The Government must immediately stop the Targeted Compliance Framework being used against people relying on income support, after the Commonwealth Ombudsman's report today found alarming systematic failings in its administration.
The Ombudsman's report found that the Government had failed to implement the law correctly and that this had "profound if not catastrophic" impacts on people living in poverty. It criticised the Government for a failure to implement a Digital Protections Framework, after three years of delay. The Ombudsman found that the Government took too long to act on advice that these decisions were unlawful and that due concern was not paid to the risks of automation in decisions to cancel people's income support payments.
"This report confirms serious, systematic and repeated failings in one of the most important functions of government – providing a safety net for people doing it toughest in our society," said ACOSS CEO Cassandra Goldie.
"The public cannot have confidence in the continued operation of the Targeted Compliance Framework. We call on Employment Minister Amanda Rishworth and the Secretary of the Department of Employment and Workplace Relations Natalie James to immediately stop the damaging Targeted Compliance Framework, including all penalties, payment suspensions and cancellations, and provide full and swift compensation to people affected by illegal and unfair payment cancellations."
Whilst payment cancellations have been largely paused due to these repeated errors, hundreds of thousands of people are still having their income support payments suspended each quarter under this system.
"Payment suspensions and cancellation have extremely harmful impacts on people, including the loss of income, potential homelessness, relationship breakdown and destitution," said Dr Goldie.
"It is unacceptable to continue operating a scheme that assumes people have done something wrong, perpetuates a culture of mistrust, and undermines human dignity."
ACOSS calls on the Government to immediately:
- Stop all Centrelink payment penalties, including suspensions, reductions and cancellations, related to compulsory activities
- Commit to permanently removing the Targeted Compliance Framework – a program that has caused significant harm
In December 2024, ACOSS lodged a complaint with the Commonwealth Ombudsman about potentially illegal cancellations of people's vital income support payments and the damaging impacts of the compliance system (the Targeted Compliance Framework) and called for its immediate suspension.
Since 2018, ACOSS has consistently opposed the Targeted Compliance Framework and warned successive Ministers about the serious harm it causes, including calling for the cessation of payment suspensions which impact nearly 240,000 people in Workforce Australia every three months.
