Mutual obligation payment suspensions return after more than a year
Two types of decisions about job seekers’ payments restart from 26 October 2026, after being paused. Mutual obligation payment suspensions for refusing or failing to accept suitable work are returning, and so are payment cancellations for not meeting a reconnection requirement within four weeks. The restart is only partial, because cancellations for work refusal failures stay paused.
Work refusal, reconnection, and the penalty still on hold
- Work refusal suspensions: mutual obligation payment suspensions apply when someone refuses or fails to accept an offer of suitable work, including accepting a job but not starting it, can lead to a suspended payment. The Department of Employment and Workplace Relations (DEWR) paused these decisions on 5 July 2025 as a precaution while it checked that its decision-making matched the law. Services Australia says people need to accept suitable work even if it is not in their preferred industry.
- Reconnection requirement cancellations: a payment will be cancelled if a person does not meet a reconnection requirement within four weeks of being asked. These were paused from 24 September 2024, after DEWR found its IT systems were not operating in line with the law and policies.
- Still paused: cancellations for work refusal failures. DEWR expects them to resume in the first quarter of 2027. When they do, a person with no reasonable excuse can have their payment cancelled, followed by a four-week non-payment period.
Four payments and four programs are covered
The mutual obligation payment suspensions and cancellations cover JobSeeker Payment, Youth Allowance (student and apprentice, other), Parenting Payment (single) once the youngest child turns six, and Special Benefit for nominated visa holders. DEWR lists Workforce Australia, the former Disability Employment Services, jobactive and ParentsNext as the programs affected. People in the Community Development Program are not affected by the work refusal decisions, and people in the Remote Australia Employment Service are not affected by the reconnection decisions.
If a payment gets suspended
Services Australia says people should keep meeting their mutual obligation requirements, and tell their provider or the Digital Services Contact Centre if they are finding it hard. If mutual obligation payment suspensions apply to you, contact your provider to discuss lifting a suspension. DEWR says it is considering next steps for past decisions and that nobody needs to take action at this stage. Complaints can go to the department’s National Customer Service Line on 1800 805 260.
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General information only, not legal advice. Check the official source before acting.
Sources: Services Australia; DEWR on work refusal decisions and reconnection requirement decisions. Licence: CC BY 4.0.
