Applying mutual obligation requirements 001-09020000

Job seekers receiving income support payments with mutual obligation requirements must show they are actively looking for work and participating in a range of tasks and activities that will help them into employment, unless Services Australia has granted the job seeker a temporary exemption from these requirements.

Job seekers on the following income support payments have mutual obligation requirements:

• JobSeeker Payment (JSP)
• Youth Allowance (YA) (job seeker)
• Parenting Payment Single (PPS) job seeker (when their youngest child turns 6)
• Special Benefit (SpB) (Nominated Visa Holders)

For information on mutual obligation requirements for job seekers in CDP, see Community Development Program (CDP).

Mutual obligation requirements include a range of requirements a job seeker can be compelled to fulfil under social security law in return for ongoing income support. These include:

• attending Employment Services Provider appointments
• attending Services Australia appointments
• undertaking job search
• meeting a monthly points target (Workforce Australia participants only)
• acting on referrals to jobs, and
• participating in an approved activity requirement that fully meets their mutual obligation requirements

A job seeker's mutual obligation requirements are generally determined by:

• their age
• their assessed work capacity, and
• whether they have primary responsibility for the care of a child

Job seekers have either full-time or part-time mutual obligation requirements.

Job seekers with full-time mutual obligation requirements should be:

• looking for suitable work, and
• actively addressing any circumstances that may affect their capacity to undertake paid work

The following job seekers have part-time mutual obligation requirements:

• Principal carer parents, once the youngest child in their care turns six years of age
• Job seekers with a Partial Capacity to Work (PCW) of 15 to 29 hours per week
• Mature age job seekers, 55 years and over

The extent and combination of tasks and activities that the job seeker is to undertake will vary depending on the job seeker's cohort. In general, the Job Plan will contain requirements set out by the job seeker's Employment Services Provider.

With the exception of Special Benefit (SpB) job seekers paid under the SpB Activity Test, Centrelink managed job seekers fully meet requirements by participating in approved activities.

The Process page contains information about how Service Officers make sure Centrelink managed job seekers fully meet their mutual obligation requirements.

A job seeker must be willing to satisfy their mutual obligation requirements to qualify for payment. A job seeker should have their claim rejected or payment cancelled if they advise they do not intend to meet their requirements, including being registered as a job seeker or referred to an employment services provider.

For information on job search and mutual obligation requirements for job seekers in CDP, see Community Development Program (CDP).

The job seeker's Job Plan will include:

• a points requirement, including a minimum job search requirement
• any compulsory activities, and
• a personal responsibility requirement

Employment Services Providers must:

• specify the minimum job search requirement for each job seeker. This will display in the job seekers homepage, not in their Job Plan
• specify the points target a job seeker is required to meet per month
• adjust the points target and the minimum job search requirement appropriately based on each job seeker's:
• personal circumstances
• local labour market

There are some circumstances where the number of job searches may be reduced by the provider. Service Officers have no authority to reduce the number of job searches. Providers will work with job seekers to decide the tasks and activities they use to meet the points target.

Any job seeker whose income support payment is reduced to nil because of employment income (their own or partner's) does not have mutual obligation requirements during the nil rate period.

Under PBAS, job seekers accumulate a points target each month instead of reporting a set number of job searches each month. A job seeker's points target is based on their personal circumstances and local labour market, and displays in their homepage on the Workforce Australia website.

Job seekers can accumulate points by completing a variety of tasks and activities, including job search-related activities, and recording them in their Workforce Australia homepage. These include:

• applying for a job
• updating their career profile
• going for a job interview
• accepting a job offer, or
• doing paid work

The points value for each activity is displayed in the job seeker's homepage. Job seekers can choose which tasks or activities they will undertake to meet their target. This gives job seekers greater flexibility in meeting their requirements.

If a job seeker exceeds the number of points they need, they can carry over that excess into the next reporting period (up to 50 per cent of their target). This will reduce the number of points they must accumulate the following month.

