26/05/2025
If you’re receiving payments such as JobSeeker, Youth Allowance (for job seekers), Parenting Payment (single, after your youngest child turns 6), or Special Benefit under certain conditions, and you’re engaged with Workforce Australia or Disability Employment Services, you must meet specific mutual obligation requirements. Failing to do so can lead to demerits and financial penalties under the Targeted Compliance Framework.  
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🔄 Understanding Demerits
When you don’t meet a mutual obligation requirement without a valid reason, you may receive a demerit. Each demerit remains on your record for six months. The system operates in three zones:  
• Green Zone: No demerits.
• Warning Zone: After accruing demerits.
• Penalty Zone: After persistent non-compliance.  
If you accumulate three demerits within six months, you’ll be required to attend a Capability Interview with your provider to discuss your circumstances and reasons for non-compliance. Accumulating five demerits within six months leads to a Capability Assessment conducted by Services Australia to determine if your obligations are appropriate for your situation. If found capable, you’ll enter the penalty zone.  
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⚠️ Penalty Zone Consequences
In the penalty zone, any further non-compliance without a valid reason results in escalating financial penalties: 
1. First Failure: 50% payment reduction for the payment period.
2. Second Failure: 100% payment reduction for the payment period.
3. Third Failure: Payment cancellation with a four-week non-payment period before you can reapply.  
Additionally, refusing suitable employment without a reasonable excuse can lead to immediate payment cancellation and a four-week waiting period before reapplication is possible. 
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🛡️ Avoiding Penalties
To stay compliant:
• Engage with Your Provider: Attend all scheduled appointments and activities.
• Report Requirements: Regularly report your job search efforts and any changes in circumstances.
• Communicate: If you anticipate difficulty meeting a requirement, inform your provider as soon as possible.  
If you believe a demerit or penalty was applied unfairly, discuss it with your provider. If unresolved, contact the Department of Employment and Workplace Relations National Customer Service Line or the Digital Services Contact Centre if you’re with Workforce Australia Online. 
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📊 Tracking Your Status
You can monitor your demerit status and compliance zone through: 
• Workforce Australia Online Account: Accessible via myGov.
• Disability Employment Services Dashboard: If applicable.  
These platforms provide real-time updates on your compliance status and any actions required.
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For more detailed information, visit the Services Australia page on demerits and penalties.