for the repeated failure; or

  (b)   if paragraph   ( a) of this subsection does not apply and the repeated failure occurs during a participation failure instalment period for an earlier failure--at the start of the participation failure instalment period for the earlier failure; or

  (c)   otherwise--at the start of the next instalment period of the person to start after the day on which the Secretary first became aware that the person committed the failure.

Note:   For participation failure instalment period see subsection 550B(3).

Other failures

  (2)   The period for which youth allowance is not payable to the person because of section   551 (other than because of paragraph 551(1)(a)) starts on the day the Secretary determines that section   551 applies to the person.

  (3)   However, if:

  (a)   section   551 would not apply to the person but for the application of paragraph 551(1)(b) or (c), or both; and

  (b)   at the time of the voluntary act or misconduct in question, the person was not receiving youth allowance;

the period for which youth allowance is not payable to the person starts at the time the person became unemployed as a result of the voluntary act or misconduct.

47   Saving provision relating to activity test breaches

(1)   If:

  (a)   as a result of an activity test breach committed by the person before the commencement of this item, an activity test non - payment period applied to the person under Subdivision D of Division   2 of Part   2.11 of the Social Security Act 1991 ; and

  (b)   on that commencement, the activity test non - payment period had not ended;

the activity test non - payment period continues to apply to the person after that commencement as if that Subdivision had not been repealed by this Act.

(2)   In this item:

activity test breach has the same meaning as it had in section   550A of the Social Security Act 1991 before the commencement of this item.

48   Transitional provision relating to repeated breaches

(1)   The reference in paragraph 551(1)(a) of the Social Security Act 1991 as amended by this Act to youth allowance participation failures committed by a person during the period of 12 months preceding a youth allowance participation failure includes a reference to any activity test failures committed by the person:

  (a)   during that period of 12 months; and

  (b)   before the commencement of this item.

(2)   In this item:

activity test failure means any activity test breach (within the meaning of section   550A of the Social Security Act 1991 ) that:

  (a)   was constituted by a failure of a kind referred to in paragraph 550A(1)(a) or (b) of that Act; and

  (b)   was committed by the person as a result of which an activity test penalty period applied to the person, before the commencement of this item, under:

  (i)   Subdivision D of Division   2 of Part   2.11 of that Act; or

  (ii)   Subdivision B of Division   5 of Part   2.11 of that Act.

49   Subdivision A of Division   5 of Part   2.11 of Chapter   2 (heading)

Repeal the heading.

50   Subdivision B of Division   5 of Part   2.11 of Chapter   2

Repeal the Subdivision.

51   Saving provision relating to activity test breach rate reductions

(1)   If:

  (a)   as a result of an activity test breach committed by the person before the commencement of this item, an activity test breach rate reduction period applied to the person under Subdivision B of Division   5 of Part   2.11 of the Social Security Act 1991 ; and

  (b)   on that commencement, the activity test breach rate reduction period had not ended;

the activity test breach rate reduction period continues to apply to the person after that commencement as if that Subdivision had not been repealed by this Act.

(2)   The fact that an activity test breach rate reduction period is applying to the person because of this item does not prevent the application to the person, at the same time, of a period during which youth allowance is not payable because of Subdivision D or E of Division   2 of Part   2.11 of the Social Security Act 1991 as amended by this Act.

(3)   In this item:

activity test breach has the same meaning as it had in section   550A of the Social Security Act 1991 before the commencement of this item.

52   Subdivision C of Division   5 of Part   2.11 of Chapter   2 (heading)

Repeal the heading.

53   Sections   558 to 558G

Repeal the sections.

54   Saving provision relating to administrative breaches

(1)   If:

  (a)   as a result of an administrative breach committed by the person before the commencement of this item, an administrative breach rate reduction period applied to the person under section   558 of the Social Security Act 1991 ; and

  (b)   on that commencement, the administrative breach rate reduction period had not ended;

the administrative breach rate reduction period continues to apply to the person after that commencement as if that section had not been repealed by this Act.

(2)   In this item:

administrative breach means any refusal or failure by the person as a result of which an administrative breach rate reduction period applied to the person, before the commencement of this item, under section   558 of the Social Security Act 1991 .

55   Saving provision relating to sections   558A to 558G

(1)   If:

  (a)   as a result of an administrative breach committed by the person before the commencement of this item, an administrative breach rate reduction period applied to the person under:

  (i)   section   558 of the Social Security Act 1991 ; or

  (ii)   subsection 63(4) or 64(4) of the Social Security (Administration) Act 1999 ; and

  (b)   on that commencement, the administrative breach rate reduction period had not ended;

sections   558A to 558G of the Social Security Act 1991 continue to apply to the administrative breach rate reduction period after that commencement as if they had not been repealed by this Act.

(2)   The fact that an administrative breach rate reduction period is applying to the person because of this item does not prevent the application to the person, at the same time, of a period during which youth allowance is not payable because of Subdivision D or E of Division   2 of Part   2.11 of the Social Security Act 1991 as amended by this Act.

(3)   In this item:

administrative breach means any refusal, failure or non - compliance by the person as a result of which an administrative breach rate reduction period applied to the person, before the commencement of this item, under:

  (a)   section   558 of the Social Security Act 1991 ; or

  (b)   subsection 63(4) or 64(4) of the Social Security (Administration) Act 1999 .




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