Information about the decision to pause cancellations of people’s social security participation payments and to impose non-payment periods due to unemployment failures.
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A person receiving a social security participation payment may have their payment cancelled if they voluntarily leave their job or are dismissed due to misconduct. They are then not eligible to be paid for a preclusion period - generally 4 weeks.
Similarly, if a person submitting a claim for a social security participation payment has left their job in the same circumstances (i.e. voluntarily or due to misconduct), they also cannot receive payments for a preclusion period, known as a “non-payment period”.
This is referred to as compliance action for ‘unemployment failures’.
Compliance actions for unemployment failures are set out in law and supported by policies.
Decisions occur under the Social Security (Administration Act) 1999. The relevant provision is s 42AH.
Guidelines for these decisions are in the Social Security Guide (3.11.13).
Decisions have been paused
On 5 March 2025, the Secretary of the Department of Employment and Workplace Relations (the Secretary) paused all decisions regarding cancellations of people’s social security participation payments due to unemployment failures.
The reason for taking this decision
It had become clear that decisions regarding compliance action for unemployment failures may not have been validly made.
The department is reviewing its processes to ensure that decision making in this area is as robust as possible. These cancellation decisions will remain paused while this work is ongoing.
People impacted
From 5 March 2025, people who receive social security participation payments will no longer have their payments cancelled for unemployment failures. People will also no longer be subject to a non-payment period for unemployment failures while this pause is in effect.
The department has identified 8,659 times since 8 April 2022 where 8,546 people had their payments cancelled or had a non-payment period for unemployment failures.
Between 8 April 2022 and 5 March 2025, you may have been impacted if you:
- were on a social security participation payment and
- had your payment cancelled, or a non-payment period imposed, because of an unemployment failure.
Social security participation payments are:
- Jobseeker payment
- Youth Allowance for student and apprentices (other)
- Parenting Payment (single) once your youngest child turns 6
- Special Benefit (nominated visa holders).
This impacts people previously participating in Workforce Australia, the former Disability Employment Services, and the previous jobactive and ParentsNext programs.
If you are in the Remote Australia Employment Service, you are not impacted.
Actions regarding past decisions
More than $17,000 has been paid in backpay to 10 people under the Social Security (Administration) Act 1999.
The department is considering appropriate next steps for other affected individuals.
You do not need to do anything at this point.
Continue to meet your mutual obligation requirements if you have them. Speak with your employment services provider or the Digital Services Contact Centre to make sure your requirements are appropriate for your circumstances.
Meeting your mutual obligations
You still need to meet the activities in your Job Plan.
Talk to your employment services provider about what those activities are.
If you don’t meet your mutual obligations, your social security participation payment may still be suspended.
If your social security participation payment is suspended, reach out to one of the following contacts to discuss having your suspension lifted:
- Your employment services provider if you have one, or
- The Digital Services Contact Centre on 1800 314 677
If you have a question or a complaint
Please call the Department of Employment and Workplace Relation’s National Customer Service Line for more information on 1800 805 260.
Other contacts and information
You can also seek assistance from the Commonwealth Ombudsman at Office of the Commonwealth Ombudsman using the online complaints form.
If you are unable to complete the online form, you can call them on 1300 362 072.
Freedom of Information
The Freedom of Information Act 1982 (FOI Act) gives every person the right of access to documents held by Australian Government agencies, unless the documents are exempt from disclosure.
For more information, go to Freedom of Information (FOI) - Department of Employment and Workplace Relations.