Exempting a job seeker from mutual obligation requirements for serious
illness 001-09120080
Currently published version valid from 14/06/2023 10:13 PM
Background
This document outlines how to assess an exemption from mutual obligation or participation requirements for a job seeker or
ParentsNext participant with a serious illness. This may apply to customers receiving JobSeeker Payment (JSP), Youth Allowance (YA),
Parenting Payment (PP) or Special Benefit (SpB).
Temporary Incapacity - Serious Illness
Job seekers and participants with mutual obligation or participation requirements who are temporarily incapacitated as the result of
an illness, injury or medical condition may be eligible for a temporary incapacity exemption. See Assessing and coding medical
evidence for temporary incapacity exemptions.
A
Temp-Incap Serious Illness exemption may be granted for customers who are suffering from a serious illness. A serious illness or
injury is expected to impact on a customer's ability to undertake work, study or meet their mutual obligation requirements for 8
hours or more per week for an extended period (more than 13 weeks and less than 24 months). This exemption can be applied for
periods greater than 13 weeks under a single medical certificate.
Note: as a result of their condition, seriously ill customers may be temporarily incapacitated for extended periods of time. However,
it is often the case that they will not qualify for Disability Support Pension (DSP) because their condition is:
not yet diagnosed, reasonably treated and stabilised, or
temporary (is likely to persist for less than 2 years)
Exemption Period
The Temp-Incap - Serious Illness exemption may initially be granted for up to 12 months, according to the dates advised by a
medical practitioner on the medical certificate, or following contact with a Service Officer.
If further evidence is provided and it can be determined that the same serious illness condition persists at the end of the initial 12
month exemption, an extension of up to 6 months may be applied. The allowable exemption period will be determined by the dates
advised by the medical practitioner on a
new medical certificate.
Job seekers granted a Temp-Incap Serious Illness exemption:
will not be required to provide additional medical certificates for the duration of the exemption, and
will have modified reporting requirements during the exemption
If a job seeker is still clearly temporarily incapacitated for all work after being granted a total period of 18 months exemption for the
same medical condition, they may be granted a further exemption of up to 13 weeks at a time. A new medical certificate will be
required for each new exemption period and will be assessed under the temporary incapacity exemption provisions.
Exemption criteria
To be eligible for a temporary incapacity - serious illness exemption, the following criteria must be met:
the job seeker must:
meet all the criteria required for a temporary incapacity exemption
be temporarily incapacitated as a result of having a serious illness
be undergoing/recovering from intensive medical treatment (for example, chemotherapy, radiotherapy, etc.) or
undertaking rehabilitation for the serious illness
it is unlikely that the job seeker will experience significant improvement in their medical condition over the period stated on
the medical certificate, and
requiring the job seeker to repeatedly obtain a new medical certificate every 13 weeks would place unreasonable physical
and/or mental burden or stress on the job seeker
Note: this exemption should not be used as a way to reduce the number of contacts with job seekers.
Serious illness conditions
Some examples of medical conditions that may indicate a job seeker or participant is seriously ill include:
cancer/leukaemia
severe stroke
acquired brain injuries
serious burns
serious physical injuries requiring long recovery periods
severe mental health conditions for which the person is receiving treatment in an institutional setting
If a job seeker's medical evidence verifies they have a terminal illness, they may be manifestly eligible for Disability Support Pension
(DSP).
Note: if the serious illness is primarily as a result of
drug or alcohol misuse or dependency, a Temp-Incap Serious Illness exemption
cannot be granted unless the job seeker is a Community Development Program (CDP) participant. The job seeker can volunteer to
undertake drug dependency treatments or interventions.
Medical evidence for Temp-Incap Serious Illness exemption
A valid medical certificate is preferred, however, any medical documentation which contains the information required for a valid
medical certificate will satisfy this requirement.
Where the information contained in a valid medical certificate requires clarification, or if a serious illness is otherwise indicated, it
may be appropriate to contact the medical practitioner to make sure that all relevant information is considered in the decision.
