Michaelia Cash (WA, Liberal Party, Minister for Jobs and Innovation) Share this | Hansard source

The targeted compliance framework has actually been designed so that jobseekers will have a strong incentive to meet their requirements before they face any penalty. That's the whole purpose of the new compliance framework. The system is designed so that jobseekers do not enter the intensive compliance phase—the penalty phase—unless they are able but unwilling to meet their requirements. And I think that 'unless they are able but unwilling to meet their requirements' is a really important part of it.

A jobseeker who repeatedly fails to comply with agreed requirements and gets their first strike in the penalty phase will lose one week of income support payment, which, as you know, is half of their fortnight's payment. If that jobseeker has further requirements during that fortnight, they may incur a further penalty if they do not meet those requirements. Jobseekers who face a two-week penalty or are cancelled from payment for four weeks will not have obligations and will not face further penalty during this period, as they are not receiving payment during that period. If they wish to remain engaged with employment services, they are able to do this, and they can volunteer for servicing.

Jobseekers in the penalty phase who then meet their requirements for three months return all the way back to the personal responsibility phase with zero demerits—so, totally reset—providing further incentive for persistently non-compliant jobseekers to reform their behaviour. It is quite literally about reforming your behaviour.