How to make Centrelink work for you
Centrelink deals with everything from the youth allowance through to the dole (or the Looking for Work Allowance as it is now known).
It’s a vast area, and the main interface between the people and the government when it comes to social security. It’s also sometimes so confusing you could scream.
Here are a few pointers from someone who gained an education thanks to her ol’ buddies down at the C-link store:
Know your allowances
If you’re about to start studying and need assistance, it’s a Youth Allowance. If you’re looking for work, it’s the Newstart Allowance. Disabled persons, carers, single parents and pensioners; Centrelink is where you need to start. Make sure you’ve visited the website, and found out what allowance is suited to you, http://www.centrelink.gov.au/
Understand what you need to bring
Photo ID, payment slips, filled out forms. If you get an appointment, understand what’s required because it could be a while before you get another one. If you are on the Looking for Work allowance, you’ll also get an appointment with a jobseeking agency. Find out what’s required for that appointment too.
Once you’re on Centrelink, things are still not without their confusions. Mostly, I’ll be talking about it from a Youth Allowance perspective. It goes a bit like this:
You work hard to earn independence status. This means you get an allowance separate to any income assessment of your parents. What is required is for you to keep accurate records of your hours and income from any employment and report it fortnightly. Tell Centrelink if you’re paying rent or have dependants.
Here’s the catch. If you earn over $236 a fortnight, it impinges on your Centrelink. If you earn over a certain amount (and I’ve spent a couple of years trying to work out what that amount is to no avail) you lose you’re Centrelink entirely for that fortnight. No problem right? Well, only if you’re earning under $236 a fortnight and in Sydney, that’s not going to keep you housed and fed. The Federal government is proposing that the amount be lifted which would make a lot of young people’s lives a whole lot easier.
We all know people who got burned by Centrelink. Sometimes, they under-reported and then got charged with 20 counts of fraud. Other times, one person has told them it’s fine to accept a payment only to find out a year later they have to pay it back. Here are a few tips to avoid that fate yourself:
Don’t under-report
They’ll find out, they always do and you’ll either have to pay a lot of money or go to court. You have to report your gross earnings before tax.
Pay tax
You can set up your allowance so the tax automatically comes out of it. This will mean less money week to week, but averts any chance of you having to pay tax come June 30.
Super it up
In some cases customers do need to report their superannuation. Customers who are under Age Pension age, are receiving an income support payment and have voluntary salary sacrificed superannuation contributions made by either by themselves or on their behalf by their employer will need to count super contributions as assessable income. This means they must report these contributions to Centrelink as it may impact on their rate of payment.
Keep records
Of every time you talk to Centrelink, all your earnings and any change of circumstances.
Centrelink is a great thing, but easy to get caught out. The less time spent on the phone to them, the happier you’ll be so get organised and know your rights and you’re on your way to some assistance.
Have you ever used Centrelink?
How did you organise your money?
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