DANA, with Inclusion Australia, support the call for urgent intervention by Government to immediately stop Centrelink payment suspensions and penalties linked to compulsory mutual obligation activities. This follows the release of the Commonwealth Ombudsman’s report into the unlawful cancellation of payments under the Targeted Compliance Framework (TCF).
The Ombudsman’s findings confirm serious and systemic failures in how this system has been administered, including the unlawful cancellation of payments to nearly 1,000 people. The report raises broader concerns about the wider compliance system of suspensions, reductions, and cancellations (used when people are deemed not to be complying with their “mutual” obligations) and whether this is operating fairly and lawfully, particularly as it continues to impact large numbers of people every week.
People with disability are among the most affected. Between January and March 2025, almost 30% of all Centrelink payment suspensions were issued to people who have disclosed disability to Centrelink. These suspensions can result in immediate financial crisis, particularly for people who rely on income support payments as their primary source of income, and likely already face multiple barriers to economic participation.
There is now clear evidence that current systems are causing harm, and we are deeply concerned that these continue while the Ombudsman’s investigation is ongoing. People with disability deserve access to income support that is fair, lawful and free from the risk of avoidable harm.
DANA and Inclusion Australia joins the following organisations in calling on the Australian Government to immediately:
- Stop all Centrelink payment penalties – including suspensions, reductions and cancellations – related to compulsory mutual obligation activities
- Commit to ending the Targeted Compliance Framework permanently
Organisations endorsing this call include:
- Anglicare Australia
- Antipoverty Centre
- Anti-Poverty Network South Australia
- Australian Council of Social Service (ACOSS)
- Disability Advocacy Network Australia
- Economic Justice Australia
- Inclusion Australia
- People with Disability Australia
- Single Mother Families Australia
- Sweltering Cities
- Women with Disabilities Australia
We urge the Government to take immediate action to prevent further harm to people who depend on Centrelink payments to meet their basic needs.