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June 30, 2022

JobSeeker eligibility changes: what you must do under the new ‘points-based activation’ system

The points-based activation system is an improvement over what it replaces, but there are anomalies

From Monday July 4 2022, Australian job seekers face a new social security system to police eligibility for support payments.

It replaces the 鈥淛obactive鈥� system that required the 鈥渕utual obligation鈥� of applying for 20 jobs a month for payments to continue.

You must now instead earn 100 points a month through a variety of activities, including applying for jobs, attending courses and even working.

This 鈥減oint-based activation system鈥� was designed under the Morrison government, with by the Albanese government. It reflects recommendations made in 2019 by a Senate select committee inquiry that found the Jobactive program to be punitive and 鈥溾��.

The inquiry recommended a broader range of activities should count towards mutual obligation requirements, and that those activities better promote work readiness.

The new system 鈥� now called Workforce Australia 鈥� does this with a list of more than 30 tasks or activities.

Making a job plan

When you apply for income support, you will need to create a 鈥渏ob plan鈥�, recording everything you must do to meet your mutual obligations requirements.

An assessment will be made of how well you can self-manage this job plan. You will be assigned to either an 鈥渙nline employment service鈥� or to a service provider for personal assistance.

Providers have the power to customise plans by reducing the number of points a job seeker needs each month, or increasing the value of points for activities.

How to get to 100 points

A job application (or what the system calls a 鈥渏ob search鈥�) earns five points. You are generally expected to do at least five job searches a month (with some exceptions, such as if you are attending an adult migrant English course).

The balance of the activities involve looking for work, training courses to improve skills, or activities that contribute to your employability. The following tables summarises these activities and their point values.

How jobseekers can make 100 points

Points values for tasks and activities under the Points Based Activation System.

A full breakdown of the points system can be found .

What if you don鈥檛 earn 100 points?

If you fail to reach 100 points without a good reason, you will receive a demerit point 鈥� a formal warning. This will move you from the 鈥済reen zone鈥� to the 鈥渨arning zone鈥�.

Each demerit points expires after six months.

If you accrue three demerit points at any one time, you will be required to attend a 鈥渃apabilities interview鈥� 鈥� an 鈥渋nformal鈥� interview with your service provider to review if your job plan is right for you.

If you accrue five demerit points, you must attend a 鈥渃apabilities assessment鈥� 鈥� a formal interview with Centrelink. This meeting will have direct implications on payments. For examples, if it is decided your job plan is not fit for purpose, you return to the green zone with a new plan. If not, you will be moved to the 鈥減enalty zone鈥� 鈥� putting you at risk of losing payments.

If you fail to comply with any part of your job plan while in the 鈥減enalty zone鈥�, you will be penalised one week鈥檚 payment. If it happens again, you will lose two week鈥檚 payment. If it happens a third time, your payments will be cancelled, and you will have to wait four weeks before you can reapply.

Essentially, three strikes in the penalty zone and you are out.

What if you earn more than 100 points?

A beneficial feature of the new system is the ability to bank excess points. So if you accrue more than 100 points in one month, you can use those extra points (up to a total of 50 points) the next month.

Is this system better?

Welfare advocates the system could prove just as punitive as the the old system.

There are certainly anomalies, such as the differing time commitments per point values. The greater discretion given to employment service providers over job plans could also contribute to inequalities, particularly for those who cannot advocate for themselves.

But in most respects the points-based activation system is an improvement over what it replaces. It provides greater flexibility and emphasises activities that contribute to employability, not just activity involving applying for jobs.

, Lecturer in Accounting, and , Senior Lecturer in Marketing,

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