276Sanctions for failure by young person required to receive youth services to comply with obligations: other cases

1. This section applies to a young person—

2. who has been required to receive youth services under section 165(2) or 168(2); and
3. whose benefit is not subject to youth money management under section 344; and
4. who MSD is satisfied has, without good and sufficient reason, failed to comply with an obligation that applies to the young person under section 165(7)(a) or 168(6)(a), and that is—
   1. an obligation in section 166(2)(b) and (d) to (g); or
   2. the work test (in the case of a work-tested beneficiary); or
   3. a work-preparation obligation under section 124 or 125 (in the case of a beneficiary who is required to comply with section 124).

5. MSD must treat the young person’s failure referred to in subsection (1)(c)(i), (ii), or (iii),—

6. in the case of a young person who is subject to the work test, as a failure to comply with the work test for the purposes of sections 233 and 236 to 239; and
7. in the case of a young person who is required to comply with section 124, as a failure to comply with a work-preparation obligation under section 124 or 125 for the purposes of sections 233 and 236 to 239.

8. MSD must, in the case of a young person who is subject to a sanction under sections 233 and 236 to 239 for a failure that subsection (2)(a) or (b) of this section requires to be treated as having occurred:

9. suspend the young person’s incentive payments (if any) (if that sanction is a reduction in the rate of or suspension of the young person’s benefit) until the young person recomplies; or
10. cancel the young person’s incentive payments (if any) (if that sanction is the cancellation of the young person’s benefit).

11. Section 232(3) prevents MSD from imposing under section 232 a non-financial sanction on a young person to whom subsection (2)(a) or (b) of this section applies.