Big changes proposed in employment white paper

PEOPLE moving off income support payments and into the workforce will soon be able to use concession cards and access other benefits for nearly six months.

The adjustment to the income support system, one of nine new measures fleshed out in Labor’s long-awaited employment white paper released today (Monday, September 25), is expected to give people the confidence to pursue job opportunities.

Pensioners will also be able to continue to work more without losing so much of their payment, the government has announced, along with a new economic partnership with First Nations community-controlled organisations.

Under the changes to the income support system, what’s known as the employment income “nil rate period” has been doubled to almost six months.

This will keep people connected to the income support system for longer – essentially allowing them to access things such as childcare subsidies and cheaper healthcare and transport.

In the event the new job doesn’t work out, recipients will also be able to move back onto payments smoothly without having to reapply.

Minister for Social Services Amanda Rishworth said this was an anxiety many faced, particularly when looking for short-term, casual and gig economy work.

“We hope it will result in more people getting back into work and staying in jobs for longer, without the fear that the safety net won’t be there if they need it again.”

The new system will kick in mid-next year, if legislated, and cost $42.8 million over three years.

The white paper, the product of 12 months of work following last year’s jobs and skills summit, also spells out some high-level principles to reform the nation’s employment services system.

This is the network of government-funded organisations supporting people who are looking for work.

The system was found to be “highly transactional and poorly tailored” according to those consulted throughout the white paper design.

Principles include a system that views services as an investment to unlock potential and one that protects the dignity and rights of individuals.

Employment and Workplace Relations Minister Tony Burke wanted to design a system that was tailored to the needs of the most disadvantaged people seeking work.

“If we do that we don’t just help employers fill gaps with workers they’re desperately looking for, but we change people’s lives,” the minister said.

The white paper has been released amid a backdrop of extremely low unemployment and easing but ongoing labour shortages.

The idea is to provide a longer-term vision for the labour market that responds to a few key economic megatrends

This includes an ageing population, the expansion of digital technologies, the need to respond to climate change, and rising geopolitical tensions.

At the heart of the government’s ambition is embedding a new definition of full employment – that everyone who wants a job should be able to find one without searching for too long.

NINE NEW MEASURES IN THE EMPLOYMENT WHITE PAPER

• Funding for a National Skills Passport business case to help workers demonstrate and promote their qualifications
• Turbocharging six TAFE Centres of Excellence to design world-leading skills and curricula, that will start work on courses next year
• Accelerate the take-up of apprenticeships in the priority areas of net zero, care, and digitalisation
• Making permanent the work bonus measure for older pensioners and eligible veterans so they can earn more and keep more of their pension
• Smoothing the transition to work for income support recipients by doubling the time period they can receive a nil rate of payment, so they can still access social security benefits such as concession cards for longer when they start a new job
• Address labour market data gaps to support policy development and program delivery
• Back social enterprises to address persistent labour market disadvantage, focusing on the role they could play in employment services and in creating jobs and career pathways
• Reform the Local Jobs Program to improve its flexibility and provide practical initiatives and action to better help job-seekers
• Collaborate with the Coalition of Peaks and First Nations stakeholders with the intention of setting up a new economic partnership.

VISION FOR THE LABOUR MARKET

* A “dynamic and inclusive labour market in which everyone has the opportunity for secure, fairly paid work and people, businesses and communities can be beneficiaries of change and thrive”

OBJECTIVES CONTRIBUTING TO THE GOVERNMENT’S VISION

• Delivering sustained and inclusive full employment
• Promoting job security and strong, sustainable wage growth
• Reigniting productivity growth
• Filling skills needs and building Australia’s future workforce
• Overcoming barriers to employment and broadening opportunity.

TRENDS SHAPING LABOUR MARKET OVER THE LONG TERM

• An ageing population
• Higher demand for caring services
• Growth of digital technologies
• Climate change and the low carbon transition
• Geopolitical risks and fragmentation.

 – WITH AAP