Additional information obtained via contact with the medical practitioner must be appropriately documented on the customer's
record.
ESAt and Temp-Incap Serious Illness exemptions
Job seekers with a serious illness who clearly meet the criteria for the Temp-Incap Serious Illness exemption
do not need to be
referred for an Employment Services Assessment (ESAt) to determine whether an exemption can be granted.
A referral for an ESAt
in addition to granting a Temp-Incap Serious Illness exemption may be appropriate to determine:
if a job seeker has a Partial Capacity to Work (PCW)
identify if another payment is more appropriate
determine eligibility for Youth Disability Supplement (YDS) or independence, or
where a job seeker has been suspended for failing to attend a previous ESAt appointment
If the Job Seeker Snapshot identifies the requirement for an ESAt for a job seeker who meets the criteria for the Temp Incap - Serious
Illness exemption, and it is determined that an ESAt is not also required, the ESAt flag may be withdrawn so the pending Job Seeker
Snapshot can be completed without referring the job seeker for an ESAt.
Note: Employment Services Assessment (ESAt) do not apply to ParentsNext participants.
Assessment of Temp-Incap Serious Illness exemption by Assessment Services staff
Assessment Services staff may grant Temp-Incap Serious Illness exemptions for job seekers in place of conducting an Employment
Services Assessment (ESAt), where the evidence indicates that this is appropriate. An Assessor may obtain further evidence by
contacting the medical practitioner via phone. Further evidence must be documented appropriately. In some circumstances, it may
be in the job seeker's best interest to complete the ESAt where a Temp-Incap Serious Illness exemption could be applied. This is to
be determined at the Assessor's discretion and is likely only relevant for a small cohort of job seekers.
Reporting requirements during a Temp-Incap Serious Illness exemption
Job seekers
Job seekers who have been granted the Temp Incap Serious Illness exemption can be manually placed on variable reporting and are
required to report every 12 weeks using self-managed services or via Reporting Statement (SU19).
ParentsNext
Compulsory ParentsNext participants who have been granted the Temp-Incap Serious Illness exemption for a period of 52 weeks are
automatically placed on 12 weekly variable reporting and are required to lodge a modified Reporting Statement (SU19). Reporting
requirements cannot be manually updated for ParentsNext participants.
Modified SU19
Where a customer has been placed on variable reporting due to a Temp-Incap Serious Illness exemption, the SU19 is modified to
include questions about their medical condition. The exemption will be reconsidered if the customer states on the SU19 their
condition has significantly improved or deteriorated. See Reporting requirements and Temp Incap - Serious Illness exemptions in
Reporting requirements for job seekers.
Authorising a person to act on behalf of a seriously ill customer
Customers who are seriously ill and have been granted a Temp-Incap Serious Illness exemption may find it difficult to conduct their
business with the Agency for extended periods. It may be beneficial for them to have a nominee to act on their behalf during the
period of incapacity.
Service Officer suspects medical certificate may be fraudulent
If the Service Officer is not satisfied with the integrity of the information on the medical certificate, a temporary incapacity exemption
should not be granted. See Suspected fraud in Centrelink Medical Certificate (SU415 or SU683).
Related links
Identifying people with a partial capacity to work
Assessing and coding medical evidence for temporary incapacity exemptions
Altered processes and mutual obligation requirements for job seekers due to coronavirus (COVID-19) response
Job Capacity Assessment (JCA) referral
Request an Employment Services Assessment (ESAt)
Job Seeker Snapshot Initiated Employment Services Assessment (ESAt) flags
Reporting requirements for job seekers
Adding or rejecting a nominee request
ParentsNext eligibility and servicing
ParentsNext exits and exemptions
Process
On this page:
Considerations for Service Officers determining suitability for a Temp-Incap Serious Illness exemption
Considerations for Assessment Services staff determining suitability for a serious illness exemption instead of completing an ESAt
Identifying when a Temp-Incapacity Serious Illness exemption has been applied to a customer's record
Considerations for Service Officers determining suitability for a Temp-Incap
Serious Illness exemption
Table 1
Step
Action
1
Requirements for a temporary incapacity exemption + Read more ...
