In 2024 and 2025, some elements of the Targeted Compliance Framework were paused. The department had identified examples where the system was not operating in alignment with the law and policies or not operating with the rigour that we expect. Decisions that affect people’s social security participation payments can have a profound impact.
On this page:
We have updated our systems and interim processes as we work to assure the integrity of the system. This ensures that people’s social security participation payments are not impacted due to decisions made regarding the compliance decisions outlined below.
Paused decisions
Payment cancellation decisions for not meeting a reconnection requirement within 4 weeks – paused 24 September 2024
- More information on payment cancellations for not meeting a reconnection requirement within 4 weeks is available for participants.
Payment cancellation decisions for persistent mutual obligation failures – paused 4 July 2024
- More information on payment cancellation decisions for persistent mutual obligation failures is available for participants.
Payment cancellation decisions for unemployment failures – paused 5 March 2025
- More information on payment cancellation decisions for unemployment failures is available for participants.
Payment reduction decisions for persistent mutual obligation failures – paused 6 March 2025
- More information on payment reduction decisions for persistent mutual obligation failures is available for participants.
Payment suspension and cancellation decisions for work refusal failures – paused 5 July 2025
- More information on decisions under section 42AG for work refusal failures is available for participants.
Our systems have been updated to ensure that people’s social security participation payments are:
- not cancelled due to not meeting a reconnection requirement within 4 weeks
- not cancelled due to persistent mutual obligation failures
- not reduced due to persistent mutual obligation failures
- not cancelled due to an unemployment failure
- not impacted due to a work refusal failure.
We are working to ensure decisions are made in a lawful and robust manner.
On 4 August 2026, the Secretary gave an update on work to return the TCF to lawful administration.
If the Secretary has reasonable concerns that the system is not operating in accordance with the law, he will take action to stop those decisions immediately.
General information
What is the department doing to ensure decisions are lawful and robust?
The department conducted 2 reviews to ensure decisions taken are made in a lawful and robust manner.
- An independent assurance review examined the IT system operating the Targeted Compliance Framework against policy and business rules to ensure the system is operating as intended. The review and its recommendations, together with the findings of the Commonwealth Ombudsman’s first report are being acted on as a priority and the urgent actions identified in the reviews are underway.
- A legal review examined whether decisions are being properly made and whether decision-making processes are aligned with the law.
This work has identified examples where the system is not operating in alignment with the law and policies or is not operating with the rigour that we expect.
This has led to decisions to pause decision-making in some elements of the system.
If we have reasonable concerns that the system is not operating in accordance with the law, we will work to change the processes and systems, so decisions are being made lawfully.
What decisions under the Social Security (Administration) Act 1999 are paused?
The effect of decisions taken by the department is that all payment reductions and payment cancellations made because of mutual obligations failures under the Social Security framework are paused.
A list of the paused decisions is provided on this page.
What are mutual obligation requirements?
Job seekers have mutual obligation requirements when they receive a social security participation payment.
These mutual obligation requirements set out activities that a person does to demonstrate their willingness to actively seek and to accept and undertake suitable work.
Mutual obligations are determined through a person’s Job Plan and will vary depending on a person’s circumstances.
A failure to meet them can result in a suspension of payments.
What is a mutual obligation failure?
When a person fails to meet their mutual obligation requirements this is known as a ‘mutual obligation failure’.
Examples of a mutual obligation failure includes when a person fails to:
- enter into a Job Plan
- meet their points requirement
- attend, or be punctual for an appointment, either with their provider, or a third party
- participate in a compulsory activity
- undertake adequate job search efforts
- undertake any other activities outlined in their Job Plan
- act in an appropriate manner during an appointment or while participating in an activity
- attend a job interview, or behave appropriately at an interview, and
- act on a job opportunity when they have been referred to one.
What is an unemployment failure?
An unemployment failure occurs when a person who is receiving, or has made a claim for, a participation payment (jobseeker payment and, for some people, youth allowance, parenting payment and special benefit) becomes unemployed as a direct or indirect result of a voluntary act, or as a result of the person’s misconduct as an employee.
However, a person does not commit an unemployment failure if they:
- satisfy the Secretary that the voluntary act leading to unemployment was reasonable; or
- are the principal carer of at least one child or has a partial capacity to work, and the person became unemployed from work that was for more than 15 hours per week.
What is a work refusal failure?
A work refusal failure is where a job seeker refuses or fails to accept an offer of suitable employment, which includes accepting but not commencing a job. Work refusal failures may result in payment cancellation and a 4-week non-payment period if the participant does not have a reasonable excuse.