Newstart Allowance - Tommy's Story
Tommy East is a 61 year old single man. He had worked as a foreman in an engineering company, supervising a team of 56 staff, until he was made redundant in 2007. As Tommy is aged over 60, when he had received Newstart Allowance for more than 9 months he became eligible for a higher rate that includes Pharmaceutical Allowance.
Talking to Centrelink staff Tommy learnt that he could start working and still have the security of Newstart payments. Centrelink referred Tommy to Job Services Australia, which assisted him to look for a range of opportunities, not just in the engineering field. His Job Services Australia provider sent him to a short training course in food handling, which helped him find a job in the catering industry.
At first, Tommy only worked 1 day a week but now he is working 15 hours per fortnight. He is learning a new trade in food preparation and cooking methods through his part-time work. He feels more confident because of the help he received from his Job Services Australia provider and believes that he will soon go on to full-time employment.
The graph below shows how working makes a real difference for Tommy, especially if he had Working Credits when he started his job. Under the income test Tommy can earn some income without any reduction in his Newstart Allowance. As Tommy’s income grows there will be some further reduction of his payment but overall he will be better off having a job. In fact, because he is single, over 60 years of age, and has been on payment for more than 9 months, Tommy has a more generous income test before the payment cuts out altogether.
Tommy East's earnings
Total net income after tax
| No work per fortnight | 15 hours work per fortnight with Working Credit | 15 hours work per fortnight without Working Credit | |
|---|---|---|---|
| Newstart Allowance (single, over 60, after 9 months) | $529.80* | $529.80* | $413 |
| Gross earnings | $0 | $288 | $288 |
| Tax | $0 | $66 | $40 |
| Total net income after tax | $529.80* | $751.80 | $661 |
* Does not include Pharmaceutical Allowance.
Having a job again has turned Tommy's life around. Instead of feeling that his future was gloomy, he now feels that he has a second chance in a rewarding career. He is meeting new people and learning new skills and has regained his self-confidence.
Note:The tax rates in these scenarios are estimates only. You may be entitled to tax offsets that can be claimed as an end of year tax refund.
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More information
To find out more, you can:
- use the Online estimators to calculate your own entitlements
- refer to Newstart Allowance payment rates
- find services and programs to help you look for work
- visit the Australian Jobsearch website to search for job vacancies online.