New compliance arrangements – Legislation passed – DEEWR provider advice

Date published : 21  June  2011 

As legislation has now been passed, from 1 July 2011 the compliance framework will be enhanced to provide additional incentives for job seekers to re-engage and to fully participate.

There will be a system release on the weekend of 2 and 3 July 2011, so that on Monday 4 July 2011 you will notice some slight changes in the system.

Suspension of payment

  • Under the new arrangements, if you choose to submit a Participation Report (PR) when a job seeker misses an appointment or when they have disengaged from an activity, the job seeker's payment will be immediately suspended by Centrelink unless they have an identified vulnerability. The relevant PRs are:
    • CFAP - failure to attend appointment with provider;
    • CFAO - failure to attend appointment (Other);and
    • NFAA - failure to attend activity specified in the Employment Pathway Plan (this will trigger suspension only where a Provider has indicated in the mandatory question for this PR that the job seeker has become disengaged from an activity).
  • As soon as the job seeker agrees to attend a re-scheduled appointment with you, their payment will be restored with full back pay. The PR will also be processed as normal and the job seeker may incur a failure, but all job seekers will be required to attend a rescheduled appointment with you regardless of the outcome of the PR.
  • If the job seeker then fails to show up for their next appointment with you, their payment will again be suspended once you enter a 'Did not Attend - invalid' result in the electronic diary (this includes job seekers with an identified vulnerability). Centrelink will also undertake their normal reconnection failure determination, which means that, if the job seeker did not have a reasonable excuse, they will start to lose payment until they attend a further appointment with you (ie. they will not be back paid for this period). Any such penalty will be deducted from their very next payment.

Procedural/System changes:

  • Suspension of payment following a failure to attend an appointment will be automated within the Centrelink system once a relevant PR is submitted and there will be no impact on processing for providers. You still have the discretion to take alternative action to re-engage a job seeker instead of submitting a PR and you are encouraged to do so.
  • You will be asked a new mandatory Yes or No question in the workflow for the No Show No Pay (NSNP) PR (for failing to attend an activity specified in the Employment Pathway Plan) to indicate if you believe the job seeker has become disengaged from an activity and you want them re-engaged back with you. If Yes is ticked, the job seeker's income support payment may be suspended and they will be re-engaged with you (Centrelink will also determine if a NSNP failure should be applied).
  • The job seeker will be re-engaged back with you. The re-engagement appointment will have a new 'reason' identifying that the re-engagement appointment has been made due to the job seeker becoming disengaged from their activity.

Reasonable Excuse

The definition of reasonable excuse has been tightened to provide that, regardless of the job seeker's reason for failing to attend their appointment or activity, if they could reasonably have been expected to notify their employment services provider (or Centrelink, if they arranged the appointment) in advance of why they could not attend, but fail to do so, they will not be taken to have had a reasonable excuse for the failure.

System change:

You will be asked a new mandatory Yes or No question in the PR workflow for the following PRs to indicate if a job seeker made contact prior to the appointment to advise why they could not attend:

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    • CFAP - failure to attend appointment with provider;
    • CFAO - failure to attend appointment (Other);
    • NFAA - failure to attend appointment specified in the EPP (No Show No Pay);and
    • NFJI - failure to attend a job interview.

Transition into the new arrangements

Providers will need to ensure they are aware of the requirements for transition into the new compliance arrangements. Providers should:

  • read the new fact sheet available on the Provider Portal (Compliance page) titled 'Transition to the new arrangements' and the updated reference material; and
  • work through the updated compliance modules on the Learning Centre.

Important points to note

  • You must ensure you have sufficient re-engagement sessions available at all times across all sites within the online diary to enable Centrelink to re-engage job seekers quickly and smoothly under these new arrangements.
  • You will still have the choice whether or not you wish to submit a PR in most circumstances and you can use the Contact Request arrangements when you want to contact a job seeker without taking any compliance action.
  • You will need to ensure your job seekers are aware of the requirement to give prior notice of their inability to attend appointments or activities. You should take an individual's level of awareness and understanding of this requirement into account when deciding if you wish to submit a PR under the new arrangements.
  • You will need to take account of the individual circumstances of the job seeker and the impact of any known vulnerability in considering whether to submit a PR or to simply reschedule the appointment. 
  • You can ask Centrelink to review a job seeker's record if you believe the job seeker is unable to meet their requirements due to a potential vulnerability.

Further information on these changes can be located via ECSN Provider Portals:

  • Stream Services > Client Information > Compliance; or
  • DES > Client Information > Participant Compliance.

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