Mutual Obligations Explained
What mutual obligations are, how the points system works, what activities count, how to get exemptions, and what happens if you do not comply.
General information and estimates only — not financial, tax, or legal advice. Always verify with Services Australia.
Step 1.What Mutual Obligations Are
Mutual obligations are the activities you must do in exchange for receiving certain Centrelink payments, primarily JobSeeker Payment, Youth Allowance (job seeker), Parenting Payment (once your child reaches a certain age), and some Special Benefit recipients. The idea is that in return for income support, you agree to actively look for work or participate in activities that improve your employment prospects. Your specific obligations are set out in a Job Plan (also called a Points Target Agreement) developed with your Workforce Australia provider. If you do not meet your obligations without a valid reason, your payment can be suspended or cancelled. The system can feel overwhelming, but understanding how it works gives you control and reduces stress.
Step 2.The Points Based Activation System (PBAS)
Since July 2022, most job seekers have their obligations managed through the Points Based Activation System. Each month, you need to accumulate a target number of points — typically 100 points for most people, though this can be higher or lower depending on your circumstances. Different activities earn different points: a job application earns 5 points, attending a job interview earns 20 points, completing a short online training course earns 10-20 points, volunteering earns points based on hours, and paid work earns points based on hours worked. You can choose which combination of activities you do to reach your target — for example, 20 job applications, or 10 applications plus some training, or regular volunteering. This flexibility is the main advantage of the points system over the old 'apply for X jobs per month' requirement.
Step 3.Job Search Requirements
The core obligation for most job seekers is applying for jobs. Each job application is worth 5 points, so if your target is 100 points and you only do job applications, you would need 20 per month. However, you do not have to reach your target through job applications alone — mixing in other activities is usually more productive. When you apply for a job, you must be genuinely applying — Centrelink and your provider can check. Record the details of each application: the employer, position, date applied, and how you applied. Your Workforce Australia online account has a job search diary where you should log these. You must apply for jobs that are 'suitable work' — generally, any job you are capable of doing, within 90 minutes travel of your home, that offers at least the minimum wage. After 6 months, the definition of suitable work broadens.
Step 4.Other Activities That Count
Beyond job applications, many activities earn points toward your monthly target. Paid work: 5 points per hour worked (so even a few hours of casual work makes a big dent in your target). Volunteering: 5 points per hour with an approved organisation (many Vinnies, Salvos, community gardens, and local charities qualify). Training and education: approved short courses earn 10-20 points each; longer courses may fully satisfy your obligations. Job interviews: 20 points each. Attending appointments with your provider: 10 points. Career transition assistance workshops: points vary. Workforce Australia online tasks: various point values. If you are 55 or over, 30 hours per fortnight of paid work or approved voluntary work can fully meet your requirements. If you have a partial capacity to work (assessed at 0-14 hours per week), your points target may be reduced to as low as 0 points.
Step 5.Exemptions and Reduced Requirements
You can get a temporary or ongoing exemption from mutual obligations in certain circumstances. Medical exemptions: if you have a medical condition, injury, or mental health issue that prevents you from looking for work, your doctor can provide a medical certificate. Short-term exemptions (up to 13 weeks) require a standard medical certificate. Longer exemptions may require a more detailed assessment. Other exemptions include: major personal crisis (bereavement, family emergency), family and domestic violence (you can get an exemption of up to 26 weeks), pregnancy (from 6 weeks before your due date to 6 weeks after birth), jury duty, natural disaster, and caring for someone who is ill. If you believe you should have reduced requirements, talk to your Workforce Australia provider or Centrelink. Many people endure obligations they could legitimately be exempt from simply because they do not know exemptions exist.
Step 6.What Happens If You Do Not Comply
If you miss an appointment, fail to meet your points target, or refuse suitable work, consequences escalate through a series of steps. The first time, you will usually receive a warning or a suspension of payment until you re-engage (called a 'payment suspension for non-compliance'). Your payment restarts once you contact your provider and agree to re-engage. Repeated failures lead to stronger consequences: a demerit point system tracks non-compliance, and after three demerits in 6 months, you may face a Capability Assessment to determine if your obligations are appropriate. If you continue to not comply after a Capability Assessment, you may receive a financial penalty of one week's payment. In serious cases (like refusing a job offer without a valid reason), you can face an immediate 4-week non-payment penalty. If you have a genuine reason for missing something, report it to your provider immediately — valid reasons include illness, transport breakdowns, caring emergencies, and attending job interviews.
Step 7.Tips for Managing Your Obligations
Keep a calendar or use your phone reminders for all appointments — missed appointments are the most common compliance issue and the easiest to avoid. Download the Workforce Australia app to track your points and log activities on the go. Front-load your points early in the month so you are not scrambling at the end. If you are struggling with mental health, get a medical certificate — there is no shame in this, and it is what the exemption system is designed for. Communicate with your Workforce Australia provider — if you are going to miss an appointment, call them beforehand. Most providers are reasonable if you communicate openly. If you feel your provider is not treating you fairly, you can switch providers (though there may be a waiting period). You can also contact the National Customer Service Line on 1800 805 260 to raise concerns about your provider. Remember that mutual obligations are temporary — they end when you find work, move to a different payment, or reach Age Pension age.
Useful Tools
- JobSeeker Payment Calculator
- Income Test Calculator
- Benefits Eligibility Check
- Centrelink Payment Rates
Resources
- Workforce Australia — Points Based Activation System (workforceaustralia.gov.au)
- Services Australia — Mutual Obligations (servicesaustralia.gov.au)
- National Customer Service Line — 1800 805 260