Payment cancellation decisions for not meeting a ‘reconnection requirement’ within 4 weeks

If a person receiving a social security participation payment doesn’t meet mutual obligation requirements or refuses or fails to accept an offer of suitable paid work, they will be notified what they need to do to avoid their payment being suspended (put on hold). This may include contacting their provider or the Digital Services Contact Centre to discuss if they have a valid reason; or meeting the requirement that they missed.

As of 28 October 2024, people now have 5 business days of ‘resolution time’, during which they need to either:

• supply a valid reason for not meeting their mutual obligation requirements or refusing or failing to accept an offer of suitable paid work, or
• re-engage with their requirements.

Otherwise, their payment will be put on hold (suspended).

If a person’s payment is put on hold, they will be notified of their reconnection requirement.

They will have 4 weeks after being notified of the reconnection requirement to:

• meet their reconnection requirement; or
• supply a valid reason for not meeting their mutual obligation requirements or refusing or failing to accept suitable paid work.

If the person does this, the suspension of their payment will end, and they will receive their payment in full.

However, if the person doesn’t meet their reconnection requirement, or supply a valid reason, within 4 weeks after being notified of their reconnection requirement, their payment may be cancelled.

Decisions to cancel a person’s social security participation payment for not meeting a reconnection requirement are set out in law and supported by government policies.

Decisions occur under the Social Security (Administration) Act 1999. The relevant provision in the Administration Act is section 42AM.

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

Decisions have been paused

On 24 September 2024, the Department of Employment and Workplace Relations (the department) paused all decisions to cancel people’s social security participation payments due to not meeting a ‘reconnection requirement’ within 4 weeks. 

These decisions will resume from 26 October 2026.

The reason for taking this decision

These decisions were paused when the department identified that IT systems were not operating in alignment with the law and policies. This was discovered in September 2024 when the department was making changes to the system. The IT issue related to the original introduction of resolution time in December 2020.

The department immediately implemented processes to stop these cancellations from occurring.

These decisions were paused while the department took steps to review, improve and better assure processes are operating as they should.

The department has been working to address the issues that led to the original pause. This includes system testing to confirm IT changes are working correctly and updated guidance and training to support lawful decision-making.  

The department updated the IT system to use correct dates when calculating the 4-week reconnection period and send reconnection notifications to participants as intended. The department improved notifications about reconnection and re-engagement requirements. The updated notifications explain why a reconnection requirement has been set, what participants need to do to meet it and by when, and the effect of not complying with the reconnection requirement. They also explain how participants can seek further information, request a review or make a complaint.

On the basis of this work, decision making will resume from 26 October 2026. 

People impacted

The department has identified people who had their social security participation payment cancelled between 7 December 2020 and 31 December 2025 under section 42AM.

If the department thinks you may be eligible for compensation due to a cancellation decision, you will receive an email inviting you to apply for compensation.

There are a range of reasons a person may not meet a reconnection requirement, for example where they no longer require a social security payment as they have found work. In these cases, they would no longer be eligible for payment, and the cancellation would have had no financial impact. 

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).

The payment cancellations impact 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

If the department thinks you may be eligible for compensation due to a cancellation decision, you will receive an email inviting you to apply for compensation. The department will send these invitations in batches over the next few months.

Receiving an invitation to apply for compensation does not guarantee you will be paid compensation. 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.

Compensation process 

Meeting your mutual obligations

You still need to meet the activities in your Job Plan.

If you’re unsure what those activities are, talk to your employment services provider.

If you don’t meet your mutual obligations, your social security participation payment may still be put on hold, and from 26 October 2026 if you don’t meet your reconnection requirement within 4 weeks of being notified, your payment may be cancelled.

If your social security participation payment is put on hold, in most instances you will be able to meet the reconnection requirement yourself to lift the hold on your payment. If you have trouble, or your reconnection requirement involves making contact, please reach out to the following contacts to discuss having the hold on your payment lifted:

• Your employment services provider if you have one, or
• The Digital Services Contact Centre on 1800 314 677 if you don’t have a provider.

Participant journey maps and a participant fact sheet are available to give you visual examples of how the reinstated processes will operate. 

If you have a question or a complaint

Please call the department’s National Customer Service Line to make a complaint on 1800 805 260.

Other contacts and information

You can also contact 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).