(1) If the Secretary determines under section 42AF or 42AG that a participation payment is not payable to a person for a period, the participation payment is not payable for the period (the payment suspension period ) worked out under this section.
(2) The payment suspension period begins at the start of:
(a) the instalment period in which the person commits the mutual obligation failure or the work refusal failure (unless paragraph (b) applies); or
(b) if the Secretary determines that a later instalment period is more appropriate--that later instalment period.
(3) The payment suspension period ends immediately before:
(a) the day the person complies with the reconnection requirement imposed under subsection 42AM(1) (unless paragraph (b) of this subsection applies); or
(b) if the Secretary determines that an earlier day is more appropriate--that earlier day.
(4) If the payment suspension period ends under subsection (3) for a person, then, for the purposes of the social security law after the end of that period:
(a) the participation payment is taken to be payable to the person from the start of that period (subject to the social security law); and
(b) the Secretary is taken to have made a determination to the effect mentioned in paragraph (a).
Note: The effect of this subsection is that the person may receive back pay for the payment suspension period. However, the back pay may be reduced (including to nil) if the instalment period for which an instalment is to be reduced under section 42AN overlaps with the payment suspension period.