Kelly, a 43-year-old woman from New South Wales, faced a harsh reality when her Jobseeker payments were cut off while she was hospitalized for psychosis.
After being admitted to Macquarie Hospital in early April, Kelly was unable to attend a required face-to-face appointment with her job provider, CoAct, leading to the suspension of her only income.
Kelly described her experience with psychosis as terrifying and confusing. “I thought I was being poisoned and couldn’t even recognize my own name,” she said.
Despite doctors providing multiple medical certificates confirming her condition, Centrelink initially rejected them, claiming psychosis was a “medical symptom” rather than a diagnosis that could excuse her from mutual obligation requirements.
Forced to attend an appointment while still recovering, Kelly was driven by a hospital social worker to meet her job coach. She recalls struggling to focus and signing documents she could barely understand.
Kelly’s case is not unique. Government data shows that between January and April 2025, over 157,000 Jobseeker payments were suspended, often for missing appointments or failing to meet mutual obligations. These suspensions continue despite a temporary pause on cancellations earlier this year due to concerns about the legality of the system.
Advocates argue that suspending payments for people experiencing serious health issues, including mental illness, can push vulnerable individuals deeper into poverty and worsen their conditions. The Commonwealth Ombudsman has expanded its investigation into the legality of such payment suspensions.
Jay Coonan from the Antipoverty Centre highlighted cases where payments were stopped for people in intensive care or on their deathbeds, calling for a full pause on suspensions.
Centrelink apologized to Kelly and eventually accepted her psychiatrist’s medical certificate after she filed a complaint. However, the ordeal left her exhausted and depressed. “People look down on Centrelink recipients, but anyone can need help,” she said.
Currently, Jobseeker payments provide financial support to those unable to work, including people with mental health conditions, but recipients must meet certain requirements or risk losing payments. Critics say the system lacks flexibility for people with psychiatric impairments and needs urgent reform to prevent harm to vulnerable Australians.
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