A number of changes have been made to the mutual obligation rules to improve Centrelink’s JobSeeker payment, according to the federal budget.
The relaxation of the rules is likely to result in fewer people being cut off from the payment.
Among the changes, comes an expansion to the grace period before a Jobseeker recipient gets cut off from the payment 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-engage with their employment service provider before suspension,” a Department of Employment and Workplace Relations spokesperson told 7NEWS.com.au.
Another change will mean, from March 2025, recipients who work more than 30 hours each fortnight are exempt from being cut off if they miss an appointment at an employment services provider.
“All decisions on the application of financial penalties will be made by a human decision-maker at Services Australia,” the spokesperson said.
“New clients will not experience any compliance action the first time they have not met a requirement.”
The budget allocated $6.4 million over five years for “more appropriate and consistent application of mutual obligation rules for certain recipients of income support payments.”
The mutual obligation tweaks come six months after a damning review of Workforce Australia, which called the level of compliance and reporting activities “patently ridiculous”.
It was the first review of the employment services since they were privatised by the Howard government almost 25 years ago, and the parliamentary committee found the system was driven by the myth of the “dole bludger”.
“Employers have made it clear that the system adds little value to their business, and that it repeatedly tries to force unsuitable jobseekers into vacancies without providing adequate incentives or support,” the report reads.
The department spokesperson said work was continuing on additional changes and the government would respond further to the Workforce Australia report in coming months.
Greens senator Janet Rice said at the time that there was no evidence that mutual obligations work, and should be abolished.
– With AAP
