Imagine this: you're in a hospital bed, struggling to remember your name, let alone keep up with paperwork and appointments.

For an Aussie woman, this wasn't just a nightmare; it was the reality, and it left her struggling mentally and financially.

What happened, and could this be your reality, too?

New South Wales local Kelly's ordeal began in late March when she started experiencing psychosis.

The 43-year-old's was so severe she believed she was being poisoned and watched.

'I couldn't even tell you my name,' Kelly recalled. 'I was completely just in another world.'

During this time, she missed a face-to-face appointment with her employment provider, CoAct, which was required for her JobSeeker payments.

Kelly has struggled with the lengthy process in reinstating her JobSeeker payments. Image Credits: Pexels/Kaboompics.com

After experiencing a severe episode of psychosis, Kelly was admitted to Macquarie Hospital.

Despite being hospitalised and heavily medicated, Kelly's payments were suspended.

Her doctors provided four medical certificates to explain her absence.

However, Centrelink rejected them all and claimed that psychosis was a 'medical symptom' rather than a diagnosis.

Kelly was instructed to attend an in-person appointment to restore her payments.

With her driver's licence revoked under the Mental Health Act, a hospital social worker had to drive her to the provider's office.

'I was getting my cognitive availability back slowly at that point. But I still didn't have it totally together. I was stuttering, and I was still trying to focus,' Kelly recounted.

'I signed the document; I couldn't even read and left crying.'

For two weeks, Kelly had no income.

She could not pay her rent, and the stress of navigating the system while unwell only made her recovery harder.

Sadly, Kelly's experience is not an isolated case.

Last year, another welfare recipient in Victoria had his payments suspended while he was in hospital.

The man was recovering from brain surgery and had struggled with homelessness.

Between January and April this year, government data shows there were 157,680 payment suspensions.

In February, more than one person had their payments paused every minute.

While Services Australia paused most payment cancellations in March due to concerns about their IT system, suspensions have continued at a staggering rate.

Advocates argued that these suspensions may be unlawful and called for a complete overhaul of the so-called 'mutual obligations' system.

This system has penalised jobseekers for missing appointments or failing to submit job applications—even when they're in hospital.

The Commonwealth Ombudsman has expanded its investigation into the legality of payment cancellations.

Yet, for people like Kelly, the damage is already done.

'We've heard of cases of people in ICU having their payment suspended,' Jay Coonan from the Antipoverty Centre prefaced.

'We've heard of people who have been on their deathbed, and their families have been working with social support in hospitals to try and stop this from happening.'

With over 877,000 people on JobSeeker in April and the majority receiving the full rate of $781.10 a fortnight, the stakes are high.

For many, a payment suspension means immediate hardship—missed rent, skipped meals, and mounting stress.

The Department of Employment and Workplace Relations acknowledged these concerns, and Centrelink has apologised to Kelly while they 'worked with her to resolve this matter'.

'People seriously look down on Centrelink recipients,' Kelly shared.

'But anyone can find themselves needing their help.'

It's easy to think, 'This could never happen to me.'

Yet, as Kelly's story showed, life could change in an instant.

Illness, injury, or unexpected hardship could strike anyone, and our social safety net should be there to catch us, not make things more complicated.

Key Takeaways

• An NSW local's Jobseeker payments were suspended while she was in hospital for psychosis, leaving her out of income.
• Medical certificates from hospital doctors were repeatedly rejected by Centrelink, forcing the woman to attend a meeting she was unfit for.
• Payment suspensions continue to occur on a large scale, with advocates and the Ombudsman questioning the legality and calling for an overhaul of the mutual obligations system.
• Centrelink has apologised to the jobseeker and resolved her situation, but advocates warned that suspensions may push people into poverty.

Have you or someone you know experienced payment suspensions while dealing with illness? Should the mutual obligations system need to change? Share your thoughts about this matter in the comments section below.

MORE: Are your Centrelink payments' on hold'? Here's why you don't have to worry

 

[beauravn]

Situations like these are continuing to increase simply because the routine operations management of Centrelink and other government departments are now being handled by automated AI programs. AI is very efficient at sticking strictly to the rules with no room for flexibility and individual circumstances, nor compassion for individual situations people might find themselves in. As such, the system now works on an 'AI based assessment determination' first, with these determinations being automatically enacted immediately. Should special needs and circumstances arise, the situation is transferred and reassessed by an interventions officer (of the human variety). But this process takes time that many people in difficult circumstances simply do not have.

 

[BabsL]

My first day home from major Bowel cancer surgery (leaving me w horrendous complications for life), I was ordered to attend a psychiatrist to see why I thought I could not work.
Late Stage Three Bowel Cancer, 22 rounds of Chemotherapy, 22 rounds of Radiation, massive surgery, followed by burst stitches and extremely painful gut infection, then another 16 rounds of Chemo, a second lot of abdominal surgery - and yet bloody Centrelink was convinced I was a lazy liar running around having fun in the sun.

