Statement from Simon Duggan PSM, Secretary of the Department of Employment and Workplace Relations.
Following the statement I released on 4 August 2026, today I am confirming resumption of some paused elements of the Targeted Compliance Framework, commencement of the process to compensate eligible people as a result of unlawful payment cancellation decisions and progress to establish a Digital Protections Framework.
Compensation process for incorrect payment cancellations
The department has commenced an invitation to claim process that identifies people who may be eligible for compensation as a result of incorrect payment cancellations.
Invitations will be sent in batches over the coming months to ensure we can respond promptly to claims received.
We will update our website once the invitation process is complete. At that stage if a person has not received an invitation but believes they are eligible for compensation, they will be encouraged to submit an application to the department, noting people can apply for compensation at any time.
The department has published further information on the compensation process, including the application form, on our compensation page.
Decision to resume paused elements of the Targeted Compliance Framework on 26 October 2026
The department has been working to address the issues that led to the original pause of 2 provisions of the Social Security (Administration) Act 1999. This includes assurance activities and system testing to ensure the necessary IT changes are operating correctly and improved guidance and training for decision-makers are in place to ensure the administration of these 2 provisions aligns with the law.
On the basis of this work, we are proceeding with resuming the following provisions from 26 October 2026:
- section 42AM(3) - decisions to cancel a person’s social security participation payment due to not meeting a ‘reconnection requirement’ within 4 weeks
- section 42AG(1)(a) - decisions to suspend a person’s social security participation payment due to refusing or failing to accept an offer of suitable employment, including accepting but not commencing a job.
Following reinstatement, the department will work with Services Australia and the Department of Social Services to closely monitor the resumed provisions to ensure the system is operating as intended.
The decision to resume these provisions is an important step in returning the Targeted Compliance Framework system to lawful operation.
Support for participants
Prior to the recommencement of these provisions the department will remove all mutual obligation failures and lift all active payment suspensions for participants in Workforce Australia, Inclusive Employment Australia and Transition to Work. This means from 26 October 2026 any participant who commits a mutual obligation failure will have the full benefit of 5 business days’ resolution time, followed by the 4-week reconnection period before a payment cancellation may be applied.
To help participants to understand the process and decision points being reinstated by these provisions, the department has developed participant journey maps and an updated participant fact sheet.
These provisions and the Targeted Compliance Framework do not apply to people in the Remote Australia Employment Service.
Progress on remaining paused provisions
The remaining provisions of the Targeted Compliance Framework that preclude, reduce or cancel people’s payments will remain paused until further safeguards are in place. This includes section 42AF(2) (relating to persistent mutual obligation failures), cancellations under section 42AG(1)(b) (relating to work refusal failures), and section 42AH (relating to unemployment failures).
At this stage we expect these provisions to resume in the first quarter of 2027.
Foundational work is underway, including changes to the department’s and Services Australia’s IT systems, updates to participant communications and development of guidance to support delegates to make lawful decisions.
I intend to provide a further update on the progress of this work early in 2027.
Digital Protections Framework
The department published the draft Digital Protections Framework and 40Y Guidelines for public consultation on 31 August 2026. Stakeholders were invited to provide submissions through the department’s website until 28 September.
The draft Digital Protections Framework sets out safeguards for the use of technological processes in decision making and service delivery across all Commonwealth employment services programs.
Alongside the draft Digital Protections Framework, the department also released a draft instrument made under section 40Y of the Social Security (Administration) Act 1999 for consultation. It aims to help people comply with mutual obligations requirements by making it easier to understand their rights and responsibilities under social security law for actively seeking suitable work, complying with their Employment Pathway Plan, and identifying when work may be unsuitable due to health or safety risks.
The department is now considering the feedback received and will advise stakeholders of next steps in due course.
Further information is available at Assuring the integrity of the Targeted Compliance Framework.