The Secretary may determine that a declared program participant commits a no show no pay failure, a connection failure, a reconnection failure or a serious failure.

A declared program participant commits such a failure by failing to comply with his or her obligations in relation to a participation payment. The participation payments are jobseeker payment and, for some people, youth allowance, parenting payment and special benefit.

For a no show no pay failure, a penalty amount is deducted from the participant's participation payment.

For a connection failure, a requirement may be imposed on the participant (and if the participant fails to comply with the requirement, the participant commits a reconnection failure).

For a reconnection failure, generally a penalty amount is deducted from the participant's participation payment until the participant complies with a requirement imposed on the participant.

For a serious failure, a participation payment is not payable to the participant for 8 weeks. The 8 week period may be ended in certain circumstances.

The Secretary may also determine that a declared program participant is unemployed as a result of a voluntary act or misconduct. If the Secretary does so, a participation payment is not payable to the participant for either 8 or 12 weeks, depending on the circumstances.

The Secretary may also determine that a participation payment is not payable to a declared program participant for a period because of certain failures. Once that period ends, the participant may be able to receive back pay. For a failure to attend an appointment, a penalty amount may be deducted from the participant's participation payment.