Hon Louise Upston
Minister for Social Development and Employment

Legislation that will introduce new non-financial benefit sanctions into the welfare Traffic Light System and require people on Jobseeker Support to reapply every six months has passed its first reading in Parliament today.

“The Social Security Amendment Bill expands the welfare Traffic Light System that launched in August with new tools for keeping beneficiaries on track with their obligations to find work if they're able,” Social Development and Employment Minister Louise Upston says.

From 26 May 2025, non-financial sanctions can be imposed on some people the first time they do not meet their obligations without good reason. Rather than getting their benefit reduced, they can be sanctioned with:

• Money management – where half of someone’s benefit is put onto an MSD payment card that can only be used in approved shops to buy essential items, such as food, transport, healthcare-related items, and education-related items. This will be for a four-week period.
• Community work experience – where someone will need to participate in work experience at a not-for-profit organisation for at least five hours per week for four weeks.

Also from 26 May 2025:

• Applicants of certain benefits will be required to complete a Jobseeker Profile before they can be granted a benefit.
• New obligation failures will count against someone’s benefit for two years rather than one, increasing the likelihood that those who repeatedly refuse to comply with their obligations will have their benefit cancelled if they remain on it for more than a year.

“From July next year, Jobseeker Support will only be granted for six months at a time, requiring people to engage with MSD more often to keep receiving this benefit.

“Changes to the reapplication process will also make it much smoother and faster. For instance, some clients may not need to meet with MSD to reapply if they have recently engaged, like people in dedicated case management. Some applicants will also be able to attend a group work seminar instead of a one-on-one appointment.

“These changes will support more people into work and help achieve the Government’s target of having 50,000 fewer people on Jobseeker Support by 2030, which is forecast to save the country $2.3 billion in welfare payments.

“Because we believe having a job is the best way for people to lift themselves and their families out of hardship, the Government is setting a clear expectation that those who can work, should work.”

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