PBAS replaces the job search requirement in a Job Plan. All other mutual obligation requirements remain unchanged, for example, attendance at appointments, activities, etc. Certain other activities may reduce the number of points required.

It is the provider's responsibility to set the monthly points target and to manage any disputes with the job seeker about:

• whether the target is appropriate
• whether the job seeker has a valid reason for not meeting a monthly points target

Advise the job seeker to discuss the matter with their provider if they:

• disagree with their points target, or
• dispute the number of points accumulated

Services Australia staff cannot view a job seeker's points target or accumulated points.

Services Australia assesses and determines whether the following job seekers are able to meet their mutual obligation requirements by undertaking part-time approved activities for at least 30 hours per fortnight:

• Principal carer parents
• Job seekers with a Partial Capacity to Work (PCW) or Temporary Reduced Work Capacity (TRWC) of 15 to 29 hours per week, and
• Job seekers aged 55 years or over

If Services Australia establishes that a job seeker is participating sufficiently in approved activities, Services Australia updates the Job Plan. The job seeker is then suspended or exited from Employment Provider Services.

It is possible for some job seekers to maintain qualification for payment by having sufficient paid work to satisfy their mutual obligation requirements and to still be regarded as unemployed.

If a job seeker does not continue to meet their mutual obligation requirements, they may be found to have committed a failure

Providers can assess and determine whether the following job seekers are able to meet their mutual obligation requirements by undertaking any of the below activities:

• 70 hours per fortnight of a combination of paid work and study (provider approved only)
• 30 hours per fortnight of:
• approved voluntary work for principal carer aged under 55 years (provider approved only)
• a combination of approved voluntary work and study for principal carer aged under 55 years (provider approved only)
• a combination of approved voluntary work, study and paid work for principal carer aged under 55 years (provider approved only)
• a combination of approved voluntary work and paid work for principal carer aged under 55 years (provider approved only)
• a combination of study and paid for work principal carer (any age) and job seekers assessed with a partial capacity to work (15-29hrs)
• Paid work for mature age job seekers aged 55 years and over, principal carer (any age) and job seekers assessed with a partial capacity to work
• approved voluntary work for mature age job seekers aged 55 years and over
• a combination of approved Voluntary work and Paid work for mature age job seekers aged 55 years and over

JSP and YA job seekers who have not completed Year 12 (or equivalent) or a Certificate III or higher are identified as early school leavers (ESL). They are required to undertake approved activities and/or job searches to satisfy their mutual obligation requirements. If undertaking:

• study or training or a combination of these, it must be for at least 25 hours per week
• any combination of study, training or job search, their provider will determine the number of job searches required in addition to their other activities
• only job search, they must look for work of at least 25 hours per week and the number of job searches will be determined by their provider

Customers assessed as disadvantaged or vulnerable and unable to meet the study/training requirements may be exempt from the study requirement.

If a customer in this group is already working or studying, their mutual obligation requirements may be adjusted dependent on their age and circumstances.

Note: YA job seekers who are provider managed will have their mutual obligation requirements determined by their Workforce Australia provider.

JSP and YA principal carers of dependent children, and PPS (child aged 6+) customers must meet part-time mutual obligation requirements to qualify for income support, unless an exemption is granted. They can fulfil their requirements by:

• meeting the sufficient work test (undertaking paid work and/or self-employment)
• looking for work
• undertaking approved study
• undertaking a combination of paid work (including self-employment), study and (in some circumstances) voluntary work

The activity, or combination of activities apart from job search, must be for at least 15 hours per week, or 30 hours per fortnight.

