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EMPLOYMENT AND WORKPLACE RELATIONS LEGISLATION AMENDMENT (WELFARE TO WORK AND OTHER MEASURES) ACT 2005 - SCHEDULE 7

Newstart allowance

Part   1 -- RapidConnect

Social Security Act 1991

1   Subsection 605(1)

Repeal the subsection, substitute:

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

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

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

2   At the end of Subdivision D of Division   1 of Part   2.12 of Chapter   2

Add:

615   Newstart allowance not payable if person fails to attend interview etc. in certain circumstances

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

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

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

  (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.

  (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).

  (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 newstart 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   Paragraph 593(1)(c)

Omit "subsection 604(1)", substitute "subsection 605(1)".

4   Paragraph 593(1)(d)

Omit "subsection 604(1)", substitute "subsection 605(1) or (2)".

5   Paragraph 593(1)(f)

Omit "is taking reasonable steps to comply with", substitute "is complying with".

6   Paragraph 593(1)(f) (note)

Repeal the note.

7   Subsection 593(1) (note 3)

Omit "604 to 607", substitute "605 and 606".

8   After subsection 593(1C)

Insert:

  (1D)   Subject to sections   596, 596A and 598, a person is qualified for a newstart allowance, in respect of the period starting in accordance with subsection   ( 1E) and ending in accordance with subsection   ( 1F), if:

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

  (b)   throughout the period the person:

  (i)   has reached the age of 21 years and has not reached the pension age; and

  (ii)   is an Australian resident or is exempt from the residence requirement within the meaning of subsection 7(7); and

  (c)   the person was not in receipt of a youth allowance during the period; and

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

  (e)   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

  (f)   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.

  (1E)   The period for which the person is qualified for a newstart allowance under subsection   ( 1D) starts:

  (a)   if the person is already receiving newstart allowance when the Secretary becomes aware of the medical condition referred to in paragraph   ( 1D)(e)--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 newstart allowance.

  (1F)   The period for which the person is qualified for a newstart allowance under subsection   ( 1D) ends:

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

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

9   Paragraph 593(2)(c)

Omit "subsection 604(1)", substitute "subsection 605(1)".

10   Paragraph 593(2)(d)

Omit "subsection 604(1)", substitute "subsection 605(1) or (2)".

11   Paragraph 593(2)(f)

Omit "is taking reasonable steps to comply with", substitute "is complying with".

12   Paragraph 593(2)(f) (note)

Repeal the note.

13   Subsection 593(2) (note 2)

Omit "604 to 607", substitute "605 and 606".

14   Subsections 593(2A) and (2B)

Repeal the subsections.

15   Subsections 595(1) to (2)

Repeal the subsections, substitute:

  (1)   The Secretary may 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.

Note:   The person may, under subsection 603(3), also be treated as satisfying the activity test.

  (1A)   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   ( 1B).

  (1B)   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).

  (2)   A person complying with a Newstart Activity Agreement, or with a requirement under subsection 601(1A), may be treated by the Secretary as being unemployed.

16   Paragraph 595(3)(a)

Omit "subsection 601(2)", substitute "subsection 601(1A)".

17   Paragraph 598(8)(b)

Omit "the CSP or".

18   Subsection 600(1)

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

19   Paragraph 600(1)(d)

Repeal the paragraph, substitute:

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

20   Subsections 600(3) to (7)

Repeal the subsections.

21   Subsection 601(1)

Omit "(3)", substitute "(5)".

22   Subsection 601(1) (note 1)

Repeal the note, substitute:

Note 1:   For situations in which a person is taken to satisfy, or is not required to satisfy, the activity test see:

(a)   section   603 (persons attending training camps or in remote areas);

(b)   section   603A (special circumstances);

(c)   section   603AA (persons 55 and over who are engaged in work);

(d)   section   603AB (certain principal carers and people with partial capacity to work).

23   Subsections 601(1A) to (2)

Repeal the subsections, substitute:

  (1A)   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 subsection   ( 2A) on what paid work is unsuitable.

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

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

  (1B)   To avoid doubt, the work that the person is required to undertake under subsection   ( 1A) 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 Newstart Activity Agreement between the Secretary and the person.

