Skip to content

Part 2: Expense Measures (continued)

Employment

Asbestos Safety and Eradication Agency — additional funding

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Asbestos Safety and Eradication Agency 2.0 1.4

The Government will provide an additional $3.4 million over two years from 2016‑17 to the Asbestos Safety and Eradication Agency to coordinate the National Strategic Plan for Asbestos Management and Awareness 2014‑2018 (the Plan). The Plan establishes a framework for a national approach to asbestos management and awareness in Australia.

Asbestos Safety Assurance Model — extension and cost recovery

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Comcare nfp nfp nfp nfp
Comcare nfp nfp nfp nfp

Comcare will continue to monitor asbestos‑related remediation activities under the National Broadband Network (NBN) rollout and introduce full cost recovery of its activities from 1 July 2016. Under the asbestos safety assurance model, Comcare inspectors verify that companies and contractors involved in the NBN rollout comply with the relevant work health and safety standards.

The expenditure for this measure is not for publication (nfp) due to ongoing consultation with industry.

Community Engagement Grants Program — establishment

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Office of the Fair Work Ombudsman

The Government will provide $7.3 million over four years from 2016‑17 to establish the Community Engagement Grants Program to provide employment advice services with funding through a competitive selection process. The program will commence on 1 January 2017 when it will replace the current Community‑Based Employment Advice Services program.

This will continue the Government's support for community organisations that provide employment advice to disadvantaged and vulnerable people in the workplace to enable them to exercise and assert their workplace rights.

The cost of this measure will be met from within the existing resources of the Office of the Fair Work Ombudsman.

Job Commitment Bonus — cessation

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Human Services 0.4 1.9 ‑2.3 ‑2.5 ‑2.6
Department of Employment ‑47.7 ‑63.8 ‑63.0 ‑62.4
Total — Expense 0.4 ‑45.8 ‑66.1 ‑65.5 ‑65.0

The Government will achieve efficiencies of $242.1 million over five years from 2015‑16 by ceasing the Job Commitment Bonus from 31 December 2016. Existing eligible job seekers will have up to 90 days from 31 December 2016 to apply for the Job Commitment Bonus, with up to an additional 90 days in special circumstances.

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

Road Safety Remuneration Tribunal — abolition

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Infrastructure and Regional Development 3.9 3.9 3.9 3.9
Office of the Fair Work Ombudsman ‑1.4 ‑1.4 ‑1.4 ‑1.4
Fair Work Commission ‑2.4 ‑2.5 ‑2.5 ‑2.5
Total — Expense

The Government will abolish the Road Safety Remuneration Tribunal (the Tribunal). Funding of $15.6 million over four years from 2016‑17 that was previously allocated to the Tribunal will be redirected to the National Heavy Vehicle Regulator to work with the states and territories to implement practical safety measures.

Further information can be found in the joint press release of 13 April 2016 issued by the Prime Minister, the Minister for Employment and the Minister for Infrastructure and Transport.

Youth Employment Package — encouraging entrepreneurship and self‑employment

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Employment 15.3 24.2 24.0 24.2
Department of Employment 0.9

The Government will provide an additional $88.6 million over four years from 2016‑17 to expand the New Enterprise Incentive Scheme (NEIS) and to support self‑employment opportunities for young people.

From 1 December 2016, the Government will introduce a suite of initiatives to expand self‑employment opportunities and encourage entrepreneurship among young Australians. These include:

  • 'Exploring Being My Own Boss' workshops to engage young job seekers to explore self‑employment as an alternative pathway to employment;
  • Self‑Employment and Entrepreneurship Starter Packs to raise awareness of the self‑employment assistance available to youth; and
  • engaging Inclusive Entrepreneurship Facilitators in areas of high youth unemployment to assist potential entrepreneurs in accessing local mentors and services.

The number of places in NEIS will also be increased to 8,600 per annum and eligibility will be expanded to people not on income support, including recently retrenched workers.

This measure builds on the 2015‑16 MYEFO package titled National Innovation and Science Agenda.

Youth Employment Package — Youth Jobs PaTH (Prepare — Trial — Hire)

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Human Services 0.1 7.8 0.8 0.7 0.7
Department of Social Services 0.5 1.4 1.4 1.4
Department of Employment ‑0.9 67.9 81.7 81.3
Total — Expense 0.1 7.3 70.1 83.8 83.4
Department of Employment 4.8

The Government will provide $751.7 million over four years from 2016‑17 to establish a Youth Jobs PaTH program for young job seekers aged under 25 years to improve youth employment outcomes. The new pathway is designed to enhance young people's employability and provide up to 30,000 young people each year with real work experience. The pathway has three elements:

  • Industry‑endorsed pre‑employment training (Prepare) — from 1 April 2017, training for up to six weeks will be provided to develop basic employability skills, including those required to identify and secure sustainable employment.
  • Internship placements of up to twelve weeks (Trial) — from 1 April 2017, up to 30,000 internship placements will be offered each year to enable businesses and job seekers to trial their employment fit. Job seekers will receive a $200 fortnightly incentive payment and businesses will receive $1,000 upfront to host an intern. Placements will be voluntary and will be organised by employment services providers. Job seekers must be registered with jobactive, Disability Employment Services or Transition to Work, and have been in employment services for at least six months to be eligible for the internship program.
  • Youth Bonus wage subsidies (Hire) — from 1 January 2017, employers will receive a wage subsidy of up to $10,000 for job seekers under 25 years old with barriers to employment and will continue to receive up to $6,500 for the most job‑ready job seekers. Job seekers must be registered with jobactive or Transition to Work, and have been in employment services for at least six months for employers to be eligible for the wage subsidy. Funding for this component will be provided from within the existing funding for wage subsidies.

The program will include an employer mobilisation strategy to encourage participation in the initiative by all employers.

As part of this measure, the Government will also achieve savings of $204.2 million over four years. The design of wage subsidies available through jobactive will be improved to reduce red tape for employers, including by simplifying payments and enabling employers to choose more flexible payment arrangements.

Youth Employment Package — Work for the Dole — reform

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Social Services ‑14.5 ‑11.9 ‑12.6 ‑12.6
Department of Employment ‑113.8 ‑108.8 ‑110.4 ‑109.9
Total — Expense ‑128.4 ‑120.7 ‑123.0 ‑122.5
Department of Employment 0.3

The Government will achieve efficiencies of $494.2 million over four years from 2016‑17 by reforming Work for the Dole to be better targeted and more cost effective.

From 1 October 2016, the most job ready job seekers (Stream A job seekers) will enter the Work for the Dole phase after 12 months of participation in jobactive, instead of the current six months. This will provide an opportunity for job seekers to focus on finding a job before moving to the Work for the Dole phase.

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