42LDeduction of penalty amount

42L  Deduction of penalty amount   If the Secretary determines that a person commits a reconnection failure, the person’s penalty amount (see section 42T) for the reconnection failure is to be deducted from the person’s instalment of a participation payment for the instalment period determined under subsection 42H(5). Note: The balance of the penalty amount is to be deducted from instalments of the participation payment for any later instalment periods, or from any instalments of any other participation payment paid to the person (see section 42V). Subdivision D—Serious failures 42M  Serious failure for persistent non‑compliance  (1) The Secretary may determine that a person commits a serious failure if:  (a) the Secretary is satisfied that the person has, up to the day the Secretary makes the determination, persistently failed to comply with his or her obligations in relation to a participation payment (including by committing no show no pay failures, connection failures or reconnection failures); and  (b) the person receives a participation payment for the instalment period in which the Secretary makes the determination. Note 1: A participation payment is not payable for 8 weeks for a serious failure (see section 42P). Note 2: For the day the Secretary makes the determination, see section 42Y.  (2) In determining whether a person commits a serious failure under subsection (1):  (a) the Secretary must not take into account failures that were outside the person’s control; and  (b) the Secretary may only take into account any other failures that occurred intentionally, recklessly or negligently. Limitations on determining persistent non‑compliance serious failures  (3) The Secretary must not determine that a person commits a serious failure under subsection (1):  (a) while the person is in a serious failure period for another serious failure determined under subsection (1); or  (b) if the person is a new apprentice; or  (c) if the person is someone to whom section 42SB applies. Legislative instrument  (4) The Minister must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether a person persistently failed to comply with his or her obligations in relation to a participation payment.  (5) In deciding whether a person persistently failed to comply with his or her obligations in relation to a participation payment, the Secretary must take the matters determined under subsection (4) into account.  (6) To avoid doubt, subsection (5) does not limit the matters that the Secretary may take into account in deciding whether the person failed to comply with his or her obligations. 42N  Serious failure for refusing or failing to accept an offer of paid work  (1) The Secretary may determine that a person commits a serious failure if:  (b) the person refuses or fails to accept an offer of paid work in Australia, except particular paid work that is unsuitable to be done by the person. Note 1: A participation payment is not payable for 8 weeks for a serious failure (see section 42P). Note 2: See Division 2B for the circumstances in which paid work is unsuitable to be done by a person.  (2) Despite subsection (1), the Secretary must not determine that a person commits a serious failure under that subsection if: Note: The Secretary must take certain matters into account for the purposes of paragraph (a) and may be prohibited from taking other matters into account for those purposes (see section 42U).  (3) Despite subsection (1), the Secretary must not determine that a person commits a serious failure under that subsection if:  (b) the person refuses or fails to accept an offer of paid work in Australia that is more than 15 hours per week. 42NA  Comprehensive compliance assessment  (1) Before the Secretary determines that a person has committed a serious failure under section 42M, the Secretary must conduct a comprehensive compliance assessment in relation to the person.  (2) The comprehensive compliance assessment must assess the following:  (a) the reasons why the person may have committed failures under this Division;  (b) the reasons why the person may have failed to meet other requirements under the social security law;  (c) whether the person has any barriers to employment;  (d) whether the person’s participation requirements are appropriate. 42NC  Determination about serious failure requirements and severe financial hardship   If the Secretary determines that a person commits a serious failure, the Secretary must also determine that this section applies unless the Secretary is satisfied that:  (a) the person does not have the capacity to undertake any serious failure requirement; and  (b) serving the serious failure period would cause the person to be in severe financial hardship.