Australia’s points system for jobseekers is failing 4 in 10, putting their payments at risk

For jobseekers these days, staying on benefits is about accumulating points.

It used to be cruder. Until 2022, unemployed Australians who wanted to stay on benefits had to apply for up to 20 jobs per month, a requirement a parliamentary inquiry found

burdens employers, who are receiving masses of poor quality applications often from people who are not suited for the position.

Since July 2022, jobseekers have instead been required to collect points.

Creating or updating a profile earns five points, applying for a job earns five points, attending a job interview earns 25 points, attending a jobs expo earns 25 points, starting a job earns 50 points, and so on.

For most jobseekers the target is 100 points per month. The target can be eased by 20 points for jobseekers who live in locations that have fewer opportunities to work and by 40 points for jobseekers who are carers, have a reduced capacity to work or who are over 55.

Jobseekers who fail to report enough points or who fail to include four job applications per month in total face automatic suspension of benefits.

41% of jobseekers are being failed

New data released by the Department of Employment and Workplace Relations show 41.1% of participants are being tripped up by the system.

In the quarter between April 1 and June 30, 410,485 of the 999,470 jobseekers enrolled in the scheme failed to meet its requirements. And 212,915 of them reported no points whatsoever.

It’s an improvement on the previous year. For April to June 2023, 45.3% of participants failed to get enough points.

First Nations people, refugees, people with disabilities and young people are over-represented among those who fail to get enough points.

My calculations using the department’s data show 58% of Indigenous participants in the program, 49% of participants without a Year 12 education and 47% of participants on youth allowance are failing to meet the requirements.

Around two-thirds of breaches lead to suspensions. Between July 2022 and September 2023 1,838,410 payments were suspended.

My research just published in the Australian Journal of Social Issues finds that a shift away from face-to-face help to online interactions is partly responsible.

When jobseekers find it difficult to talk to humans about why they are unable to accumulate points their payments are more likely to be suspended.

Jobseekers’ fault or the system’s fault?