An independent assurance review of the Targeted Compliance Framework (TCF), undertaken from December 2024 to June 2025, examined the TCF against operational policy, business rules and IT. The TCF was introduced in 2018 as a core integrity measure within Australia’s welfare system intended to ensure that participants meet their mutual obligation requirements to receive income support, and that this is done in a manner that is procedurally fair, consistent and legally accountable.

The TCF is an integrated program, comprised of a suite of legislative and policy instruments, supported by administrative processes, employment service provider activity and a dedicated IT system that operationalises automated compliance decision-making at scale.

The review focused on the Department of Employment and Workplace Relation's IT system, and whether rules coded into the system could be clearly traced back to the law and policies governing it. Specifically, the review was asked to assess whether the TCF delivers compliance decisions and participant outcomes in accordance with legislative and policy intent, whether the IT system operates lawfully and reliably, and whether departmental governance, assurance and oversight mechanisms are sufficient to manage risk, protect participants and ensure administrative integrity.

This final report is a culmination of further analysis and contains a set of recommendations and options to strengthen the TCF in the future. It includes detailed assessments of business rules underpinning the operating system. The review makes a number of findings and recommendations, including some urgent actions and longer-term improvements. The system needs to be strengthened to ensure it operates as intended.

The report is intended to be read in conjunction with, and supported by, the Statement of Assurance. The Statement of Assurance is an assessment of the current state of the TCF and supporting operations.