Fear and confusion among Australian workforce as ‘dramatic’ changes to Centrelink mutual obligations loom

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Cherie Grant has spent the past week frantically searching for answers. 

After finding out last week via social media about a major overhaul to the way unemployed Australians such as her would need to engage with the government from next month, the 47-year-old became worried.

Despite various attempts to ascertain how the changes will affect her, the Melbourne woman and uni student — who lives with chronic back and neck pain and has been on the JobSeeker payment since 2018 — remains in the dark.

“I have been to my job agency but they don’t know anything about it and I’ve been trying to contact Centrelink and I just can’t get through,” she said.

“I tried looking online … and [there was] nothing that seemed to clearly represent my status and what I would have to do.”

Cherie Grant has been living on JobSeeker since 2018.(ABC News: Danielle Bonica)

At the start of July, jobactive — the Australian government’s main unemployment services program — will be replaced by a new service called Workforce Australia, immediately impacting around 792,000 people.

The aim of jobactive was to help people on Centrelink payments apply for jobs or undertake further training, but it was criticised as”punitive” by welfare groups.

A Senate committee in 2019 found it was “not fit for purpose”.

Despite Workforce Australia launching in less than a month, Ms Grant said she is living in “limbo”.

And it appears she’s not alone — welfare advocates say they’ve been receiving a large number of reports from people saying the new system hasn’t been properly explained to them.

What’s changing exactly? 

From July 4, around 169,000 “job-ready” participants will be moved to an online portal to manage their job searches, while some 592,000 others will be referred to a new face-to-face job provider.

People required to complete mutual obligations — tasks and activities aimed at helping people find a job — will also transition to what’s being called the Points Based Activation System (PBAS).

They’ll need to accumulate 100 points a month — earned through activities such as completing job applications or training courses — to continue receiving their payments.

Points targets may be reduced based on “personal circumstances” and extra points can be carried over into the next month, according to the Department of Education, Skills and Employment’s (DESE) website.

The PBAS replaces the current system where jobseekers are required to submit 20 job applications a month.

Welfare advocates say the changes could see people participating in more mutual obligations requirements than under the current rules.

People are seen in a long queue outside a Centrelink office
Job seekers will soon need to earn 100 points per month on the PBAS to make sure their payments don’t get cut(AAP: Dan Peled)

For example, under the PBAS, a person doing the work for the dole program full-time would only get 20 points a week, meaning they’d need to complete other activities on top of that to keep their payments.

Work for the dole will also be compulsory for people after six months in the face-to-face stream, rather than the current 12, though people will only need to do it for two months instead of six.

Attending a job interview or starting a job will be worth 20 points under the PBAS, and completing an application, five points.

‘Absolutely terrified’

Kristin O’Connell, a spokesperson from the Antipoverty Centre, said the “dramatic” changes have not been explained in enough detail, causing fear and confusion among the hundreds of thousands of people to whom it will apply.

“We’re going to have people trying to figure out how to navigate a new system at the same time as worrying about losing their payment at a time when costs are out of control,” she said.

Ms O’Connell said there was also concern the new online system would mean an increase in “decisions made by computers”.



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