Whether you were made redundant or left for another reason, losing your job can be a shock and can mean some quick changes to your lifestyle. There are steps you can take to manage your money and find support.
1. Know what you're entitled to
Depending on the reason you lose or leave you job, you might be entitled to some final payments. If you were made redundant, ask your employer if you're entitled to redundancy or retrenchment payments. Also check what annual leave and long service payouts you're entitled to.
The Fair Work Ombudsman website has information on ending your employment, including what you're entitled to in your final pay.
Use the Fair Work Ombudsman's Notice and Redundancy Calculator to work out what you're entitled to when your employment ends.
2. Get financial help if you need it
It can be a tough time when you lose your job, but there are ways to get help.
Help from the government
Check if you can get any payments or benefits from Centrelink while you're looking for a new job.
Services Australia has information on payments that might be available when you’re unemployed.
Urgent help
If you're in crisis or struggling to make ends meet, see urgent help with money for a list of services to help you with food, housing and bills, as well as emotional support.
Help with bills
If you're finding it hard to pay your utility bills, contact your service providers. They might extend the due date, let you make smaller repayments over a longer period or postpone your repayments for an agreed period.
For credit cards and loans, let your credit or service provider know you're experiencing financial difficulty and ask for a financial hardship arrangement.
For step-by-step help, see:
- Problems paying your bills and fines
- Struggling to pay your rent (National Debt Helpline website)
Help with your mortgage
Act quickly if you think you'll struggle with your mortgage repayments in the short term. The earlier you get help, the more options you'll have.
All lenders have hardship teams ready to help customers in tough times.
Talk to your lender to discuss your options. You may be able change the terms of your loan or temporarily pause or reduce your repayments. This is called a hardship variation.
One option may be to change your mortgage repayments to interest only for a period of time. This reduces your repayments to only cover interest on the amount borrowed, rather than also paying off the amount borrowed.
Use our interest only mortgage calculator to see how this might change your mortgage repayments.
Use the interest-only mortgage calculator
Work out your repayments before and after the interest-only period.
For step-by-step help, see Problems paying your mortgage.
Check your superannuation
Under some limited circumstances you may be able to withdraw some of your superannuation. See early access to your super on the Australian Taxation Office (ATO) website for more information on eligibility and tax implications.
3. Plan your money for the next few months
To help you manage your day-to-day money while you’re out of work, get a clear picture of how much money you have available and what your regular costs are.
Record your savings, income and expenses to see how much you need.
Use this as an opportunity to see if there are any expenses you could cut back on or live without for a while. Managing on a low income has helpful tips for coping with less money.
If you need a hand to manage your money, see a free financial counsellor. They can help you review your budget and debts and find ways to improve your situation.
4. Plan your next steps
Once you’ve organised your immediate situation, start thinking about what you want the next stage to look like.
That means making some decisions about how you want to live, whether you’re ging to look for another job, and how your money will support that.
Look for a new role
When you're ready to start thinking about and looking for a new job, visit:
- the Australian Government's What's Next
- Services Australia’s Job Hunting webpage.
Both websites have helpful information on how to find and apply for new roles, where to get support, and training opportunities.
Look after yourself
Losing a job can be very stressful and it's okay to ask for help. Talk to friends and family about how you're feeling.
Beyond Blue has useful information about looking after your mental health.
You can call Beyond Blue on 1300 224 636 to talk to someone (24 hours a day, 7 days a week). Or use their web chat service (3pm to 12am).
Remember that you’re certainly not alone. According to the Australian Bureau of Statistics, around 2 million Australians leave or lose a job over a 12-month period, for a myriad of reasons. So, take some time to process the information, then follow our steps to make a plan.