On 21 July 2020, the Australian Government announced changes to income support for people impacted by COVID-19. Please see the below updates on recent changes to the Coronavirus Supplement, mutual obligation requirements, Community Development Program (CDP) and JobKeeper.
Adjustment to the Coronavirus Supplement
The Coronavirus Supplement, paid to those on eligible payments (including JobSeeker and Youth Allowance) was originally set at $550.00 per fortnight. From 25 September 2020, this payment will be paid at the rate of $250.00 per fortnight, until 31 December 2020.
Means testing is to be reinstated in the following ways from 25 September 2020:
- asset testing for all payments will be reinstated, for both existing and new recipients;
- the liquid assets waiting period for all payments will be reinstated for new recipients and;
- the JobSeeker Payment partner income test taper rate will increase from 25 cents to 27 cents for every dollar of partner income earned over $1,165 per fortnight, ensuring that an eligible person with no income can receive the JobSeeker Payment and Coronavirus Supplement provided their partner earns less than $80,238.89 per annum, until 31 December 2020.
Reduced waiting times – The Ordinary Waiting Period, Newly Arrived Resident’s Waiting Period and the Seasonal Work Preclusion Period will continue to be waived until 31 December 2020.
Note: NTCOSS continues to campaign to #raisetherateforgood, calling on the Government for a permanent increase to the rate of JobSeeker to ensure we don’t go back to a payment equivalent to $40.00 per day. For more information on this campaign, visit Raise the Rate.
Mutual obligations
From 4 August 2020, job seekers are expected to participate in appointments with providers, agree to a Job Plan, undertake a job search, and attend activities if it is safe to do so.
If a job seeker is unable to meet their requirements, either because it is unsafe to do so, or they are unable to do so for other reasons, no payment suspensions or financial penalties will be applied. However, job seekers who are in receipt of income support are expected to accept any offer of suitable paid work.
From 4 August 2020, if a job seeker refuses an offer of suitable employment without a valid reason, they may have their payment cancelled and may have to wait four weeks until they can apply for income support. For more information on JobSeeker and mutual obligation requirements, visit the Department of Social Services COVID-19 information and support page.
For more information on JobSeeker and mutual obligation requirements, visit the Department of Social Services COVID-19 information and support page.
Community Development Program (CDP)
On 9 June 2020 mutual obligation requirements for CDP participants recommenced in a limited capacity.
According to the Australian Government, this gradual resumption of CDP services is to take into account local health contexts and the unique circumstances of remote Australia, including the impact of biosecurity-related travel restrictions in remote areas.
CDP providers will start to work with job seekers to refresh job plans and take part in appointments online or on the phone.
No suspensions or penalties will be applied to CDP job seekers as services gradually resume.
CDP job seekers still need to report to Centrelink as normal. This includes reporting any income or hours worked to receive income support. For more information see Temporary CDP arrangements
JobKeeper Program
On 21 July 2020, the Australian Government announced that the JobKeeper payment would be extended until 21 March 2021, with changes to eligibility requirements.
Visit the Australian Taxation Office – JobKeeper Payment for more information.