50,000 welfare recipients invited to claim Centrelink compensation
The government invited over 50,000 jobseekers to apply for compensation. It had wrongly stopped their welfare payments.
More than 50,000 welfare recipients can now seek compensation. The government wrongly cancelled their Centrelink payments.
This was under a scheme that watched 'mutual obligation' requirements. A Commonwealth Ombudsman investigation found 964 payment cancellations between April 2022 and July 2024.
They were illegal. The government did not look at each person's situation.
The law required this. The compliance scheme was partially paused in July 2024 when legal problems emerged.
It has now restarted. But advocacy groups warned that the underlying issues have not been fixed.
The Department of Employment and Workplace Relations says it made computer system changes. It improved staff training.
It upgraded monitoring. This was to prevent future errors.
However, groups such as the Australian Council of Social Service and Inclusion Australia say they were not given proof the fixes work. Disability groups argue the system still hurts people with disability more than others.
So far, just over 600 people have received about $870,000 in compensation.
- 964 between April 2022 and July 2024
- Unlawful cancellations found
- Over 50,000 welfare recipients
- Eligible to claim
- July 2024
- Scheme paused
Why it mattersIf your welfare was wrongly stopped between 2022 and 2024, you may be able to claim back payments and compensation.
AustraliaAustralian jobseekers on income support can now apply for compensation, potentially recovering lost payments and receiving further payouts for government failure.
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