Centrelink is GROSSLY INCOMPETENT.
Centrelink hv always been a pack of uncaring, insensitive, nasty, mean-spirited, rude bastards to the people who least deserve their spiteful, vicious attitudes. Yet they rarely go after the real cheats and liars who rake in hundreds of thousands of tax payer dollars using multiple false names, fake addresses, and those working for cash under the table.

Centrelink also LOSES so much paperwork that it defies belief. Keep copies of everything.

 

[elaine41]

When did psychosis become a symptom rather than a diagnosis? As a former registered psychiatric nurses it was always considered a diagnosis in my years of nursing.

 

[riskydave]

Elbow trying to save a few bucks thats what this would be about.

 

[riskydave]

My first day home from major Bowel cancer surgery (leaving me w horrendous complications for life), I was ordered to attend a psychiatrist to see why I thought I could not work.
Late Stage Three Bowel Cancer, 22 rounds of Chemotherapy, 22 rounds of Radiation, massive surgery, followed by burst stitches and extremely painful gut infection, then another 16 rounds of Chemo, a second lot of abdominal surgery - and yet bloody Centrelink was convinced I was a lazy liar running around having fun in the sun.

Centrelink is GROSSLY INCOMPETENT.
Centrelink hv always been a pack of uncaring, insensitive, nasty, mean-spirited, rude bastards to the people who least deserve their spiteful, vicious attitudes. Yet they rarely go after the real cheats and liars who rake in hundreds of thousands of tax payer dollars using multiple false names, fake addresses, and those working for cash under the table.

Centrelink also LOSES so much paperwork that it defies belief. Keep copies of everything.

Weren't computers supposed to alleviate all this paper work??

 

[deni67]

Having recently been in hospital just last week again, a gentleman in there had a similar problem. The social workers were wonderful and helped him get his payments back on track.
Also a few years back when my partner was in the mental health ward at QEH their social workers got him onto the disibility pension!
Unheard of these days.

 

[deni67]

My first day home from major Bowel cancer surgery (leaving me w horrendous complications for life), I was ordered to attend a psychiatrist to see why I thought I could not work.
Late Stage Three Bowel Cancer, 22 rounds of Chemotherapy, 22 rounds of Radiation, massive surgery, followed by burst stitches and extremely painful gut infection, then another 16 rounds of Chemo, a second lot of abdominal surgery - and yet bloody Centrelink was convinced I was a lazy liar running around having fun in the sun.

Centrelink is GROSSLY INCOMPETENT.
Centrelink hv always been a pack of uncaring, insensitive, nasty, mean-spirited, rude bastards to the people who least deserve their spiteful, vicious attitudes. Yet they rarely go after the real cheats and liars who rake in hundreds of thousands of tax payer dollars using multiple false names, fake addresses, and those working for cash under the table.

Centrelink also LOSES so much paperwork that it defies belief. Keep copies of everything.

I feel for you after having major bowel surgery myself last year and ending with life changing challenges which includes a stoma and terminal lung cancer which metastasised from the bowel cancer. Now I live with a walker because I can't stand for longer than a few seconds at a time and i'm in continual pain which puts me in and out of hospital on a regular basis.

 

[novezar]

If any of these persons were any of Albo & Burke's undocumented Gazans, of the hard line Muslim faith, The Hate Australia Cause, or Burn The Aussie Flag Tribe, they'd have no problems at all.
It's only true Aussies who face & suffer these predicaments.

The sufferers are always made to jump through hoops, climb over barbed wire barriers, crawl on their belly & beg for help to restore their payments.

Its all a damned joke when they can provide all medical documentations of their prevailing medical situation of undeniable proof.

 

[Veggiepatch]

Situations like these are continuing to increase simply because the routine operations management of Centrelink and other government departments are now being handled by automated AI programs. AI is very efficient at sticking strictly to the rules with no room for flexibility and individual circumstances, nor compassion for individual situations people might find themselves in. As such, the system now works on an 'AI based assessment determination' first, with these determinations being automatically enacted immediately. Should special needs and circumstances arise, the situation is transferred and reassessed by an interventions officer (of the human variety). But this process takes time that many people in difficult circumstances simply do not have.

Since when has Centrelink assessments been carried out by AI?

Early last year, I was assessed for the Disability Support Pension by a flesh and blood human being on two occasions on Centrelink's recommendation. I denied the opportunity as if I secured employment, the DSP would be gone forever.

