Penalty rates were introduced as a means of encouraging jobseekers to engage with activation measures and co-operate with efforts of the Department to assist them in securing employment. The Department is committed, under Pathways to Work, to incentivise the take-up of activation opportunities, including implementing sanctions for failure to engage.
The application of penalty rates is provided for in Social Welfare legislation. The application of the penalty provisions can only be applied in specific circumstances and the decision to impose a penalty can only be made by a Deciding Officer of the Department. If dissatisfied with that decision it is open to the Jobseeker to appeal to the Social Welfare Appeals Office.
The number of instances of Penalty Rates in 2017 was 16,451, involving 13,503 individuals.