Latest news with #DEWR
The Australian
5 days ago
- Business
- The Australian
Employment Minister Amanda Rishworth urged to release ‘secret report' following unlawful JobSeeker cancellations
The Albanese government has been urged to release a 'secret report' into an automated system responsible for the cancellation of more than 900 Jobseeker payments. The Commonwealth watchdog found the Department of Employment and Workplace Relations (DEWR) and Services Australia unlawfully cancelled 946 Jobseeker payments between April 2022 and July 2024 through automated systems, leading to potentially 'catastrophic' consequences for vulnerable Australians. Additionally, it took DEWR secretary Natalie James 10 months between April 2022 to September 2023 to pause the automated cancellations after it was raised by external legal advisers. Employment and Workplace Relations Minister Amanda Rishworth has been urged to release the Deloitte report into the automated system responsible for cancelling more than 900 JobSeeker payments. Picture: NewsWire / Martin Ollman Following initial revelations in December, Deloitte was paid $439,142 to undertake an assurance review into the Targeted Compliance Framework, the system which cancels, suspends or reduces social security payments if jobseekers are found to not have undertaken their mutual obligations. While it was completed in June this year, the report has yet to be made public, despite attempts made by Greens senator Penny Allman-Payne to have the review released to the Senate. However Senator Allman-Payne's order to secure the documents by August 5 (Tuesday), were also delayed with the DEWR citing the need for 'additional time to consider the request'. Despite this details of the Deloitte Review shared by Commonwealth Ombudsman Iain Anderson on Wednesday gave a scathing assessment of the system, criticising the TCF as 'increasingly unstable,' and volatile. Mr Anderson said the review determined 'assurance could not be provided regarding the integrity, effectiveness, or appropriateness of decisions produced by the TCF IT system in its current form' and the 'current practices risk generating unlawful outcomes'. As a result, the 'latent design flaws' had resulted in 'confirmed adverse impacts on job seekers arising'. While it was completed in June this year, the report has yet to be made public, despite attempts made by Greens senator Penny Allman-Payne to have the review released to the Senate. In a letter to Senator Allman-Payne request, Employment Minister Amanda Rishworth said DEWR needed 'additional time' to 'consider the request'. A request by Greens senator Penny Allman-Payne to publicly publish the Deloitte report was delayed by the Department. Picture: NewsWire/ Gary Ramage Senator Allman-Payne criticised Ms Rishworth for withholding the report. 'This secret report has been sitting on Labor's desk for over a month, and with each day that passes, more welfare recipients lose access to payments that keep food on the table,' she told NewsWire. 'Labor are dragging their feet on this problem just as the Coalition did on robodebt. Apparently they've learned nothing.' The Greens spokeswoman for social services joined in calls made by welfare advocates to pause suspensions, in addition to cancellations and payment reductions amid investigations into the unlawful processes. 'We're calling on Minister Rishworth to release this report now, to stop the suspension of welfare payments today, and work towards the end of mutual obligations,' Senator Allman-Payne said. 'If Labor won't stop payment suspensions today, then people already living below the poverty line will go hungry tomorrow.' Australian Council of Social Service chief executive Cassandra Goldie has made repeated requests for the government to publicly publish the report, and reiterated her demands. 'Release the Deloitte Report. Release the legal advice that confirmed (the unlawful cancellations),' she said. 'Hundreds of thousands of people were brutally affected by the automation of the system, data matching, (and) the use of big technology by smart guys in suits 'I want to be very clear. What we're talking about is hell on earth that has been unleashed on people.' Dr Goldie said the errors through the automated TCD unleashed 'hell' on vulnerable Australians. Picture: NewsWire / Martin Ollman Asked whether the Deloitte Review should be publicly released, Mr Anderson said it was a 'matter for the Senate, the Minister and the department,' however he said he believed the details shared in his report were 'in the public interest'. 'While noting that the Deloitte review has not been publicly released, I formed the opinion that it was in the public interest to disclose in my report the matters I did about the Deloitte review,' he said. While Ms Rishworth did not directly respond to questions on when and if the Deloitte report would be published, she welcomed Mr Anderson's report and said she expected the recommendations to be 'implemented in a timely manner'. 'The report reinforces that when legislative changes are made, it is essential the processes and systems that agencies employ to deliver services reflect the legislation,' she said. 'The government understands the importance of ensuring government systems operate effectively, particularly when interacting with vulnerable people.' Jessica Wang NewsWire Federal Politics Reporter Jessica Wang is a federal politics reporter for NewsWire based in the Canberra Press Gallery. She previously covered NSW state politics for the Wire and has also worked at and Mamamia covering breaking news, entertainment, and lifestyle. @imjesswang_ Jessica Wang
