In late November, data from a federal government department reviewed the Targeted Compliance Framework and found it it may have incorrectly cancelled welfare payment, potentially affecting at least 1000 people between April 2022 and July 2024.
The Australian Council of Social Service chief executive Cassandra Goldie has called on the federal government to suspend the mechanism used to enforce mutual obligation requirements, which forces those on welfare to complete compulsory tasks - like searching for a job - in return for their payments.
"Payment suspensions and cancellation have extremely harmful impacts on people, including not only the loss of income but also potential homelessness, relationship breakdown and destitution," Dr Goldie said.
Welfare advocate Cassandra Goldie has called for basic protections for those on income support. (Lukas Coch/AAP PHOTOS)
"The compliance system cannot continue to operate against hundreds of thousands of people often in very vulnerable circumstances whilst the legality of decisions are in question and basic protections are still not in place.
"If confirmed unlawful, this would mark the third instance in recent years of illegal action against people relying on income support for essentials."
Although a parliamentary committee has previously warned that the compliance framework's arrangements could be "unnecessarily burdensome", its use has continued.
In a letter addressed to Employment Minister Murray Watt, Dr Goldie has urged the federal government to contact those affected, conduct a human rights review into the framework, and stop suspending payments until the department can clarify legal questions.
A earlier release from the Department of Employment and Workplace Relations did not clarify whether the cancellations were illegal but noted they "may have been applied incorrectly".
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