Australia's Department of Employment and Workplace Relations (DEWR) will begin gradually restoring the Targeted Compliance Framework (TCF) from 26 October 2026. The move follows months of work to strengthen legal safeguards and decision-making processes after concerns over unlawful welfare payment cancellations.
According to HRD, the phased restart marks the first step in returning the compliance regime governing jobseekers' mutual obligations, after key provisions were paused due to findings that some payment cancellation decisions did not comply with the law.
Simon Duggan, Employment Secretary said, "Resuming these decisions on 26 October 2026 is contingent on successful completion of assurance activity and system testing.”
He added, “To ensure the necessary IT changes, improved guidance for decision-makers and additional safeguards to ensure decision-making under these provisions align with the law.”
Compliance framework to return in stages
The TCF sets out the mutual obligations for jobseekers receiving income support, including attending appointments, applying for jobs and accepting suitable employment offers.
However, parts of the framework were suspended after investigations by the Ombudsman and an independent assurance team found that some automated payment cancellation decisions were not legally valid.
DEWR said the framework will return progressively throughout the remainder of 2026 and into early 2027.
"Paused provisions will only resume once I am satisfied that decision-making processes and IT systems will operate as intended and in line with the law," Duggan said.
The next phase, expected during the first quarter of 2027, will include provisions covering persistent mutual obligation failures, work refusal failures and unemployment failures.
"The remaining provisions that reduce or cancel people's payments for failures under the Targeted Compliance Framework will remain paused until the necessary safeguards have been put in place," Duggan said.
"At this stage we expect these provisions to resume in the first quarter of 2027. I will provide an update on the progress of this work before the end of this year."
Compensation process to begin for affected jobseekers
The government has also allocated funding to compensate jobseekers adversely affected by incorrect payment cancellation decisions under the Scheme for Compensation for Detriment caused by Defective Administration.
DEWR is working with Services Australia to identify individuals who may have experienced financial detriment as a result of incorrect decisions.
"Once this work is complete, the department will begin inviting people affected by potentially incorrect payment cancellation decisions to submit a claim for compensation," Duggan said.
"These invitations will be extended progressively over the coming months. This means that not everyone will receive an invitation to claim at the same time."
Digital safeguards to be released for consultation
"The draft Digital Protections Framework and Section 40Y Guidelines will be available on our Consultation Hub in August for a period of 4 weeks. Stakeholders are encouraged to provide submissions via the website," Duggan said.
Alongside the phased resumption of the compliance framework, DEWR is preparing to release a draft Digital Protections Framework for public consultation.
The framework outlines safeguards governing the use of technology in decision-making and service delivery across Commonwealth employment services programmes.
A draft instrument under Section 40Y of the Social Security (Administration) Act 1999 will also be published to support jobseekers in meeting their mutual obligation requirements.