'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'
The Department of Employment and Workplace Relations (DEWR) has announced plans to gradually restart the Targeted Compliance Framework (TCF) starting October 2026 pending the safeguards needed to ensure that the suspended provisions are lawful.
Employment Secretary Simon Duggan said in a statement on Tuesday that decision-making under the two provisions of the Social Security (Administration) Act 1999 would resume on 26 October 2026.
"Resuming these decisions on 26 October 2026 is contingent on successful completion of assurance activity and system testing 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," Duggan said.
Returning TCF to full operation
The TCF governs the mutual obligations placed on jobseekers receiving welfare payments, including requirements to attend appointments, apply for work, and accept job offers.
But decision-making under some TCF provisions has been suspended after the Ombudsman and an independent assurance team found that the system had been making cancellation decisions that were not legally valid.
The resumption of the decision-making under the two provisions of the Social Security (Administration) Act 1999 is just the beginning of the government's broader plan to bring the TCF to full operation.
Duggan said its return will be "undertaken in stages throughout 2026 and 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," he said.
Among the paused provisions expected to resume in the first quarter of 2027 are those related to the 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 for affected jobseekers
Meanwhile, Duggan also announced that the government has set aside compensation funding for affected jobseekers under the Scheme for Compensation for Detriment caused by Defective Administration.
The government is working with Services Australia to identify those who may have been "adversely impacted" by an incorrect payment cancellation decision.
"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."
Duggan added that the draft of the Digital Protections Framework is expected to be released shortly for public consideration.
A draft sets out the safeguards for the use of technological processes in decision making and service delivery across all Commonwealth employment services programmes.
A separate draft instrument under Section 40Y of the Social Security (Administration) Act 1999 will also be released, with the documented aimed at helping people comply with mutual obligations requirements.
"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.
