Centrelink 100 point system for job seekers comes into effect on July 4th
The obligations of job seekers will change, some payments will increase, and medicines will be cheaper when the changes to Australia’s social security system come into effect on July 1.
Australians on unemployment benefits will no longer have to apply for 20 jobs a month when the current requirement for job seekers is replaced by a new “points-based activation system” (PBAS) from July 4.
Under the current scheme, people were required to apply for the 20 jobs under their “mutual obligation” to receive their monthly Centrelink benefits.
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PBAS instead requires participants to accumulate points from job search activities – with a goal of 100 points per month.
Different job-seeking activities will have different point values.
There will still be an application element, where job seekers must apply for at least five jobs per month – worth a minimum of 25 points.
A new scheme for Centrelink job seekers will take effect on July 4. Credit: AAP
They can earn points through job interviews, paid work, study training, or activity participation.
“Participants will have flexibility and choice in deciding which tasks and activities to perform to earn points,” said a Ministry of Education, Skills, and Employment spokesperson.
“Every task and activity has a point value, with more intensive activities earning more points.
“The values are based on the commitment and dedication required to complete the task or activity and the strength of the link to work.”
‘Personal circumstances’
The department says activities can be tailored to a person’s circumstances and the labor market conditions in their area.
“A participant’s points goal is tailored to a participant’s personal circumstances and local market conditions,” said the spokesperson.
The department says it alleviates the change’s difficulty by advising participants individually while referring vulnerable people to an employment agency.
Family Payments
Also from July 1, more than 1.4 m, million Australian families will benefit from increased Centrelink payments.
The federal government has announced increases in the family tax benefit (Parts A and B) to keep pace with the rising cost of living.
Families with a child under 13 will receive up to $204.40 more under the Family Tax Benefit Part A over 2022-23.
Payments are increased by up to $255.50 for families with a child aged 13 and older.
Families receiving Part B Family Tax Benefit and whose youngest child is under age five will receive an increase of as much as $164.25 per year.
Families with Part B Family Tax Benefit with the youngest child ages 5-18 receive up to $116.80 more annually.
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The changes are expected to affect more than 1.4 million families, said Amanda Rishworth, social services minister.
“The indexation process complements the levers we use in portfolios to address the rising cost of living,” she said.
The amount of income or assets that a recipient of an old-age pension, disability pension, or health care allowance can have before their payment is affected will increase, it was also announced.
“Social Security and Family Payments have built-in security that automatically indexes them at regular intervals to help them maintain their purchasing power,” Rishworth said.
Those who receive other family benefits, such as the Multiple Birth and Newborn Allowances, also receive an increase.
Pharmaceutical and Loan Benefits
From July 1 there will be reductions in the net safety thresholds of the Pharmaceutical Benefits System (PBS).
Concession card holders get free medications after spending $244.80, up from $326.40.
The threshold for non-concessional patients will be lowered from $1542.10 to $1,457.10.
Changes will also be made to the Home Equity Access Scheme, which gives older Australians a two-week non-taxable loan to supplement their retirement income.
From July 1, those participating in the scheme will be able to receive an advance on the loan “in addition to or instead of your fortnightly loan payments,” says Services Australia.
A “new guarantee with no negative equity” will also be introduced to all loan recipients.
“This means you will not repay more than the equity in the property when you repay the loan,” said Services Australia.