News.com.au
5 days ago
- Business
- News.com.au
Employment Minister Amanda Rishworth urged to release ‘secret report' following unlawful JobSeeker cancellations
The Albanese government has been urged to release a 'secret report' into an automated system responsible for the cancellation of more than 900 Jobseeker payments. The Commonwealth watchdog found the Department of Employment and Workplace Relations (DEWR) and Services Australia unlawfully cancelled 946 Jobseeker payments between April 2022 and July 2024 through automated systems, leading to potentially 'catastrophic' consequences for vulnerable Australians. Additionally, it took DEWR secretary Natalie James 10 months between April 2022 to September 2023 to pause the automated cancellations after it was raised by external legal advisers. Following initial revelations in December, Deloitte was paid $439,142 to undertake an assurance review into the Targeted Compliance Framework, the system which cancels, suspends or reduces social security payments if jobseekers are found to not have undertaken their mutual obligations. While it was completed in June this year, the report has yet to be made public, despite attempts made by Greens senator Penny Allman-Payne to have the review released to the Senate. However Senator Allman-Payne's order to secure the documents by August 5 (Tuesday), were also delayed with the DEWR citing the need for 'additional time to consider the request'. Despite this details of the Deloitte Review shared by Commonwealth Ombudsman Iain Anderson on Wednesday gave a scathing assessment of the system, criticising the TCF as 'increasingly unstable,' and volatile. Mr Anderson said the review determined 'assurance could not be provided regarding the integrity, effectiveness, or appropriateness of decisions produced by the TCF IT system in its current form' and the 'current practices risk generating unlawful outcomes'. As a result, the 'latent design flaws' had resulted in 'confirmed adverse impacts on job seekers arising'. While it was completed in June this year, the report has yet to be made public, despite attempts made by Greens senator Penny Allman-Payne to have the review released to the Senate. In a letter to Senator Allman-Payne request, Employment Minister Amanda Rishworth said DEWR needed 'additional time' to 'consider the request'. Senator Allman-Payne criticised Ms Rishworth for withholding the report. 'This secret report has been sitting on Labor's desk for over a month, and with each day that passes, more welfare recipients lose access to payments that keep food on the table,' she told NewsWire. 'Labor are dragging their feet on this problem just as the Coalition did on robodebt. Apparently they've learned nothing.' The Greens spokeswoman for social services joined in calls made by welfare advocates to pause suspensions, in addition to cancellations and payment reductions amid investigations into the unlawful processes. 'We're calling on Minister Rishworth to release this report now, to stop the suspension of welfare payments today, and work towards the end of mutual obligations,' Senator Allman-Payne said. 'If Labor won't stop payment suspensions today, then people already living below the poverty line will go hungry tomorrow.' Australian Council of Social Service chief executive Cassandra Goldie has made repeated requests for the government to publicly publish the report, and reiterated her demands. 'Release the Deloitte Report. Release the legal advice that confirmed (the unlawful cancellations),' she said. 'Hundreds of thousands of people were brutally affected by the automation of the system, data matching, (and) the use of big technology by smart guys in suits 'I want to be very clear. What we're talking about is hell on earth that has been unleashed on people.' Asked whether the Deloitte Review should be publicly released, Mr Anderson said it was a 'matter for the Senate, the Minister and the department,' however he said he believed the details shared in his report were 'in the public interest'. 'While noting that the Deloitte review has not been publicly released, I formed the opinion that it was in the public interest to disclose in my report the matters I did about the Deloitte review,' he said. While Ms Rishworth did not directly respond to questions on when and if the Deloitte report would be published, she welcomed Mr Anderson's report and said she expected the recommendations to be 'implemented in a timely manner'. 'The report reinforces that when legislative changes are made, it is essential the processes and systems that agencies employ to deliver services reflect the legislation,' she said. 'The government understands the importance of ensuring government systems operate effectively, particularly when interacting with vulnerable people.'
