Why does Centrelink make me wait after a redundancy payout?

Two rules apply. The Income Maintenance Period treats your redundancy and paid-out leave as income, spread over the number of weeks of pay it represents. The Liquid Assets Waiting Period starts once your readily-available funds reach $5,500 (single, no dependants) or $11,000 (partnered or with dependants), and its length is then counted from the lower maximum reserve amount of $5,000 or $10,000. The two run at the same time, so your wait is the longer of the two.

How long is the Liquid Assets Waiting Period?

Two figures do different jobs here, and people mix them up. The waiting period only starts once your liquid assets reach $5,500 (single, no dependants) or $11,000 (partnered or with dependants). Its length is then worked out against the lower maximum reserve amount: 1 week for every $500 above $5,000 if you are single, or 1 week for every $1,000 above $10,000 if you are partnered or have dependants, rounded down. So $7,300 as a single person with no dependants is ($7,300 minus $5,000) divided by $500 = 4.6, which rounds down to 4 weeks. The maximum is 13 weeks.

Should I wait to claim JobSeeker until my payout runs out?

No. Services Australia backdates the waiting period to when you stopped work, so the clock starts sooner if you claim early. Waiting to lodge does not shorten the wait — it just delays your first payment.

Can the waiting period be waived?

If you are in severe financial hardship — for example you have already spent the funds on reasonable and unavoidable expenses — you can ask Services Australia to waive or shorten the waiting period.

Redundancy Payout: When Does Centrelink Actually Start Paying?

Lost your job? A redundancy payout doesn't mean Centrelink pays you straight away. Estimate the Income Maintenance Period and Liquid Assets Waiting Period so you know roughly when your JobSeeker payments will begin — and plan your money for the gap.

Last verified: 2 August 2026

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Redundancy Payout: When Does Centrelink Actually Start Paying?

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