Big changes are on the way for jobseekers receiving Centrelink payments. Here’s what you need to know


Big changes are on the way for jobseekers receiving Centrelink payments. Here’s what you need to know: When changes to Australia’s welfare system are implemented on July 1, jobseekers will have new responsibilities, certain payments will be increased, and the cost of some medications will decrease.

When the present jobseeker obligation program is replaced on July 4 by a new “points-based activation system” (PBAS), Australians receiving unemployment benefits will no longer be required to apply for 20 jobs each month. PBAS stands for “points-based activation system.”

People who wanted to continue receiving their monthly welfare payments from Centrelink were required, under the program that is currently in place, to submit applications for the 20 occupations that fell under their “mutual obligation requirements.”

Instead, members in PBAS would be expected to amass points through various actions related to job hunting, with a monthly goal of achieving 100 points.

There will be a variety of point values assigned to the various job-hunting activities.

There will still be a component based on job applications; job searchers will be required to submit applications for a minimum of five positions each month, each of which will be worth a minimum of 25 points.

They can also earn points by participating in activities such as job interviews, working for pay, studying and training, or an activity of their own.

According to a statement made by a representative for the Department of Education, Skills, and Employment, “Participants will have flexibility and choice in determining what tasks and activities they complete to gain points.” 

“Each activity and task has a points value, with more intensive activities attracting more points. “The values are based on the level of engagement and commitment required to execute the task or activity, as well as the degree to which it is linked to work.”

‘Personal situations’.

According to the department, activities can be adapted to suit an individual’s personal circumstances as well as the conditions of the labor market in their particular region.

The participant’s personal circumstances and/or the conditions of the local market will be taken into consideration when determining the participant’s points aim, according to the spokeswoman.

According to the department, it is easing the difficulty of the move by individually contacting participants and providing guidance, while vulnerable persons are being sent to a supplier of employment services.

Family contributions.

In addition, beginning on July 1st, Centrelink benefits will be increased, which will be beneficial to over 1.4 million Australian households.

In order for the Family Tax Benefit (Part A and B) to remain competitive with the ever-increasing expense of living, the federal government has decided to raise them.

Over the course of 2022-23, families who have a child who is younger than 13 will be eligible for up to a $204.40 increase in their Family Tax Benefit Part A payments.

For families with a kid who is 13 or older, there will be a maximum increase of $255.50 in the amount that must be paid.

Families who are already receiving Family Tax Benefit Part B and have the youngest child who is younger than the age of 5 will be eligible for an increase of up to $164.25 per year.

Families receiving Family Tax Benefit Part B who have the youngest child between the ages of 5 and 18 will be eligible for an additional payment of up to $116.80 per year.

According to the Minister of Social Services, Amanda Rishworth, it is anticipated that the reforms will have an impact on more than 1.4 million families.

She stated that “the indexation process compliments the levers we are pushing across portfolios to help manage the growing cost of living.” “The indexation process complements the levers we are pulling across portfolios.”

In addition to this, it was revealed that there will be an increase in the amount of income or assets that recipients of the Age Pension, Disability Support Pension, or Carer Benefit can have before having their pay reduced.

According to Rishworth, “Social Security and family payments have a built-in safety that allows them to be automatically indexed at regular intervals to help them keep their purchasing power.”

Those who are currently receiving other types of family payments, such as the Newborn Supplement and the Multiple Birth Allowance, will also be eligible for an increase.

advantages in the areas of pharmaceuticals and loans

The Pharmaceutical Benefits Scheme (PBS) Safety Net criteria will be lowered beginning on July 1, 2018.

In the past, cardholders needed to spend $326.40 in order to qualify for free medicine; now, however, they just need to spend $244.80.

The barrier for patients who are not eligible for concessions will be reduced from $1,542.10 to $1,457.10.

Alterations are also going to be made to the Home Equity Access Scheme, which is a scheme that provides senior citizens in Australia with a non-taxable monthly loan to supplement their income during retirement.

As of the first of July, individuals who participate in the program will have the opportunity to receive an advance payment of the loan “in addition to or instead of your fortnightly loan payments,” as stated by Services Australia.

In addition to this, there will be the rollout of a “new no negative equity guarantee,” which will be made available to all loan recipients.

According to Services Australia, “this means that you won’t owe more than the equity in the home when you repay the loan.”