Social security participation payment decisions for work refusal failures.
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If a person receiving a social security participation payment commits a work refusal failure, they may have their payment suspended or, if they do not have a reasonable excuse, cancelled.
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.
Decisions to suspend or cancel 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 42AG. Guidelines for these decisions are in the Social Security Guide (3.11.13).
Decisions have been paused
On 5 July 2025, the Department paused decisions under 42AG of the Social Security (Administration) Act 1999 impacting a person’s social security payment for work refusal failures.
The reason for taking this decision
This pause is precautionary while work is underway to assure the decision making is aligned with the legislative framework.
People impacted
From 5 July 2025, people who are on a social security participation payment will not have their payments impacted for a work refusal failure under 42AG.
More information is available at ‘information for job seekers’.
Actions regarding past decisions
The department is considering appropriate next steps.
Next steps
Interim processes have been updated to ensure that people’s social security participation payment is not impacted due to decisions under Section 42AG.
We will continue to work to ensure decisions 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 rule 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.
There is also a legal review examining whether decisions are being properly made and whether decision making processes are aligned with the law.
If the Secretary has reasonable concerns that the system is not operating in accordance with the law, she will take action to stop those decisions immediately.
Further information is also available under Frequently Asked Questions.