Georgia Dixon
Retirement Income

Parliament approves changes to welfare payments

Parliament has passed a new welfare reform package which will see the system completely overhauled. The legislation cleared the Senate yesterday and will come into effect on July 1.

Under the new changes, unemployed people will no longer be allowed to use drug or alcohol dependency as an excuse not to find employment unless they agree to seek employment. Additionally, stronger penalties will apply to those who persistently and deliberately fail to comply with the guidelines.

Welfare recipients will also begin receiving payments from the date they lodge their clam rather than the date they first contact Centrelink, and job seekers will be encouraged to find a job as soon as possible, with payments not beginning until the date they attend their first appointment with an employment service provider.

The widow allowance will be closed to new applicants and the payment will cease altogether in 2022, with remaining recipients being switched to the age pension.

As of September 20, job seekers between the ages of 55 and 59 will not be able to accept payment for the first 12 months on welfare by meeting their employment requirements through volunteer work alone.

Further down the track on March 20, 2020, a new JobSeeker Payment will come into effect as the main working age payment, replacing seven existing payments.

Tell us in the comments below, what do you think of the changes? How do they affect you?

Tags:
Centrelink, welfare, finance, Australia, pension