Claim More from Centrelink in 2025: If you’re currently receiving Centrelink payments and considering entering or returning to the workforce, there’s some good news for you. You may be eligible to retain more of your Centrelink benefits than you think, thanks to a lesser-known yet powerful financial support mechanism known as the Working Credit scheme. In 2025, this scheme is gaining attention across Australia as more recipients realise the huge advantages it offers during the often uncertain transition into paid employment.
The Working Credit scheme is designed to reward and encourage work participation among those on income support. It aims to ensure that your first steps back into the workforce are supported financially rather than penalised. Many people are unaware that this scheme even exists—but understanding it could help you retain more of your payment while you start earning. Whether you’re receiving the JobSeeker Payment, Parenting Payment, Disability Support Pension, or Youth Allowance as a job seeker, this guide provides a detailed, step-by-step breakdown of how to take advantage of this system.
Claim More from Centrelink in 2025
| Category | Details |
|---|---|
| Program Name | Working Credit Scheme |
| Purpose | Helps Centrelink recipients keep more of their payments while starting or returning to work |
| Eligible Payments | JobSeeker Payment, Parenting Payment, Youth Allowance (job seekers), Disability Support Pension, Carer Payment |
| Credit Accrual | Up to 48 Working Credits earned per fortnight when income is below $48 |
| Maximum Credits | Up to 1,000 credits for most; 3,500 for Youth Allowance recipients |
| Credit Usage | Credits reduce assessable income, delaying the reduction of Centrelink payments |
| Expiration | No expiration, but automatically applied once paid work begins |
| Official Website | Services Australia – Working Credit |
The Working Credit Scheme is one of the most practical and flexible tools Centrelink provides to ease Australians back into employment. It removes the “cliff-edge” fear of losing your payment too quickly and empowers you to make a steady, confident return to earning.
As more Australians explore hybrid and casual work in 2025, Working Credits offer critical support that bridges the gap between welfare and work. Whether you’re returning after a break, caring for family, or starting a new career, understanding and using your credits wisely can help you regain control of your finances.
Log into your myGov account, check your credit balance, and plan your next move. Your road to independence and stability could be closer than you think.
What is the Working Credit Scheme?
The Working Credit Scheme is a policy created by the Australian Government to help people on income support return to paid work while maintaining some of their benefits. It’s effectively a financial safety net designed to ease the transition from unemployment or underemployment to earning a regular income.
Here’s how it works: while you are not earning income (or earning very little), you accumulate Working Credits. These credits build up over time and are stored in your Centrelink profile. Then, when you do begin working and start earning money, your Working Credits are used to offset your income in Centrelink’s calculations. This means less of your income is counted, so you can still receive a full or partial payment while working.
Think of it as a head-start. Without Working Credits, your payment would decrease as soon as you start earning. With the scheme, you have time to adjust, save, and build a sustainable routine.
Who is Eligible for Working Credits?
To be eligible for Working Credits, you must be receiving one of these Centrelink payments:
- JobSeeker Payment
- Parenting Payment (Single or Partnered)
- Youth Allowance for Job Seekers
- Disability Support Pension
- Carer Payment
You do not need to sign up or apply separately for the Working Credit scheme. It is automatically included for anyone on one of the eligible payment types. Additionally, credits start accruing automatically whenever your total income from employment or business is below $48 per fortnight.
It’s important to note that Centrelink payments such as Rent Assistance or Family Tax Benefit are not included in your income calculation for credit accumulation.
How Working Credits Accumulate and Work
- Accumulate Credits While Income is Low:
- Every fortnight where your employment income is below $48, you earn 48 Working Credits. These credits accumulate over time.
- Maximum balance for most people: 1,000 credits
- Youth Allowance recipients: up to 3,500 credits
- Start Working and Begin Using Your Credits: When your income exceeds the $48 threshold, your Working Credits will be automatically deducted from your gross income before Centrelink assesses your payment eligibility.
Example: If you earn $600 in a fortnight and have 1,000 Working Credits, Centrelink will deduct $600 from your credit balance. This makes your assessable income $0 for that period. You’ll receive your full payment for that reporting period.
The following fortnight, if you earn another $600, and only have 400 credits left, $400 will be offset. Centrelink will only assess $200 of your income, which might slightly reduce your payment but still provide strong support.
This gradual phase-out helps you stay financially stable while adjusting to employment.
Real-Life Example: Meet Sam and Lisa
Sam is a 28-year-old receiving JobSeeker. After six months without work, he has accumulated the maximum 1,000 Working Credits. He finds a part-time retail job and begins earning $500 per fortnight.
- Fortnight 1: 500 credits used, 500 remaining, payment unaffected.
- Fortnight 2: another $500 earned, 500 credits used, balance now 0.
- Fortnight 3: $500 earned, full income assessed, JobSeeker Payment reduced.
Lisa is a 20-year-old Youth Allowance recipient with 2,500 Working Credits. She begins casual work earning $700/fortnight.
- She can offset $700 for several weeks while maintaining her full Youth Allowance payment.
- This gives Lisa time to build savings and adjust before the full Youth Allowance taper rate kicks in.
Check and Track Your Working Credit Balance
Staying on top of your Working Credit balance helps you plan ahead. Here’s how you can check it:
- Log into your myGov account: Link it with Centrelink if not already done.
- Open your Centrelink online services
- Go to Payment and Claim Summary
- View your Working Credit balance and transaction history
If you’re unable to access online services:
- Call Centrelink directly at 132 850
- Visit a Services Australia Service Centre
Centrelink staff can also explain how your credits will apply in your specific situation, especially if you expect fluctuations in your income.
Tips to Maximise the Working Credit Scheme
Maximising your Working Credits is about more than just waiting—it’s about smart financial planning. Here are some expert tips:
- Keep Income Below Threshold: If you’re doing small gigs or ad hoc work, try to stay below $48/fortnight to keep accumulating credits.
- Coordinate Start Dates: Plan your first shift just after the end of your reporting period so that you get the most from both your payment and new income.
- Budget Strategically: Use the window of time where you’re still receiving full payments to start saving or paying off urgent expenses.
- Combine with Other Supports: Pair your Working Credits with Rent Assistance, Energy Rebates, or concession cards to stretch your income further.
- Plan for Fluctuations: If your job is casual or seasonal, Working Credits can fill the income gap between weeks with no shifts.
- Avoid Overpayments: Always report income accurately and in a timely manner. Overpayments can lead to debts you’ll need to repay.
FAQs On Claim More from Centrelink in 2025
Q1. Do Working Credits expire if unused?
A: No. They stay on your record as long as you’re on an eligible payment and haven’t started working.
Q2. What happens when I switch payments?
A: Credits may transfer if the new payment is also eligible. For example, switching from JobSeeker to Parenting Payment can retain your balance.
Q3. Can I use Working Credits if I’m self-employed?
A: Yes, as long as you report your self-employment income and meet eligibility requirements.
Q4. Will credits apply to partner income?
A: No. Working Credits apply only to your personal income. Partner income is assessed separately.
Q5. Can Working Credits be reclaimed after leaving a payment?
A: No. Once you exit a payment and stop being eligible, your unused credits are lost.
