Recent research from Economic Justice Australia (EJA) reveals that over 300,000 Australians had their Centrelink payments wrongfully cancelled during 2020 to 2024. JobSeeker, Youth Allowance, Parenting Payments, Disability Support Pensions, and other payments had their cancellations, affecting families and people that depend on the payments.
Systemic Failures Related to Illegal Cancellations
An automated system that was intended to cancel payments without considering the recipients’ obligations, such as job agency meetings, was the center of the problem. The law requires payments to not be cancelled for 28 days after an obligation is missed, which is meant to cover unexpected hardships. However, automated payments were cancelled before that time. Capped payments were not a one-off problem; they were part of a sequence, consistently catching 110,000 recipients. The system did not consider the financial vulnerabilities people are exposed to. One described the immediate loss of income, which stayed for a long period of time. It showed the effect of these system faults.## The Negative Effects of the Problem and Lack of Government Response
In the beginning, the government admitted the scale of the problem as a thousand unlawful cancellations. However, EJA’s independent research shows 310,000 unlawful cancellations, most of which went on the radar. The unlawful cancellations impacted multiple payment programs showing that there is a wider systemic problem not limited to the payments made to job. The unlawful cancellations, as well as Centrelink’s repeating IT system failures, have caused significant trauma to those dependent on welfare for their daily lives.
IT system failures and Gov Response
Ignoring IT system failures and unfulfilled promises, welfare and Centrelink users have been dealing with system problems since 2025 which included the issuing of false debts to thousands of users. The problems have been so egregious that the government has been forced to stop their system with compliance activities. Despite these stops, there is still extreme uncertainty and distress on the system. Multiple reviews have been promised to address the overwhelming failures while systemic issues remain unregulated.
What Should Recipients Do?
Those who had Centrelink payments cancelled during the years 2020-2024 should take the time to check their records closely. All correspondences proving any exemptions or reasonable excuses should be retained. Legal or financial support services should be contacted, and community organizations are beginning to assist those members, maintaining that the need to advocate for their rights is vital, and compensation should be sought if appropriate.
Frequently Asked Questions
Q: What caused the unlawful cancellations of Centrelink payments?
A: Automated IT system errors caused these cancellations because they failed to recognize the 28-day grace period after missed obligations, as required by law.
Q: What is the total number of unlawful cancellations?
A: Around 310,000 Centrelink payments were unlawfully cancelled during 2020-2024, affecting 310,000 Australians.
Q: What is the next step for someone whose payment was cancelled illegally?
A: They need to check if the cancellation was unlawful, retain any relevant documents, and consult legal or financial support services to address the cancellation, as well as to appeal or rectify the issue.
This situation demonstrates the problems that can happen when we depend too much on automated systems, especially in important social welfare functions. Accountability and safeguards must be in place to protect those most vulnerable from avoidable harm.
