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Mutual obligation requirements 001-09000000



This document outlines the mutual obligation requirements of job seekers. Job seekers are customers applying for or receiving JobSeeker Payment (JSP) or Youth Allowance (YA) (Job seeker), Parenting Payment (PP) with mutual obligation requirements, and Special Benefit (SpB) nominated visa holders. Mutual obligation requirements are a set of requirements these customers must satisfy to receive their payment.

Government intent

Job seekers must meet their mutual obligation requirements, unless they are exempt, to receive JSP or YA (job seeker), PP with mutual obligation requirements, and SpB nominated visa holders.

Under social security law, job seekers receiving an income support payment with mutual obligation requirements must show they are actively looking for work and are participating in a range of activities that will help them into employment.

Mutual obligation requirements

Job seekers will satisfy their mutual obligation requirements if they:

  • actively seek and are willing to undertake suitable paid work. The definition of 'suitable work' for PP job seekers is the same as for JSP/YA principal carers, or
  • undertake suitable paid work, or
  • participate in some other approved training, program or course which is likely to improve their employment prospects, and
  • enter into a Job Plan, if required, with Services Australia or an Employment Services Provider without unreasonable delay, and
  • fully comply with the terms of the Job Plan

When determining a person's mutual obligation requirements in relation to paid work, there are 2 tests that are considered:

  • Is the work suitable for the person and could they be expected to undertake it?
  • Do the hours and income in the fortnight meet sufficient work test requirements, so that the job seeker has no further obligations?

Note: a job seeker who is in a current employment income nil rate period, whether due to their own or their partner's income, does not have mutual obligation requirements during those periods. In other words, if the customer's income support payment reduces to nil, all their mutual obligation requirements are deemed to be satisfied.

Automatic determination of participation category

A job seeker's participation category will be automatically determined based upon their circumstance. There are 10 participation categories available. They reflect the different types of mutual obligation requirements job seekers have.

The participation category is displayed to the Service Officer on the Participation Summary screen and in the Job Plan workflow.

If the job seeker is not eligible for a particular activity because of their participation category, the activity will be greyed out and the Service Officer will not be able to select it. The job seeker's participation category will be automatically reassessed where necessary, for example:

  • the job seeker turns 55
  • a child enters or leaves their care, or
  • a Job Capacity Assessment (JCA) is undertaken

Job seekers within multiple participation categories

Some job seekers with mutual obligation requirements may display attributes for more than one participation category. The job seeker can only be placed in one participation category at a time. Staff are not required to manually determine a job seeker's participation category. The job seeker's participation category will be automatically determined, based upon a hierarchy applied by the system.

Example: a 57 year old job seeker has full-time care of a 14 year old child and is receiving JSP. The job seeker fits the criteria for both 'JSP/SPL Mature Age 55 +' and 'Principal Carer on JSP/YA/SPL 15 hrs/wk' categories. The system will place the job seeker into the Participation Category of 'Principal Carer on JSP/YA/SPL 15 hrs/wk' as this is the first matching result in the hierarchy.

List of participation categories

Participation categories are listed here according to the automatically applied system hierarchy:

  • Voluntary
  • JSP/PP/YA/SPL TRWC 0-7 hrs/wk
  • JSP/PP/YA/SPL TRWC 8-14 hrs/wk
  • Principal Carer on YA <18 No Yr 12 or equiv 15 hrs/wk
  • YA <18 No Yr 12 or equiv WKCAP15-22 hrs/wk
  • YA <18 No Yr 12 or equiv WKCAP 23-29 hrs/wk
  • YA <18 No Yr 12 or equiv 25+ hrs/wk
  • Principal Carer on YA 18-20 No Yr 12 or equiv 15 hrs/wk
  • YA 18-20 No Yr 12 or equiv WKCAP 15-22 hrs/wk
  • YA 18-20 No Yr 12 or equiv WKCAP 23-29 hrs/wk
  • YA 18-20 No Yr 12 or equiv 25+ hrs/wk
  • JSP/PP/YA/SPL WK CAP 0-14 hrs/wk
  • Parents on PP 15hrs/wk
  • Principal Carer on JSP/YA/SPL 15hrs/wk
  • JSP/YA/SPL WKCAP 15-22 hrs/wk
  • JSP/YA/SPL WKCAP 23-29 hrs/wk
  • JSP/SPL 55-59 within 12 months
  • JSP/SPL Mature Age 55+
  • JSP/YA/SPL 30+ hrs/wk

Mutual obligation requirements for Community Development Program (CDP) job seekers

Participation categories do not apply to CDP job seekers and do not determine their mutual obligation requirements.

In setting mutual obligation requirements for CDP job seekers and negotiating Job Plans, CDP providers consider the job seeker's assessed capacity and individual circumstances.

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

Mutual obligation requirements exemptions

Under specific, verifiable circumstances, a job seeker may be exempt from their mutual obligation requirements for a specified period.

The Resources page contains links to publications and information on the Services Australia website.

Contents

Applying mutual obligation requirements

General reviews and Service Updates for job seekers, students, trainees or Australian Apprentices

Approved mutual obligation requirements for Centrelink managed Job Plans

Work for the Dole (WFD) under Workforce Australia

Job Plans

Mutual obligation requirement exemptions

Suitable/unsuitable work

Job Seeker Management Activities

Approved activities for mature age customers

Approved activities for principal carers

Approved activities for customers assessed as having a partial capacity to work (PCW)

Approved activities for customers assessed as having a temporary reduced work capacity (TRWC)

Job seekers with a partial capacity to work or a temporary reduced work capacity

Mutual obligation requirements for principal carers

Mutual obligation requirements for people with an illness, injury or disability

Mutual obligation requirements for Special Benefit (SpB)

Mutual obligation requirements for Youth Allowance job seekers under 22 years of age who have not completed Year 12 or an equivalent level of education (Certificate III or higher) qualification

Employment assistance and Employment Services Providers

Managing compliance with compulsory requirements

Community Development Program (CDP)

Reporting overview

Reporting requirements for customers receiving a payment with mutual obligation requirements