Section 42P — Social Security (Administration) Act 1999: Consequences of serious failure

Participation payment not payable during serious failure period (1) If the Secretary determines that a person commits a serious failure and has determined that section 42NC applies, a participation payment is not payable to the person during the person’s serious failure period. Note 1: The Secretary may end a serious failure period under section 42Q or determine that a participation payment is payable, despite this section, under section 42R. Note 2: The Secretary may continue the participation payment pending the outcome of an application for review (see sections 131 and 145 of the Administration Act). (2) The person’s serious failure period is the period: (a) beginning on the first day of the first instalment period that begins after the day the Secretary makes the determination; and (b) ending: (i) if the Secretary ends the person’s serious failure period under section 42Q—on the day mentioned in that section; or (ii) otherwise—8 weeks after the period begins. Note: For the day the Secretary makes the determination, see section 42Y. Serious failure requirements (3) If the Secretary determines that a person commits a serious failure, then the Secretary may require the person to comply with a requirement (the serious failure requirement). Note: A person who complies with a serious failure requirement may have his or her serious failure period end under section 42Q. A person who fails to comply with a serious failure requirement may commit a no show no pay failure under section 42C.