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.


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.
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.

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