16 News

Antipoverty Centre says government must end Centrelink payment suspensions after Ombudsman report shows government has unlawfully cancelled payments 

6 August 2025 – Welfare recipients and community sector organisations are calling for an urgent intervention by government to stop Centrelink payment suspensions that cause severe financial hardship and turmoil in the lives of poor people.  

Today the Commonwealth Ombudsman released the first report of its investigationinto administration of the compulsory activities known as “mutual” obligations. Maladministration of the Targeted Compliance Framework has caused thousands of welfare recipients to have their Centrelink payment reduced and cancelled unlawfully, though the full scale of payment impacts is not currently quantifiable. 

For example, nearly 350,000 payment suspensions were issued just in the first quarter of 2025, affecting more than 280,000 people out of the roughly 800,000 who had requirements during the period.¹ 

The Ombudsman’s investigation commenced in February 2025 and exposes disturbing failures on behalf of the Department of Employment and Workplace Relations and Services Australia that show total disregard for the lives and wellbeing of welfare recipients, which cause catastrophic consequences for hundreds of thousands of people.  

• The Ombudsman has found that DEWR unlawfully cancelled welfare recipients’ payments, including 45 people whose payments were cancelled after the Department had decided to stop cancelling payments.
• The Ombudsman’s report makes clear that DEWR and Services Australia must make decisions that are not only lawful, but are also fair and reasonable, and use their discretion wherever possible to protect people from being thrown into destitution.
• The Ombudsman report indicates that there are concerns of the potential for a much larger scale of unlawful, unfair, and unreasonable decisions being made not just by government departments but also by private job agencies who have the power to stop people’s Centrelink payments.

Every person who has had a hand in operating these unlawful systems should feel deep shame and be held responsible for the damage done to people in poverty. The release of this report is a step towards justice for every person who has been subjected to harmful behaviour 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.² 

The Antipoverty Centre, supported by organisations listed below, is calling on the government to immediately: 

• Stop all Centrelink payment penalties, including suspensions, reductions and cancellations, related to compulsory activities.
• Commit to permanently removing the Targeted Compliance Framework – a program that has caused significant harm.

For background information and key statistics see: https://1drv.ms/w/c/5406945b74ee978d/ERDofg1hGMVIs_hJZL7jCzYBckO6uEltERrqhRgjZULVbg 
1. Antipoverty Centre analysis of published compliance data. Some people have received multiple penalties during this period. Figures are lower than in other periods due to an extended pause of penalties in the new year related to IT issues. Sources: Department of Employment and Workplace Relations, Workforce Australia Targeted Compliance Framework quarterly data; Department of Social Services, Disability Employment Services Targeted Compliance Framework monthly data. 
2. See: https://bit.ly/PunishmentForProfitReport; https://www.auwu.org.au/survey-results; https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Education_and_Employment/JobActive2018/Report; https://www.aph.gov.au/Parliamentary_Business/Committees/House/Former_Committees/Workforce_Australia_Employment_Services/WorkforceAustralia

JobSeeker recipient Cheyanne McRae said:  

“Employment services have caused more harm and damage than it could ever rectify. I don’t know how anyone who justifies or contributes to this issue doesn’t see a monster in the mirror every night.” 

Antipoverty Centre spokesperson Jay Coonan said:  

The release of the Commonwealth Ombudsman’s report is a significant moment for every person who has been subjected to compulsory activities while on a Centrelink payment.  

Welfare recipients have been documenting the extreme harm caused by compulsory activities for years and consistently pushed for the government to stop harm by abolishing the cruel and infantilising rules they call “mutual” obligations. It has never been more obvious that this must happen. 

Amid this scandal, outsourced employment services are still wielding payment suspensions as a weapon against welfare recipients, threatening and penalising people who can’t even afford to live. 

The Ombudsman’s report confirms our belief that this system has been run by public sector cowboys for years. It hasn’t been aligning with policy, law or administrative principles and this latest report only scratches the surface. The government has systematically breached its duty of care in its quest to deny people of financial life support.  

People in the system have little ability to resist unfair and unlawful decisions or receive any compensation for harm suffered.  

Like Robodebt, the “mutual” obligations system causes immense distress and hardship to hundreds of thousands of the poorest people across the continent. The community expects the government to ensure people who need a Centrelink payment can survive and thrive, not spend billions a year on finding ways to cut our payments while lining the pockets of outsourced “employment” services. 

