Jobseekers with long-term health problems are losing welfare payments because they are unable to undertake required training programs.

People on Newstart must register for training and support services with a job agency to receive payments from Centrelink. If they are injured or unwell they can seek exemptions, but only for a maximum of 13 weeks.

If their condition persists after that period but is not serious enough to make them eligible for the disability support pension (DSP), they risk falling into a “no man’s land” where benefits may be suspended or cancelled.

Matthew Bond was seriously injured at work nine years ago and was placed on the DSP, but then moved on to Newstart. He has a heart problem, is unsteady on his feet and suffers from memory loss. He takes heavy painkillers.

Despite his well-documented medical conditions, he has not been able to gain placement again on the DSP and must continue to undergo job training.

“I get lost very easily,” he said. “I forget the basics of everything, and yet they think I’m suitable for a job.”

Despite providing medical certificates, Bond has had applications to be exempt from training turned down several times by Centrelink.

“They don’t even tell you that they’ve rejected your certificate,” he said. “You only find out when you get a letter saying, ‘Sorry, your payment isn’t going through.’

“You’re legally not allowed to go to work if you have a valid medical certificate. Yet in Centrelink it’s god knows who rejecting medical certificates.

“But I can’t afford to pay my bills. My phone bill is $1,000 behind already, and my rent is always behind.”

Owen Bennett, from the Australian Unemployed Workers Union, said the tightening of eligibility for the DSP had forced more people to struggle through job agency requirements with serious medical conditions or face losing their benefits.

“Now that disability support has been tightened up and it is harder to get on, it’s left a lot of unemployed workers in this no-man’s land where they can’t get on to disability support, and they can’t get a longer exemption for their job agencies and appointments,” he said.

“And there’s nowhere for them to turn.



“We have lots of people telling us that they have a serious medical condition and aren’t being accepted by Centrelink for an exemption for the activities with the job agencies.

“There’s all these people who are being forced to attend appointments with their job agencies and training and having their conditions exacerbated.

“Instead of these people getting the help they need, they’re being cut off Newstart.”

Some cases have escalated to legal proceedings. In an administrative appeals tribunal case Kevin Crawley challenged a decision to deny him a Newstart allowance. He had previously been on the DSP, but “maintained that he did not have a disability” and that Newstart was more appropriate.



The tribunal noted that “special circumstances must exist that make it unreasonable to comply with the test for a period no longer than 13 weeks”.

“Circumstances like Mr Crawley’s, which are more longstanding, do not fall within that exemption. This exemption is for temporary illnesses only and not for long-term disabilities.”

The tribunal upheld Centrelink’s cancellation of his payments. It suggested the DSP was the “most appropriate payment” for Crawley and he was required to reapply.

The secretary of the Department of Human Services has the power to grant relief to jobseekers beyond 13 weeks.

The department’s general manager, Hank Jongen, said it assessed medical certificates in accordance with the criteria set down in legislation and did not have discretion to grant exemptions if the information in medical certificates did not fit the criteria.

Jobseekers with a medical certificate may be granted a temporary incapacity exemption for a period of up to 13 weeks at a time, he said.

“Once the 13-week period has ended, customers can provide appropriate medical evidence for a further 13 -week exemption,” he said.

“In the case of serious illness, an exemption of up to 52 weeks may be granted.”