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Decisions have resumed
Decision-making under section 42AM (decisions to cancel people’s social security participation payments due to not meeting a ‘reconnection requirement’ within 4 weeks) of the Social Security (Administration) Act 1999 resumed on 26 October 2026. A participant fact sheet with more information is available.
Reconnection requirements
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 of 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.
People 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).
Participant journey maps and fact sheet
Past actions
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 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.
System updates
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 resumed on 26 October 2026.
People impacted
People who had their social security participation payment cancelled between 7 December 2020 and 31 December 2025 under section 42AM may be eligible for compensation.
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 impacted participants 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.
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 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.
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).