  (2)   A person cannot be taken to satisfy the activity test throughout a period if the person fails to comply with a requirement under subsection   ( 1A):

  (a)   whether or not the person complies with subsection   ( 1), (4) or (6A); 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.

24   Saving certain notices under subsection 601(2)

If:

  (a)   before the commencement of this item, the Secretary had notified a person under paragraph 601(2)(b) 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 subparagraph 601(2)(a)(i) 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 601(1A)(b) of that Act as amended by this Act.

25   Subsection 601(2A)

Omit " subparagraph   ( 2)(a)(i)", substitute " paragraph   ( 1A)(a)".

26   After paragraph 601(2A)(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).

27   Paragraph 601(2A)(d)

Repeal the paragraph.

28   Paragraphs 601(2A)(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

29   After subsection 601(2A)

Insert:

  (2AAA)   A person has, for the purposes of paragraph   ( 2A)(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.

  (2AAB)   For the purposes of paragraph   ( 2A)(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.

30   Paragraph 601(2AA)(c)

Omit "or over the age of 50".

30A   After subsection 601(2AB)

Insert:

  (2AC)   The Secretary must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether, for the purposes of paragraph   (2A)(j), particular paid work is unsuitable for a person.

  (2AD)   To avoid doubt, a determination under subsection   (2AC) does not limit the matters that the Secretary may take into account in deciding whether, for the purposes of paragraph   (2A)(j), particular paid work is unsuitable for a person.

31   Subsections 601(2B) and (2C)

Repeal the subsections.

32   Subsections 601(2E), (2F) and (3)

Repeal the subsections.

33   Subsection 601(4)

Omit "is taking reasonable steps to comply with", substitute "is complying with".

34   Subsection 601(4) (note)

Repeal the note.

35   Subsection 601(5)

Omit "take reasonable steps to".

36   Subsection 601(5) (note 1)

Repeal the note, substitute:

Note 1:   For situations in which a person is not required to satisfy the activity test see section   603 (persons attending training camps or in remote areas).

37   Subsection 601(6)

Repeal the subsection.

38   Subsection 601(6A)

Omit "CSP", substitute "PSP".

39   Subsection 601(7)

Repeal the subsection.

40   Sections   601A and 602

Repeal the sections.

41   After section   602A

Insert:

602B   Relief from activity test--domestic violence etc.

  (1)   A person is not required to satisfy the activity test in respect of a period that the Secretary determines under this section in relation to the person.

  (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).

  (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).

  (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.

602C   Relief from activity test--people with disabled children and other circumstances

  (1)   A person is not required to satisfy the activity test in respect of a period that the Secretary determines under this section in relation to the person.

  (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.

  (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.

  (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.

42   Subsection 603(1A)

Repeal the subsection.

43   Continued application of subsection 603(1A)

Despite the repeal of subsection 603(1A) of the Social Security Act 1991 by this Act, that subsection:

  (a)   continues to apply after the commencement of this item to a person to whom it applied immediately before that commencement; and

  (b)   ceases to apply:

  (i)   if the person has been required to enter into a Newstart Activity Agreement but has failed, or is taken to have failed, to enter that agreement--when the person so failed or is taken to have so failed; or

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

44   Paragraph 603(2)(a)

Repeal the paragraph, substitute:

  (a)   it would be reasonable to assume that, at the end of a period, a person is present in an area where:

  (i)   there is no locally accessible labour market; and

  (ii)   there is no locally accessible vocational training course or labour market program; and

  (aa)   it would be reasonable to assume that, throughout the period, the person is unemployed and is capable of undertaking, and is willing to undertake, paid work that, in the Secretary's opinion, is suitable for the person to undertake; and

45   Subsection 603(2)

Omit "subsection 601(2)", substitute "subsection 601(1A)".

46   At the end of section   603

Add:

  (3)   If:

  (a)   a person is treated as being unemployed because of subsection 595(1); and

  (b)   the Secretary is satisfied that it is appropriate for this subsection to apply;

the person is taken to satisfy the activity test during the period starting when the person made a claim, or is to be taken to have made a claim, for newstart allowance and ending:

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

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

  (4)   Subsection   ( 3) does not apply if, at the time of becoming a person who is treated as being unemployed because of subsection 595(1), the person had already been required to enter into a Newstart Activity Agreement.

