Federal budget 2021: Centrelink JobSeeker recipients to be forced to apply for 20 jobs per month

The government has revealed tough measures for Australians who are on JobSeeker payments and a crackdown on those who are “not genuine”.

The government claims it is “strengthening Australia’s safety net” by increasing the JobSeeker payment for almost two million Australians – while increasing their obligations and giving them “intensive activity” to do after six months of unemployment.

Tuesday’s federal budget today states that the government will provide $9.5 billion over the next five years to increase support for people eligible for working-age payments including JobSeeker.

For Australians struggling to find work, this means an increase in the base rate of working-age payments by $50 per fortnight from April 1 this year.

The increase is expected to benefit 1.9 million Australians, and it applies to people on the Youth Allowance, Parenting Payment, Austudy, ABSTUDY Living Allowance, Partner Allowance, Widow Allowance, Special Benefit and Farm Household Allowance.

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The government has also increased the income-free area to $150 per fortnight for JobSeeker Payment and Youth Allowance, allowing recipients of these payments to earn more income before their payment begins to taper.

Alongside the payment change, the government says it is “strengthening mutual obligations” – the stuff that job seekers have to do to prove they are looking for work – allegedly to provide “better support for job seekers in their search for work”.

This means the job search requirements for those on the payment will increase from 15 per month from April 2021 to 20 per month from July 2021, and job seekers will be forced in online employment services to complete their career profile in the JobActive system.

The government will spend $197 million to “enable” job seekers to take part in an “intensive activity” after six months of unemployment, including participating in approved intensive short courses, with some job seekers required to participate in the Work for the Dole program.

It will spend $12 million to give stronger incentives through the Relocation Assistance to Take Up a Job program by providing the $2000 incentive payment upfront and expanding eligibility to allow job seekers to access the incentive when they take up ongoing work for more than 20 hours per week.

Job seekers will be required to look for more jobs. Picture: John Grainger

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Crackdown on dole bludgers

The government is also looking to weed out those are who are “not genuine in their job search”, by spending $2.5 million to set up an employer reporting line to dob in job seekers they think are not seriously applying for jobs.

There will also be an increase in the auditing of job applications to ensure job seekers are making genuine applications.

The government is also spending $1.5 million recommence face-to-face servicing for job seekers.

What about pensions and super?

Meanwhile, the current $450 per month minimum income threshold for the superannuation guarantee will be removed, meaning people on low incomes can still build up a retirement nest egg.

The government claims this will improve economic security in retirement for around 200,000 women.

Treasurer Josh Frydenberg said the government would also make it easier for Australians to prepare for retirement and to be more secure once in retirement.

“We will improve flexibility by no longer requiring older Australians to meet a work test before they can make voluntary contributions to superannuation,” he said in his budget speech.

“We will allow those aged over 60 to contribute up to $300,000 into their superannuation if they downsize their home, freeing up more housing stock for younger families.”

The government will provide $21.2 million over four years from 2021-22 to improve the uptake of the Pension Loans Scheme by providing immediate access to lump sums of around $12,000 for singles, and $18,000 for couples.

It will also introduce a No Negative Equity Guarantee so borrowers will not have to repay more than the market value of their property.