Document ID: chunk:federal_register_of_legislation:C2005C00734:clause:1_503c
Version: federal_register_of_legislation:C2005C00734
Segment Type: clause
Provision Reference: sch 1 cl 503C
Character Range: 29857–32096

503C  Length of participation agreement breach rate reduction period

Length of breach rate reduction period

 (1) Subject to subsections (2) and (3), the length of a participation agreement breach rate reduction period is 26 weeks.

Pre‑existing breach rate reduction period

 (2) If, at the time of the commencement of a participation agreement breach rate reduction period under this Part (the current breach period), the person is already subject to a participation agreement breach rate reduction period (pre‑existing rate reduction period), the pre‑existing rate reduction period is taken to end immediately before the commencement of the current breach period.

Effect on breach rate reduction period of complying with the terms of an agreement within 13 weeks

 (3) If:
 (a) a participation agreement breach rate reduction period applies to a person (or would apply to a person apart from this subsection); and
 (b) not more than 13 weeks after the start of the period, the person takes reasonable steps to comply, or to resume compliance, with the terms of a participation agreement that is in force in respect of the person;
this Act has effect, for the purpose only of working out the rate of parenting payment payable to the person:
 (c) as if the period had never started; and
 (d) if a prior breach penalty period had started not more than 13 weeks before the person took those reasonable steps—as if that prior breach penalty period had also never started.

Effect on breach rate reduction period of complying with the terms of agreement after 13 weeks

 (4) If:
 (a) a participation agreement breach rate reduction period applies to a person (or would apply to a person apart from this subsection); and
 (b) more than 13 weeks after the start of the period, the person takes reasonable steps to comply, or to resume compliance, with the terms of a participation agreement that is in force in respect of the person;
the breach rate reduction period applicable to the person ceases with effect from the day on which the person took those reasonable steps.

 (5) In this section:

breach penalty period means a participation agreement breach rate reduction period or a participation agreement breach non‑payment period.