A critical report published by the Commonwealth Ombudsman has revealed that more than 1,000 JobSeeker payments were unlawfully cancelled by the government’s automated IT system. The cancellations occurred between April 2022 and July 2024, with 964 recipients affected, despite legal amendments in 2022 that necessitated a review of individual circumstances prior to income support cancellations.
Job seekers are typically required to fulfil “mutual obligations,” such as attending appointments and interviews, under the Targeted Compliance Framework (TCF) managed by the Department of Employment and Workplace Relations (DEWR) and Services Australia. However, issues with this framework led DEWR Secretary Natalie James to halt further cancellations in June 2024. Despite this decision, an additional 45 recipients had their payments cancelled automatically, highlighting ongoing complications within the system.
In a thorough six-month investigation, Ombudsman Iain Anderson concluded that both DEWR and Services Australia had not adequately adhered to the legal requirements established by the 2022 amendments, resulting in unlawful payment cancellations. He recommended an ongoing pause on cancellations until a thorough review of the TCF’s legality could be conducted. Anderson raised alarms regarding the potential vulnerability of affected individuals, especially considering prior revelations from the Robodebt Royal Commission.
The report also indicated that DEWR had been instructed to implement a “digital protection framework” in 2022 to safeguard job seekers, but it failed to do so adequately. Significantly, the automation errors that led to these unlawful cancellations went unnoticed for nearly 18 months, only coming to light after external legal advice identified the issues in September 2023. It wasn’t until July 2024 that DEWR paused the cancellations, a delay Anderson deemed unacceptable.
In response to the ombudsman’s findings, Secretary Natalie James acknowledged the recommendations, stating that the department had started initiatives to ensure TCF integrity and compliance. Furthermore, Services Australia’s CEO, David Hazlehurst, confirmed that his agency accepted the ombudsman’s conclusions.
The implications of this report have been described as just “the tip of the iceberg” by spokespeople from the Antipoverty Centre, who underscore that the adverse impacts of mandatory activities tied to Centrelink payments have long been documented. They argue for the abolition of the punitive “mutual obligations” system, stressing that the need for reform is more urgent than ever.
The Greens party expressed concern that while the government has paused some cancellations, numerous welfare recipients still face payment suspensions monthly, with nearly 350,000 suspensions issued in the first quarter of 2025 alone. They have called on the government to cease these suspensions entirely, criticising the ongoing implications reminiscent of the previous Robodebt debacle.