We’re just a few months into 2025 and already there have been several updates to Centrelink and Employment Services that may impact you or a client you are supporting. Here’s a recap of three recently introduced changes:
1. Increases to Payment Rates
This year, the Australian Government implemented several increases to Centrelink payment rates, to assist recipients in managing the rising cost of living. These adjustments, scheduled to come into effect on 20 March 2025, aim to ensure that Centrelink payments keep pace with inflation.
January 2025 Increases:
Effective from 1 January 2025, over one million Australians receiving Youth Allowance, Austudy, and Carer Allowance experienced the following increases:
Youth Allowance:
· Single, over 18, living at home: Increased by $17.30 to $477.10 per fortnight.
· Single or partnered, living away from home: Increased by $24.30 to $670.30 per fortnight.
Austudy:
· Single with dependent children: Increased by $30.60 to $845.80 per fortnight.
Carer Allowance:
All eligible recipients: Increased by $5.80 to $159.30 per fortnight.
March 2025 Increases:
The next round of indexation is scheduled for 20th March 2025 affecting payments, including the Age Pension, Disability Support Pension, Carer Payment, JobSeeker, and Commonwealth Rent Assistance. While exact figures are yet to be confirmed, you can anticipate increases aligned with inflation rates.
2. Extended Medical Exemptions
As of 1 January 2025, Services Australia has implemented significant changes to the duration of medical exemptions for individuals receiving Centrelink payments. Previously, medical certificates could exempt recipients from mutual obligation requirements for up to 13 weeks. The new policy extends this exemption period to a maximum of 24 months, providing greater flexibility and support for those facing health challenges.
This policy change affects several Centrelink payments, including:
· JobSeeker Payment
· Youth Allowance for job seekers
· Parenting Payment Single (when the youngest child turns six)
· Special Benefit for Nominated Visa Holders
If the medical certificate expires and the recipient remains unable to meet their requirements due to the same medical condition, they can request a further exemption. This is contingent upon the incapacity being temporary. A new medical certificate will be necessary, and Services Australia may refer the individual for an Employment Services Assessment (ESAt) to evaluate their capacity to work.
Some Disability Support Pension applicants are required to actively participate for 18 months in a Program of Support, prior to applying for the DSP. Effectively, this means participating in your JobSeeker Payment mutual obligations and actively engaging in your job plan. You must complete 18 months of active engagement within the three-year period prior to applying for the DSP.
Periods of time where medical exemptions have been applied won’t count toward the 18-month requirement. For this reason, if you are considering applying for the Disability Support Pension, you should think carefully before entering a 24 month period of medical exemptions, as this will likely mean that you do not complete a Program of Support.
3. Employment Services – New Complaints Line
The Department of Employment and Workplace Relations (DEWR) has introduced a new complaints line for individuals who wish to raise concerns regarding Employment Services and Parent Pathways. This line offers a direct way for individuals to report issues or dissatisfaction with employment service providers, and is designed with the intention that complaints are addressed in a timely and efficient manner.
To make a complaint, individuals can visit the DEWR website and follow the process outlined for submitting their concerns. The complaints system aims to provide transparency and improve the quality of services offered to job seekers and parents participating in government employment programs.
For more details, you can visit the official DEWR complaints page.
