Sick or injured people who have no job (or course of full-time study) to return to when they recover, should claim Newstart Allowance or Youth Allowance (unemployed) and seek an “exemption from the activity test”.
Similarly, people in receipt of Newstart Allowance or Youth Allowance who are sick or injured, or who have a flare-up of symptoms associated with a disability or medical condition, can be exempted from the activity test for the period of their incapacity to work.
A person:
should claim Newstart Allowance or Youth Allowance (unemployed) with an “exemption from the activity test”.
“Work” is defined as work that the person could be reasonably expected to do which is for at least eight hours per week. If a person is still able to work but could only work for less than eight hours a week work due to their illness or injury, they may still qualify for the exemption from the activity test.
Where the person requesting an exemption from the Youth Allowance activity test is a full-time student, the incapacity must be prevent the person undertaking that study.
The requirements that the injury or sickness be temporary and that the incapacity to work is caused by the sickness or injury are identical to the requirements for Sickness Allowance (see 2.3 and 2.4).
The requirement to give a medical certificate signed by a doctor is also identical to the requirement for Sickness Allowance (see 4.4).
Continued exemption from the activity test is also based on the same rules regarding the “maximum allowance period” (see 4.5 and 4.6). For Newstart Allowance and Youth Allowance, payment is not suspended or cancelled when the “maximum allowance period” expires or is not renewed (as is the case for people receiving Sickness Allowance). Instead, the person will remain in Newstart Allowance or Youth Allowance but will no longer be exempted from the activity test and must therefore enter into an Activity Agreement.
People receiving Newstart Allowance (incapacitated) and Youth Allowance (incapacitated) must still submit a “continuation” form every fortnight, however personal lodgment may not be required.
Where the medical certificate covers a period of more than 12 weeks, the continuation form may be lodged 12 weekly unless the person is under 18. This period can be extended where necessary.
Where a Youth Allowance (incapacitated) recipient with full-time study to return to has been incapacitated for a lengthy period which ends late in the academic year, Centrelink may extend the exemption to the start of the next semester or term.
The major difference between Newstart Allowance (incapacitated) and Sickness Allowance is that Centrelink will not grant an incapacity exemption from the activity test unless the person is considered to be unable to undertake any "appropriate" job preparation activities during the period of incapacity. Assessment of "appropriate" activities for people who cannot work eight hours per week is undertaken as part of the Job Capacity Assessment (see 3.2).
A person will not have to satisfy the activity test when receiving Newstart Allowance or Youth Allowance where:
Presentation of a medical certificate that a person is temporarily unable to work eight hours per week or more will not automatically result in a temporary incapacity exemption from the activity test. Centrelink may decide that the person is not incapacitated for "work" despite what their doctor has indicated on their medical certificate, or that although they are incapacitated for "work" they should be required to undertake another "suitable activity".
Where a person receiving Newstart Allowance or Youth Allowance (unemployed) submits a medical certificate, they may be referred to a Job Capacity Assessor (see Chapter 23, section 1.5). Referral for a Job Capacity Assessment is not generally required if the medical certificate is for a short period, but is likely where the total period of incapacity is for a period of 13 weeks or more. Where a person submits a medical certificate that would extend the exemption period or periods to a total of more than 26 weeks in a 12 month period, Centrelink will refer the person to a Job Capacity Assessor.
Job Capacity Assessments for incapacity exemptions assess whether the incapacity precludes work of eight hours per week, and whether it is temporary. If it is accepted that the person has a temporary activity for work, the Job Capacity Assessor will recommend to Centrelink what, if any, activities the person could reasonably undertake while incapacitated. On the basis of this recommendation, Centrelink decides whether to grant the person an exemption, or whether to refuse an exemption and require the person to enter into an Activity Agreement (see section 6).
A person who disagrees with a refusal by Centrelink to grant a medical incapacity exemption is strongly advised to appeal to an Authorised Review Officer (see Chapter 48).
