Why are job seekers worried about new point-based system to receive JobSeeker payment?

4 min read | June 15, 2022 11:05 AM AEST | By Akanksha Vashisht

Highlights

  • Those availing Centrelink payments will now have to complete a series of tasks to keep availing the payments.
  • Workforce Australia will replace the existing Jobactive program from 4 July 2022.
  • Many Centrelink users are worried about the new system, which is an online model.

Major changes have been recently announced to Centrelink’s Jobseeker program, bringing a new wave of concern for Aussies. The new Points Based Activation System (PBAS) will soon be introduced for the workforce, which will replace the existing application program that includes the rigid condition of applying for at least 20 jobs a month.

The new system is expected to make job search easier for individuals, as a point-based approach is likely to be more inclusive. In this system, minimum job search requirements could be reduced on the basis of an individual’s personal circumstances.

The points-based system is a part of a larger move, under which the Jobactive program is being replaced with a new system, known as Workforce Australia. Workforce Australia will replace the existing Jobactive program from 4 July 2022.

This new system has been introduced as a “front door” service that can help people looking for a job. These changes could be a shake-up for the job-seeking population.

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What is PBAS?

All recipients of the Centrelink payments will be moved to the PBAS, in which they will have to earn 100 points and apply for at least five jobs a month to keep receiving their payments. These points can be procured by completing designated tasks. Each task has a set number of points attached to it, with over 30 tasks in total.

These tasks revolve around a job application process and offer a reward-based system to keep individuals applying for new jobs. For instance, attending a job interview will fetch an applicant a certain number of points, while finishing a training course will help individuals achieve another set of points. The target is 100 points, which must be achieved in a month.

An additional feature of the PBAS system is that the point target can be reduced based on the personal circumstances of individuals. Even extra points can be given, which will be passed to the next month. According to Welfare advocates, these changes will help stimulate participation in more mutual obligation requirements than existing rules.

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What’s the concern around new system?

Despite a broader and more open approach, many people dependent on monthly Centrelink payments are becoming increasingly concerned about the new changes. A section of the population believes that these drastic changes have not been explained in detail.

Many users are still unaware of how to avail these benefits after the changes are introduced. With the deadline around the corner, people are facing difficulty in figuring out how these changes will apply to them. Additionally, soaring living costs and rising interest rates mean that many individuals cannot afford to be locked in between payments. Thus, the shift needs to be smooth, such that these monthly expenses are taken care of.

The biggest worry stems from the fact that the Workforce Australia system is based completely on an online portal. Users are now worried about whether this transition will be seamless. It is yet to be seen how the population will adapt to this rapid online shift. Some individuals also fear that meeting the points target could take them a lot of time due to the high number of tasks involved.

However, providers think that the changes are necessary and can even help Aussies who are the farthest away from the job market.

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