Big changes are coming for thousands of Centrelink recipients after this week’s Federal Budget.
Changes have been made to the so-called mutual obligation rules on the JobSeeker payment.
A relaxation of the rules means fewer Australians are likely to be excluded from the payment.
The changes include an extension of the grace period before a job seeker is cut off from pay for missing an employment services appointment or activity.
“From October 2024, people will have five days, an increase from the current two days, to re-contact their employment service provider before suspension,” a Department of Employment and Relations spokesperson said. Labor. 7News.
Major changes are coming to Centrelink payments after being included in this week’s Federal Budget. In the photo, people queuing outside a Centrelink office.
Five months later, in March 2025, JobSeeker payment recipients who work more than 30 hours a fortnight will be exempt from being cut if they miss an appointment with an employment services provider.
“All decisions regarding the application of financial sanctions will be made by a responsible human in Services Australia,” the spokesperson said.
“New customers will not experience any enforcement action the first time they fail to comply with a requirement.”
Tuesday night’s Budget allocated $6.4 million over a five-year period for “more appropriate and consistent application of mutual obligation rules for certain recipients of income support payments”.
The changes follow a review by Workforce Australia, which said the number of mutual obligations a JobSeeker recipient had to meet was “patently ridiculous”.
A federal parliamentary committee concluded that the system was mainly influenced by the “dole bludger” myth.
“Employers have made clear that the system adds little value to their businesses and that it repeatedly attempts to force unsuitable job applicants into vacant positions without providing adequate incentives or support,” the report says.
The spokesperson said the department was looking at further changes and the government would respond to Workforce Australia’s report in the near future.
But not everyone is in favor of rules of mutual obligation.
Greens senator Janet Rice had previously called for its abolition, claiming there was no evidence that mutual obligation rules worked.