Secretary’s statement to the Ombudsman’s report

Today, the Commonwealth Ombudsman released his report on the Targeted Compliance Framework and the cancellation of social security participation payments under 42AF(2)(d) of the Social Security (Administration) Act 1999.  

I thank the Ombudsman for his insights. The department has accepted all recommendations in the report.

The department’s response to the Ombudsman’s recommendations is available to read on the Ombudsman’s website.

Read the Ombudsman’s report on the Targeted Compliance Framework

Update

In accordance with our formal response to the report, DEWR will work with Services Australia to implement the Ombudsman’s recommendations as part of the department’s TCF Integrity Assurance Program.

This program includes advice provided in the reviews we initiated into the Targeted Compliance Framework: 

  • a legal review examining whether decisions are being taken in accordance with the legislative framework
  • an independent assurance review which has examined the IT system operating the framework against policy and business rules.

Background

Over the past year, in response to concerns that the TCF system was not operating in alignment with the law and as intended, I have taken several actions to pause decisions around reducing or cancelling a person's social security payment.

The effect of these decisions is that all payment reductions and payment cancellations made as a result of mutual obligations failures under the Social Security framework are paused.

I will not take any decision to resume social security payment reductions or cancellations unless and until it can be clearly demonstrated that the process to support the decision making complies with the law.