Document ID: chunk:federal_register_of_legislation:F2022C00591:reg:6:p1
Version: federal_register_of_legislation:F2022C00591
Segment Type: reg
Provision Reference: reg 6 (pt 1/3)
Character Range: 11463–14390

6  Circumstances where a person's participation payment is to be reduced (and by how much) or cancelled

Reduction of payment by half the instalment
 (1) If:
 (a) the Secretary determines under paragraph 42AF(2)(c) of the Act that an instalment of a person's participation payment for an instalment period is to be reduced; and
 (b) the Secretary is satisfied that the circumstances set out in paragraph 5(1)(a) or (b) of this instrument apply to the person;
then, for the purposes of subsection 42AN(4) of the Act, the Secretary must determine that paragraph 42AN(3)(a) of the Act applies in relation to the reduction.

Reduction of payment by the whole instalment
 (2) Despite subsection (1), if:
 (a) the Secretary determines under paragraph 42AF(2)(c) of the Act that an instalment of the person's participation payment for an instalment period (the relevant instalment period) is to be reduced; and
 (b) in the 3 active months prior to the relevant failure:
 (i) the Secretary has previously determined under paragraph 42AF(2)(c) of the Act that an instalment of the person's participation payment for an instalment period (whether for the relevant instalment period or another instalment period) is to be reduced by the amount specified in paragraph 42AN(3)(a) of the Act; and
 (ii) that previous determination was the last determination made under paragraph 42AF(2)(c) of the Act in relation to the person before the determination referred to in paragraph (a);
then, for the purposes of subsection 42AN(4) of the Act, the Secretary must determine that paragraph 42AN(3)(b) of the Act applies in relation to the reduction referred to in paragraph (a).

First relevant failure after cancellation – reduction of payment by half the instalment
 (4) Despite subsection (2), if:
 (a) the person previously received a participation payment; and
 (b) that payment was cancelled under paragraph 42AF(2)(d) of the Act; and
 (c) the relevant failure is the first mutual obligation failure where the person does not have a reasonable excuse in the 3 active months since that cancellation;
then, for the purposes of subsection 42AN(4) of the Act, the Secretary must determine that paragraph 42AN(3)(a) of the Act applies in relation to the reduction referred to in paragraph (2)(a) of this instrument.

Endnotes

Endnote 1—About the endnotes
The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history

Abbreviation key—Endnote 2
The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or