Understanding Centrelink Mutual Obligations & Job Plans (2025-26)

What Are Mutual Obligations?

Mutual obligations are the activities and requirements you must complete in exchange for receiving income support payments from the Australian Government. The idea is straightforward: the government provides financial support, and in return, you actively work toward finding employment.

These obligations apply while you're receiving certain payments and typically include activities like searching for jobs, attending appointments with your employment services provider, completing training or courses, and participating in activities that improve your employment prospects.

The system was significantly reformed in 2022 with the introduction of Workforce Australia and the Points Based Activation System (PBAS), which replaced the old "20 job applications per month" model with a more flexible approach.

Who Has Mutual Obligations?

Mutual obligations apply to people receiving:

• JobSeeker Payment — the main unemployment benefit
• Youth Allowance (job seeker) — for unemployed people aged 16-21
• Parenting Payment (Partnered) — when youngest child is 6 or older
• Parenting Payment (Single) — when youngest child is 8 or older
• Special Benefit — in some circumstances

You generally need to be under Age Pension age (currently 67) and assessed as having capacity to work at least part-time. People with significant medical conditions, disabilities, or caring responsibilities may have reduced obligations or exemptions.

The Points Based Activation System (PBAS)

The PBAS replaced the old requirement of making a set number of job applications per month. Under PBAS, you need to earn 150 points per month through a range of approved activities. This gives you more flexibility in how you meet your obligations.

The key advantage of PBAS is that it recognises that finding a job involves more than just sending applications. Attending training, volunteering, going to interviews, and building skills all count toward your monthly target.

How to Earn Points

Here's how different activities translate to points under PBAS:

Your Job Plan

When you start receiving JobSeeker or Youth Allowance, you'll agree to a Job Plan — a personalised agreement that outlines your specific mutual obligations. Your job plan is created with your employment services provider and takes into account:

• Your skills, qualifications, and work experience
• Any barriers to employment (health conditions, caring responsibilities, language barriers)
• Your location and local job market
• Your preferred type of work

You must agree to and sign your job plan. If you disagree with any requirements, discuss it with your provider before signing. Once signed, you're legally required to follow it. If your circumstances change, you can request a review of your job plan.

Workforce Australia Explained

Workforce Australia is the government's employment services system. When you start receiving payment, you'll be assessed and placed into one of two streams:

Workforce Australia Online

Most job seekers start here. You manage your obligations through the Workforce Australia website. You'll:

• Log your job applications and activities online
• Access job listings and career resources
• Track your points balance for the month
• Report on your progress

Workforce Australia — Provider Services

If you're assessed as needing more support (due to long-term unemployment, language barriers, health issues, or other challenges), you'll be assigned to an employment services provider. These are organisations contracted by the government to help you find work. They provide:

• Regular face-to-face appointments
• Resume and cover letter help
• Interview coaching
• Referrals to training programs
• Wage subsidies to encourage employers to hire you
• Support with work clothing, transport, or tools

What Happens If You Don't Comply

Not meeting your mutual obligations has real consequences. The system uses a demerit point framework:

The Demerit System

1. First failure: You receive a demerit point and must re-engage with your provider. Your payment continues.
2. Second failure: Another demerit point. You must attend a re-engagement appointment. Payment continues but you're on notice.
3. Third failure: Payment is suspended for 1 week. You must complete a re-engagement requirement to restart payments.
4. Fourth failure: Another 1-week suspension.
5. Fifth failure: Payment is suspended for 4 weeks, and you must undergo a Capability Assessment to review your situation.

How to Avoid Problems

• Communicate early. If you can't attend an appointment, call your provider BEFORE the appointment time to reschedule.
• Log everything. Record all job applications, interviews, and activities in your Workforce Australia account as you do them. Don't leave it to the end of the month.
• Keep evidence. Save screenshots of job applications, confirmation emails from interviews, and attendance records from training or volunteering.
• Ask for help. If you're struggling to meet your points target, talk to your provider. They can suggest activities and may adjust your requirements.

Exemptions from Mutual Obligations

In certain circumstances, you can be temporarily or permanently exempt from some or all mutual obligations:

• Medical exemption: If you have a medical condition that prevents you from working or job searching. You'll need a medical certificate from your doctor. Exemptions are usually for 3-13 weeks at a time.
• Caring responsibilities: If you're caring for someone who is ill, disabled, or elderly.
• Bereavement: Following the death of a close family member (usually 2-4 weeks).
• Major personal crisis: Domestic violence, homelessness, or other emergencies.
• Pregnancy: From 6 weeks before your expected due date.
• Community emergency: During natural disasters, floods, bushfires, etc.
• Partial capacity to work: If you're assessed as being able to work only limited hours (0-14 hours per week), your obligations are significantly reduced.

To apply for an exemption, contact your employment services provider or Centrelink on 132 850. Have supporting documents ready (medical certificates, evidence of caring responsibilities, etc.).

Tips for Managing Your Obligations

1. Set a weekly routine. Instead of scrambling at the end of the month, aim to earn about 40 points per week. Apply for a few jobs, attend a training session, and do some volunteering.
2. Use free training. TAFE offers free courses for job seekers in many states (Smart and Skilled in NSW, Free TAFE in Victoria). These count toward your points and build genuine skills.
3. Volunteer strategically. Choose volunteering in an industry you want to work in. It builds your resume, gives you local references, and earns points.
4. Keep your Workforce Australia profile updated. An accurate, detailed profile helps the system match you with relevant jobs.
5. Report income correctly. If you do casual or part-time work, report it through your Centrelink account every fortnight. This affects both your payment amount and your points.
6. Know your rights. You can't be forced to accept a job that's unsafe, pays below the minimum wage, or requires you to travel more than 90 minutes each way. You can also refuse a job that conflicts with your religious beliefs or moral convictions.

Frequently Asked Questions

What happens if I don't meet my mutual obligations?

If you don't meet your mutual obligations without a valid reason, your payment may be suspended. You'll receive a demerit point for each failure. After 3 demerit points, your payment is suspended for a week. After 5, you may lose payment for 4 weeks and need a Capability Assessment. Always communicate with your provider before deadlines if you're having trouble.

How many points do I need per month for mutual obligations?

Under the Points Based Activation System (PBAS), you need to earn 150 points per month. Points are earned through activities like job applications (5 points each), job interviews (10 points), training courses (up to 20 points per session), volunteering (10 points per session), and part-time work (5 points per hour). Read our JobSeeker Payment Guide for more details on payments.

Can I get an exemption from mutual obligations?

Yes, exemptions are available for medical conditions (with a medical certificate), caring responsibilities, recent bereavement, major personal crisis, pregnancy (from 6 weeks before due date), and during community emergencies. Contact your provider or Centrelink on 132 850 to apply.

What is Workforce Australia?

Workforce Australia is the Australian Government's employment services system that replaced jobactive in 2022. It includes an online platform where you manage your job search and mutual obligations, plus in-person providers for people who need more support. Visit workforceaustralia.gov.au to access your account.

Do new permanent residents have mutual obligations?

Mutual obligations only apply if you're receiving JobSeeker Payment or Youth Allowance. New permanent residents typically must wait 4 years (NARWP) before accessing these payments. Once you're eligible and receiving payment, mutual obligations apply the same as for any other recipient. Use our job search guide to get started with finding work.

Disclaimer: This guide provides general information about Centrelink mutual obligations. Rules and requirements change — always check with Services Australia or your employment services provider for the most current information. SettleAU is not affiliated with the Australian Government.