47   Subsection 603AA(1)

Omit "50 years", substitute "55 years".

Note:   The heading to section   603AA is altered by omitting " engaged in voluntary work " and substituting " 55 and over who are engaged in work ".

48   Paragraph 603AA(1)(a)

Omit "full - time".

49   Paragraph 603AA(1)(a)

Omit "32 hours", substitute "30 hours".

50   Paragraph 603AA(1)(b)

Omit "40 hours", substitute "30 hours".

51   At the end of subsection 603AA(1)

Add:

  ; or (c)   is engaged for at least 30 hours in the period in paid work that the Secretary regards as suitable.

52   Subsection 603AA(2)

Repeal the subsection.

53   Subsection 603AA(3)

Omit "Neither subsections   ( 1) nor (2)", substitute "This section does not".

54   Subsection 603AA(3)

Omit "the subsection", substitute "this section".

55   Subsection 603AA(4)

Omit " subsections   ( 1) and (2)", substitute "this section".

56   After section   603AA

Insert:

603AB   Relief from activity test--certain principal carers and people with partial capacity to work

    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.

57   After section   603C

Insert:

603D   Time limit for exemption--Secretary satisfied person can undertake activity

  (1)   A person ceases to be exempt, under this Subdivision, from the activity test if the Secretary is satisfied that, although the person meets the requirements of section   603C, the person should undertake one or more activities that the Secretary regards as suitable for the person.

  (2)   The cessation occurs:

  (a)   if the person has failed to comply with a requirement to enter into a Newstart Activity Agreement--when the person so failed; or

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

  (3)   This section does not prevent a person ceasing to be exempt under section   603F.

58   At the end of section   603F

Add:

  (7)   This section does not prevent a person ceasing to be exempt under section   603D.

Note:   The heading to section   603F is altered by omitting " from requirement to satisfy activity test " and substituting " --end of person's maximum exemption period ".

59   Section   604

Repeal the section.

60   Subsection 605(2A)

Repeal the subsection, substitute:

  (2A)   If, under Subdivision BA, a person is not required to satisfy the activity test, subsections   ( 1) and (2) apply to the person only if subsection 603D(1) applies to the person.

61   After subsection 605(2B)

Insert:

  (2C)   Subsections   ( 1) and (2) do not apply to a person at a time during which, under section   602B or 602C, the person is not required to satisfy the activity test.

62   At the end of section   605

Add:

  (4)   A Newstart Activity Agreement is a written agreement in a form approved by the Secretary. The agreement is between the person and the Secretary.

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

  (a)   a person starts to receive newstart 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 Newstart Activity Agreement.

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

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

  (b)   immediately before that day, the person was a party to a Youth Allowance 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 Newstart Activity Agreement.

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

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

  (b)   immediately before that day the person was a party to a Special Benefit 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 Newstart Activity Agreement.

63   Subsections 606(1) to (1AC)

Repeal the subsections, substitute:

  (1)   Subject to sections   607 to 607B, a Newstart 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 contain a requirement of a kind that the Secretary determines under subsection   ( 1B).

  (1B)   The Secretary must determine, by legislative instrument, the kinds of requirements that agreements must not contain.

  (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).

64   Application of subsection 606(1A)

Subsection 606(1A) of the Social Security Act 1991 as amended by this Act does not apply to any Newstart Activity Agreement entered into before the commencement of this item.

65   Paragraph 606(4)(a)

Repeal the paragraph, substitute:

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

  (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; and

66   Paragraph 606(4)(e)

Omit ", by reference to what constitutes unreasonably difficult commuting for the purposes of paragraph 601(2A)(g)".

67   Subsections 606(5A) to (5C)

Repeal the subsections.

68   Sections   607 to 607B

Repeal the sections, substitute:

607   Newstart Activity Agreements--principal carers

  (1)   A Newstart Activity Agreement that:

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

  (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 paid work of at least the appropriate number of hours per week.

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

  (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.