We are relieved that this report can lead to scrutiny of this industry, and hope that the voices of welfare recipients may finally be heard and the suffering to end.  

This is only the tip of the iceberg. 

In response to today’s report, the following organisations are supporting the call to stop Centrelink payment suspensions immediately and end the Targeted Compliance Framework:  

Anglicare Australia  

Australian Council of Social Services  

Disability Advocacy Network Australia  

Economic Justice Australia  

Inclusion Australia  

People with Disability Australia 

Single Mother Families Australia  

Sweltering Cities 

Women with Disabilities Australia 

The Albanese Government is securing a continuous pipeline of shipbuilding work in Western Australian and creating thousands of jobs through the execution of the Strategic Shipbuilding Agreement with Australia’s newly established Strategic Shipbuilder, Austal Defence Shipbuilding Australia Pty Ltd.

For too long, the Australian shipbuilding industry has lacked the consistent work needed to develop a competitive and reliable shipbuilding capability. This has had a flow-on effect of hindering the development of Australian-made Defence capabilities and resilience in our shipbuilding industry. 

The Strategic Shipbuilding Agreement will provide the framework for a steady pipeline of projects to be delivered by Austal, granted it continues to perform and meet a range of conditions. This arrangement will enable the stability and long-term planning required to accelerate the delivery of sovereign defence capabilities in Western Australia that meet the needs of the Australian Defence Force over the coming decades.

As the Strategic Shipbuilder, Austal will work closely with local industry and supply chains to develop the skills and resources required for this task. 

The Strategic Shipbuilding Agreement builds on the already‑established pilot program between Defence and Austal, and will see the delivery of dozens of vessels, including:

• 18 Landing Craft Medium for the Australian Army, and subject to further approvals and negotiations, the build of eight Landing Craft Heavy.
• Two new Evolved Cape class patrol boats for the Royal Australian Navy. 

Together, the Landing Craft Medium and Landing Craft Heavy projects are expected to create 1,100 direct jobs and more than 2,000 indirect jobs. 

The Strategic Shipbuilding Agreement will also play a vital role in the establishment of a Commonwealth Defence Precinct at Henderson – underpinning tens of billions of dollars of investment in Defence capabilities in the West over the next two decades and supporting in the order of 10,000 high‑skilled jobs.

As one of two major shipbuilding hubs in Australia, Henderson is an asset of national importance and pivotal to the build and sustainment of vessels for the Australian Defence Force.

The Albanese Government is committed to working with the Cook Labor Government to develop the industry, infrastructure and workforce needed to secure continuous naval shipbuilding in Western Australia.

Deputy Prime Minister, Richard Marles:

“The Albanese Government is delivering on our promise to grow Australia’s shipbuilding and sustainment industry – supporting continuous naval shipbuilding and jobs in Western Australia.

“Implementing the Strategic Shipbuilding Agreement will not only support the delivery of Army’s littoral manoeuvre capability, it will also contribute to a strong, sovereign industrial base capable of responding to Australia’s evolving needs.

“This is part of our broader investment into the Western Australian economy over the coming decades including at HMAS Stirling and throughout the state’s north.”

Minister for Defence Industry, Pat Conroy:

“The execution of the Strategic Shipbuilding Agreement will secure continuous naval shipbuilding in Western Australia, providing generational benefits for local industry, who play a vital role in keeping Australia safe.

“It also supports the Government’s Future Made in Australia agenda, and our commitment to growth within the defence industry, through the delivery of Defence shipbuilding projects on‑shore and boosting our sovereign supply chain.

“The Strategic Shipbuilding Agreement will secure Australia’s place in the changing global environment, will help build a stronger and more resilient shipbuilding industry, and will end the boom-bust cycle.”

The Albanese Government is accelerating the delivery of a larger and more lethal surface combatant fleet with the selection of the upgraded Japanese Mogami-class frigate as the preferred platform for the Royal Australian Navy’s future fleet of general purpose frigates. 

Following a rigorous and competitive tender process, Mitsubishi Heavy Industries’ Mogami-class frigate was assessed as best able to quickly meet the capability requirements and strategic needs of the Australian Defence Force (ADF).

The upgraded Mogami-class frigate boasts a range of up to 10,000 nautical miles, a 32 Cell Vertical Launch System, and is fitted with surface-to-air missiles and anti-ship missiles.

