New data shows that almost half of people using employment services received threats to suspend their payments from July to September 2025. The Department of Employment and Workplace Relations (DEWR) revealed a 23% increase in suspension notices issued by Workforce Australia. The number rose to 618,000 compared to 504,000 in the previous quarter. This situation has sparked calls for a pause on suspensions until it can be confirmed that the Targeted Compliance Framework (TCF) is legally sound. The Australian Council of Social Services (Acoss) found that 347,000 suspensions were actually applied by employment service providers, affecting nearly half of all participants in the program. First Nations people were hit the hardest, with 52% experiencing at least one suspension. The suspensions occur under Centrelink’s mutual obligations rule, which requires job seekers to actively look for work. Kristin O’Connell from the Antipoverty Centre called the figures "shocking," adding, "their systems do not even hold enough information to confirm whether a payment suspension was lawful." She criticized the government for prioritizing the financial health of job agencies over vulnerable people. Only 11.7% of job seekers found long-term employment through providers last year, costing taxpayers $750 million. Providers earn payments simply for clients reaching work milestones, even if the job was found independently. The top for-profit providers received $300 million last year, claiming 41% of Workforce Australia’s budget. Acoss CEO Dr Cassandra Goldie said the system failed its own targets and many provider decisions were overturned. She insisted, "Any decision that affects a person’s access to income support should not be made by private companies." She called for an independent commission to hold providers accountable. Two reports from the commonwealth ombudsman revealed that DEWR lacks effective oversight of providers. Over half of provider decisions were overturned after causing payment cuts. Between April 2022 and July 2024, 964 payments were unlawfully cancelled by the automated system. Kate Allingham of Economic Justice Australia stated that this shows "little regard" for welfare recipients. She pointed out that many job seekers were given impossible tasks, moving the system away from being supportive. DEWR responded that 90% of suspensions are lifted before any payment delay occurs. They also noted measures like longer resolution times, no suspension for missing appointments due to paid work, and warnings instead of suspensions for first-time misses. The department claimed it monitors providers closely and overturns wrongful decisions, offering feedback to improve fairness.