Perth Now
5 days ago
- Business
- Perth Now
Demand on ‘secret' report into JobSeeker fail
The Albanese government has been urged to release a 'secret report' into an automated system responsible for the cancellation of more than 900 Jobseeker payments. The Commonwealth watchdog found the Department of Employment and Workplace Relations (DEWR) and Services Australia unlawfully cancelled 946 Jobseeker payments between April 2022 and July 2024 through automated systems, leading to potentially 'catastrophic' consequences for vulnerable Australians. Additionally, it took DEWR secretary Natalie James 10 months between April 2022 to September 2023 to pause the automated cancellations after it was raised by external legal advisers. Employment and Workplace Relations Minister Amanda Rishworth has been urged to release the Deloitte report into the automated system responsible for cancelling more than 900 JobSeeker payments. NewsWire / Martin Ollman Credit: News Corp Australia Following initial revelations in December, Deloitte was paid $439,142 to undertake an assurance review into the Targeted Compliance Framework, the system which cancels, suspends or reduces social security payments if jobseekers are found to not have undertaken their mutual obligations. While it was completed in June this year, the report has yet to be made public, despite attempts made by Greens senator Penny Allman-Payne to have the review released to the Senate. However Senator Allman-Payne's order to secure the documents by August 5 (Tuesday), were also delayed with the DEWR citing the need for 'additional time to consider the request'. Despite this details of the Deloitte Review shared by Commonwealth Ombudsman Iain Anderson on Wednesday gave a scathing assessment of the system, criticising the TCF as 'increasingly unstable,' and volatile. Mr Anderson said the review determined 'assurance could not be provided regarding the integrity, effectiveness, or appropriateness of decisions produced by the TCF IT system in its current form' and the 'current practices risk generating unlawful outcomes'. As a result, the 'latent design flaws' had resulted in 'confirmed adverse impacts on job seekers arising'. While it was completed in June this year, the report has yet to be made public, despite attempts made by Greens senator Penny Allman-Payne to have the review released to the Senate. In a letter to Senator Allman-Payne request, Employment Minister Amanda Rishworth said DEWR needed 'additional time' to 'consider the request'. A request by Greens senator Penny Allman-Payne to publicly publish the Deloitte report was delayed by the Department. NewsWire/ Gary Ramage Credit: News Corp Australia Senator Allman-Payne criticised Ms Rishworth for withholding the report. 'This secret report has been sitting on Labor's desk for over a month, and with each day that passes, more welfare recipients lose access to payments that keep food on the table,' she told NewsWire. 'Labor are dragging their feet on this problem just as the Coalition did on robodebt. Apparently they've learned nothing.' The Greens spokeswoman for social services joined in calls made by welfare advocates to pause suspensions, in addition to cancellations and payment reductions amid investigations into the unlawful processes. 'We're calling on Minister Rishworth to release this report now, to stop the suspension of welfare payments today, and work towards the end of mutual obligations,' Senator Allman-Payne said. 'If Labor won't stop payment suspensions today, then people already living below the poverty line will go hungry tomorrow.' Australian Council of Social Service chief executive Cassandra Goldie has made repeated requests for the government to publicly publish the report, and reiterated her demands. 'Release the Deloitte Report. Release the legal advice that confirmed (the unlawful cancellations),' she said. 'Hundreds of thousands of people were brutally affected by the automation of the system, data matching, (and) the use of big technology by smart guys in suits 'I want to be very clear. What we're talking about is hell on earth that has been unleashed on people.' Dr Goldie said the errors through the automated TCD unleashed 'hell' on vulnerable Australians. NewsWire / Martin Ollman Credit: News Corp Australia Asked whether the Deloitte Review should be publicly released, Mr Anderson said it was a 'matter for the Senate, the Minister and the department,' however he said he believed the details shared in his report were 'in the public interest'. 'While noting that the Deloitte review has not been publicly released, I formed the opinion that it was in the public interest to disclose in my report the matters I did about the Deloitte review,' he said. While Ms Rishworth did not directly respond to questions on when and if the Deloitte report would be published, she welcomed Mr Anderson's report and said she expected the recommendations to be 'implemented in a timely manner'. 'The report reinforces that when legislative changes are made, it is essential the processes and systems that agencies employ to deliver services reflect the legislation,' she said. 'The government understands the importance of ensuring government systems operate effectively, particularly when interacting with vulnerable people.'
