Centrelink Admits 300,000 Illegal Payment Cancellations, June 03

The Australian government has admitted an automated system illegally cancelled approximately 300,000 Centrelink payments between 2020 and 2024. The Department of Employment and Workplace Relations revealed the scale of the problem at Senate estimates on Wednesday, June 3. The glitch affected people who missed compulsory job-seeking activities and were not given enough time to reconnect with job providers. Payment cancellations have been paused since July 2024.

What the Government Admitted

At Senate estimates, department representatives said the number of illegal cancellations was in the vicinity of 300,000. This aligns with analysis from Economic Justice Australia, a peak body for community legal centres, which found 310,000 people had payments unlawfully cancelled. The department had previously refused to comment, only publicly admitting to 9,510 illegal cancellations. Representatives acknowledged the scale of the problem after Economic Justice Australia raised concerns over 12 months ago.

How Many People Were Actually Affected

The department’s post-monitoring survey found that 55 to 70 percent of people who received a cancellation had lost eligibility because they found paid work above the income threshold. This means they no longer needed to reconnect to a job provider. The actual number of people who were illegally cancelled while still eligible for payments is much smaller than 300,000. Economic Justice Australia estimates about 20 percent of those affected could be eligible for some form of remediation.

The System Being Fixed

The Targeted Compliance Framework, which runs Australia’s mutual obligations regime, has been offline for several months for major upgrades. The Commonwealth Ombudsman found the system unlawfully cancelled payments for 964 job seekers between April 2022 and July 2024. Laws introduced after the Robodesk scandal require agencies to consider each person’s circumstances before cutting payments, but the glitch prevented this from happening. Department officials said an extended timeframe is needed to fix IT systems, procedures, and training for human decision makers.

What Happens Next

Welfare recipients still must meet complex obligations to keep payments, including attending meetings and applying for jobs. Employment Minister Amanda Rishworth announced sweeping JobSeeker changes in May, saying unemployed people were languishing without proper help. The government has not yet announced a timeline for full system restoration or details on how it will compensate affected recipients.

Final Thoughts

The government’s admission of 300,000 illegal cancellations exposes a systemic failure in welfare administration. With only 20 percent of affected people potentially eligible for remediation, most recipients will receive no compensation despite unlawful payment cuts.

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