Government Tightens Jobseeker Benefits for Young Adults

The government has announced new measures that will significantly impact the eligibility of thousands of young adults for Jobseeker benefits. Starting in **November 2026**, a parental assistance test will be introduced, requiring parents earning more than **$65,000** to support their children aged **18-19** instead of relying on state assistance. This policy, which was initially set to commence in **July 2027**, has been expedited due to the government’s focus on encouraging parental support.

According to **Louise Upston**, the Minister of Social Development and Employment, the new test aims to ensure that families contribute to their children’s financial well-being when they have the means to do so. The government estimates that approximately **4,300** young people will lose eligibility for Jobseeker support, while **4,700** will still qualify in the **2027/28** financial year. As of **June 2025**, there were **15,045** individuals aged **18-19** receiving Jobseeker benefits.

In her statements, Upston emphasized the long-term implications of relying on welfare: “Going on welfare when you’re young is a trap, with recent modelling suggesting that people under the age of **25** on Jobseeker support will spend an average of **18 or more years** on a benefit over their lifetimes.” This highlights the government’s intention to reduce dependency on social support systems among young adults.

The policy was first revealed during the recent Budget announcement, with the government projecting a saving of **$163 million** over four years. In contrast to the Jobseeker eligibility threshold, the income cap for the student allowance is set at **$69,935.32** before tax. If parental income exceeds specific thresholds—**$127,701.81** for students living with parents or **$137,187.86** for those living independently—the allowance is not granted.

Additionally, Upston introduced an incentive for young job seekers, announcing that **18-24-year-olds** participating in the Ministry of Social Development’s community job coaching service can apply for a **$1,000** bonus if they secure a job and remain off benefits for **12 months**. This bonus initiative is set to launch in **October 2026**, with the first payments expected to be available a year later. Currently, the job coaching scheme offers **4,000** places for young individuals looking for employment.

The government’s approach aims to instill a sense of responsibility among families while also providing incentives for young adults to enter the workforce. As these changes unfold, the long-term effects on youth employment and welfare dependency will become clearer.