Newstart Allowance

You need to meet eligibility requirements to claim Newstart Allowance.

Read more about eligibility for Newstart Allowance

The payment rates for Newstart Allowance are updated on 20 March and 20 September each year and are a guide only.

Depending on your circumstances, you may need to wait for a period of time before receiving your first income support payment. This is because various waiting periods can be applied to your claim.

The amount of Newstart Allowance you get depends on both your income and your assets, including liquid assets which are funds available to you or your partner.

Income test

As a Newstart Allowance customer, you can earn up to $62 per fortnight before tax, before your payment is affected.

Income above $62 and up to $250 per fortnight reduces your fortnightly payment by 50 cents in the dollar. Income above $250 per fortnight reduces your payment by 60 cents in the dollar.

If you are the single principal carer of a dependent child, your payments will reduce by 40 cents for each dollar of income you earn above $62 per fortnight. Partner income that exceeds the cut-out point reduces your payment by 60 cents in the dollar.

Read more information on income test for allowances and the types of income we assess.

Assets tests

As an applicant for Newstart Allowance, you will be assessed against an assets test. This includes liquid assets, which are any funds that are available to either you or your partner, and includes money owed by your employer.

Working Credit

Working Credit is a way in which you can keep more of your Newstart Allowance payment if you do any part-time or casual work. It also makes it easier for you to get Newstart Allowance back if you have a short-term full-time job.

To meet residency requirements you must be an Australian resident and in Australia on the day that you lodge your claim.

To be an Australian resident, you must be living in Australia as:

• an Australian citizen
• the holder of a permanent resident visa, or
• the holder of a special-category visa - that is, someone with a New Zealand passport living in Australia, or
• a New Zealand citizen who was in Australia on 26 February 2001 or for 12 months in the 2 years immediately before that date, or who was assessed before 26 February 2004 as 'protected

If you hold of a permanent-resident visa you will need to meet a 2 year newly arrived resident’s waiting period unless you are exempt from this requirement. For example, if you are a refugee or your partner is an Australian citizen.

If you arrived in Australia on a New Zealand passport after 26 February 2001 and have lived here continuously for at least 10 years since 26 February 2001, you may qualify for payment of Newstart Allowance for up to 6 months. If you qualify for payment under this exemption, you will not need to serve the 2 year newly arrived resident’s waiting period.

If you qualify for Newstart Allowance, you may be entitled to other payments and benefits, such as:

You need to tell us if your circumstances change when you are receiving a payment. For example, if:

• your personal circumstances change
• you change your address
• your income changes
• you do not have to lodge a tax return
• your care arrangements change
• your work or study load changes
• you leave Australia

If you do not tell us about the changes within 14 days your payment may be affected because:

• you may find yourself in debt
• you may be overpaid benefits, and you will probably have to pay the money back
• you could be charged with fraud if you deliberately do not tell us about changes
• a recovery fee may be imposed if you give us incorrect information about your employment income

You can continue getting Newstart Allowance if you get sick or have an accident and are temporarily unable to work. You will need to get a medical certificate from your doctor that states you are unfit to do at least 8 hours’ work a week.

You will not have to meet the activity test or hand in your fortnightly application form in person while you are unfit for work and have a medical certificate.

How to report your changes

You can report changes to your circumstances using our self service options.

Are you moving to another location?

Use the Moving to an Area of Lower Employment Prospects (MALEP) Test to find out the employment prospects of the area you are moving to. Your payment could be affected if you choose to move to an area with significantly lower employment prospects without a good reason.

Our self service options are a quick and effective way to deal with us. You can use self service where it's convenient to you and manage things yourself:

• online - you need to register to use some of the services, then you can do many things where and when it suits you
• on your mobile device - our Express Plus mobile apps are simple, fast and convenient, giving you more choices for dealing with Centrelink
• on the phone - you can self-register for Centrelink Phone Self Service
• using a self service terminal at one of our Service Centres

To keep receiving Newstart Allowance, you need to report to us, usually each fortnight, to make sure you are still eligible and getting paid the right amount.

Read more about reporting statements

You will need to regularly attend Personal Contact Interviews so we can talk with you about your agreed activities and help you with anything that may be impacting on your participation in these activities. These interviews can be either face-to-face in your local service centre or over the phone, depending on your circumstances.

Connections Interviews are a new way the Department of Human Services and Job Services Australia (JSA) providers are supporting job seekers who have trouble meeting participation and activity test requirements.

Read more about Connections Interviews

If you owe money to the Australian Government Department of Human Services, you will be sent an 'Account Payable' or a letter telling you why you owe the money, the amount owed, when the amount is due to be paid, and how you can make the payment.

Read more about owing money and how to avoid a debt.

You will need to participate in Job Seeker Workshops if you are a job seeker receiving a Centrelink payment with Activity Test requirements.

Read more about Job Seeker Workshops

You may be eligible to receive part of your Centrelink payment in advance. Accessing an advance payment depends on the type of payment you receive, how long you have been receiving it and the amount that you receive.

Read more about advance payment options

There are rules about getting your payment when you leave Australia.

Read more about payments paid while outside Australia

Language, literacy and numeracy training is available to people who receive certain Centrelink payments. The training can improve your chances of getting and keeping a job by developing speaking, reading, writing and basic maths skills.

Read more about language, literacy and numeracy training

Self-service computers and printers are available in your local service centre to help you identify employment opportunities and make contact with service providers who may be able to assist you in your search for work free of charge.

A free, confidential service that provides education and information on financial and lifestyle issues to all Australians.

Read more about Financial Information Services.

Our social workers can also help you during difficult times by providing confidential counselling, support and information.