What is Centrelink Working Credit? Centrelink’s Working Credit is a system designed to help Australians receiving certain income support payments transition into the workforce without immediately losing their benefits. It allows recipients to accumulate credits while earning below a specific income threshold, making it easier to adjust to work without financial instability.
How Does Working Credit Work?
When you receive income support from Centrelink, such as JobSeeker Payment, Youth Allowance, or Parenting Payment, you may not always have a steady income. The Working Credit system helps smooth out the financial impact of earning by allowing you to accumulate credits whenever your income is below a certain level.
These credits act as a buffer, meaning that when you do start earning more, you can use your accumulated credits to reduce the impact of income on your benefits, allowing you to continue receiving Centrelink payments for longer as you transition into work.
Who is Eligible for Working Credit?
You may be eligible for Working Credit if you receive one of the following Centrelink payments:
- JobSeeker Payment
- Youth Allowance (for job seekers)
- Parenting Payment (partnered or single)
- Disability Support Pension (under Age Pension age)
- Carer Payment
- Austudy
Credits start accumulating when your earnings are below $48 per fortnight (this amount may change based on current Centrelink policies). The maximum Working Credit balance you can hold depends on your payment type.
How Do Working Credits Help When You Start Working?
If you take on a job and start earning an income, Centrelink will use your accumulated Working Credits to offset your earnings before reducing your income support. This means you may still receive some Centrelink benefits even after you start working, helping you adjust to financial independence.
For example, if you have 500 Working Credits and start earning $200 per fortnight, your credits will be deducted first, making it as if you haven’t earned that amount for Centrelink payment calculations. This ensures that your Centrelink payment is not reduced immediately, giving you a smoother transition into employment.
How to Check Your Working Credit Balance
You can check your current Working Credit balance by:
- Logging into your myGov account linked to Centrelink
- Using the Centrelink Express Plus app
- Contacting Centrelink directly via phone
Final Thoughts
Centrelink Working Credit is a valuable system for people who are moving from unemployment to work, helping them maintain financial stability while they adjust to earning an income. Understanding how it works can ensure you maximize your benefits while transitioning into employment.
If you’re unsure about your eligibility or how Working Credit applies to you, it’s always best to check with Centrelink or visit the official Services Australia website for the most up-to-date information.
