Demerits and suspensions for not meeting mutual obligation requirements

Financial penalties and cancellations are paused

Financial penalties and payment cancellations are currently paused. This pause doesn't apply to demerits or payment suspensions for not meeting mutual obligation requirements. Find out more about the decision to pause on the Department of Employment and Workplace Relations website.

We’ll let you know when the pause ends.

Who demerits and financial penalties apply to

Demerits and financial penalties apply to job seekers getting a payment with mutual obligation requirements and who are with either of the following employment service providers:

• Workforce Australia
• Inclusive Employment Australia.

This includes all the following payments:

• JobSeeker Payment
• Youth Allowance for job seekers
• Parenting Payment single after your youngest child turns 6
• Special Benefit paid under certain conditions.

Who demerits and financial penalties don’t apply to

There are different penalties for job seekers in the Remote Australia Employment Service. Read about mutual obligation requirements in the Remote Australia Employment Service.

How demerits work

You may get a demerit if you don’t meet your mutual obligation requirements. You’ll need to meet your requirements given to you by either:

• your employment service provider
• the Digital Services Contact Centre if you’re with Workforce Australia Online.

If they decide you don’t have a valid reason for not meeting your mutual obligation requirements, they’ll give you a demerit, but you won’t lose any money.

Each demerit lasts 6 months from the date you get it.

Capability Interviews and Capability Assessments

You might need to attend a Capability Interview or Capability Assessment.

If you get 3 demerits in 6 months

You’ll need to attend a Capability Interview with your provider. At the Capability Interview, they’ll discuss with you whether your obligations are right for you. If not, they may change your obligations to suit your circumstances.

If you get 5 demerits in 6 months

You’ll need to have a Capability Assessment with us. We do a Capability Assessment to discuss with you whether your obligations are right for your current circumstances.

You may be fast tracked

You may be fast tracked to a Capability Interview or a Capability Assessment if you fail to either:

• attend or act appropriately in a job interview
• complete a job referral task set for you.

How to keep track of your demerits

You can keep track of your demerits through either:

• your online dashboard if you’re with Inclusive Employment Australia
• the homepage of your Workforce Australia online account.

You can sign in to your Workforce Australia online account through myGov.

The dashboard or homepage of your online account shows 3 zones. These are:

• green zone
• warning zone
• penalty zone.

In the green zone

You have no demerits, but your payment may be suspended if you don’t meet your mutual obligation requirements.

You’re responsible for making sure you’re meeting all your requirements.

You must record what you do to meet your requirements in your Workforce Australia account. This includes recording both your:

• attendance at activities and appointments
• job search efforts.

If you can’t meet a requirement, you must talk to your provider.

If you’re with Workforce Australia Online, call the Digital Services Contact Centre.

In the warning zone

If you have one or more demerits, you’ll be in the warning zone.

Your payment may be suspended if you don’t meet your mutual obligation requirements.

You’ll get a demerit each time you don’t meet your requirements and you don’t have a valid reason.

In the penalty zone

There are no demerits in the penalty zone. Instead, you may get a financial penalty or have your payment cancelled.

Read more about penalties for not meeting mutual obligation requirements.

How to avoid penalties

You can avoid getting demerits and penalties by meeting all your requirements.

If you’re finding it hard to meet your requirements, it’s important to let your provider know as soon as possible. You need to do this before you miss an appointment or activity.

If you’re with Workforce Australia Online, call the Digital Services Contact Centre. Let them know if you’re having difficulties.

Read more about how to avoid penalties.

If you can’t go to an appointment or activity

Before your appointment or activity is due to start, you need to talk to your provider.

If you’re with Workforce Australia Online, call the Digital Services Contact Centre.

What happens if you move to a different provider

Your demerits and financial penalties stay with you if you change your provider.

What you need to do if your payment is suspended

Your payment may be suspended if you don’t meet your mutual obligation requirements. If this happens, your provider will write to you to tell you what you need to do.

Before your payment can start again, you’ll need to meet your requirements given to you by your employment service provider.

If you’re unsure of what you’d need to do, you should either:

• contact your provider
• call the Digital Services Contact Centre if you’re with Workforce Australia Online.

If you don’t understand or disagree with a payment suspension

Your provider will contact you about what you need to do to get your payment again. 

You should contact your provider if you either:

• don’t understand what you need to do
• disagree with a decision that has led to the suspension.

If you’re with Workforce Australia Online, you can contact the Digital Services Contact Centre.

If you’re not satisfied after contacting your provider or the Digital Services Contact Centre, you can contact the Department of Employment and Workplace Relations National Customer Service Line.

You can contact us to apply for a review of the decision if you either:

• don’t want to contact the Digital Services Contact Centre or National Customer Service Line
• have contacted them and aren’t satisfied with the outcome.

Who to contact if you disagree with a demerit

If you disagree with a demerit, you need to talk to your provider.

We can’t review, change or remove demerits. If you disagree with your provider, you can call the Department of Employment and Workplace Relations National Customer Service Line National Customer Service Line.

If you’re with Workforce Australia Online, you can call the Digital Services Contact Centre.