Payment reduction decisions for persistent mutual obligation failures

Information about the decision to pause reductions of people’s social security participation payments due to persistent mutual obligation failures.

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A person who receives a social security participation payment and repeatedly fails to meet their mutual obligation requirements, is subject to an escalating range of compliance action under the Targeted Compliance Framework.

Since 1 July 2018, if a person has twice been assessed (first, by their provider and then secondly, by Services Australia) as able but unwilling to meet their mutual obligation requirements, then financial penalties may apply under the Targeted Compliance Framework. This is often referred to as reducing a person’s social security participation payment.

Decisions to reduce a person’s social security participation payment for persistent mutual obligation failures are set out in law and supported by policies.

Decisions occur under the Social Security (Administration) Act 1999 and the Social Security (Administration) (Non-Compliance) Determination 2018 (No. 1). The relevant provision in the Social Security (Administration) Act 1999 is s 42AF(2)(c).

Guidelines for these decisions are in the Social Security Guide (3.11.13).

Decisions have been paused

On 6 March 2025, the Secretary of the Department of Employment and Workplace Relations (the Secretary) paused all decisions to reduce people’s social security participation payments due to persistent mutual obligation failures.

The reason for taking this decision

Decision making in this area needs to be well-considered and robust as possible, taking into account other aspects of the mutual obligations framework.

The department does not consider that the decisions that have been made are incorrect, or that job seekers have been incorrectly impacted by these payment reduction decisions. The pause in payment reductions is a precaution and reduction decisions will remain paused while work is underway to improve our processes.

People impacted

From 6 March 2025, people who are on a social security participation payment will not have their payments reduced for persistently failing to meet their mutual obligation requirements.

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

The department is considering appropriate next steps, noting that this decision was taken as a precaution while the broader operation of the system is examined.

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.

If you think a past decision to reduce your payment was incorrect

You can ask for the decision to be reviewed, or ask for an explanation of the decision by:

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 without a reasonable excuse, 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
  • The Digital Services Contact Centre on 1800 314 677

If you have a question or a complaint

Please call the department’s National Customer Service Line for more information on 1800 805 260.

If you do not agree with the review outcome

You have a right to ask for the decision to be reviewed again.

If the decision has not already been reviewed by an Authorised Review Officer, contact Services Australia and ask for internal review of the decision by an Authorised Review Officer.

If you do not agree with the internal review decision, you can apply for an independent review by the Administrative Review Tribunal (ART). Go to the ART website for more information or call them on 1800 228 333. This review is free.

It is important to ask for a review within 13 weeks of being notified about the decision. You can request a review after 13 weeks, however, if the decision can be changed it may only take effect from the date you requested the review.

If you lodge an application, the ART will notify Services Australia. They will send all the relevant documents to you, the ART and other persons affected by the decision.

You can also seek assistance from the Commonwealth Ombudsman at ombudsman.gov.au 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