236Sanction for first failure: reduction of rate of main benefit

1. This section applies to a person (P) if P has a first failure, and either—

2. P does not meet the eligibility requirements in sections 236A(1)(b) and 236B(1)(b) because—
   1. P is not subject to active case management by MSD; and
   2. P does not have 1 or more dependent children; or
3. P does meet the eligibility requirements in sections 236A(1)(b) and 236B(1)(b), and MSD does not impose a non-financial sanction for P’s first failure.

4. If this section applies to P, MSD must, for the first failure of P, reduce the rate of P’s main benefit by half until P recomplies.

5. If the rate of P’s main benefit is reduced by half under this section, MSD must not, for the first failure of P, do the following:

6. impose money management; or
7. impose community work experience.

8. If P fails to recomply within 4 weeks after the initial reduction under this section takes effect, MSD must reduce the rate of P’s main benefit to zero until the earlier of the following events:

9. P recomplies:
10. MSD cancels P’s main benefit under section 233A.

11. This section is subject to sections 243AAA, 243, 245 to 248, and 320 to 322.