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

Senator Siewert, I'm advised they go back to where they were in the intensive compliance phase.

I've also managed to get you some additional information in terms of another question you were asking about last night, which was around what happens if a jobseeker is already in the penalty phase and they develop issues affecting their capacity to comply, or they reveal previously undisclosed issues. If a jobseeker had no issues when they underwent their compliance assessment, but their circumstances change while they're in the penalty phase, they will remain in the penalty phase but will have their requirements adjusted, if necessary, to ensure that they can meet them. They do not return to the demerits phase because they were capable of meeting the requirements when they incurred their demerits and underwent their capability assessment. However, if the jobseeker does fail to meet a requirement, Centrelink will not apply a penalty if the jobseeker's barriers provide a reasonable excuse for failure. Also, providers would continue to monitor jobseeker requirements and take personal circumstances into account following any further noncompliance. If a jobseeker reveals a previously undisclosed barrier whilst in the penalty phase, and it results in the retrospective application of an activity test exemption, any demerit incurred within the exemption period will be removed and they will return to the demerits phase. I hope that gives you a little bit more in terms of what we were discussing last night.