The Australian
6 days ago
- Business
- The Australian
DEWR, Services Australia unlawfully cancelled 964 JobSeeker payments, Commonwealth Ombudsman finds
The administers of JobSeeker have been savaged in a report by the Commonwealth watchdog, which found actions taken by the Department of Employment and Workplace Relations (DEWR) and Services Australia likely had a 'catastrophic impact' on vulnerable Aussies. Between April 2022 and July 2024, 964 JobSeeker recipients had their payments automatically cancelled under a specific clause in the Target Compliance Framework (TCF) after it was amended in 2022. The framework is an automated system to get JobSeeker recipient to undertake compulsory tasks such as attending job appointments and actively search for work, with those who repeatedly fail to meet the mutual obligations subjected to financial penalties. Commonwealth Ombudsman Iain Anderson was scathing of DEWR secretary Natalie James and Services Australia, saying they 'failed to take adequate steps to ensure the TCF was implemented in accordance with the 2022 amendment,' resulting in an 'unlawful decision' to cancel income support payments. The move was done 'without consideration of the job seeker's circumstances' and the 'failure to exercise … discretion … (posed) potentially significant, if not catastrophic, consequences for vulnerable job seekers', he wrote. It also noted a further 45 job recipients had their payments automatically cancelled despite Ms James' decision to pause cancellations on September 2024 – the fifth IT error catalogued by the department. The Commonwealth Ombudsman was scathing of the federal entities responsible for administering JobSeeker payments. Picture: NewsWire/ Emma Brasier 'We also found that the agencies failed to take all of the steps required under those amendments to safeguard job seekers,' the report set to be released on Wednesday found. Critically the report also states a Digital Protection Framework, despite having the legal requirement to do so. Mr Anderson also noted the automation failures happened after the Robodebt Royal Commission which highlighted the 'serious impact' automated processes can have on 'highly vulnerable people'. Ms James also took nearly 10 months between April 2022 to September 2023 to pause the automated cancellations after it was raised by external legal advisers, with Mr Anderson questioning the 'apparent lack of urgency' over the 'significant issue'. As of March 21 this year, reductions and cancellations in income support payments have been paused pending ongoing legal and IT reviews. 'We do not consider a delay of over three years, coupled with an indefinite commitment to future action, is reasonable,' the report said. 'It does not satisfy the legislative requirement in the SPROM Act that the Secretary establish the DPF. 'In our view, if parliament imposes an obligation on an agency head without specifying a time frame (as was the case here), the agency head should aim for implementation as soon as reasonably practicable.' While the department has accepted all seven recommendations issued by Mr Anderson, the ombudsman issued an urgent warning to all government agencies, calling on them to ensure all 'automated decision-making is aligned with law and policy and is subject to ongoing testing and assurance'. 'Implementation of the recommendations is an important step towards restoring the confidence of the public, parliament and above all the people affected, that automated decisions are being made responsibly and according to law,' he said. The report said the department failed to exercise discretion, which led to potentially 'catastrophic' consequences for vulnerable Aussies. Picture: NewsWire/ Nicholas Eagar Antipoverty Centres spokesperson Kristin O'Connell urged more action, including the permanent removal of the TCF. 'It is not enough for the government to implement the Ombudsman's recommendations and move on,' she said. 'The release of this damning report is a significant moment for every person who has been subjected to compulsory activities while on a Centrelink payment and for those who have spoken up about the abuse they experienced. 'For the first time, welfare recipients may feel their experiences are being taken seriously and their lives being treated as valuable by someone in a position of power.' Greens' social services spokeswoman Penny Allman-Payne said the report should be a 'wake up call for change'. 'Despite clear warnings that the TCF is cruel and unlawful, Labor has continued to allow suspensions of payments to be used as a weapon against welfare recipients, to the benefit of so-called employment service providers who profit from poverty,' she 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.' During Senate estimates in February, Ms James apologised and took full responsibility for the IT outages which resulted in the cancellations. 'I absolutely and unreservedly apologise on behalf of the department that we cannot have full confidence in this system delivering what it's intended to deliver,' she said. 'It's not acceptable, and it is my responsibility and not the minister's (Murray Watt), in this respect, although he may wish to add his own commentary but I will say that I am responsible, legislatively and administratively, for overseeing this process.' At the time her comments resulted in welfare advocates calling for a half to the TCF framework, with Australian Council of Social Service chief executive Cassandra Goldie lashing the system as 'overly punitive and in need of a complete overhaul'. Jessica Wang NewsWire Federal Politics Reporter Jessica Wang is a federal politics reporter for NewsWire based in the Canberra Press Gallery. She previously covered NSW state politics for the Wire and has also worked at and Mamamia covering breaking news, entertainment, and lifestyle. @imjesswang_ Jessica Wang