Principal carers must be registered as job seekers, but are not required to be connected to a provider if they are fully meeting their mutual obligation requirements through approved activities. Principal carers who:

• volunteer to be connected to a provider are registered as Fully Eligible Participant (FEP) job seekers
• do not want to volunteer with a provider are registered as Job Seeker Registration Only (JSRO) job seekers

If a principal carer aged 55 years or over (mature age) is meeting their mutual obligation requirements by doing approved voluntary work, or a combination of approved voluntary work and self-employment, for at least 30 hours per fortnight, they:

• are registered as Job Seeker Registration Only (JSRO) job seekers
• will not be required to remain connected with a provider
• will not have job search requirements
• will be suspended or exited from the provider services while they are meeting their requirements

Principal carers with job search requirements are not required to accept job offers of more than 15 hours per week. However, a principal carer may accept such a job offer and work more than 15 hours a week. This is about the definition of 'suitable' or 'unsuitable' work for compliance purposes.

People with a partial capacity to work (PCW) have had an Employment Services Assessment (ESAt) completed to determine the number of hours they are able to participate.

People with a PCW of:

• 0-14 hours per week are not required to look for or undertake work or study. They will satisfy their mutual obligation requirements by attending a compulsory Quarterly Participation Interview (QTI) appointment with Services Australia. They may also choose to meet their mutual obligation requirements by undertaking paid work or self-employment within their assessed bandwidth of capacity. YA job seekers who would otherwise be identified as an early school leaver (ESL) are also included in this cohort
• 15-22 hours per week will be required to look for work, or undertake work or study of 15-22 hours per week. These job seekers can satisfy their mutual obligation requirements with sufficient work or study. They can also satisfy their mutual obligation requirements if they are working at least 15 hours per week and the remuneration meets national minimum wage or relevant award requirements. They may be suspended or exited from Employment Provider Services
• 23-29 hours per week will be required to look for work, or undertake work or study of 23-29 hours. These job seekers can satisfy their mutual obligation requirements with sufficient work or study. They can also satisfy their mutual obligation requirements if they are working at least 15 hours per week and the remuneration meets national minimum wage or relevant award requirements. They may be suspended or exited from Employment Provider Services

A person assessed as having a partial capacity to work does not have to accept a job or remain in a job if it involves working more than 15 hours per week. This is about the definition of 'suitable' or 'unsuitable' work for compliance purposes.

People with a temporary reduced work capacity (TRWC) of 0-7 hours or 8-14 hours per week:

• are not required to look for, or undertake work or study
• may choose to participate in an activity on a voluntary basis
• will satisfy their mutual obligation requirements by attending a QTI appointment with Services Australia

If the job seeker has been assessed as having a TRWC for less than 12 weeks, their compulsory requirement is to lodge Reporting Statements and comply with any agency appointment requests. Youth Allowance job seekers who would otherwise be identified as an ESL are also included in this cohort.

Job seekers with part-time work requirements, (including principal carer parents, mature age 55+ and people with a reduced work capacity) who fail to meet their fortnightly work requirement without a reasonable excuse, may be referred to an Employment Services Provider if they are not already connected. These job seekers will need to make contact with the agency to discuss their circumstances.

If a job seeker provides a reasonable excuse, they should be monitored to ensure that they return to 30 hours of work in the next fortnight. In general, if they do not satisfy their mutual obligation requirements within the next two consecutive fortnights, they:

• will be considered to be no longer fully meeting their requirements
• must be referred to an Employment Services Provider, and
• will be required to meet their mutual obligation requirements by undertaking activities determined by their provider

Reasonable excuses could include:

• illness or injury
• a sick child/ren
• a cancelled shift
• a short term reduction in hours due to public holidays (for example, Easter or Christmas)
• pupil-free day(s)/school holidays
• other, or
• no longer undertaking activity

There is an expectation that working hours will return to normal in the next fortnight.

If a break or holiday that is outside of the job seeker's control occurs during an approved activity and is less than four weeks in duration, there is no need to adjust the job seeker's requirements.

If the break or holiday is longer than four weeks, the job seeker must undertake other suitable activities such as job search, for the period of the break. If this occurs, the job seeker is referred to an Employment Services Provider who is responsible for negotiating a Job Plan.

