Document ID: chunk:federal_register_of_legislation:C2018A00026:clause:15_42ap:p1
Version: federal_register_of_legislation:C2018A00026
Segment Type: clause
Provision Reference: sch 15 cl 42AP (pt 1/2)
Character Range: 263538–266441

42AP  Cancelling participation payments
 (1) This section applies if the Secretary determines under Subdivision C that the participation payment of a person who has committed a mutual obligation failure, a work refusal failure or an unemployment failure is cancelled.

When payments are cancelled
 (2) For a mutual obligation failure or a work refusal failure, the participation payment is cancelled at the start of the following day (the cancellation day):
 (a) the first day of the instalment period in which the person commits the failure (unless paragraph (b) applies);
 (b) if the Secretary determines that a later instalment period is more appropriate—the first day of that later instalment period.
 (3) For an unemployment failure committed by a person who was receiving the participation payment when he or she became unemployed, the participation payment is cancelled at the start of the following day (the cancellation day):
 (a) the day that the person becomes unemployed as a result of the person's voluntary act or misconduct (unless paragraph (b) applies);
 (b) the first day of the first instalment period for the person that begins after the day the Secretary makes the determination under subsection 42AH(1), if the Secretary considers it more appropriate.
 (4) For the purposes of paragraph (3)(b), the day the Secretary makes the determination is the day the Secretary originally makes the determination (even if another decision in relation to the determination is later made on review).

Participation payments not payable for post‑cancellation non‑payment period
 (5) A participation payment (whether or not the same as the participation payment that was cancelled) is not payable to the person for the period (the post‑cancellation non‑payment period) of:
 (a) 4 weeks beginning on the cancellation day (unless paragraph (b) applies); or
 (b) 6 weeks beginning on the cancellation day, if:
 (i) the cancellation is for an unemployment failure; and
 (ii) during the 6 months ending on the day immediately before the person becomes unemployed, relocation assistance, for the employment to which the voluntary act or misconduct related, has been paid to or for the benefit of the person.
Note 1: If the person makes a claim for a participation payment, the post‑cancellation non‑payment period may affect the person's start day for the claim (see clauses 5 and 5A of Schedule 2).
Note 2: For relocation assistance, see subsection 42AO(2).

Participation payment taken to not be cancelled for certain purposes during post‑cancellation non‑payment period
 (6) Despite subsections (2) and (3), the participation payment is taken to not be cancelled for the purposes of the following provisions until the end of the post‑cancellation non‑payment period:
 (a) a provision of the social security law, or the Family Assistance Act, that refers to a post‑cancellation non‑payment period or a