The Advertiser
6 days ago
- Politics
- The Advertiser
'Fundamentally concerning': Ombudsman finds agencies unlawfully cancelled welfare payments
The Commonwealth Ombudsman has found two government agencies unlawfully cancelled income support payments to more than 900 people, and then waited nearly a year to intervene in the faulty system. On Wednesday, Commonwealth Ombudsman Iain Anderson released the first report into income support payments cancelled under the Targeted Compliance Framework between April 2022 and July 2024. The Department of Employment and Workplace Relations (DEWR) designed the framework, while Services Australia is responsible for implementing it. Introduced in 2018, the complex policy sets out activities that welfare recipients must complete in order to receive their payments. Those who fail to comply automatically receive demerits, leading to payment suspensions and then cancellations. Yet, while the Employment Department amended the underlying legislation in 2022, requiring decision-makers to exercise their discretion when deciding whether to cancel a person's payment, this was never practised. "Although they were then intimately involved in drafting an amendment to the legislation that happened in 2022, it was never implemented," Mr Anderson told The Canberra Times in an interview. "That's just fundamentally concerning, that a change in legislation was not implemented, the system was not changed, the processes were not changed to reflect what Parliament actually enacted in 2022." The report found miscommunications and misinterpretations between the department's policy and legal teams meant it took no steps to change its processes. This view was then conveyed to Services Australia through consultation. Advocacy groups had been warning about the risks of automated decisions "since the inception of the [framework]", the report notes, while the robodebt royal commission report highlighted the serious impact of automated processes on vulnerable people. "Given the consequences of a cancellation can be so catastrophic for someone who's already economically and potentially also socially vulnerable, extra care needs to be taken," Mr Anderson said. "And that, of course, was commentary from the robodebt royal commission, that you need to take appropriate levels of care when you're designing such things." The ombudsman also called out the Employment Department's "significant delay" between identifying the issues in September 2023 and pausing cancellations in July 2024. "We acknowledge there were events that added to the time taken for DEWR to progress its consideration and make a decision," the report reads. "However, almost 10 months to get to this point is not acceptable given the effect it had on job seekers in highly vulnerable circumstances." READ MORE PUBLIC SERVICE NEWS: It found that the system should have been paused by March 2024 at least, when draft legal advice conveyed a "a high level of certainty" about the risks. To date, Employment secretary Natalie James has paused cancellations and reductions of income support payments under the framework, but has not paused suspensions. The report also signals further revelations to come about the unlawful cancellations, with a second ombudsman inquiry underway, and consultants finding the underlying IT system to be unstable. In June, the ombudsman confirmed it had expanded its investigation, which will include a second report on the issue to be released towards the end of 2025. "We are doing a second part of this investigation where we'll be looking at, amongst other things, the fairness of the cancellation process," Mr Anderson said. "We'll be looking at the actions of outsourced employment services providers and we'll be looking at how DEWR and Services Australia are moving to provide remedies to people who've been impacted by this." A Deloitte review of the IT system behind the framework, completed in June, could not provide assurance "regarding the integrity, effectiveness, or appropriateness of decisions produced by the [Targeted Compliance Framework] IT system in its current form". "The review found that the computer system's logic was not aligned to the [Targeted Compliance Framework's] policy and legislative intent, and that current practices risk generating unlawful outcomes," the ombudsman's report summarised. The Employment Department and Services Australia have accepted all seven of the recommendations made in the report, including the "timely remediation" of the errors. Other recommendations include that payment cancellations should remain suspended until the issues are fixed, greater clarity on who is responsible for what in the legislative drafting process, training on administrative law requirements and improved risk management policies. Ms James responded that her department had proactively sought to respond to the issues, including through the pause on cancellations, a new integrity assurance program and legal and IT reviews into the system. "Front of mind for me ... is that people subject to these frameworks are often our most vulnerable, including those who are homeless, First Nations people and those with disability," Ms James wrote in response to the report. "These decisions will remain paused until I can be assured decision-making