The department is working to implement changes arising from reviews into the administration of the Targeted Compliance Framework (TCF). This page provides the latest information and updates on the progress of this work.
The Targeted Compliance Framework applies to participants in Workforce Australia, Inclusive Employment Australia and Transition to Work who have mutual obligation requirements.
On 4 August 2026, the Secretary gave an update on work to return the TCF to lawful administration.
Intention to resume paused elements of the TCF
On 26 October 2026, it is intended for decision-making under the following 2 elements of the Targeted Compliance Framework to start again:
- payment cancellations for not meeting a reconnection requirement within 4 weeks
- payment suspensions for work refusal failures.
Returning the Targeted Compliance Framework to full operation will be undertaken in stages throughout 2026 and early 2027.
More detail on the decisions to date, status of the system, who is impacted and information for participants is available on the TCF decisions and information for participants page.
Compensation
The department is working closely with Services Australia to identify people who may have been adversely impacted by an incorrect payment cancellation decision.
Once this work is complete, the department will begin inviting people to submit a claim for compensation.
The government will provide compensation under the Compensation for Detriment caused by Defective Administration scheme.
Further information on the upcoming compensation process is available on the compensation page.
Digital Protection Framework
The department expects to shortly release a draft Digital Protections Framework for public consideration.
The draft framework sets out safeguards for the use of technological processes in decision making and service delivery across all Commonwealth employment services programs.
The draft framework will be available on our Consultation Hub in August for a period of 4 weeks to allow employment services participants, providers, advocates and the broader community to review. Submissions via the website are welcome.
TCF system reviews
To assure the integrity of the administration of the Targeted Compliance Framework, we are acting on the insights from recent reviews and recommendations.
The reviews looked at whether decisions taken through the Targeted Compliance Framework were made in a lawful and robust manner:
- An independent assurance review examined the IT system operating the Targeted Compliance Framework against policy and business rules.
- The Commonwealth Ombudsman released two reports from his investigation into decisions under the Targeted Compliance Framework.
- A legal review examined whether decisions are being properly made and whether decision making processes are aligned with the law.
We are working with other partner agencies to improve the integrity, operation and transparency of the employment services system.
We are prioritising improvements to our assurance activities. All decision-making processes that might impact a person’s payment are being tested, mapped end to end, clearly documented and assured.
We are improving our governance processes, and ensuring legal, policy and operational considerations are integrated into our system.
Support
A fact sheet is available for participants with information about the intended resumption of certain paused elements of the Targeted Compliance Framework.
Participants who have questions, are concerned, or would like to make a complaint, can call the department’s National Customer Service Line for more information on 1800 805 260.
Statements and updates
- 4 August 2026 – Secretary’s update on work to return the Targeted Compliance Framework to lawful administration
- 17 December 2025 – An update on the Targeted Compliance Framework
- 9 December 2025 – Secretary's statement in response to Ombudsman’s report
- 3 October 2025 – Secretary's statement on progress under the Targeted Compliance Framework Integrity Assurance program
- 14 August 2025 – Secretary's statement in response to the independent assurance review
- 6 August 2025 – Secretary's statement in response to Commonwealth Ombudsman report
- 21 March 2025 – Secretary's statement updating on the progress of assurance reviews, and announcing decisions to pause additional elements of the Targeted Compliance Framework
- 26 February 2025 – Secretary's opening statement to Senate Education and Employment References Committee
This video provides information about the Targeted Compliance Framework and a summary of the department’s actions to assure the integrity of the framework. The video refers to decisions made on 21 March 2025 to pause some parts of the system and where people can access support.
This video provides information about mutual obligation requirements. It provides information about decisions taken on 21 March 2025 in relation to the system, the basis for these decisions and the department’s next steps.