The Law Handbook 2024

320 Section 5: Managing your money Mutual obligations Mutual obligations are tasks and activities that recipients of the JobSeeker Payment agree to do, that are designed to help them find employment. Participants must meet their mutual obligation requirements each month in order to keep receiving their JobSeeker Payment. Participants’ engagement with their mutual obligation requirements is tracked by a points system, with participants needing to reach a certain number of points each month. Recipients of the JobSeeker Payment who are at least 55 years old, who are principal carers or who are in the Community Development Program have different requirements. Employment Pathway Plans Employment Pathway Plans are written agreements ‘negotiated’ between Centrelink and a recipient of participation payments. In practice, they are generally negotiated with a job network provider, but must be approved by Centrelink. Sometimes, Centrelink refers to Employment Pathway Plans as ‘Job Plans’. Employment Pathway Plans require the person to do things to improve their chances of obtaining employment. These include job training, paid work experience, unpaid voluntary work, and applying for a certain number of jobs in a period. These plans can also include activities such as preparing a CV, participating in non-vocational programs (e.g. rehabilitation programs), and any other activity designed to reduce the disadvantage the recipient may have in the labour market. The JobSeeker Payment is not payable until a person signs an Employment Pathway Plan. If a person fails to comply with the terms of their Employment Pathway Plan without a reasonable excuse (which was previously referred to as a ‘participation failure’), this may result in compliance action (see ‘Compliance with mutual obligation requirements’, below). Waiting periods Generally, a person must wait seven days from the date of the claim before becoming eligible to receive the JobSeeker Payment. The waiting period may be less if the person has transferred from another income support payment within the previous 13 weeks. The waiting period may be reduced or waived because of financial hardship. Payment of the JobSeeker Payment may be deferred where the person has liquid assets of at least $5500 (single) or $11 000 (member of a couple or with dependent children). Migrants who entered Australia or became permanent residents after 4 March 1997 must wait 104 weeks to be eligible to receive the JobSeeker Payment. Although, migrants may receive the Special Benefit in some circumstances (see ‘Special Benefit’, below). Migrants who were granted permanent residence visas on or after 1 January 2019 must wait 208 weeks. There are also waiting periods for people who get payouts of sick leave, annual leave, long service leave or parental leave, or those who have done seasonal work earning more than the ‘average weekly ordinary time earnings’ in the six months before the claim. Rate of payment The rate of the JobSeeker Payment (ss 643, 1068 SS Act) varies according to whether the recipient: • is single; • is a member of a couple; • has dependent children; • is aged 55 and over. A person on the JobSeeker Payment may also be eligible for Rent Assistance (see ‘Rent Assistance’, below). The payment is reduced if the recipient’s (or their partner’s) income is above the income threshold. Eligibility for the payment is also subject to an assets test. (See also A Guide to Australian Government Payments for more information about the JobSeeker Payment.) Parenting Payment Eligibility The Parenting Payment (ss 7, 500 SS Act) can be paid to a personwho has at least one child. The parent must be an Australian resident. The Parenting Payment (partnered) ( PP (partnered) ) is paid to a member of a couple where the child is under six years old. The Parenting Payment (single) ( PP (single) ) is paid to a single person where the child is under 14 (see s 500D SS Act). A person may need to pass certain participation requirements if the person’s youngest child has