On Wednesday, Employment Minister Amanda Rishworth announced “major complex reform” to Australia’s unemployment system.
The changes, including a three-tiered system determined by the level of support a recipient needs, are the biggest in 30 years.
The Opposition said the announcement was an “acknowledgment” that unemployment was rising.
Here are the key changes.
Current system
In 1998, the then-Howard Government privatised its job-finding systems. From that point, the Government contracted non-government organisations to put people into jobs.
Today, the Government has an organisation called Workforce Australia, which pays job agencies to help people who receive the JobSeeker or Youth Allowance payments to find jobs or upskill.
JobSeeker is up to $404.35 weekly for singles with no children, and Youth Allowance is up to $338 a week for over-18s with no kids living out of home.
Under these schemes, recipients must partake in mutual obligation requirements.
This often requires agreeing to a Job Plan.
Job Plans can involve:
- applying for jobs,
- interviewing for jobs,
- doing “work-like activities” for charities and non-profits under the Work for the Dole program,
- attending employment appointments,
- and accepting job offers.
Inquiry
In 2023, Labor MP Julian Hill chaired an inquiry into Workforce Australia.
In the inquiry’s final report, Hill said: “Australia no longer has an effective coherent national employment services system”.
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The report included 75 recommendations, such as making assessments, mutual obligations, and job plans more tailored to the individual.
Overhaul
On Wednesday, Employment Minister Amanda Rishworth delivered an address at the National Press Club.
She said the Government believes the
“fundamental flaw” of the current system is that it is a “one-size-fits-all approach to support jobseekers, who are at different distances from the labour market.”
Rishworth introduced four proposed changes to Workforce Australia, including a tiered system and new goal plans.
A tiered system will sort recipients into three streams based on the level of support they need, and how recently they last had a job.
An ‘employment goal plan’ will replace the existing Job Plan, to be developed during the recipients’ assessment period. These are aimed to be more tailored to each person.
In the Federal Budget, $312 million was allocated to developing the new system.
Rishworth said she “believe[s] significant reform can happen without adding huge dollars to the system.”
“These three distinct service streams will fundamentally reshape our employment services system... They go beyond anything attempted by any other government in a very long time.” - Employment Minister Amanda Rishworth during her National Press Club address.
Opposition
Shadow Employment Minister Jane Hume said the announcement is “an acknowledgment that unemployment is rising under Labor,” referencing last week’s announcement that unemployment rose to 4.5%.
Hume called “a more targeted approach” a “sensible direction.”
“The Coalition has a serious concern about what this reform signals for mutual obligations, particularly for Australians who have been on JobSeeker for extended periods.”
What’s next?
Rishworth said the “detail design” of the new system will be informed by the public.
She announced a new advisory group and panel to help guide the revamp.
Current Workforce Australia providers have also had their contracts extended by 16 months while the Government legislates and finalises the scheme.
