Government Tightens Jobseeker Benefits for Teens, Parents Impacted

The government announced significant changes to the eligibility criteria for Jobseeker benefits, impacting thousands of teenagers. Starting in November 2026, a new parental assistance test will be implemented, requiring parents earning over $65,000 to support their 18-19-year-old children instead of relying on state benefits. Initially set to begin in July 2027, the government expedited the policy’s rollout to address concerns about youth welfare dependency.

Louise Upston, the Minister of Social Development and Employment, explained that the new assistance test aims to encourage parental support for young adults. She noted that approximately 4,300 individuals aged 18-19 are expected to lose their eligibility for Jobseeker support, while 4,700 will remain eligible in the financial year 2027/28. As of June 2025, 15,045 young people were receiving Jobseeker benefits.

Upston described the reliance on welfare as a potential trap for young people, citing recent modeling that indicates individuals under the age of 25 on Jobseeker support might spend an average of 18 years or more on benefits throughout their lives. This shift in policy aligns with the government’s goal of reducing long-term dependency on social welfare.

The initiative was originally projected to save the government $163 million over four years. In comparison, the income threshold for the student allowance is set at $69,935.32 before tax. If parents’ combined earnings exceed $127,701.81 (for students living with their parents) or $137,187.86 (for those living independently), the student becomes ineligible for the allowance.

In addition to these changes, Upston announced a new incentive for young job seekers. From October 2026, individuals aged 18-24 participating in the Ministry of Social Development’s community job coaching service may apply for a $1,000 bonus if they secure employment and remain off benefits for a full year. The first payments from this program are anticipated to be distributed in October 2027. Currently, 4,000 placements are available in the job coaching scheme.

These reforms represent a significant shift in how youth welfare is structured, with the government emphasizing the importance of parental support and employment as routes to financial independence for young adults.