The decision comes months ahead of schedule – reflecting the Albanese Government’s commitment to transforming the ADF into a more integrated, focussed force. 

The Government acknowledges the competitive, high-quality proposal submitted by Thyssenkrupp Marine Systems, and thank them for their commitment and professionalism throughout this procurement process. 

Defence will now proceed with the next stage of the procurement process with Mitsubishi Heavy Industries, with the aim to enter early into binding, commercial contracts with Mitsubishi Heavy Industries and the government of Japan in 2026.

The Government’s response to the Independent Analysis of Navy’s Surface Combatant Fleet outlined that the first three general purpose frigates would be built offshore. This accelerated program will see the first three frigates built in Japan – with the first scheduled to be delivered to Australia in 2029 and operational in 2030. 

That means, under the Albanese Government, the Navy will receive its first new surface combatant five years earlier than planned by the former Coalition government. 

Successful consolidation of the Henderson precinct in Western Australia will enable the remainder of the build to be constructed locally, in line with the Albanese Government’s commitment to continuous naval shipbuilding. 

Over the next two decades, tens of billions of dollars will be invested in defence capabilities in the West, supporting in the order of 10,000 well-paid, high-skilled jobs. This forms part of the Albanese Government’s $55 billion investment over the decade for Navy’s surface combatant fleet. 

Australia’s new general purpose frigates will replace the Anzac-class frigates and will be equipped for undersea warfare and air defence.

Alongside the Hunter-class frigates and the upgraded Hobart-class destroyers and advanced missile investments, the general purpose frigates will be an essential part of the Albanese Government’s plan to more than double the size of Navy’s surface combatant fleet.

Deputy Prime Minister, Richard Marles:

“This announcement is another example of the Albanese Government’s focus on investing in the capabilities we need now and into the future, to meet Australia’s strategic circumstances.

“The upgraded Mogami-class frigate will help secure our maritime trade routes and our northern approaches as part of a larger and more lethal naval surface combatant fleet. 

“The Albanese Government is delivering these commitments at pace, as part of our sustained commitment to continuous naval shipbuilding in the West – driving jobs, investment and infrastructure for decades to come. 

“We thank both Mitsubishi Heavy Industries and Thyssenkrupp Marine Systems, as well as the governments of Japan and Germany for their focus and cooperation throughout this procurement process.”

Minister for Defence Industry, Pat Conroy:

“Today, we are taking another step towards delivering a much larger and more lethal Navy, with stealth frigates that will reassure our allies and deter our adversaries.

“The upgraded Mogami‑class frigate is the best option for our Navy, boosting its capability to put to sea. 

“It will take our general purpose frigates from being able to fire 32 air defence missiles to 128 missiles, giving our sailors the cutting‑edge weapons and combat systems they need to prevail in an increasingly complex environment. 

“This decision comes months ahead of schedule, reinforcing our commitment to deliver of capability at speed and at a lower overall cost to taxpayers. It makes good on our commitment to deliver four times as many warships in the next 10 years compared to the plan inherited by the former Coalition government.”

Tamara Smith MP, Member for Ballina today announced $447,808 in funding for 18 new community infrastructure projects through the NSW Government’s 2025 Community Building Partnership Program (CBP).

The Member for Ballina has assisted more than 100 community organisations and delivered nearly $4 million in grants through this program since being elected in 2015.

Member for Ballina, Tamara Smith MP said:

“These community based grants supply a much-needed source of funding for grassroots projects and organisations that are so often doing the heavy lifting in terms of providing social supports.”

“We know that this program adds value to the work that community based, not-for-profit organisations do to improve the lives of people and the quality of our natural environment.”

“I congratulate all of the organisations that were successful in their application and look forward to seeing the positive social, environmental and recreational outcomes in our community.”

“The next round opens in September, contact my office if you would like more information.”

About the Community Building Partnership Program

The Community Building Partnership program has funded more than 22,400 community projects since it commenced in 2009.

Local not-for-profit community organisations and councils were eligible to apply for grants ranging from $10,000 to $100,000, with up to $450,000 allocated per electorate.

