Major Centrelink changes coming for millions of JobSeeker recipients

Fewer JobSeeker recipients are set to be cut off from the Centrelink payment under new rules being brought in later this year. The 2024 Federal Budget contained a $6.4 million package spread over five years to change the rules around mutual obligations.

The government was under immense pressure to lift the JobSeeker payment after a report said recipients "regularly go without life’s essentials because they simply cannot afford them". But this week millions were told their payments wouldn't go up despite the rising cost of living.

But Labor is trying to make it harder for recipients to be booted off the payment.

Are you struggling on JobSeeker? Email stew.perrie@yahooinc.com

People on JobSeeker currently have only two days to re-engage with their employment service provider if they miss an appointment or activity.

But the Department of Employment and Workplace Relations has revealed from October this year, the grace period will be hiked to five days, giving recipients a bit more breathing room to organise another appointment.

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Not only that, but another change will kick in from March next year that will make people on JobSeeker who work 30 hours a fortnight exempt from being cut off from the Centrelink payment if they miss an appointment.

New JobSeeker recipients will also not experience any compliance action the first time they don't meet a requirement.

The decision to cut a person off from their payments will be made by a staff member at Services Australia, rather than it being automatic.

The government's changes to the Centrelink payment are designed for a “more appropriate and consistent application of mutual obligation rules for certain recipients of income support payments".

They come after a Workforce Australia Employment Services report last year called the current system of compliance and enforcement arrangements "excessive" and "often very punitive" on job seekers and it had "little or no positive impact on their capacity for social and economic participation”.

What are JobSeeker mutual obligations?

If you're applying for JobSeeker or other Centrelink payments, you have to abide by certain ongoing obligations.

They include:

• agreeing to a Job Plan

• meeting the requirements of your plan

• going to appointments with your employment services provider, if you have one.

• You may also need to complete and report your job searches

• You may need to look for work as a requirement to keep getting your payment, which means you'll have to go to all job interviews, accept any offer of suitable paid work and not leave a job, training course or program unless you have a valid reason.

Other JobSeeker changes in the 2024 Federal Budget

The government revealed this week it will amend the eligibility criteria for JobSeeker to allow more Aussies to receive the payment.

It has allocated $41.2 million over the next five years for the plan.

According to the government, this will provide a boost of at least $54.90 per fortnight to eligible recipients with a partial capacity to work zero to 14 hours per week.

Treasurer Jim Chalmers was grilled about why the government didn't increase the base rate of the JobSeeker payment despite numerous expert recommendations.

"We increased JobSeeker by $40 a fortnight and that's about $120 higher a fortnight since we've come to office," he said on the ABC.

"There's more than one way to help people who are especially vulnerable, including the jobless, energy rebates, rent assistance in and other ways too."

The Economic Inclusion Advisory Committee (EIAC) led the calls for the payment to go up and said it should be increased to 90 per cent of the aged pension.

This would bump the fortnightly payment from $762.70 for singles to $1,004.67, which would be an increase of $121 per week or about $17 per day.

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