607A   Newstart Activity Agreements--people with partial capacity to work

  (1)   A Newstart Activity Agreement that:

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

  (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 paid work of at least the appropriate number of hours per week.

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

  (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.

607B   Newstart Activity Agreements--requirement to participate in an approved program of work

  (1)   A Newstart Activity Agreement between the Secretary and a person must not require the person to participate in an approved program of work for income support payment if:

  (a)   because of the application of Module G of Payment Rate Calculator B in section   1068, the person is receiving a newstart allowance at a rate that has been reduced; or

  (b)   in the Secretary's opinion:

  (i)   it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

  (ii)   performing the work in the conditions in which the work would be performed would constitute a risk to health or safety or would contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety; or

  (c)   the person is at least 50 years of age and is not a person to whom subsection 28(4) applies.

  (2)   The Secretary may, by notice given to a person whom a Newstart 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, because of the application of Module G of Payment Rate Calculator B in section   1068, the person is receiving a newstart allowance at a rate that has been reduced; or

  (b)   forms the opinion that:

  (i)   it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

  (ii)   performing the work in the conditions in which the work would be performed would constitute a risk to health or safety or would contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety; or

  (c)   is satisfied that the person is at least 50 years of age and is not a person to whom subsection 28(4) applies.

  (3)   Upon the Secretary so notifying the person, the requirement is taken to have been revoked with effect from the day specified in the notice.

607C   Newstart Activity Agreements--suspension of agreements in cases of domestic violence etc.

    A Newstart Activity Agreement between the Secretary and a person is taken to be suspended during any period during which the person is not required to satisfy the activity test because of section   602B or 602C.

69   Paragraph 613(2)(a)

Repeal the paragraph.

70   Subsection 613(2) (notes)

Repeal the notes, substitute:

Note 1:   For Newstart Activity Agreement see sections   605 and 606.

Note 2:   The operation of this section is modified for participants in the case management system by section   45 of the Employment Services Act 1994 .

71   Paragraph 620(2)(b)

Omit "the CSP or".

72   Section   631C

Omit "with a requirement of the Secretary under section   601 or".


Part   3 -- Compliance

Social Security Act 1991

73   Subdivision F of Division   1 of Part   2.12 of Chapter   2

Repeal the Subdivision, substitute:

Subdivision F -- Situations where allowance not payable because of newstart participation failure

624   Newstart participation failures

  (1)   A person commits a newstart 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 newstart participation failure; or

  (b)   fails to satisfy the activity test; or

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

  (d)   fails to comply with a term of a Newstart 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 625(1) and fails to comply with it within the period specified in the notice; or

  (i)   fails to comply with subsection 625(2); or

  (j)   fails to comply with a requirement included in a Newstart 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 626(1)(b).

  (2)   Despite subsection   ( 1), a failure of a kind referred to in that subsection is not a newstart 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 newstart 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 newstart participation failure referred to in subsection   (1).

  (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 newstart participation failure, the failure is not a newstart participation failure if:

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

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

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

  (ii)   in respect of each newstart 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.

  (4)   Despite subsection   ( 1), a failure of a kind referred to in that subsection is not a newstart participation failure if it results in newstart allowance not being payable to the person under section   615.

  (5)   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.

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

625   Requiring a person to apply for job vacancies

  (1)   The Secretary may notify a person (other than a person who is not required to satisfy the activity test) who is receiving a newstart allowance that the person must apply for a particular number of advertised job vacancies in the period specified in the notice.

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

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

  (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.

626   Allowance not payable because of newstart participation failure

  (1)   A newstart allowance is not payable to a person, for the period starting in accordance with section   627 and ending in accordance with section   628, if:

  (a)   the person commits a newstart participation failure; and

  (b)   the Secretary requires the person:

  (i)   to comply with the requirement, or undertake the activity, to which the newstart 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 newstart participation failure of a kind referred to in paragraph 624(1)(h), (i) or (j).

  (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).

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

  (a)   if the failure is a failure of a kind referred to in paragraph 624(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 625(1) to which the failure relates; or

  (b)   if the failure is a failure of a kind referred to in paragraph 624(1)(j)--the next instalment period of the person to start after the end of the period referred to in subparagraph 624(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.

