The federal government has ditched an unpopular 2014 budget measure quarantining welfare for job seekers under 30, relaxing it to those under 25 and reducing the wait period to four weeks.
Under measures revealed in Tuesday’s budget, young people will also be the focus of a wage subsidy scheme to encourage employers to hire them.
Businesses that take on job seekers under 30 years old who’ve been on benefits for six months will get up to $6500 over a year starting from November 1, 2015.
The subsidy will be paid to employers as soon as the job seeker start working, instead of having to wait six months.
Meanwhile, young people at risk of long-term welfare dependency will be the target of a $330 million jobs package.
It includes $212 million in funding for community workers in high unemployment areas to assist those who are not working or learning.
That will be supplemented by $106 million for an intensive support program to help vulnerable people get mentoring, literacy and numeracy training, and counselling and transition into work.
However, there will be more obligations for early school leavers if they want to continue getting welfare: they must do 25 hours studying or part-time work a week.
In an extension of the work-for-the-dole program, about 6000 job seekers will also get work experience under an $18 million program.
Those over 18 years old will be able to sign up to a work experience placement of up to 25 hours per week while receiving benefits, and get an additional $20.80 a fortnight to the cover costs of participating.
WHAT’S IN THE BUDGET FOR YOUNG PEOPLE
* Unemployed under 25s will have to wait four weeks instead of six months for welfare.
* $330 million in youth employment strategy target those at-risk of long-term welfare dependency.
– $212 million for youth transition to work program for those not studying or working, and $14 million for early school leavers.
– $106 million intensive support program for vulnerable.
– $18 million for work experience program over four years for 6000 job seekers
* Those over 18 to get work experience placement of up to 25 hours per week while receiving benefits, and additional $20.80 a fortnight to cover costs
WHAT EMPLOYERS CAN ACCESS:
* Up to $6500 subsidy for hiring those unemployed for six months.