Document ID: chunk:federal_register_of_legislation:C2004C01347:clause:1_742
Version: federal_register_of_legislation:C2004C01347
Segment Type: clause
Provision Reference: sch 1 cl 742
Character Range: 44199–45213

742  Activity test penalties for failure to comply with Special Benefit Activity Agreement

 (1) If:
 (a) a person is required to take reasonable steps to comply with the terms of a Special Benefit Activity Agreement in order to qualify, or to continue to qualify, for special benefit; and
 (b) the person fails to take reasonable steps to comply with the terms of the Special Benefit Activity Agreement (the failure);
special benefit is not payable to the person because of the failure.

 (2) If special benefit becomes payable to the person after the time it ceases to be payable under subsection (1), then:
 (a) if the failure is the person's first or second activity test breach in the 2 years immediately before the day after the failure—an activity test breach rate reduction period applies to the person; or
 (b) if the failure is the person's third or subsequent activity test breach in the 2 years immediately before the day after the failure—an activity test non‑payment period applies to the person.