Ombudsmen eyes cut pay
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The Commonwealth Ombudsman is launching an investigation into welfare payment cancellations.
Ombudsman Iain Anderson has launched an investigation into the Department of Employment and Workplace Relations (DEWR) and Services Australia over concerns that welfare payments were unlawfully cancelled under the Targeted Compliance Framework (TCF).
The inquiry follows a complaint from the Australian Council of Social Service (ACOSS), which has repeatedly warned of the framework’s harmful effects on vulnerable individuals.
“Noting these matters and the potential impact of the TCF on highly vulnerable people, my Office will be examining the TCF to consider if cancellation decisions are being made and implemented in a manner that is lawful, fair and reasonable,” Anderson stated.
The TCF, introduced in 2018, was designed to enforce compliance with welfare recipient obligations by suspending or cancelling payments for non-compliance.
However, reports indicate that between April 2022 and July 2024, approximately 1,000 payments may have been cancelled due to errors in administration.
ACOSS has long criticised the TCF, calling for its removal.
CEO Dr Cassandra Goldie has described the compliance system as “harsh and potentially illegal”, adding that payment suspensions often lead to “homelessness, relationship breakdown and destitution”.
This is not the first time the government has been accused of illegal welfare payment cancellations. The ongoing fallout from the Robodebt scandal, in which automated debt recovery processes unlawfully targeted welfare recipients, continues to shape public distrust in government welfare oversight.
The parallels between Robodebt and the TCF are difficult to ignore, with both systems accused of prioritising compliance metrics over the well-being of recipients.
While the government has ordered internal reviews into the framework, critics argue these efforts lack independence.
The parliamentary inquiry into employment services previously recommended significant reforms to the TCF, yet little substantive change has followed. The Ombudsman has stated his investigation will not duplicate this inquiry but will monitor departmental reviews.
However, critics argue that government oversight remains reactionary rather than proactive. A recent capability review of Services Australia found that the agency lacked a clear long-term strategy, often operating with short-term priorities that leave welfare recipients vulnerable to systemic failures.
ACOSS has renewed its call for the abolition of the TCF, arguing that it disproportionately harms people on low incomes and has failed in its stated aim of improving workforce participation.
“Every three months, 240,000 people - over a third of people in Workforce Australia - have their payment suspended. The TCF must be urgently removed to prevent further harm,” Dr Goldie stated.
The Ombudsman’s investigation is expected to take several months. Pressure is mounting on the government to justify the continued existence of the TCF.