  (4)   This section does not apply to a newstart participation failure if section   629 applies to the failure.

627   When the period of non - payment starts

    The period for which newstart allowance is not payable to the person because of section   626 is taken to have started at the start of the participation failure instalment period for the newstart participation failure.

628   When the period of non - payment ends

    The period for which newstart allowance is not payable to the person because of section   626 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 newstart 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 newstart 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 newstart participation failure related, the person has complied with the other requirement.

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

629   Allowance not payable because of repeated or more serious failure

  (1)   A newstart allowance is not payable to a person, for the period of 8 weeks starting in accordance with section   630, if the person:

  (a)   commits a newstart participation failure (the repeated failure ), having committed newstart 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.

  (2)   For the purposes of paragraph   ( 1)(a), disregard any earlier failure that is a failure to which subsection 626(1) does not apply because of subsection 626(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.

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

  (5)   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.

630   When the period of non - payment starts

  (1)   The period for which newstart allowance is not payable to the person because of paragraph 629(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 624(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 626(3).

  (2)   The period for which newstart allowance is not payable to the person because of section   629 (other than because of paragraph 629(1)(a)) starts on the day the Secretary determines that section   629 applies to the person.

  (3)   However, if:

  (a)   section   629 would not apply to the person but for the application of paragraph 629(1)(b) or (c), or both; and

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

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

74   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 penalty period applied to the person under Subdivision F of Division   1 of Part   2.12 of the Social Security Act 1991 ; and

  (b)   on that commencement, the activity test penalty period had not ended;

the activity test penalty period continues to apply to the person after that commencement as if that Subdivision , sections   631A and 631B of that Act and Subdivision GB of Division   1 of Part   2.12 of that Act had not been repealed by this Act.

(2)   In this item:

activity test breach means any failure, voluntary act or misconduct 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 Subdivision F of Division   1 of Part   2.12 of the Social Security Act 1991 .

75   Transitional provision relating to repeated breaches

(1)   The reference in paragraph 629(1)(a) of the Social Security Act 1991, as amended by this Act, to newstart participation failures committed by a person during the period of 12 months preceding a newstart 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 failure 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 section   624, 625 or 626 of the Social Security Act 1991 .

76   Section   631

Repeal the section, substitute:

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

    A newstart 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.

77   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   631 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 , sections   631A and 631B of that Act and Subdivision GB of Division   1 of Part   2.12 of that Act 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   631 of the Social Security Act 1991 .

78   Sections   631A and 631B

Repeal the sections.

79   Subdivision GB of Division   1 of Part   2.12 of Chapter   2

Repeal the Subdivision.

80   Subdivision A of Division   4 of Part   2.12 of Chapter   2 (heading)

Repeal the heading.

81   Subdivision AA of Division   4 of Part   2.12 of Chapter   2

Repeal the Subdivision.

82   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 F of Division   1 of Part   2.12 of the Social Security Act 1991 ; and

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

Subdivision AA of Division   4 of Part   2.12 of the Social Security Act 1991 continues to apply to the activity test breach rate reduction period after that commencement as if it 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 newstart allowance is not payable because of Subdivision F or FA of Division   1 of Part   2.12 of the Social Security Act 1991 as amended by this Act.

(3)   In this item:

activity test breach means any failure, voluntary act or misconduct 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 Subdivision F of Division   1 of Part   2.12 of the Social Security Act 1991 .

83   Subdivision B of Division   4 of Part   2.12 of Chapter   2 (heading)

Repeal the heading.

84   Sections   644B to 644H

Repeal the sections.

85   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:

  (i)   section   631 of the Social Security Act 1991 ; or

  (ii)   subsection 63(5) 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   644B to 644H 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 newstart allowance is not payable because of Subdivision F or FA of Division   1 of Part   2.12 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   631 of the Social Security Act 1991 ; or

  (b)   subsection 63(5) or 64(4) of the Social Security (Administration) Act 1999 .


Part   4 -- Consequential amendment

Social Security Act 1991

86   Subsection 1217(4) (table item   15A)

Repeal the item.




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