Giving Back to the Community and the Forgotten Centrelink Payment Before Age Pension Age (those age 60 and over)

In the vast landscape of social welfare programs in Australia, the Centrelink payment system plays a crucial role in providing financial support to various segments of the population. There has been a growing awareness of the challenges faced by older jobseekers, particularly those aged 60 and above, who often encounter unique obstacles in their job search. Did you know that eligible individuals aged 60 and over can utilise the Jobseeker payment to provide them with some financial assistance while undertaking voluntary work with an approved organisation? This payment is intended to help recipients cover their basic living expenses while actively looking for employment opportunities.

Job seekers aged 60 and over can satisfy their obligations through voluntary work with an approved organisation. This can help deliver a sense of satisfaction by giving back to the community and a sense of self-worth. In addition, this can provide a payment of up to $20,865^ per year for a single person aged 55 or older, (after 9 continuous months on an income support payment) and up to $17,836^ pa for a member of a couple. The other additional benefit to receiving Jobseeker payment is that they automatically qualify for the low-income health care card which can provide them access to discounted medical care and other related concessions on utilities, rates and other services.

Eligibility for the Jobseeker payment is contingent on two main criteria: the Assets and Income Test Assessment, which considers an individual’s assets and income, and the Mutual obligation requirements, which outline the tasks and activities required for employment-seeking individuals.

1. The Assets and Income Test Assessment –
   1. The Asset Test – takes into account the value of the applicant’s assets, which can include savings, real estate (other than a home), vehicles, investments (such as shares), Super money transferred to an Account Based Pension and other valuable possessions. This test helps assess whether the individual has access to financial resources that could potentially support them during their period of unemployment. Unlike the Pension Asset Test, which might still allow for partial payments with the Jobseeker payment If their combined assessable assets are greater than the lower threshold, they will automatically not qualify for the Jobseeker Payment. This distinction highlights the importance of understanding the nuances of these tests to navigate the eligibility landscape effectively.
   2. The Income Test – takes into account income earned by the individual and their partner (if applicable) such as wages, self-employment income, Net rental income and deemed income from financial investments based upon the deeming rules and rates set by Services Australia. Financial investments include shares, bank accounts and term deposits.
2. The Mutual obligation – Mutual obligation requirements encompass the tasks and activities individuals commit to as part of their efforts to secure employment, with these details outlined in their Job Plan. The flexibility to temporarily pause these obligations is available in certain circumstances. To continue receiving payments, recipients must fulfil several key obligations, which include agreeing to a Job Plan, adhering to the requirements specified in the plan, and attending appointments with their employment services provider, if applicable. Additionally, individuals may be required to document and report their job search efforts. For those mandated to seek employment actively, this entails attending all job interviews, accepting suitable job offers, and refraining from leaving a job, training course, or program without a valid reason. These mutual obligations form a crucial framework to support individuals in their quest for sustainable employment.

Those age 55 and over – Job seekers aged 55 years and over may choose to satisfy their mutual obligation requirements through approved voluntary work, suitable paid work (including self-employment), or a combination of these activities. In their first 12 months on payment, job seekers aged 55 to 59 can generally satisfy their mutual obligation requirements through 30 hours per fortnight of paid work, or 30 hours per fortnight of a combination of approved voluntary work and paid work (where at least 15 hours per fortnight must be in paid work). After 12 months on payment, these job seekers can satisfy their mutual obligation requirements if they undertake at least 30 hours per fortnight of approved voluntary work, paid work or any combination of these activities. Regardless of their duration on payment, job seekers aged 60 and over can satisfy their mutual obligation requirements if they undertake at least 30 hours per fortnight of approved voluntary work, paid work (including self-employment) or a combination of the 2.  Even though job seekers aged 55 years and over who are satisfying their requirements through undertaking voluntary work or a combination of voluntary and paid work do not have job search or other requirements, they must still be available

Jobseeker is an important aspect of Australia’s social welfare system, providing a lifeline for older individuals looking for employment opportunities. For those over 55, understanding the eligibility criteria and mutual obligation requirements can offer guidance to those seeking financial support through the Jobseeker payment while engaging in voluntary work. The flexibility for older job seekers to meet these obligations through a combination of activities recognises the unique challenges faced in the job market and encourages active participation in the community, ensuring they remain available for work when suitable opportunities arise.

^Current rates, effective from 20 September 2023.