Targeted Compliance Framework decisions and information for participants

In 2024 and 2025, some elements of the Targeted Compliance Framework were paused because the system was not operating in alignment with the law and policies or not operating with the rigour that we expect. The department understands that decisions that affect people’s social security participation payments can have a profound impact.

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Resumption of 2 elements of the Targeted Compliance Framework

Two elements of the Targeted Compliance Framework resumed on 26 October 2026.

This means that, if you receive social security payments, your payment may be:

Resuming these provisions is an important step in returning the Targeted Compliance Framework system to lawful operation. 

Support for participants

Prior to the provisions resuming, the department removed all mutual obligation failures and lifted all active payment suspensions for participants in Workforce Australia, Inclusive Employment Australia and Transition to Work. 

A participant who commits a mutual obligation failure or a work refusal failure will have 5 business days’ resolution time. During resolution time they need to either:

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

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

If a person’s payment is suspended, 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.

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

What improvements has the department made? 

IT system improvements

The department has updated IT systems to:

  • ensure it uses the correct dates when calculating the 4-week reconnection period
  • ensure reconnection requirement notifications to participants work as expected
  • require providers to declare they are satisfied a work refusal failure was committed before applying a payment suspension.

Improved information for participants

Participant notifications provide clearer information about why a reconnection requirement was set, what participants need to do to meet it and when it must be completed and the effect of not complying with the reconnection requirement. Notifications also explain how participants can get more information, request a review or make a complaint.

The Services Australia and Workforce Australia websites and the Workforce Australia App now provide clear and consistent information about the complaints and review processes, and the roles and responsibilities of each agency.

Improved administrative decision-making 

Updated Targeted Compliance Framework training modules for provider and Digital Services Contact Centre staff are available. Provider staff must complete the training before they can access compliance functions within the IT system.

A new training module on decision-making under administrative law is also available for providers. This course helps provider staff understand the broader principles of administrative law and supports good decision-making. 

The department continues to provide mandatory decision-making training for all its staff. 

Improved assurance and monitoring 

A new dedicated Targeted Compliance Framework assurance function will provide ongoing oversight of the system’s integrity. The department will continue to work with Services Australia and the Department of Social Services to monitor the resumed provisions to ensure the system is operating as intended.

Decisions that remain paused

The Targeted Compliance Framework provisions that preclude, reduce or cancel people’s payments remain paused until further safeguards are in place. This includes:

These provisions are part of the Social Security (Administration) Act 1999.

While these provisions remain paused, people’s social security participation payments will not be:

  • cancelled due to persistent mutual obligation failures
  • reduced due to persistent mutual obligation failures
  • precluded or cancelled due to an unemployment failure
  • cancelled under section 42AG(1)(b) of the Social Security (Administration) Act 1999 due to a work refusal failure.

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 led to decisions to pause decision-making in some elements of the system.

If the department has 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 are mutual obligation requirements?

Mutual obligation requirements are compulsory tasks and activities designed to ensure that people receiving participation payments are actively looking for work and are participating in activities that will help them into employment.

These apply to all job seekers in receipt of participation payments and will vary depending on a person’s circumstances.

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
  • 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.