If a job seeker who is meeting their mutual obligation requirements through part-time work takes paid leave, regardless of the duration, they are regarded as working for the number of hours suggested by their leave payment rate. Therefore, a job seeker on:

• full-pay leave will be regarded as continuing to work their normal hours
• half-pay leave will be regarded as working half their normal hours, and
• leave without pay will be regarded as not working

Separate rules apply to principal carer parents where the activity is casual part-time paid employment.

Breaks or holidays in casual part-time work beyond the control of the parent of any duration can result in the principal carer parent being required to undertake other suitable activities (job search) for any fortnight in which the 30 hours part-time work requirement is not met.

Principal carers who have an approved activity of part-time work or a combination of study and paid work may be entitled to access the Allowable Break provisions over Christmas school holiday periods, if affected by employer initiated temporary closures or reduced hours/shifts over this duration.

Job seekers aged 55 to 59 who are within the first 12 months of receiving their current income support payment, may meet their mutual obligation requirements by undertaking:

• 30 hours per fortnight of paid work, or
• 30 hours per fortnight of a combination of paid work and approved voluntary work, at least 15 hours of which must be paid work

This includes principal carer parents or people with PCW.

After receiving income support for a 12 month period, eligible job seekers may fully satisfy their requirements by undertaking 30 hours or more per fortnight of any combination of approved unpaid voluntary work and suitable paid work/self-employment, including solely through approved unpaid voluntary work

Job seekers aged 55 or over must be registered as FEP. If they are already satisfying their mutual obligation requirements, they:

• are not required to remain connected with a provider
• do not have job search requirements
• are suspended or exited from Employment Provider Services
• become Centrelink managed, and
• require a Centrelink Job Plan to be negotiated

Job seekers aged 55 or over who do not satisfy their mutual obligation requirements for one fortnight, and:

• do not have a reasonable excuse, should be reconnected immediately to their provider
• have a reasonable excuse, are given two further consecutive fortnights to return to regular hours. If they do not return to their regular hours within this time, they are considered to be no longer fully meeting their mutual obligation requirements. They will be reconnected with their Employment Services Provider, who determines their mutual obligation requirements

Job seekers 'on call' who are required to attend a 'base' or like place, and are participating in a work-like activity for the duration of their time on call, can have these hours counted towards their voluntary work hours.

If the job seeker is going about their daily life, without participating in any work-like activity while on call, they cannot have these hours counted towards their voluntary work hours.

Job seekers aged 60 to Age Pension age (including those who are principal carer parents or people with PCW) may meet their mutual obligation requirements by undertaking:

• 30 hours per fortnight of paid work, or
• 30 hours per fortnight of approved voluntary work, or
• 30 hours per fortnight of a combination of paid work and approved voluntary work

Job seekers aged 60 or over must be registered as FEP. If they are already satisfying their mutual obligation requirements, they:

• are registered as Job Seeker Registration Only (JSRO) job seekers
• are not required to remain connected with a provider
• do not have job search requirements
• are suspended or exited from Employment Provider Services
• are Centrelink managed, and
• require a Centrelink Job Plan to be negotiated

Job seekers aged 60 or over who do not satisfy their mutual obligation requirements for one fortnight, and:

• do not have a reasonable excuse, will be referred to speak with a Service Officer to discuss their circumstances. Depending on the discussion, the job seeker may need to be reconnected back to employment services
• have a reasonable excuse, are given two further consecutive fortnights to return to regular hours. If they do not return to their regular hours within this time, they are considered to be no longer fully meeting their mutual obligation requirements. They will be reconnected with their Employment Services Provider, who determines their mutual obligation requirements and will negotiate a new Job Plan

Job seekers participating in Drug Court programs may be able to use this activity to meet their mutual obligation requirements. The activity should be included in their Job Plan for no more than six months at a time.

Participants accepted into the program must follow an individual case management plan, which sets out the requirements of the 12 month program. This program is strictly monitored by the court and any deviance from the agreed program may result in the imposition of sanctions and, in the last resort, expulsion from the program.

