Document ID: chunk:federal_register_of_legislation:F2022C00591:reg:5:p2
Version: federal_register_of_legislation:F2022C00591
Segment Type: reg
Provision Reference: reg 5 (pt 2/2)
Character Range: 9079–11461

(B) or (C).
 (4) For the purposes of this section, a demerit is reversed if it is removed from the Employment Department's Information Technology System, including because:
 (a) it was recorded in respect of a mutual obligation failure by a person who subsequently underwent a DHS assessment, and the outcome of the DHS assessment was that the person's employment pathway plan was not suitable for the person;
 (b) it was recorded in respect of a mutual obligation failure by a person who subsequently underwent a capability assessment with their employment services provider, and the outcome of that assessment was that the person's employment pathway plan was not suitable for the person;
 (c) it was recorded in respect of a mutual obligation failure by a person and the person was subsequently found to have had a valid reason for committing the failure; or
 (d) it was recorded in error.

Note: If the outcome of the DHS assessment is that the person's employment pathway plan is not suitable for the person, then all the person's demerits will be removed from the Employment Department's Information Technology System at that time.

Circumstances where a person has not persistently committed mutual obligation failures
 (5) Despite subsections (1) to (3), for the purposes of paragraph 42AF(2)(a) of the Act, the Secretary must not be satisfied that a person has persistently committed mutual obligation failures if the person has not committed a mutual obligation failure to which a demerit is attached, or a mutual obligation failure without a reasonable excuse, in the 3 active months prior to the relevant failure.
 (6) For the avoidance of doubt, despite subsections (1) to (3), for the purposes of paragraph 42AF(2)(a) of the Act, the Secretary must not be satisfied that a person has persistently committed mutual obligation failures if one or more of the person's demerits referred to in subparagraphs 5(2)(a)(i) or (ii) is reversed, with the result that:
 (a) the person has not committed at least 5 mutual obligation failures to which a demerit is attached, for the purposes of subparagraph 5(2)(a)(i); or
 (b) the person has not committed 2, 3, or 4 mutual obligation failures to which a demerit is attached (at least one of which was a mutual obligation failure described in subparagraphs 5(2)(a)(ii)(A), (B) or (C)), for the purposes of subparagraph 5(2)(a)(ii).