Australia’s mutual obligations system has come under scrutiny after more than 10,000 jobseekers may have had their payments wrongfully reduced or cancelled. The Department of Employment and Workplace Relations (DEWR) acknowledged the system was not operating in line with the law and paused certain payment reductions. Welfare advocates condemned the failure, drawing comparisons to the robodebt scandal and calling for an end to mutual obligations. Government reviews are ongoing, but advocates argue affected individuals should receive automatic compensation without facing a complex appeals process. The federal ombudsman is also investigating the compliance framework.
See "More than 10,000 jobseeker payments may have been wrongfully reduced or cancelled, government says", Cait Kelly, The Guardian, March 21, 2025