Unemployment Benefit in Australia 2022

How Good is Unemployment Benefit in Australia?

Compared to many other countries, the Unemployment benefit in Australia, currently called Jobseeker, is quite reasonable. Not enough to live comfortably on, but better than nothing.

There are many stories in the news, especially around election times, saying how low it is, and it should be increased. But, should we do as other countries that pay higher rates do?

The stories in various news reports have been saying that the Jobseeker unemployment benefit is only $46 per day. Often comparing to the minimum wage of $772.60 per 38 hour week. ($772.60 is $20.33 per hour, or $154.52 per day [5 day week] or $110.37 per day [7 days].)

$88 per day proposed Unemployment rate

But, how much does someone on Jobseeker really get?

A single adult, on Jobseeker, could get $788.50 each fortnight:

$642.70 Jobseeker Payment.
$145.80 Rent Assistance.


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$788.50 total or $10.38 per hour, (based on the same 38 hour week).

With Rent Assistance the current Jobseeker rate, with Rent Allowance, is $8 per week MORE than the minimum wage.

A single adult with one child, on Jobseeker, could get $1,197.28 each fortnight:

$691.00 Jobseeker Payment.
$171.50 Rent Assistance.
$191.24 FTB part A for child up to 12 yrs. (this increases at age 13).
$ 30.00 FTB part A Supplement (Paid at year end).
$113.54 FTB part B for child age 5 to 18. (this is higher for ages under 5).

$1,197.28 total or $15.75 per hour, (based on the same 38 hour week).

JobSeeker in Australia:  servicesaustralia.gov.au/jobseeker-payment
(JobSeeker Payment replaced Newstart Allowance when it stopped in March 2020.)

Can you still work and get JobSeeker payment?

People that are getting the Jobseeker unemployment payment, are encouraged to work, but their benefit will be reduced gradually as they earn more.  Once a single person is earning $1,253.50 per fortnight, their Jobseeker benefit will reduce to zero.

A single person with a child could earn $2,396 per fortnight, before their Jobseeker benefit reduces to zero.

servicesaustralia.gov.au/income-and-assets-tests

When does the JobSeeker rate increase?

There is normally a cost of living rise for JobSeeker payments every 6 months, March and September.

In April 2021 the government announced that the Jobseeker payment would increase by $50 per fortnight, instead of the normal cost of living rates. They also permanently increased the income-free earnings to $150 per fortnight for those who were working while on the Jobseeker unemployment payment.

The basic JobSeeker/Newstart Rates for single adults:

  • March 2022 $642.70. Extra 27.00, a 4.39% annual increase.
  • April 2021 $615.70. Extra $50.00, an 8.84% annual increase.
  • March 2020 $565.70. Extra $10.00, a 1.80% annual increase.
  • March 2019 $555.70. Extra $9.90, a 1.81% annual increase.
  • March 2018 $545.80. Extra $10.20, a 1.90% annual increase.
  • March 2017 $535.60. Extra $8.00, a 1.52% annual increase.
  • March 2016 $527.60

Rent assistance is in addition to the above rates. servicesaustralia.gov.au/rent-assistance

How does Jobseeker compare to other countries?

Australia Unemployment Benefit:

Australia has no time limits on paying the Unemployment benefit to those who are eligible for it.


United States Unemployment Benefit:

The United States limits payments to between 12 and 28 weeks. It varies in different states.

  • 12 weeks in Florida.
  • 30 weeks in Massachusetts.

The amount varies also:

  • $190.00 per week in Puerto Rico.
  • $974.00 per week in Massachusetts.

Source: savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/


United Kingdom Unemployment Benefit:

UK Monthly standard Universal Credit allowance.

  • £265.31 Single and under 25. (£122.45 per fortnight)
  • £334.91 Single and 25 or over. (£154.57 per fortnight)

Universal Credit is for those on a low income or out of work and needing help with living costs.
Source: www.gov.uk/universal-credit


Some European countries have a limit of around 3 years.

Some countries do not even pay anything.

Some countries have insurance schemes that people can voluntarily pay into, to cover themselves.

Canada Unemployment Benefit:

For most people in Canada, the maximum Employment Insurance (EI) benefit is $638 per week, and the premium they would pay for that is $952.74 per year. This is based on the 2022 employee EI premium rate of $1.58 per $100.

You can receive EI from 14 weeks up to a maximum of 45 weeks, depending on the unemployment rate in your region.
Source: www.canada.ca/../benefits
Source: www.canada.ca/2022-maximum-insurable-earnings

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