ACOSS has welcomed the Commonwealth Ombudsman's investigation into serious issues with the Targeted Compliance Framework with a focus on whether income support cancellations are being made in a way that is lawful, reasonable and fair.
In response to an ACOSS complaint, the Ombudsman today announced it would investigate the Targeted Compliance Framework, which administers penalties to people using employment services. Since 2018, ACOSS has consistently opposed the Targeted Compliance Framework and warned successive Ministers about the serious harm it causes.
ACOSS made a complaint about the Federal Government's administration of its Targeted Compliance Framework to the Ombudsman in December following the revelation that around 1,000 income support payments may have been illegally cancelled in the period between April 2022 and July 2024.
This system has been plagued by errors in recent years, including previous instances of confirmed illegal payment cancellations and large scale IT problems leading to confusion and distress for people using the system.
"This investigation into this harsh and potentially illegal compliance system is urgently needed," said ACOSS CEO Dr Cassandra Goldie.
"Payment suspensions and cancellation have extremely harmful impacts on people, including not only the loss of income but also potential homelessness, relationship breakdown and destitution. The fact they may be happening illegally is extremely serious.
"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 to people on low incomes.
"We thank the Commonwealth Ombudsman for opening this investigation and stand ready to assist in any way we can."