is robust and occurring in accordance with the legislative framework." Services Australia chief executive officer David Hazlehurst said his agency, "is committed to strengthening and uplifting our procedures to ensure cancellation decisions made under [the] Targeted Compliance Framework (TCF) are lawful, fair and reasonable". The Commonwealth Ombudsman has found two government agencies unlawfully cancelled income support payments to more than 900 people, and then waited nearly a year to intervene in the faulty system. On Wednesday, Commonwealth Ombudsman Iain Anderson released the first report into income support payments cancelled under the Targeted Compliance Framework between April 2022 and July 2024. The Department of Employment and Workplace Relations (DEWR) designed the framework, while Services Australia is responsible for implementing it. Introduced in 2018, the complex policy sets out activities that welfare recipients must complete in order to receive their payments. Those who fail to comply automatically receive demerits, leading to payment suspensions and then cancellations. Yet, while the Employment Department amended the underlying legislation in 2022, requiring decision-makers to exercise their discretion when deciding whether to cancel a person's payment, this was never practised. "Although they were then intimately involved in drafting an amendment to the legislation that happened in 2022, it was never implemented," Mr Anderson told The Canberra Times in an interview. "That's just fundamentally concerning, that a change in legislation was not implemented, the system was not changed, the processes were not changed to reflect what Parliament actually enacted in 2022." The report found miscommunications and misinterpretations between the department's policy and legal teams meant it took no steps to change its processes. This view was then conveyed to Services Australia through consultation. Advocacy groups had been warning about the risks of automated decisions "since the inception of the [framework]", the report notes, while the robodebt royal commission report highlighted the serious impact of automated processes on vulnerable people. "Given the consequences of a cancellation can be so catastrophic for someone who's already economically and potentially also socially vulnerable, extra care needs to be taken," Mr Anderson said. "And that, of course, was commentary from the robodebt royal commission, that you need to take appropriate levels of care when you're designing such things." The ombudsman also called out the Employment Department's "significant delay" between identifying the issues in September 2023 and pausing cancellations in July 2024. "We acknowledge there were events that added to the time taken for DEWR to progress its consideration and make a decision," the report reads. "However, almost 10 months to get to this point is not acceptable given the effect it had on job seekers in highly vulnerable circumstances." READ MORE PUBLIC SERVICE NEWS: It found that the system should have been paused by March 2024 at least, when draft legal advice conveyed a "a high level of certainty" about the risks. To date, Employment secretary Natalie James has paused cancellations and reductions of income support payments under the framework, but has not paused suspensions. The report also signals further revelations to come about the unlawful cancellations, with a second ombudsman inquiry underway, and consultants finding the underlying IT system to be unstable. In June, the ombudsman confirmed it had expanded its investigation, which will include a second report on the issue to be released towards the end of 2025. "We are doing a second part of this investigation where we'll be looking at, amongst other things, the fairness of the cancellation process," Mr Anderson said. "We'll be looking at the actions of outsourced employment services providers and we'll be looking at how DEWR and Services Australia are moving to provide remedies to people who've been impacted by this." A Deloitte review of the IT system behind the framework, completed in June, could not provide assurance "regarding the integrity, effectiveness, or appropriateness of decisions produced by the [Targeted Compliance Framework] IT system in its current form". "The review found that the computer system's logic was not aligned to the [Targeted Compliance Framework's] policy and legislative intent, and that current practices risk generating unlawful outcomes," the ombudsman's report summarised. The Employment Department and Services Australia have accepted all seven of the recommendations made in the report, including the "timely remediation" of the errors. Other recommendations include that payment cancellations should remain suspended until the issues are fixed, greater clarity on who is responsible for what in the legislative drafting process, training on administrative law requirements and improved risk management policies. Ms James responded that her department had proactively sought to respond to the issues, including through the pause on cancellations, a new integrity assurance program and legal and IT reviews into the system. "Front of mind for me ... is that people subject to these frameworks are often our most vulnerable, including those who are homeless, First Nations people and those with disability," Ms James wrote in response to the report. "These decisions will remain paused until I can be assured decision-making is robust and occurring in accordance with the legislative framework." Services Australia chief executive