Over 10,000 Australians wrongfully lost jobseeker payments

The Australian government has revealed that over 10,000 jobseeker payments may have been unjustly reduced or canceled. This issue arose because the mutual obligations system was not functioning properly according to the law. The Department of Employment and Workplace Relations (DEWR) announced on Friday that it would pause certain payment reductions and cancellations. The federal ombudsman is investigating how the compliance framework operates. This comes as the mutual obligations system is being reviewed in three separate assessments. Jobseekers are required to meet with employment providers and apply for jobs to receive payments. If they receive five demerits, they enter a penalty zone where their payments can be canceled. DEWR secretary Natalie James stated that she has paused parts of the system. She acknowledged that the system was not operating in accordance with legal standards and expressed concern about its impact on vulnerable individuals, including the homeless and those with disabilities. Welfare advocates have criticized the system. They are calling for an end to the mutual obligations framework. ACOSS policy director Jacqueline Phillips described the situation as a major government failure. Others, like antipoverty activist Jay Coonan, urged for the complete abolition of mutual obligations, stating they are harmful. In February, Economic Justice Australia requested the immediate suspension of the penalty zone system. CEO Kate Allingham welcomed the reviews but emphasized the need for transparency. She also insisted that jobseekers should receive automatic compensation for any unlawful payment cuts, without having to endure a difficult appeals process.