Liquid Assets Waiting Period: How Savings Delay Your Centrelink Payment
If you have savings when you apply for Centrelink, you may wait up to 13 weeks before your first payment. Here is how the LAWP works and how to reduce it.
What Is the Liquid Assets Waiting Period?
The Liquid Assets Waiting Period (LAWP) is a waiting period imposed when you apply for certain Centrelink payments and have liquid assets above the threshold. Liquid assets include cash in bank accounts (savings, transaction, term deposits), shares and managed funds, cryptocurrency, redundancy payments already received, and any other assets that can be easily converted to cash. The LAWP thresholds are: $5,500 for single people with no dependants, and $11,000 for couples or single people with dependants. If your liquid assets are at or below these amounts, no LAWP applies and your payment starts from the claim date (subject to other waiting periods). The LAWP applies to JobSeeker Payment, Youth Allowance, Austudy, Parenting Payment Partnered, and some other allowances. It does not apply to pensions (Age Pension, DSP), Parenting Payment Single, or Carer Payment.
How the Waiting Period Is Calculated
The LAWP is calculated by dividing the excess liquid assets by $500 and rounding down to whole weeks, up to a maximum of 13 weeks. The formula is: (liquid assets minus threshold) divided by $500 equals weeks of waiting (maximum 13). For a single person with $10,000 in savings: ($10,000 minus $5,500) divided by $500 equals 9 weeks. For a single person with $15,000: ($15,000 minus $5,500) divided by $500 equals 19 — but capped at 13 weeks. For a couple with $25,000 combined: ($25,000 minus $11,000) divided by $500 equals 28 — capped at 13 weeks. The waiting period starts from the date you become eligible for payment (usually your claim date or the date you lost your job). During the LAWP, you receive no payment but you can still apply for a Health Care Card if you have a Low Income Health Care Card claim, and you can access Employment Services.
What Counts as a Liquid Asset
Understanding what Centrelink counts as a liquid asset is critical for accurate calculation. Included: all money in bank accounts (joint accounts are split 50/50 unless you can prove otherwise), term deposits, shares listed on a stock exchange, managed fund balances, bonds and debentures, redundancy payments already deposited, insurance payouts received, cryptocurrency holdings, and gift cards or prepaid cards with significant balances. Not included: superannuation (if you cannot access it due to age), your home, cars, household contents, investment properties, money owed to you that has not been paid, proceeds from the sale of a home if used to purchase another home within 12 months, and compensation payments held in trust. If you have recently spent liquid assets on essential items (rent, bills, medical costs, car repairs), provide evidence to Centrelink — they may assess your liquid assets at the reduced amount.
How to Reduce Your Waiting Period
There are legitimate ways to reduce your LAWP. If you received a redundancy payment and used significant portions for essential expenses, provide receipts and bank statements showing these expenditures — Centrelink assesses your liquid assets on the day you became qualified for payment, but if you spent money between losing your job and claiming, the lower balance applies. Pay outstanding bills, make a mortgage payment, pay rent in advance, service your car, or pay for necessary medical or dental work. These are all reasonable expenditures that reduce your liquid asset balance. Do not give money away or deliberately waste it — Centrelink can apply a gifting provision if they determine you disposed of assets to reduce your LAWP. Paying down debt (credit cards, personal loans) is considered a reasonable use of funds and reduces your liquid assets legitimately.
Other Waiting Periods That May Stack
The LAWP is not the only waiting period you may face. The Ordinary Waiting Period (OWP) is a 1-week wait that applies to most new claimants — it runs concurrently with the LAWP, so it does not add extra time if you have a LAWP of 1 week or more. The Income Maintenance Period (IMP) applies if you received leave payments, redundancy pay, or termination payments from your employer — the IMP spreads these payments over the period they represent. For example, 4 weeks of accrued annual leave paid out means a 4-week IMP. The IMP can run concurrently with the LAWP. The Newly Arrived Resident's Waiting Period (NARWP) of up to 4 years applies to new permanent residents. In the worst case, a newly redundant worker with savings could face 13 weeks LAWP plus an IMP that extends beyond it, delaying their first payment substantially. Seasonal workers may also face a Seasonal Work Preclusion Period of up to 6 months.
Hardship Provisions and Exemptions
If the LAWP would cause you severe financial hardship — meaning you cannot pay for essential living costs like food, housing, or medical needs — you can apply for a waiver or reduction of the waiting period. You need to demonstrate that your liquid assets have been used for unavoidable expenses and you now have insufficient funds to live on. Evidence includes bank statements showing declining balances, receipts for essential purchases, overdue bills, and a statement explaining your circumstances. Certain people are automatically exempt from the LAWP: those claiming after a family and domestic violence situation, prison release, or natural disaster, and those transferring from one payment to another without a break. If you are waiting out a LAWP and need immediate help, apply for Emergency Relief through community organisations (Salvos, Vinnies, Anglicare) who can provide food vouchers and bill assistance while you wait.
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General information and estimates only — not financial, tax, or legal advice. Always verify with Services Australia.
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