Community legal centres join calls for immediate suspension of mutual obligations penalties

10 March 2025

Community Legal Centres Australia, Economic Justice Australia and their member community legal centres and peaks across the country have joined calls for the immediate suspension of Centrelink’s Targeted Compliance Framework (TCF). 

In November 2024 it was revealed that at least 1,300 income support payments may have been illegally cancelled between April 2022 and July 2024 due to ‘IT glitches’.  

Under questioning in February at Senate Estimates, the Minister for Employment and Workplace Relations, Murray Watt, and Department of Employment and Workplace Relations Secretary, Natalie James, could not confirm whether the system is operating lawfully.  

The Secretary offered an apology on the record to people who have been penalised unlawfully.  

Despite the alarming admissions from the Minister and Secretary and her apology, the Secretary indicated that she did not intend to suspend the TCF. The Commonwealth Ombudsman is currently investigating the TCF ‘to consider if cancellation decisions are being made [lawfully, fairly and reasonably]’. 

Every 3 months 240,000 people have their payments suspended under the TCF, with First Nations people disproportionately penalised.  

Lines attributable to Kate Allingham, Economic Justice Australia CEO: 

“The cascading revelations of unacceptable harm caused by the Targeted Compliance Framework are deeply concerning. It is impossible for the public to have any trust in the Government if, not only are systems put in place to protect people found to be deficient, but we continue to receive revelations of unlawful practice – as has already been the case with Robodebt and with income apportionment, not to mention a number of IT ‘glitches’.   

“It is unacceptable that anyone should be living on reduced, suspended or cancelled payments when the Government doesn’t have confidence in the legality of their own system. We are calling for all financial penalties under the TCF to pause immediately.” 

Lines attributable to Tim Leach, Community Legal Centres Australia CEO:  

“Community legal centres across the country have long expressed concern that mutual obligations and the Targeted Compliance Framework entrench, compound and punish poverty and disadvantage. 

“Our centres support and represent thousands of people who rely on social security payments. We see the stress and financial precarity caused by unfair payment suspensions and risk of financial penalties every day.  

“A key lesson of the Robodebt scandal is that the government must proactively ensure the legality and safety of programs it administers. Evidence and admissions that the Targeted Compliance Framework may be unlawful and is putting people at risk of harm warrant its immediate suspension.”