Check if the customer meets
all of the requirements for a temporary incapacity exemption:
Does the customer have an incapacity which makes them unable to work, study or participate in another
suitable activity including Workforce Australia (for 8 hours or more per week)?
Is the incapacity not caused by their drug and/or alcohol misuse (including dependency), that is, the primary
medical condition listed by the medical practitioner is not drug or alcohol dependency (excluding CDP
participants)?
Is the incapacity likely to be temporary?
Has suitable medical evidence been provided?
If the answer to
all of the above is
yes, go to Step 2.
If the answer to
any of the above is
no, an exemption cannot be granted:
code the medical certificate, and
consider alternative referral options
Procedure ends here.
2
Serious illness conditions + Read more ...
Examples include, but are not limited to:
cancer, including leukaemia
severe stroke
acquired brain injury
serious burns
coma
serious physical injuries requiring long recovery periods
severe mental health conditions for which the job seeker or participant is receiving treatment in an
institutional setting
Does the job seeker have a serious illness?
Yes, go to Step 3
No, consider if a standard temporary incapacity exemption can be granted. See Assessing and coding
medical evidence for temporary incapacity exemptions
3
Intensive medical treatment or undertaking rehabilitation + Read more ...
Is the job seeker undergoing and/or recovering from intensive medical treatment, or undertaking rehabilitation for
the serious illness?
Yes, go to Step 4
No, consider whether a standard temporary incapacity exemption can be granted. See Assessing and coding
medical evidence for temporary incapacity exemptions
4
Medical condition is unlikely to improve + Read more ...
Is it
unlikely that the customer's medical condition will significantly improve during the period stated on the
medical certificate?
Yes, go to Step 5
No, consider whether a standard temporary incapacity exemption can be granted. See Assessing and coding
medical evidence for temporary incapacity exemptions
5
Unreasonable physical and/or mental burden + Read more ...
Would requiring the job seeker to obtain new valid medical certificates (or other suitable evidence) every 13 weeks
create an unreasonable physical and/or mental burden or stress?
Yes, the Temp-Incap Serious Illness exemption can be granted. Code the medical certificate. Make sure that
the serious illness condition is coded as the primary medical condition
No, consider whether a standard temporary incapacity exemption can be granted. See Assessing and coding
medical evidence for temporary incapacity exemptions
Considerations for Assessment Services staff determining suitability for a
serious illness exemption instead of completing an ESAt
Table 2
Step
Action
1
Obtaining further evidence from the medical practitioner + Read more ...
If during, or while preparing for, an Employment Services Assessment (ESAt) interview or post-MAT
recommendation an Assessor believes that a Temp-Incap Serious Illness exemption is likely to be more suitable for a
job seeker's circumstances than completing the ESAt, the Assessor may:
contact the medical practitioner and record details of the conversation in a SA463 or SA479
if appropriate, grant and code the Temp-Incap Serious Illness exemption
To determine whether the job seeker is potentially better suited to a Temp-Incap Serious Illness exemption, go to
Step 2.
2
Requirements for a temporary incapacity exemption + Read more ...
Check if the customer meets
all of the requirements for a temporary incapacity exemption:
Do they have an incapacity which makes them unable to work study or participate in another suitable
activity, (for 8 hours or more per week)?
Is the incapacity likely to be temporary?
Has suitable medical evidence been provided?
Note: the SA463 or SA479 forms can be used to record further evidence provided verbally by a medical practitioner.
If the answer to
all of the above is
yes, go to Step 3.
If the answer to
any of the above is
no, an exemption cannot be granted. Complete the ESAt.
3
Serious illness conditions + Read more ...
Examples include, but are not limited to:
cancer, including leukaemia
severe stroke
acquired brain injury
serious burns
coma
serious physical injuries requiring long recovery periods
severe mental health conditions for which the job seeker or participant is receiving treatment in an
institutional setting
Does the job seeker have a serious illness?
