Young people should be learning, or earning
The Government's decision to change eligibility for Newstart for under 30s is designed to prevent young Australians from becoming reliant upon welfare
Young jobseeker reforms
The Government believes that assistance to the unemployed should help them move into employment, rather than encouraging them to remain on welfare.
In order to reach their full potential, all young Australians who can work should be earning, learning or participating in Work for the Dole.
Income support eligibility changes
From 1 January 2015, new jobseekers up to 30 years of age applying for Newstart or Youth Allowance (Other) (YA(O)) will participate in job search and employment services activities which are funded by the Government for six months before receiving the payment.
Current recipients of Newstart and YA(O) up to 30 years of age will also be covered by the same requirements from 1 July 2015.
Young people who do not have a full capacity to work (i.e. their capacity is less than 30 hours), are in education or training, or have a significant disability will all be exempt from these requirements, as will those with parenting responsibilities.
Recognition for past employment
The waiting period will reduce depending on past employment. Part-time employment would also be recognised on a pro‑rata basis.
After six months, the jobseeker will be required to participate in at least 25 hours per week of Work for the Dole activities and will be eligible to receive income support for six months.
Employer wage subsidy
If the job seeker is unable to secure employment after six months of Work for the Dole and Newstart or YA(O), a wage subsidy may be available to an employer for six months.
Rather than continue looking for work, job seekers can elect to undertake training or study which may make them eligible for student benefits.
More information on these changes is available at: www.dss.gov.au
Other changes in the Budget
Reinforcing the need for young Australians to either earn or learn, from 1 January 2015, young people aged 22 to 24 years may be eligible for YA(O) instead of Newstart.
Currently, a student can continue to receive payment even while they are overseas on a holiday.
From 1 October 2014, students will continue to receive payments while overseas but only in certain circumstances such as studying or a family emergency.
As part of the Government's commitment to repair the Budget, all allowances (such as Newstart) will have their income and assets test thresholds remain at their current levels for three years from 1 July 2014. There will be no change to the actual payment rates of these allowances.
Our welfare system is complicated and costly, and in this Budget we begin the work of making it strong for the future.
- Up to 6 month waiting period with job search obligations until qualifying for income support
- Discount for previous employment
- Strengthened activity and job search obligations
- 25 hours per week Work for the Dole
- No longer eligible for Newstart; may qualify instead for Youth Allowance (Other)