For more information, visit the Community Building Partnership website: nsw.gov.au/cbp

The full list of successful projects and funding amount in the Ballina electorate for the 2025 round are:

Organisation	Project Title	Funding received
Byron Community Centre Ltd	Kitchen, Laundry and Storage upgrades for Fletcher Street Cottage	$30,732
Volunteer Marine Rescue NSW	Berth for New Rescue Vessel for Marine	$22,000
Ocean Shores Country Club Ltd	Shade cloth replacement and seating	$21,167
One Vision Productions Pty Ltd	Mobile Hub for First Nations Youth	$68,800
Byron Environment Centre Inc	Repair and restoration of boardwalk at Cumbebin Wetlands	$21,555
Queer Family Inc	Community transport for geographically isolated people, as well as young, vulnerable and disabled people to essential programs	$30,000
Mullumbimby Ex-Services Club Ltd	Shade and scoreboard restoration	$17,798
Ballina Masonic Centre Incorporated	Solar battery installation.	$57,968
OzFish Unlimited Limited	Fish habitat restoration trailer	$12,200
BAY FM COMMUNITY RADIO INC	Upgrade of Studio 2	$21,198
Fripp Oval Sports Club Inc	Amenities block refurbishment	$17,600
Alstonville Tennis Club Inc	Accessibility improvement	$19,400
Suffolk Park Tennis Courts	Shade and Seating	$16,984
Brunswick Byron Netball Association Incorporated	PA system	$14,131
NSW RFSA on behalf of Main Arm Rural Fire Brigade	Equipment for new fire station	$19,500
The Corporate Trustees of the Diocese of Grafton	Accessible pathways for the community	$10,000
Bangalow Public School Parents and Citizens Association	Shade sails for the playground area	$30,000
BRUNSWICK HEADS PUBLIC SCHOOL P & C ASSOCIATION	Native edible garden and outdoor kitchen	$16,775

Labor Premier Chris Minns is facing strong internal dissent from fellow Labor MPs as he doubles down on targeting future protests, including across the Harbour Bridge.

Greens justice spokesperson and solicitor Sue Higginson MLC will seek to repeal the Police move-on powers in NSW that are designed to limit protest, as the courts find against the police attempting to prevent peaceful protest.

The NSW Police are facing questions on their choices last week, as they unsuccessfully sought to challenge the March for Humanity and blocked protestors from dispersing safely in North Sydney, unilaterally declaring a last minute end to the protest and causing a choke point with a police blockade.

Labor Ministers Penny Sharpe and Jihad Dib joined several Labor MPs in marching across the Harbour, as Labor MPs Lynda Voltz, Julia Finn, Jo Haylen, Stephen Lawrence, Tony Sheldon, Bob Nanva, Alison Byrnes, Sarah Kaine, Cameron Murphy, Anthony D’Adam, and Ed Husic defied the Premier to join the March along with former Labor Premier Bob Carr.

Greens justice spokesperson and solicitor Sue Higginson MLC said:

“Labor Premier Chris Minns is acting strangely and is not listening. He has lost authority over his own caucus and on matters too significant to ignore”,

“The Premier has come out saying he has no regrets about his fierce opposition to the history-making March for Humanity and is now making clear his opposition to future marches across the Bridge,”

“There are no current plans to march across the Harbour Bridge again, the moment has happened, it was yesterday, and the question now really has to be: where was the Premier? What was more important for the Premier, that he could not attend the March for Humanity? There may be good reasons he did not attend, but the people do deserve to know”,
“The Premier also needs to understand that he has absolutely no legal power to block protests, as the courts have confirmed and nor should he,”

“Chris Minns doesn’t understand how the law and democracy works. He’s seeking to override the will of the people and is influencing the police with his personal opinion and his own ignorance and arrogance. This is not what a Premier should do, it is dangerous,”

“The Premier has spent months trying to shut down peaceful protests for Palestine and recently we saw the violent police assault on Hannah Thomas as she was peacefully gathered at a pro-Palestine protest in Belmore. We know police impunity and their misunderstanding of the excessive powers they wield contributed in part to the police violence. Police spent last week trying to challenge the community in the court, asserting that they had the authority to prevent peaceful protest. The role for police here is actually planning for the safe management of the community dispersing from the Harbour Bridge in North Sydney,”

“Protest in NSW is a critical feature of our democracy, and the State’s response to protest can make the difference between whether it is safe, peaceful and understood. At the moment this is at risk in NSW because the Premier has driven a narrative of intolerance and oppression,”

“It is time to reset the system, that’s why I am moving in Parliament this week to remove police powers to move on peaceful protestors, powers that were first introduced by the Perrottet Coalition Government to target climate protestors and then added to by Minns in his attempt to target pro-palestine protesters,”