Major changes to the unemployment benefit scheme have been announced
A massive overhaul of the unemployment benefits scheme in Australia is underway, with the $1.3 billion Jobactive program at the centre of the changes.
With a new model and other ways to look for work, including from the comfort of your own home, the updated model is focusing on creating “self-starter” job hunters.
Job hunters will be matched with potential jobs more quickly via a primarily digital platform.
The change to the platform will be the first change since 1991. This is following a report that the current system is a time waster for job seekers and employers.
Jobs Minister Kelly O’Dwyer has said that the savings that are offered to employers will help job seekers.
She told The Daily Mail:
“The savings from digital servicing will be reinvested to provide a more intensive, targeted, and tailored face-to-face service for those who need extra help – recognising that long term unemployment has negative impacts on individuals, families, and communities.”
There are 41 private employment service providers who are contracted with the government, at an expensive $6 billion over the next four years. This averages to be a cost of $1.5 billion per year.
What do you think about the reform of the scheme? Let us know in the comments.