Centrelink waiting period after redundancy: how long before payments start
Leave and redundancy pay push back the start of income support. Enter your salary, payout and savings to estimate the wait.
After a redundancy, Centrelink payments such as JobSeeker Payment do not usually start at once, because two waiting periods apply. The income maintenance period treats leave and redundancy payments as income for the number of weeks they represent: a payment equal to ten weeks of pay counts as ten weeks of income from the date it is paid. The liquid assets waiting period applies to people whose savings exceed $5,500 if single without dependants, or $11,000 otherwise, at one week for every $500 or $1,000 above that amount, to a maximum of 13 weeks. The two run at the same time, so the longer one governs. For an employee on $80,000 made redundant after five years with 15 days of leave owing, the payout of $31,282 represents about 21 weeks. An ordinary waiting period of one week may be added.
How long before JobSeeker starts
Estimated wait
16 weeks
| Income maintenance period | 16 weeks |
| Liquid assets waiting period, single | 13 weeks |
| The two run | At the same time |
Updated on · Radif Partners · Editorial policy
Income maintenance period after a redundancy
| Salary | Service | Leave owing | Payout before tax | Income maintenance period |
|---|---|---|---|---|
| $60,000 | 2 years | 10 days | $11,538 | 10 weeks |
| $80,000 | 5 years | 15 days | $31,282 | 21 weeks |
| $80,000 | 9 years | 20 days | $48,924 | 32 weeks |
| $110,000 | 6 years | 25 days | $53,308 | 26 weeks |
| $140,000 | 12 years | 30 days | $87,232 | 33 weeks |
The payout is the redundancy pay under the National Employment Standards, notice paid in lieu and unused leave, for an employee in New South Wales under 45. The period is the payout divided by weekly pay, which is how Services Australia converts a lump sum into weeks. A payout taxed at source still counts at its gross amount.
Which payments count
The income maintenance period covers payments made because the job ended: redundancy pay, payment in lieu of notice, and unused annual leave, long service leave and sick leave paid out. It also applies to leave payments while you remain employed but are not working. It is counted from the date you receive the payment, not from the date you claim, so weeks that have already passed before you apply are not added on again. Amounts you were already entitled to for work done, such as final wages, are assessed as ordinary income in the fortnight they are paid.
Liquid assets waiting period
| Liquid assets | Single, no dependants | Partnered or with dependants |
|---|---|---|
| $5,000 | 0 weeks | 0 weeks |
| $8,000 | 5 weeks | 0 weeks |
| $12,000 | 13 weeks | 1 weeks |
| $20,000 | 13 weeks | 9 weeks |
| $40,000 | 13 weeks | 13 weeks |
Liquid assets are cash, bank deposits, shares, managed investments, and money owed to you that can be realised within 28 days, including a redundancy payment you have received and not yet spent on allowable items. Your home, your car and your superannuation while it remains in the fund are not counted. The amount is assessed on the day after you stopped work or, if later, the day you claim.
How the periods fit together
The income maintenance period and the liquid assets waiting period overlap. If the first is 13 weeks and the second 7, the wait is 13 weeks, not 20. The ordinary waiting period of one week, which applies to most new JobSeeker claims, is then served after them. A seasonal work preclusion period applies only to people who have done seasonal or intermittent work. Someone who left a job voluntarily without a sufficient reason, or was dismissed for misconduct, may in addition face an unemployment non-payment period.
Can the wait be shortened?
The income maintenance period can be reduced or waived where you are in severe financial hardship because you had to spend the money on unavoidable or reasonable expenditure, such as essential medical costs, repairs after a disaster or the cost of living when no other funds are left. Paying down a mortgage ahead of schedule or buying a car is not regarded as unavoidable. The liquid assets waiting period can be waived on similar grounds, and it is reduced if you use savings for allowable purposes. Each request is decided on evidence, so keep receipts.
What you can get during the wait
A low income health care card may be available on income grounds even while the main payment is not payable. Family Tax Benefit, Child Care Subsidy and Rent Assistance attached to family payments are assessed under their own rules and are not subject to the liquid assets waiting period. Workforce Australia employment services can be used from the day you register. Your partner’s payment, if any, can also be affected, because your payout is counted in the couple’s income.
Planning the months after redundancy
Work from the net figure, not the gross. The final pay calculator shows the payout after tax, and the tax-free part of a genuine redundancy is explained in the tax-free limit guide. Divide the net amount by your monthly outgoings to see how long it lasts, and compare that with the waiting period above. Extra super contributions made from the payout are no longer liquid assets, though they are locked away until you meet a condition of release.