Tomorrow the Minister for Employment Participation, Brendan O’Connor, will introduce a Bill to the Federal Parliament to amend the social security law to establish a new compliance framework.

The Bill will amend the Social Security Act (1991) and the Social Security (Administration) Act (1999) to give effect to measures announced in this year’s Budget to support the new employment services, in particular the introduction of a new job seeker compliance system.

As promised before the last election, the Rudd Government has reviewed the Job Network and other employment programs and will introduce new employment services on July 1, 2009.

The Government is determined to have a strong, but fair compliance regime that will require job seekers to look for employment and improve their chances of employment.

The new compliance arrangements will affect people who receive Newstart Allowance, Youth Allowance (Other), Parenting Payment or Special Benefit and have participation requirements.

A key feature of the new compliance framework is a new work-like ‘No Show, No Pay’ penalty. Just like a job, if a job seeker does not attend a required activity such as Work for the Dole without a reasonable excuse they will lose a day’s pay for every day missed.

An eight-week non-payment penalty will be retained for wilfully and persistently non-compliant jobseekers.

Job seekers who receive an eight-week non-payment penalty can have their payment re-instated if they agree to participate in an intensive compliance activity for 25 hours a week for up to eight weeks.

As is currently the case, job seekers who fail to attend an appointment with Centrelink or their provider will have to attend a reconnection appointment.