officer David Hazlehurst said his agency, "is committed to strengthening and uplifting our procedures to ensure cancellation decisions made under [the] Targeted Compliance Framework (TCF) are lawful, fair and reasonable". The Commonwealth Ombudsman has found two government agencies unlawfully cancelled income support payments to more than 900 people, and then waited nearly a year to intervene in the faulty system. On Wednesday, Commonwealth Ombudsman Iain Anderson released the first report into income support payments cancelled under the Targeted Compliance Framework between April 2022 and July 2024. The Department of Employment and Workplace Relations (DEWR) designed the framework, while Services Australia is responsible for implementing it. Introduced in 2018, the complex policy sets out activities that welfare recipients must complete in order to receive their payments. Those who fail to comply automatically receive demerits, leading to payment suspensions and then cancellations. Yet, while the Employment Department amended the underlying legislation in 2022, requiring decision-makers to exercise their discretion when deciding whether to cancel a person's payment, this was never practised. "Although they were then intimately involved in drafting an amendment to the legislation that happened in 2022, it was never implemented," Mr Anderson told The Canberra Times in an interview. "That's just fundamentally concerning, that a change in legislation was not implemented, the system was not changed, the processes were not changed to reflect what Parliament actually enacted in 2022." The report found miscommunications and misinterpretations between the department's policy and legal teams meant it took no steps to change its processes. This view was then conveyed to Services Australia through consultation. Advocacy groups had been warning about the risks of automated decisions "since the inception of the [framework]", the report notes, while the robodebt royal commission report highlighted the serious impact of automated processes on vulnerable people. "Given the consequences of a cancellation can be so catastrophic for someone who's already economically and potentially also socially vulnerable, extra care needs to be taken," Mr Anderson said. "And that, of course, was commentary from the robodebt royal commission, that you need to take appropriate levels of care when you're designing such things." The ombudsman also called out the Employment Department's "significant delay" between identifying the issues in September 2023 and pausing cancellations in July 2024. "We acknowledge there were events that added to the time taken for DEWR to progress its consideration and make a decision," the report reads. "However, almost 10 months to get to this point is not acceptable given the effect it had on job seekers in highly vulnerable circumstances." READ MORE PUBLIC SERVICE NEWS: It found that the system should have been paused by March 2024 at least, when draft legal advice conveyed a "a high level of certainty" about the risks. To date, Employment secretary Natalie James has paused cancellations and reductions of income support payments under the framework, but has not paused suspensions. The report also signals further revelations to come about the unlawful cancellations, with a second ombudsman inquiry underway, and consultants finding the underlying IT system to be unstable. In June, the ombudsman confirmed it had expanded its investigation, which will include a second report on the issue to be released towards the end of 2025. "We are doing a second part of this investigation where we'll be looking at, amongst other things, the fairness of the cancellation process," Mr Anderson said. "We'll be looking at the actions of outsourced employment services providers and we'll be looking at how DEWR and Services Australia are moving to provide remedies to people who've been impacted by this." A Deloitte review of the IT system behind the framework, completed in June, could not provide assurance "regarding the integrity, effectiveness, or appropriateness of decisions produced by the [Targeted Compliance Framework] IT system in its current form". "The review found that the computer system's logic was not aligned to the [Targeted Compliance Framework's] policy and legislative intent, and that current practices risk generating unlawful outcomes," the ombudsman's report summarised. The Employment Department and Services Australia have accepted all seven of the recommendations made in the report, including the "timely remediation" of the errors. Other recommendations include that payment cancellations should remain suspended until the issues are fixed, greater clarity on who is responsible for what in the legislative drafting process, training on administrative law requirements and improved risk management policies. Ms James responded that her department had proactively sought to respond to the issues, including through the pause on cancellations, a new integrity assurance program and legal and IT reviews into the system. "Front of mind for me ... is that people subject to these frameworks are often our most vulnerable, including those who are homeless, First Nations people and those with disability," Ms James wrote in response to the report. "These decisions will remain paused until I can be assured decision-making is robust and occurring in accordance with the legislative framework." Services Australia chief executive officer David Hazlehurst said his agency, "is committed to strengthening and uplifting our procedures to ensure