Demerits and suspensions for not meeting mutual obligation requirements

Job seekers could get demerits and suspensions for not meeting mutual obligation requirements.

This applies to job seekers who are with one of the following employment service providers:

  • Workforce Australia
  • Workforce Australia Online
  • Inclusive Employment Australia
  • Transition to Work.

There are different penalties for job seekers in the Remote Australia Employment Service. Read about mutual obligation requirements in the Remote Australia Employment Service.

Two compliance decisions restart on 26 October

Most financial penalties and payment cancellations remain paused.

However, payment suspensions for mutual obligation failures still apply.

The following compliance decisions have restarted on 26 October 2026. Your payment may be both:

  • suspended if you refuse suitable work or fail to start a job you’ve accepted
  • cancelled if you don’t meet a reconnection requirement within 4 weeks of being notified.

Your payment may be suspended for a work refusal failure if you either:

  • don’t accept an offer of suitable work
  • accept a job but don’t start it.

You must accept suitable work and start the job, even if it isn’t in your preferred industry. Tell your provider straight away if you can't accept an offer of suitable work or if you’re finding it hard to meet your requirements. Where possible, do this before you miss an appointment or activity.

If you’re with Workforce Australia Online, either:

For more information, read the Targeted Compliance Framework update participant fact sheet on the Department of Employment and Workplace Relations website.

Other financial penalties and cancellations remain paused

Most other financial penalties and payment cancellations under the Targeted Compliance Framework remain paused.

Find out more about the decision to pause on the Department of Employment and Workplace Relations website.

We’ll let you know when the pause ends.

Who demerits apply to

Demerits apply if you’re a job seeker getting a payment with mutual obligation requirements and you’re with any of the following employment service providers:

  • Workforce Australia
  • Workforce Australia Online
  • Inclusive Employment Australia
  • Transition to Work.

This includes all the following payments:

How demerits work

You may get a demerit if you don’t meet your mutual obligation requirements.

You’ll need to meet your requirements given to you by either:

If your provider or the Digital Services Contact Centre decide you don’t have a valid reason for not meeting your mutual obligation requirements, they’ll give you a demerit. A demerit doesn’t reduce your payment.

Each demerit lasts 6 months from the date you get it.

Capability Interviews and Capability Assessments

You may need to attend a Capability Interview or Capability Assessment.

If you get 3 demerits in 6 months

You’ll need to attend a Capability Interview with your provider or the Digital Services Contact Centre. At the Capability Interview, they’ll discuss with you whether your obligations are right for you. If not, they may change your obligations to suit your circumstances.

If you get 5 demerits in 6 months

You’ll need to have a Capability Assessment with us. At the Capability Assessment, we’ll discuss with you whether your obligations are right for your current circumstances.

How to keep track of your demerits

You can keep track of your demerits using either:

  • your online dashboard, if you’re with Inclusive Employment Australia
  • the homepage of your Workforce Australia online account.

You can sign in to your Workforce Australia online account through myGov.

Your dashboard or online account homepage show 3 zones and which zone you are in. The zones are:

  • green zone
  • warning zone
  • penalty zone.

Suspensions and payment cancellation for failing to meet a reconnection requirement can occur in any zone.

In the green zone

You have no demerits, but your payment may be suspended if you don’t meet your mutual obligation requirements.

You’re responsible for making sure you’re meeting all your requirements.

You must record what you do to meet your requirements in your Workforce Australia account. This includes recording both your:

  • attendance at activities and appointments
  • job search efforts.

If you can’t meet a requirement, you must contact your provider before you miss the appointment or activity.

If you’re with Workforce Australia Online, call the Digital Services Contact Centre.

Payment suspensions for mutual obligation failures apply.

Payment suspensions for work refusal failures and payment cancellations for not meeting a reconnection requirement within 4 weeks apply from 26 October.

In the warning zone

If you have one or more demerits, you’ll be in the warning zone.

You may get another demerit if you don’t meet a mutual obligation requirement and you don’t have a valid reason.

Payment suspensions for mutual obligation failures apply.

Payment suspensions for work refusal failures and payment cancellations for not meeting a reconnection requirement within 4 weeks apply from 26 October.

In the penalty zone

There are no demerits in the penalty zone. However, you may have your payment reduced or cancelled.

However, if you move into the Penalty Zone, the Department of Employment and Workplace Relations will return you back into the Green Zone. This is because financial penalties in the Penalty Zone have been paused.

Most financial penalties and payment cancellations remain paused.

Payment suspensions for mutual obligation failures apply.

Payment suspensions for work refusal failures and payment cancellations for not meeting a reconnection requirement within 4 weeks apply from 26 October.

Read more about penalties for not meeting mutual obligation requirements.

You may be fast tracked to a Capability Interview or Assessment

You may be fast tracked to a Capability Interview or a Capability Assessment if you fail to either:

  • attend or act appropriately in a job interview
  • complete a job referral task set for you.

How to avoid demerits and penalties

You can avoid getting demerits and penalties by meeting all your mutual obligation requirements.

If you’re finding it hard to meet your requirements or you can’t attend an appointment or activity, you need to contact your provider before it’s due to start.

If you’re with Workforce Australia Online, call the Digital Services Contact Centre. Let them know if you’re having difficulties.

Read more about how to avoid penalties.

What happens if you move to a different provider

If you have any demerits and financial penalties, they will stay with you if you change providers.

What you need to do if your payment is suspended

Your employment service provider will write to you to tell you what to do if your payment is suspended because you didn’t meet your mutual obligation requirements.

Before your payment can start again, you’ll need to reconnect and meet your requirements given to you by your employment service provider within 4 weeks after being notified.

If you’re unsure of what you need to do, you should either:

What to do if you don’t understand or disagree with a payment suspension

You should contact your provider if you either:

  • don’t understand what you need to do
  • disagree with a decision that has led to the suspension.

If you’re with Workforce Australia Online, you can contact the Digital Services Contact Centre.

If you’re not satisfied after contacting your provider or the Digital Services Contact Centre, you can contact the Department of Employment and Workplace Relations National Customer Service Line.

You can also contact us to apply for a review of the decision if you either:

  • don’t want to contact the Digital Services Contact Centre or National Customer Service Line
  • have contacted them and aren’t satisfied with the outcome.

Who to contact if you disagree with a demerit

If you disagree with a demerit, you need to contact your provider.

We can’t review, change or remove demerits. If you disagree with your provider’s response, you can contact either:

Page last updated: 26 October 2026.
QC 44416