The pause will continue until Monday, June 7.
During this period, no payment suspensions or financial penalties will apply if people fail to meet mutual obligation requirements.
These requirements can include accepting a job if it is offered, attending job interviews if offered or referred and applying for a set number of jobs each month.
The suspension will apply to people in Jobactive, Online Employment Services, Disability Employment Services and ParentsNext.
AtWork Australia Shepparton and Bendigo service manager Belinda Aloi said this pause would bring a "little bit of relief" for clients during the stressful lockdown period.
She said the lockdown would be an anxious time for clients.
“We were finally getting back to a bit of normality,” she said.
“Before the lockdown started, we had things in the pipeline for clients. Some had employment waiting for them as of Monday.
“But now it's up to employers whether they want to continue with employing our clients after the lockdown.”
But Ms Aloi said it was important mutual obligations eventually returned.
“They keep clients accountable and encourage them take responsibility for their employment,” she said.
Working with job seekers and employers to grow industry in the region, GROW Greater Shepparton program manager Leanne Hulm said it was still too early to say what the lockdown's impact would be.
“It's definitely going to hurt industry,” she said.
“And we're still looking for a lot of people to return to work after the first lockdown.”
For more information, contact the employment services national customer service line on 1800 805 260 or email nationalcustomerserviceline@dese.gov.au
Job seekers in online employment services can contact the digital services contact centre on 1800 314 677 or email digitalservices@dese.gov.au
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