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Australian Government Coat of Arms

Budget | 2014-15

Budget 2014-15
Australian Government Coat of Arms, Budget 2014-15

Part 2: Expense Measures (continued)

Employment

Award Modernisation Process — industry grants — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment

The Government will achieve savings of $2.0 million in 2013‑14 by ceasing the Award Modernisation Process — industry grants measure announced in the 2013‑14 Budget.

Savings from this measure were included as a 'decision taken but not yet announced' in the Mid‑Year Economic and Fiscal Outlook 2013‑14.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Building Australia's Future Workforce Evaluation — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment ‑1.0 ‑1.0

The Government will achieve savings of $2.0 million over two years from 2013‑14 by ceasing funding for Building Australia's Future Workforce — evaluation announced in the 2011‑12 Budget.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Career Advice for Parents — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment ‑1.4 ‑1.5 ‑1.5 ‑1.5

The Government will achieve savings of $5.8 million over four years by ceasing the Career Advice for Parents Programme.

Job Services Australia providers will continue to provide career advice to job seekers as part of their general service.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Connection Interviews and Job Seeker Workshops — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment
Department of Human Services ‑4.4
Total — Expense ‑4.4

The Government will achieve savings of $4.4 million in 2014‑15 by ceasing funding for Building Australia's Future Workforce — Connection Interviews and Job Seeker Workshops, on 30 June 2014. Both programmes were scheduled to cease on 30 June 2015.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Ethical Clothing Australia — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment ‑1.0

The Government will achieve savings of $1.0 million by ceasing funding for Ethical Clothing Australia (ECA). Funding through ECA for compliance activities was directed to the Textiles, Clothing and Footwear Union of Australia.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Experience+ Career Advice — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment ‑1.9 ‑2.0

The Government will achieve savings of $3.9 million over two years from 1 July 2014 by ceasing funding for the Experience+ Career Advice initiative.

Employment assistance for mature age job seekers will remain available through Job Services Australia.

See also the related measure Restart— boosting the wage subsidy for mature age job seekers.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Fair Entitlements Guarantee — aligning redundancy payments to national employment standards

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment ‑10.0 ‑22.4 ‑25.8 ‑29.5

The Government will achieve savings of $87.7 million over four years by aligning redundancy payments under the Fair Entitlements Guarantee (FEG) scheme to the National Employment Standards (NES) contained in the Fair Work Act 2009. The FEG scheme covers certain unpaid employee entitlements in the event of insolvency or bankruptcy.

From 1 January 2015, the maximum payment for redundancy pay under the scheme will be 16 weeks in line with the maximum set by the NES. Employees seeking to claim an entitlement above the maximum set by the NES will maintain rights as creditors to recoup any outstanding entitlement through the winding up of their employer's business.

From 1 July 2014, indexation of the Maximum Weekly Wage used in calculating entitlements for claimants earning above the Maximum Weekly Wage of $2,451, will be paused until 30 June 2018.

The changes will apply only to liquidations and bankruptcies that occur on or after the commencement date.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Ford Australia — assistance to workers — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment ‑1.4 ‑1.4 ‑1.4

The Government will achieve savings of $4.1 million over three years by not proceeding with the Ford Australia — Assistance to Workers Programme.

Support for workers affected by the decision of Ford Australia to end local manufacturing operations in October 2016 will now be provided through the Automotive Industry Structural Adjustment Programme.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Job Services Australia — restricting participation for Volunteer Job Seekers

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment ‑5.4 ‑11.9 ‑16.4 ‑18.8

The Government will achieve savings of $52.5 million over four years by limiting the number of times that volunteer job seekers can access Jobs Services Australia (JSA) to one occasion. Job seekers may subsequently access JSA if they commence income support, move to a different income support payment, or were prevented from continuing their participation due to circumstances beyond their control, such as illness or caring responsibilities.

Volunteer job seekers are job seekers who are not subject to an activity test or participation requirements. Currently these job seekers are eligible to participate in JSA as often as they choose.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Local Employment Coordinator Flexible Funding Pool — reduction

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment ‑0.8

The Government will achieve savings of $0.8 million in 2013‑14 by reducing funding for the Local Employment Coordinator Flexible Funding Pool.

See also the related measure Work for the Dole Programme — phased approach.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Move 2 Work — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services ‑0.1
Department of Employment ‑1.1
Total — Expense ‑1.2

The Government will achieve savings of $1.2 million in 2014‑15 by ceasing funding for the Move 2 Work initiative from 1 July 2014 and replacing it with a new programme, Relocation Assistance to Take up a Job, announced in the Mid‑Year Economic and Fiscal Outlook 2013‑14.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Restart — boosting the wage subsidy for mature age job seekers

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment 16.7 79.3 98.1 108.8
Related capital ($m)
Department of Employment 1.2

The Government will provide an additional $304.1 million over four years from 2014‑15 to boost the wage subsidy for mature age job seekers, through a Restart Programme.

From 1 July 2014, a payment of up to $10,000 will be available to employers who hire a mature age job seeker (including those on the Disability Support Pension) aged 50 years or over.

Payments will commence after the worker has been employed for at least six months and will be paid in the following instalments:

  • $3,000 after six months of employment;
  • $3,000 after 12 months of employment;
  • $2,000 after 18 months of employment; and
  • $2,000 after 24 months of employment.

The Restart Programme will build on the Government's election commitment to introduce a seniors employment incentive payment.

The $220.7 million over four years previously announced at the Mid‑Year Economic and Fiscal Outlook 2013‑14 will be redirected to the Restart Programme.

Stronger Compliance Arrangements for Job Seekers Who Refuse or Persistently Fail to Meet Requirements

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.3 3.9 2.4 2.4 2.3
Department of Employment .. 0.1
Department of Social Services ‑7.3 ‑8.1 ‑8.3 ‑8.2
Total — Expense 0.3 ‑3.3 ‑5.7 ‑5.9 ‑5.9

The Government will achieve savings of $20.9 million over four years by applying a stronger deterrent to job seekers who refuse work without a good reason or persistently do not comply with their activity requirements.

From 15 September 2014, all job seekers who refuse any work without a good reason will lose their payment for eight weeks and will no longer be permitted to waive their penalty through participation in additional activities or due to financial hardship. The eight week non‑payment period will also apply to all job seekers who incur penalties for persistent non‑compliance. Job seekers will only be given one opportunity to waive the penalty for persistent non‑compliance while in receipt of an income support payment.

This measure delivers on the Government's election commitment.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Work for the Dole Programme — phased approach

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Employment 0.5 14.3

The Government will provide $14.9 million over two years to expand the Work for the Dole Programme and pilot Jobs Brokers in 18 of the 21 Priority Employment Areas.

From 1 July 2014 to 30 June 2015, Work for the Dole will be mandatory in these locations for all job seekers aged between 18 and 30 years old who are in the Work Experience Phase or the Compulsory Activity Phase of Job Services Australia (JSA), unless they are working part‑time. Job seekers will be referred to individual Work for the Dole placements through their JSA provider.

Under this measure, Jobs Brokers will identify and secure individual Work for the Dole Placements with Host Organisations (including not‑for‑profit and local, state or Commonwealth Government agencies) and connect the Host Organisations with the JSA provider. Each Jobs Broker will have access to an operating budget of $0.3 million to service the selected areas.

This measure delivers on the Government's election commitment.