The suspension of mutual obligations for Centrelink programs like Work for the Dole has caused confusion for jobseekers and Jobactive service providers.

Key points: Some participants in the Work for the Dole program say they are still being told to report to activities

Some participants in the Work for the Dole program say they are still being told to report to activities The Work for the Dole scheme has been suspended until March 31 due to Centrelink congestion

The Work for the Dole scheme has been suspended until March 31 due to Centrelink congestion Failing to meet the scheme's requirements had been resulting in the automatic cancellation of payments

Last night, Scott Morrison said Centrelink mutual obligations for job seekers would be suspended until March 31.

"If those arrangements need to be extended then they will. We are working in a very flexible environment and we are in a position to take further decisions," Mr Morrison said.

But despite the suspension, some Work for the Dole participants were still told to report to activities to maintain their Jobseeker payment.

One of them is "Terry", a 45-year-old participant in the Jobactive Work for the Dole program in Adelaide.

Terry said he was concerned his payments could be cut off if he spoke out and he wished to remain anonymous.

After learning about the suspension, he checked with his Jobactive service provider, Status employment.

"I called to tell them I wouldn't be coming in because of the press release that said mutual obligations would be suspended," he said.

He was told to wait by the operator, he said.

"She came back and said our advice is all Work for the Dole activities are continuing today."

Terry said he went into to see his Jobactive provider Status before going to his Work for the Dole activity.

"I showed [my supervisor] the media release on my phone. He showed his boss and now I don't have to attend Work for the Dole," he said.

Status has been contacted for comment.

Like many work-for-the-dole participants, Terry works at a charity — in his case an op shop.

"You can't socially distance very well in there," he said.

"We need to look busy, so we're touching things all day."

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Terry said he did not want to leave home or take public transport because he was worried about coronavirus, but he felt he had to go.

"I'm in a very financially precarious position. I will attend. And if I catch it, I catch it. I have no choice if the risk is having my income cut off."

Confusing advice to jobseekers

Yesterday afternoon Employment Minister Michaelia Cash told the ABC Work for the Dole activity was still to go ahead if Jobactive providers deemed it safe.

But in a media release just hours later, Senator Cash and Social Services Minister Anne Ruston announced mutual obligations were being suspended due to congestion.

"During this challenging time, the Morrison Government is lifting all mutual obligation requirements for jobseekers until capacity can be restored to the MyGov website," it said.

"What this means is that no-one will be penalised for not being able to report their attendance at appointments or activities — no-one's payments will be suspended, and no compliance action will be taken."

A network of organisations that have been lobbying the Government to suspend mutual obligations met Wednesday via conference call.

Leanne Ho from Economic Justice Australia said people were still confused about their obligations, and that the message about the suspension has not gotten out to jobseekers or Jobactive providers.

"The mutual obligation compliance system is being suspended because the IT system can't cope," she said.

"People are still getting messages that they haven't complied with mutual obligations. But every evening those suspensions are wiped from the system."

Figures released last year revealed more than 40 per cent of people on Newstart were sick or living with a disability.

Many who receive the Centrelink payment may be especially vulnerable to coronavirus because of medical conditions.

The suspension of Work for the Dole obligations brings the program into line with the Community Development Program (CDP), a similar scheme which operates in remote and Indigenous communities.

All of its face-to-face group activities have been suspended and there is no obligation or penalty for not attending programs.

"We think that exactly the same health and biosecurity issues apply to all the people who are currently in the Jobactive system," Ms Ho said.

"There's no reason we should have one set of rules for the CDP program and not extend that suspension to everyone on Jobactive."

Editor's note (25/3/20): This story has been edited to correct information contained in earlier versions.