Centrelink issues Jobseeker cut-off warning as mutual obligation rules change

Job seekers could get cut off from their Centrelink payments in a month if they fail to respond to a change now in effect.

Some mutual obligations required from recipients were paused during an investigation into a number of unlawful payment cancellations.

Now that the Targeted Compliance Framework has been deemed lawful again, the mutual obligations have resumed.

Recipients who fail to meet their obligations, or refuse “suitable paid work” will have five days to supply a valid reason why.

After that, their payments will be suspended for four weeks.

If a reason cannot be given within that timeframe, or reconnection requirements have not been met, the recipient will be cut off.

When Services Australia initially paused all decisions to cancel people’s social security participation payments due to not meeting a reconnection requirement within a month in September 2024, it was due to an unlawful IT issue.

“The department identified that IT systems were not operating in alignment with the law and policies,” the Department of Employment and Workplace Relations (DEWR) said earlier in October.

“This was discovered in September 2024 when the department was making changes to the system. The IT issue related to the original introduction of resolution time in December 2020.”

Recipients invited to apply for compensation

The DEWR said it was working with Services Australia to identify job seekers affected by incorrect payment cancellation decisions.

Those identified will be invited by email to apply for compensation over the coming months.

The department will update its website once the invitation process is complete.

Anyone who believes they were affected but did not receive an invitation can still submit a compensation claim directly to the department.

There is no time limit for submitting a claim, the department said.

However, receiving an invitation does not guarantee compensation.

Each application will be assessed individually, with applicants notified of the outcome in writing.