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| Hundreds of jobseeker payments cancelled illegally by government IT system, watchdog finds | Hundreds of jobseeker payments cancelled illegally by government IT system, watchdog finds |
| (about 7 hours later) | |
| Ombudsman says staff at workplace relations department were wrong to rely on an automated system to stop money for claimants | |
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| The legality of the system designed to penalise jobseekers has been thrown into doubt after the commonwealth ombudsman found a government department’s automatic system unlawfully cancelled payments. | The legality of the system designed to penalise jobseekers has been thrown into doubt after the commonwealth ombudsman found a government department’s automatic system unlawfully cancelled payments. |
| The ombudsman has found 964 jobseekers had their payments unlawfully cancelled between April 2022 and July 2024 by the automated IT system that underpins the targeted compliance framework (TCF) system. | The ombudsman has found 964 jobseekers had their payments unlawfully cancelled between April 2022 and July 2024 by the automated IT system that underpins the targeted compliance framework (TCF) system. |
| TCF is designed to make sure jobseekers meet requirements such as attending meetings with an employment provider and applying for jobs to continue to receive their payments. | TCF is designed to make sure jobseekers meet requirements such as attending meetings with an employment provider and applying for jobs to continue to receive their payments. |
| Payment cancellations have been paused since January after the government found a further 1,326 people had financial penalties “applied incorrectly” due to an IT issue. | Payment cancellations have been paused since January after the government found a further 1,326 people had financial penalties “applied incorrectly” due to an IT issue. |
| On top of this, 45 people had their payments illegally cancelled because the system continued to operate in error. | On top of this, 45 people had their payments illegally cancelled because the system continued to operate in error. |
| On Wednesday, the ombudsman found the payments had been cancelled unlawfully and recommended the government continue to pause cancellations until the it could review the legality of the entire TCF system. | On Wednesday, the ombudsman found the payments had been cancelled unlawfully and recommended the government continue to pause cancellations until the it could review the legality of the entire TCF system. |
| The ombudsman, Iain Anderson, said he investigated cancellations where public servants working at the Department of Employment and Workplace Relations had failed to consider individual circumstances before cancelling a payment as laid down by law. | The ombudsman, Iain Anderson, said he investigated cancellations where public servants working at the Department of Employment and Workplace Relations had failed to consider individual circumstances before cancelling a payment as laid down by law. |
| “They were just automating the cancellation without considering the individual circumstances of the jobseeker and whether it was appropriate to cancel the payment or not,” he told Guardian Australia. | “They were just automating the cancellation without considering the individual circumstances of the jobseeker and whether it was appropriate to cancel the payment or not,” he told Guardian Australia. |
| “The target compliance framework itself has been very problematic in that regard.” | “The target compliance framework itself has been very problematic in that regard.” |
| Anderson said that in 2022 DEWR was also meant to put in a “digital protection framework” to ensure jobseekers were treated fairly, but the department had failed to do so. | Anderson said that in 2022 DEWR was also meant to put in a “digital protection framework” to ensure jobseekers were treated fairly, but the department had failed to do so. |
| Anderson said the secretary of DEWR, Natalie Jones, needed to be “completely confident” the system was working properly before the cancellations resume. | Anderson said the secretary of DEWR, Natalie Jones, needed to be “completely confident” the system was working properly before the cancellations resume. |
| “The targeted compliance framework has had a number of different problems, and so the secretary of DEWR needs to do much more than simply look at the unlawful cancellation issue. | “The targeted compliance framework has had a number of different problems, and so the secretary of DEWR needs to do much more than simply look at the unlawful cancellation issue. |
| “They need to be really certain that the entire target compliance framework is going to comply with the law and be fair.” | “They need to be really certain that the entire target compliance framework is going to comply with the law and be fair.” |
| He said there were also concerns as to whether the suspension of payments, which happens in tens of thousands of cases each month, was legal. | He said there were also concerns as to whether the suspension of payments, which happens in tens of thousands of cases each month, was legal. |
| “We have some concerns as to whether the suspension process is happening fairly and reasonably,” he said. | “We have some concerns as to whether the suspension process is happening fairly and reasonably,” he said. |
| On top of this, Guardian Australia understands a Deloitte report into the IT system that underpins the TCF has found that it is not functioning within the proper legal frameworks. | On top of this, Guardian Australia understands a Deloitte report into the IT system that underpins the TCF has found that it is not functioning within the proper legal frameworks. |
| The Deloitte report – which has yet to be published – recommends overhauling the TCF’s IT system to ensure that the suspension or cancellation of payments is done legally. | The Deloitte report – which has yet to be published – recommends overhauling the TCF’s IT system to ensure that the suspension or cancellation of payments is done legally. |
| The Greens have called for the government to abolish the TCF and release the report. | The Greens have called for the government to abolish the TCF and release the report. |
| “It is clear that the TCF is an expensive hangover from a conservative government which has been heartlessly prolonged by this Labor government for far too long,” senator Penny Allman-Payne said. | “It is clear that the TCF is an expensive hangover from a conservative government which has been heartlessly prolonged by this Labor government for far too long,” senator Penny Allman-Payne said. |
| The DEWR is also conducting a legal review to examine the way decisions are being made under the legislation. | The DEWR is also conducting a legal review to examine the way decisions are being made under the legislation. |
| The Ombudsman will continue to investigate the TCF with another report due out later in the year. | The Ombudsman will continue to investigate the TCF with another report due out later in the year. |