cancellation decisions made under [the] Targeted Compliance Framework (TCF) are lawful, fair and reasonable". The Commonwealth Ombudsman has found two government agencies unlawfully cancelled income support payments to more than 900 people, and then waited nearly a year to intervene in the faulty system. On Wednesday, Commonwealth Ombudsman Iain Anderson released the first report into income support payments cancelled under the Targeted Compliance Framework between April 2022 and July 2024. The Department of Employment and Workplace Relations (DEWR) designed the framework, while Services Australia is responsible for implementing it. Introduced in 2018, the complex policy sets out activities that welfare recipients must complete in order to receive their payments. Those who fail to comply automatically receive demerits, leading to payment suspensions and then cancellations. Yet, while the Employment Department amended the underlying legislation in 2022, requiring decision-makers to exercise their discretion when deciding whether to cancel a person's payment, this was never practised. "Although they were then intimately involved in drafting an amendment to the legislation that happened in 2022, it was never implemented," Mr Anderson told The Canberra Times in an interview. "That's just fundamentally concerning, that a change in legislation was not implemented, the system was not changed, the processes were not changed to reflect what Parliament actually enacted in 2022." The report found miscommunications and misinterpretations between the department's policy and legal teams meant it took no steps to change its processes. This view was then conveyed to Services Australia through consultation. Advocacy groups had been warning about the risks of automated decisions "since the inception of the [framework]", the report notes, while the robodebt royal commission report highlighted the serious impact of automated processes on vulnerable people. "Given the consequences of a cancellation can be so catastrophic for someone who's already economically and potentially also socially vulnerable, extra care needs to be taken," Mr Anderson said. "And that, of course, was commentary from the robodebt royal commission, that you need to take appropriate levels of care when you're designing such things." The ombudsman also called out the Employment Department's "significant delay" between identifying the issues in September 2023 and pausing cancellations in July 2024. "We acknowledge there were events that added to the time taken for DEWR to progress its consideration and make a decision," the report reads. "However, almost 10 months to get to this point is not acceptable given the effect it had on job seekers in highly vulnerable circumstances." READ MORE PUBLIC SERVICE NEWS: It found that the system should have been paused by March 2024 at least, when draft legal advice conveyed a "a high level of certainty" about the risks. To date, Employment secretary Natalie James has paused cancellations and reductions of income support payments under the framework, but has not paused suspensions. The report also signals further revelations to come about the unlawful cancellations, with a second ombudsman inquiry underway, and consultants finding the underlying IT system to be unstable. In June, the ombudsman confirmed it had expanded its investigation, which will include a second report on the issue to be released towards the end of 2025. "We are doing a second part of this investigation where we'll be looking at, amongst other things, the fairness of the cancellation process," Mr Anderson said. "We'll be looking at the actions of outsourced employment services providers and we'll be looking at how DEWR and Services Australia are moving to provide remedies to people who've been impacted by this." A Deloitte review of the IT system behind the framework, completed in June, could not provide assurance "regarding the integrity, effectiveness, or appropriateness of decisions produced by the [Targeted Compliance Framework] IT system in its current form". "The review found that the computer system's logic was not aligned to the [Targeted Compliance Framework's] policy and legislative intent, and that current practices risk generating unlawful outcomes," the ombudsman's report summarised. The Employment Department and Services Australia have accepted all seven of the recommendations made in the report, including the "timely remediation" of the errors. Other recommendations include that payment cancellations should remain suspended until the issues are fixed, greater clarity on who is responsible for what in the legislative drafting process, training on administrative law requirements and improved risk management policies. Ms James responded that her department had proactively sought to respond to the issues, including through the pause on cancellations, a new integrity assurance program and legal and IT reviews into the system. "Front of mind for me ... is that people subject to these frameworks are often our most vulnerable, including those who are homeless, First Nations people and those with disability," Ms James wrote in response to the report. "These decisions will remain paused until I can be assured decision-making is robust and occurring in accordance with the legislative framework." Services Australia chief executive officer David Hazlehurst said his agency, "is committed to strengthening and uplifting our procedures to ensure cancellation decisions made under [the] Targeted Compliance Framework (TCF) are lawful, fair and reasonable".
