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Suspension decisions have resumed
Decision-making relating to suspending a person’s social security participation payment for refusing or failing to accept an offer of suitable employment, including accepting but not commencing a job, resumed on 26 October 2026. This is also known as payment suspension for a work refusal failure.
This relates to section 42AG(1)(a) of the Social Security (Administration) Act 1999.
A participant fact sheet is available.
Cancellation decisions remain paused
Decision-making in relation to cancellation of a person’s social security participation payment for work refusal failures will remain paused until the necessary safeguards have been put in place. The department expects these provisions to resume in the first quarter of 2027.
This relates to section 42AG(1)(b) of the Social Security (Administration) Act 1999.
Work refusal failures
If a person receiving a social security participation payment commits a work refusal failure they may have their payment suspended.
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.
Decisions to suspend a person’s social security participation payment for work refusal failures are set out in law and supported by policies.
Decisions occur under the Social Security (Administration) Act 1999. The relevant provision is section 42AG. Guidelines for these decisions are in the Social Security Guide (3.11.13).
Past actions
On 5 July 2025, the Department of Employment and Workplace Relations (the department) paused decisions impacting a person’s social security payment for work refusal failures under section 42AG of the Social Security (Administration) Act 1999. The pause was while the department worked to assure the decision-making aligned with the legislative framework.
On 26 October 2026, payment suspension decisions resumed. Decisions to cancel a person’s social security participation payment under section 42AG(1)(b) of the Social Security (Administration) Act 1999 for work refusal failures remain paused while further work is undertaken to implement the necessary safeguards.
People impacted
This impacted participants in Workforce Australia, the former Disability Employment Services, and the previous jobactive and ParentsNext programs.
If you are in Remote Australia Employment Services (formerly the Community Development Program) you are not impacted.
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).
Compensation
Anyone impacted by incorrect payment cancellation decisions can apply for compensation at any time.
The department is taking a proactive invitation to claim approach using data held in our systems to identify people most likely to be eligible for compensation under the Compensation for Detriment caused by Defective Administration (CDDA) scheme, noting that anyone can apply for compensation under this scheme at any time.
The department will send these invitations in batches from October 2026.
Receiving an invitation to apply for compensation does not guarantee you will be paid compensation.
Meeting your mutual obligations
You need to meet the activities in your Job Plan.
If you’re unsure what those activities are, you can check your homepage by logging in to your Workforce Australia Online account or talk to your employment services provider.
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 complaint
Please call the department’s National Customer Service Line for more information on 1800 805 260.
Other contacts and information
You can also contact 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