 

[Parrot]

What on Earth is is Centrelink playing at … being GOD .. That poor Lady explained
all She had gone through and yet She was expected to attend Psychiatrist to
See why She thought She could not WORK ! How insensitive can they get ?

 

[mOiOz]

The first time (16 years ago) I took my Disability papers, which my doctor had completed, to Centrelink, when I was called up, I got off my chair in the waiting room and walked approximately 3 metres, with my cane, to the assessor's table.
Within the first 5 minutes of the interview, she said she's declining my request, because she watched me walking to her table and saw nothing wrong and it all looked okay!
It still haunts me today!

 

[7777]

Centrelink needs to have a complete change, in the way they deal with people, who fall ill or are hospitalized, and need on going welfare payments. Further, advanced training needs to be addressed to all staff at centrelink. It is so easy for Centrelink workers to just touch one button on the keyboard, to suspend welfare payments to those who need financial help the most. Training for a position in Centrelink should not only comprise of administrative work, but should prioritise professionalism in the way every case is delt with, taking into account, mental, physical and emotional issues that are affecting the person who needs on going wellfare assistance to pay for food, rent, medical expenses, utility and the list goes on. The person in charge of Centrelink, is the Minister For Government Services Senator Katy Gallagher, who should be made aware of situations, where people have not being provided with financial help from Centrelink, because they were unable to attend a Centrelink appointment, because of an illness or because they were in hospital.

 

[atomace]

sounds like ROBODEBT

 

[advocate]

Take it to the tribunal it will finalise it forever these are independent

 

[Tipsy]

Typical grubberment departments and most who are employed there cant get jobs in the real as their intelligence is lacking in some way or another.????

 

[Towing]

Nobody notifies Centrelink that they are in hospital neither do their families so they don't know why a person hasn't supplied paperwork or attended the relevant office. When a reason is proved Centrelink should back-pay the people. (people have been known to deliberately not attend appts. or even gone overseas)

 

[7777]

Nobody notifies Centrelink that they are in hospital neither do their families so they don't know why a person hasn't supplied paperwork or attended the relevant office. When a reason is proved Centrelink should back-pay the people. (people have been known to deliberately not attend appts. or even gone overseas)

Dear member Towing, I agree with you, however, people who are in hospital can call Centrelink over the phone, to notify that they are in hospital and are unable to attend the Centrelink appointment. If the person in hospital does not have caring family members or has no family at all, and is is unable to call Centrelink themselves, then they can give authorisation, to one of the hospital nurses, doctors or hospital social workers, to speak on their behalf. If it is possible to make a request for an advance payment over the phone, then surely Centrelink can take the person's phone call from hospital, and reschedule an appointment for them. That way their payments will less likely be suspended. These are not people who have gone over seas, or deliberately missed appointments. They are people in hospital because of a health issue, and are calling from the hospital themselves, or have appointed a medical person or hospital social worker, to speak to Centrelink in their behalf regarding the centrelink appointment. So please with respect, don't say that nobody notifies Centrelink that they are in hospital . Good Karma to you always, God bless,

 

[Towing]

Dear member Towing, I agree with you, however, people who are in hospital can call Centrelink over the phone, to notify that they are in hospital and are unable to attend the Centrelink appointment. If the person in hospital does not have caring family members or has no family at all, and is is unable to call Centrelink themselves, then they can give authorisation, to one of the hospital nurses, doctors or hospital social workers, to speak on their behalf. If it is possible to make a request for an advance payment over the phone, then surely Centrelink can take the person's phone call from hospital, and reschedule an appointment for them. That way their payments will less likely be suspended. These are not people who have gone over seas, or deliberately missed appointments. They are people in hospital because of a health issue, and are calling from the hospital themselves, or have appointed a medical person or hospital social worker, to speak to Centrelink in their behalf regarding the centrelink appointment. So please with respect, don't say that nobody notifies Centrelink that they are in hospital . Good Karma to you always, God bless,

I was referring to people who aren't able to speak to ask somebody to do it. Unless you have been to the same hospital previously and it is marked on your file, staff wouldn't think about it. Parts of some hospitals are so under-staffed they can't even keep up with patient needs. When nurses are very busy you can wait up to 20 minutes after pushing your bell. Some large hospitals only have one social worker. You almost need an appt.
(talking from experience)

 

[7777]

I was referring to people who aren't able to speak to ask somebody to do it. Unless you have been to the same hospital previously and it is marked on your file, staff wouldn't think about it. Parts of some hospitals are so under-staffed they can't even keep up with patient needs. When nurses are very busy you can wait up to 20 minutes after pushing your bell. Some large hospitals only have one social worker. You almost need an appt.
(talking from experience)

Dear member Towing, to your reply, I understand totally what you are saying and respect your opinion 100 percent,