Centrelink’s penalty system is broken — and it’s hurting people who can least afford it.
The Ombudsman has confirmed that under the Targeted Compliance Framework (TCF) Services Australia has unlawfully cancelled payments, leaving jobseekers without income through no fault of their own.
The Targeted Compliance Framework (TCF) is the system used to enforce jobseeker mutual obligations. However, serious flaws have been uncovered, leading to incorrect payment penalties and hardship for many people.
Since 2018, system bugs have forced the Department to repay more than $1.2 million to 1,280 people, — and correct nearly 1,000 more wrongful cancellations.
It’s time to scrap the TCF and build a fairer, humane system that supports people instead of punishing them.
Why it matters for WRC clients Many of the people we assist are already in financial crisis when they contact us. These unlawful suspensions and cancellations push them further into poverty — risking eviction, utility disconnection, food insecurity, and mental distress. Often, the penalty is applied through no fault of their own, and getting it reversed requires urgent advocacy.
💡 What Can Community Workers Do?
- Ask about suspensions and penalties – Was there a reasonable excuse? Was it properly considered?
- Help clients request reviews – Many decisions were made without all the facts. Reviews may reverse them.
- Document everything – Dates, communication, reasons for missing appointments, etc.
- Refer to legal services if clients were penalised unfairly.
🛠️ What’s Being Recommended?
- Abolish the TCF – It’s too broken to fix and causes more harm than help.
- Design a new system with people who have lived experience, and based on fairness and human rights.
- Ensure decisions follow the law – with proper review rights and clear communication.
If your client has had their payment suspended, reduced or cancelled, and you believe it was unfair, they may be entitled to have that decision reviewed or overturned.
Reach out to Welfare Rights Centre or your local social security legal service for help. |