Frequently Asked Questions

On this page:

How many people were impacted?

964 people had their social security participation payment cancelled 985 times between 8 April 2022 and 4 July 2024.

Will these social security participation payment cancellations be reviewed?

Yes, these payment cancellations will now be reviewed. The review will be under the Scheme for Compensation for Detriment caused by Defective Administration (CDDA).

If you are receiving a social security participation payment and you had your payment cancelled between 8 April 2022 and 4 July 2024 further information is here.

Why are reviews being undertaken through CDDA?

The Secretary decided CDDA was the most appropriate way to review decisions to enable payments to be made to people. 

What is the department doing to ensure decisions are lawful and robust?

The Department of Employment and Workplace Relations is conducting two reviews to ensure decisions taken are made in a lawful and robust manner. These include:

  • An independent assurance review is examining the IT system operating the Targeted Compliance Framework against policy and business rules to ensure the system is operating as intended.
  • A legal review is also examining whether decisions are being properly made and whether decision making processes are aligned with the law.

This work has identified examples where the system is not operating in alignment with the law and policies or is not operating with the rigour that we expect.

Decisions that affect people's social security payment can have a profound impact on people.

This has led to decisions to pause decision making in some parts of the system.

If we have reasonable concerns that the system is not operating in accordance with the law, we will look to change the processes and systems, so decisions are being made lawfully. 

What other decisions under the Social Security (Administration) Act 1999 are paused?

Some decisions under the Social Security (Administration) Act 1999 are paused.

These will remain paused until we are certain that the processes and systems support lawful and robust decisions.

On 5 March 2025 the Secretary took a decision to pause cancellations of people’s social security payment and imposition of preclusion periods due to an “unemployment failure” (defined in section 42AE) made under subsection 42AH(1) and (2) of the Administration Act. These remain paused.

On 6 March 2025, the Secretary took a decision to pause reductions to people’s social security payment due to persistent mutual obligation failures made under subsection 42AF(2)(c) of the Administration Act. These remain paused.

Earlier decisions were taken to pause two further decisions occurring. These are set out below.

What are mutual obligation requirements?

Job seekers have mutual obligation requirements when they receive a social security participation payment.

These mutual obligation requirements set out activities that a person does to demonstrate their willingness to actively seek and to accept and undertake pause work.

Mutual obligations will vary depending on a person’s circumstances.

A failure to meet them can result in a suspension of social security participation payments.

What is a mutual obligation failure?

When a person fails to meet their mutual obligation requirements this is known as a ‘mutual obligation failure’.

Examples of a mutual obligation failure includes when a person fails to:

  • enter into a Job Plan
  • meet their points requirement
  • attend, or be punctual for an appointment, either with their provider, or a third party
  • participate in a compulsory activity
  • undertake adequate job search efforts
  • undertake any other activities outlined in a person’s Job Plan
  • act in an appropriate manner during an appointment or while participating in an activity
  • attend a job interview, or behaving inappropriately at an interview, and
  • act on a job opportunity when they have been referred to one.