The following activities are mandatory for all participants:

• attendance at court on a weekly, fortnightly or monthly basis
• regular attendance at counselling sessions organised by the Department of Health and Aged Care and the Probation and Parole Service (P and PS)
• attendance at programs organised by the Department of Health and Aged Care
• TAFE programs such as numeracy and literacy, English as a second language, anger management, self-esteem, preparing for employment, etc.
• urinalysis testing, and home visits by P and PS

As participants will be required to undertake set activities at set times, there may be limits to their ability to look for and accept full-time work. On rare occasions, the Drug Court may direct people who are currently working to stop work for a period of time, so that they can undertake intensive rehabilitation to help them overcome their drug addiction. Most people in this situation will not qualify for income support payment, but where they do qualify, a penalty for voluntary unemployment is not to be applied.

The participation category that is most beneficial to the job seeker applies when job seekers with mutual obligation requirements meet more than one of the following categories:

• JSP mature age 55+
• job seekers with a PCW or TRWC, or
• principal carers

The system will automatically place the job seeker into the most appropriate participation category.

Example: a 57 year old job seeker with full-time care of a child aged 14 is receiving JSP. The job seeker has mutual obligation requirements. They meet the criteria for two participation categories: 'JSP/SPL MA 55+' and 'Principal Carer on JSP/YA/SPL 15hrs wk'. The most beneficial participation category for this job seeker is 'Principal Carer on JSP/YA/SPL 15hrs wk'.

If a job seeker is both an ESL and a principal carer or assessed as having a PCW, the type of activities approved are governed by their ESL status.

Newly arrived refugees receive an exemption from mutual obligation requirements for their first 13 weeks in Australia.

Most newly arrived refugees are eligible to remain Centrelink managed for the first 12 months after their arrival in Australia. There are a number of factors that determine this eligibility. See Refugee entrant service offer for more information.

If they meet the eligibility requirements to remain Centrelink managed, during the Centrelink managed period, newly arrived refugees can fully meet their mutual obligation requirements by participating in one or more of the following activities:

• Humanitarian Settlement Program (HSP)
• Adult Migrant English Program (AMEP)
• Voluntary participation in Workforce Australia
• Skills for Education and Employment (SEE), if eligible
• Part-time work, if they are a principal carer of a child under 16 and they are undertaking 15 hours of part-time work per week at or above the National Minimum wage, or
• Voluntary work, if they are mature age, 60+ and doing 15 hours of volunteer work per week

Mutual obligation requirements also apply to job seekers in receipt of SpB who are required to meet SpB Nominated Visa Holders mutual obligation requirements. See Mutual obligation requirements for Special Benefit (SpB).

If a job seeker is participating full-time in a state government training program and is receiving a training wage, they are considered to be employed. They are not eligible for JSP, YA (job seeker) or SpB.

PPS job seekers are not subject to this rule. PPS customers do not need to meet the definition of 'unemployed' in order to qualify for payment.

If a job seeker is participating on a part-time basis in a state government training program, the training wage these job seekers are paid while in the program is treated as earned income.

Self-Employment Allowance is paid by DEWR to eligible Small Business Coaching participants for the first 39 weeks of the 52 week program. Some participants may be entitled to a partial rate of income support payment while in receipt of Self Employment Allowance. Where the Self-Employment Allowance results in cancellation of income support payment, the customer will need to re-apply for income support payment when their Self-Employment Allowance ceases.

Participation in Small Business Coaching is deemed to fully satisfy mutual obligation requirements. Where the customer is entitled to income support payment (full or partial rate), while participating in Small Business Coaching, they are:

• registered as JSRO job seekers, and
• Centrelink managed for the period of participation in Small Business Coaching. This includes customers who are entitled to part rate from start date of participation in Small Business Coaching and those who re-apply for income support payment after their Self-Employment Allowance has ceased