Yes, go to Step 4
No, an exemption cannot be granted. Complete the ESAt
4
Intensive medical treatment or undertaking rehabilitation + Read more ...
Is the job seeker undergoing and/or recovering from intensive medical treatment or undertaking rehabilitation for
the serious illness?
Yes, go to Step 5
No, an exemption cannot be granted. Complete the ESAt
5
Medical condition is unlikely to improve + Read more ...
Is it
unlikely that the customer's medical condition will significantly improve during the period stated on the
medical certificate?
Yes, go to Step 6
No, an exemption cannot be granted. Complete the ESAt
6
Unreasonable physical and/or mental burden + Read more ...
Would requiring the job seeker to obtain new valid medical certificates (or other suitable evidence) every 13 weeks
create an unreasonable physical and/or mental burden or stress?
Yes, go to Step 7
No, an exemption cannot be granted. Complete the ESAt
7
Other factors to consider when determining if an ESAt is required + Read more ...
Is an ESAt required to determine eligibility for Youth Disability Supplement (YDS) or independence (under
22)?
Does the job seeker have a recent Disability Support Pension (DSP) application which would likely be
required to show participation in a Program of Support (POS)?
Is the job seeker currently suspended following a Did Not Attend result from a previous ESAt?
If the answer to
all of the above questions is
no:
code the exemption
make sure that the serious illness condition is coded as the primary medical condition
procedure ends here
If the answer to
any of the above question is
yes, an ESAt is required. Complete the ESAt.
Identifying when a Temp-Incapacity Serious Illness exemption has been applied
to a customer's record
Table 3
Step
Action
1
Identify job seekers granted the Temp-Incap Serious Illness exemption + Read more ...
Job seekers or participants who have been granted the Temp-Incap Serious Illness exemption can be identified in
the following ways:
the Activity and Exemption Summary (
AEX) screen will display an exemption code of
ISI
the Medical Certificate (
MC) screen will contain an
S in the
Incap exempt: field
the Medical Conditions Summary Screen (
MCSS) screen will display an
S in the
Incap exempt: field
the Med Cert Accepted
DOC will provide information including the decision to grant the Temp Incap -
Serious Illness exemption
2
Identify periods when a job seeker was previously exempt due to incapacity + Read more ...
The
Medical Certificate guided procedure and/or task will display information extracted from the Activity and
Exemption Summary (
AEX) screen. It will show previous periods where the job seeker or participant was granted an
exemption for
INP (Incapacitated (via the
MC screen) and/or
ISI (Temp Incap - Serious Illness).
References
Policy
Social Security Guide, 3.11, Mutual obligation requirements
Social Security Guide, 3.11.2, Job Plans
Social Security Guide, 3.11.5, Exemptions - overview
Social Security Guide, 3.11.5.10, Temporary incapacity
Social Security Guide, 3.2.7.50, YA study load - part-time students
Social Security Guide, 3.11.5.50, Exemption arrangements in ParentsNext (for compulsory participants)
Legislation
Links to the Federal Register of Legislation site go to a 'Series' page. Select the 'Latest' version.
Social Security (Administration) Act 1999, section 40L, Circumstances making it unreasonable etc. to comply with requirements
Youth Allowance (YA)
Social Security Act 1991
section 542A, Temporary incapacity exemption
section 542BA, Time limit for incapacity exemptions - capacity to undertake activity
Agreements and arrangements
Services Australia deliver payments and services on behalf of other government agencies. A range of bilateral agreements and
Bilateral Management Arrangements (BMA) governs our relationships with those agencies.
For more information, contact the Services Australia relationships teams.
Training & Support
Add the course number to the
Search field in the Learning Portal (LMS) in ESSentials:
CLK01431 - Job Seeker Snapshot and RapidConnect
CLK01432 - Job Plans, requirements and exemptions
CLK01200 - ParentsNext SDO Network
CLK01369 - Temporary incapacity exemptions
