More than 50,000 welfare recipients could now get compensation after the Albanese Government unlawfully stopped their payments, claiming they had failed to meet “mutual obligation” requirements. Source: ABC News.
That scheme, which was partially paused in July 2024 when concerns it may have been operating unlawfully first arose, has now restarted with advocates warning the problems have not been fixed.
A Commonwealth Ombudsman investigation last year found 964 payment cancellations were not made in accordance with the law.
The Department of Employment and Workplace Relations (DEWR) said it had fixed the issues identified by the Commonwealth Ombudsman through IT system changes, system testing, improved participant communications and additional training for decision-makers.
But advocacy groups fear not enough has been done to fix the underlying issues, with questions set to be put to the government over the scale of the payment cancellations and what evidence it relied on before resuming the program.
The department said one reason identified for the system failure stemmed from an IT system change introduced in December 2020, which caused some welfare recipients to have their payments cancelled up to four days earlier than legislation allowed.
The department’s 2025-26 annual report released last week showed $870,000 has been paid in compensation to more than 600 people following the review.
It is now inviting a further 50,652 people to also apply for compensation. However, advocacy groups argue the number of people affected by unlawful cancellations may be substantially higher, with estimates ranging from more than 100,000 people to as many as 300,000.
Disability groups have also criticised the decision, arguing people with disability are disproportionately affected by payment suspensions and cancellations and calling for the framework to be abolished.
DEWR said it would closely monitor the resumed provisions and noted the most serious cancellation powers remained paused until further safeguards were put in place, with those measures expected to return in 2027.
The department has not publicly disclosed its estimated total compensation liability.
FULL STORY
Centrelink compliance regime resumes after system unlawfully cancelled jobseekers’ payments (By Bronwyn Herbert, ABC News)
