Social Security Act 2018

Enforcement: sanctions and offences - Sanctions for breach of obligations other than young person or young parent obligations - Hierarchy of sanctions

236J: Sanction for first failure: upskilling: replacement sanction if good and sufficient reason why cannot meet requirements

You could also call this:

"What happens if you can't meet benefit requirements and have a good reason"

Illustration for Social Security Act 2018

You have to meet some requirements when you are getting a benefit. If you do not meet these requirements, you might get a sanction. A sanction is a penalty that can reduce the amount of money you get from your benefit. If you have a good reason for not meeting the requirements, you might get a different sanction. This new sanction reduces the amount of money you get from your benefit by half. It starts when you tell MSD about your good reason or when your benefit is reduced to zero. When you get this new sanction, you do not have to meet the old requirements anymore. The new sanction works like any other reduction of your benefit. You can recomply with the rules and the sanction will stop. But for some purposes, the new sanction is treated as if it started when the upskilling sanction started. This rule is affected by some other rules in the Social Security Act 2018, such as sections 243AAA, 243, 245 to 248, and 320 to 322.

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236I: Sanction for first failure: upskilling: failure without good and sufficient reason to meet requirements, or

"Your benefit may be reduced if you don't meet upskilling requirements without a good reason"


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237: Sanction for second failure: suspension of main benefit, or

"If you don't meet your obligations twice, your main benefit will be stopped until you meet them again."

Part 5Enforcement: sanctions and offences
Sanctions for breach of obligations other than young person or young parent obligations: Hierarchy of sanctions

236JSanction for first failure: upskilling: replacement sanction if good and sufficient reason why cannot meet requirements

  1. This section applies if, at any time after upskilling that is imposed on P has effect,—

  2. P has not met the requirements that apply to P under section 236H(4) (see also section 236I(2) and (3)); and
    1. P has satisfied MSD in the reasonable period specified in section 236I(4) that a good and sufficient reason existed as to why P could not meet those requirements.
      1. MSD must impose on P, without giving a section 252 notice, a replacement sanction under section 236(2) that is to reduce the rate of P’s main benefit by half until P recomplies, and that starts to take effect at whichever occurs first of the following:

      2. P satisfies MSD that the good and sufficient reason existed:
        1. the date on which the rate of P’s main benefit is reduced to zero under section 236I(5)(a) within the prescribed period for the purposes of section 236H(4) (see regulations made under section 418(1)(if)).
          1. If a replacement sanction under section 236(2) is imposed under subsection (2),—

          2. P is no longer required to meet the requirements that apply to P under section 236E(4); and
            1. the replacement sanction under section 236(2) operates in the same way as any other reduction of the rate of P’s main benefit by half under section 236(2); and
              1. P recomplies under section 261 (see section 261(3)(bb)); but
                1. for the purposes of the 13-week period in section 233A(1)(b), the replacement sanction must be treated as if it takes effect when upskilling that it replaces takes effect.
                  1. This section is subject to sections 243AAA, 243, 245 to 248, and 320 to 322.

                  Notes
                  • Section 236J: inserted, on , by section 19 of the Social Security Amendment Act 2025 (2025 No 25).