Targeted Compliance Framework: TCF Event, Description 0.1

A financial penalty can be applied to a client as a result of a given non-compliance event if the client has consistent mutual obligation failures, a work refusal failure, or an unemployment failure.

A demerit is applied to a client if they commit a mutual obligation failure without providing a valid reason for that failure's occurrence.

A face-to-face meeting between a client and their Provider to ensure that the Mutual Obligation Requirements in a client’s Job Plan are appropriate to the client’s circumstances and capability. 

A client will only be required to participate in a Capability Interview if: 

- They accrue three Demerits in a six active month period, or 

- They have been fast-tracked to the equivalent of three Demerits following a failure to act on a Job Referral, or non-attendance or misconduct at a Job Interview. 

If the outcome of the Capability Interview is that the client is capable of meeting their requirements, the client will remain in the Warning Zone. If Services Australia finds that the client is not reasonably capable of meeting their requirements, the client will have their Demerits reset to zero and they will be returned to the Green Zone.

An evidence-based assessment made by Services Australia to ensure that the Mutual Obligation Requirements in a client’s Job Plan are appropriate to the client’s circumstances and capability. Client will need to contact Services Australia to have the Capability Assessment conducted. 

Clients will only be required to participate in a Capability Assessment if: 

-  They accrue five Demerits in a six active month period and have been found capable of meeting their requirements at their Capability Interview, or 

- They have already been found capable of meeting their requirements at a Capability Interview, and then they have been fast-tracked to the equivalent of five Demerits following a failure to act on a Job Referral, or non-attendance or misconduct at a Job Interview. 

As a result of the Capability Assessment, if Services Australia finds that the client is capable of meeting their requirements then the client will progress to the Penalty Zone. If Services Australia finds that the client is not reasonably capable of meeting their requirements, the client will have their Demerits reset to zero and they will be returned to the Green Zone. The Job Seeker Classification Instrument may be rerun, or the client may be referred for an Employment Services Assessment (ESAt) at the Capability Assessment.

The potential application of a payment suspension due to a failure of a client to meet a mutual obligation requirement.

For every failure to meet a Mutual Obligation Requirement, clients will have their income support payment suspended and be given a Re-engagement Requirement, which they must generally meet in order to lift the Suspension. Once Payment Suspension is lifted, this will enable reporting of income to Services Australia. The client will then receive full back-pay for the period their payment was suspended, subject to other provisions of the Social Security Law.

From 7 December 2020, payment suspensions are no longer immediate when a job seeker fails to meet a requirement. clients have two business days Resolution Time, to contact their provider to discuss and, if required, address the failure to avoid having their payment put on hold.

From 28 October 2024, Resolution Time was extended from two business days to five business days to give people additional time to resolve the non-compliance before their payment is suspended.

Most clients are able to avoid payment suspensions if they meet the requirement or provide a valid reason for the non-compliance within Resolution Time.