Government IT System Wrongfully Cancels Hundreds of Jobseeker Payments, Watchdog Reveals
Govt system illegally cancelled Jobseeker payments

A damning investigation by the Commonwealth Ombudsman has exposed that hundreds of Jobseeker payments were unlawfully cancelled by an automated government system, plunging vulnerable Australians into financial crisis.

System Failures Leave Vulnerable Citizens Stranded

The report reveals that between 2020 and 2023, the Department of Social Services' automated compliance system incorrectly flagged legitimate Jobseeker recipients as ineligible, resulting in abrupt payment suspensions. Many victims reported being unable to afford basic necessities like food and medication.

"Robodebt-Style" Errors Resurface

This latest scandal bears worrying similarities to the infamous Robodebt scheme, where flawed algorithms wrongly accused welfare recipients of owing money to the government. The Ombudsman found:

  • No human oversight of automated decisions
  • Inadequate appeal processes
  • Systematic failure to notify affected individuals

Government Promises Immediate Action

Social Services Minister Amanda Rishworth has pledged to implement all 14 recommendations from the report, including:

  1. Establishing proper human review mechanisms
  2. Creating clearer communication channels
  3. Developing better staff training programs

However, critics argue these measures come too late for those who already suffered financial hardship due to the system's errors.