Australians looking for work will have past penalties under the mutual obligation system for job seekers wiped as the new Labor government overhauls the program
The points-based jobactive program required job seekers to lodge up to 20 job applications a month to meet the requirements to receive welfare payments.
Employment Minister Tony Burke has now announced changes to the scheme, which he says are aimed at fixing the rigidity of the system and helping get people into work.
Mr Burke said the new system — Workforce Australia — would give participants “more choice and control over how they meet their mutual obligation.”
“Jobactive was a rigid system that all too often resulted in job seekers applying for work they were not suited to, wasting their time and the time of employers,” Mr Burke said.
“Workforce Australia will instead centre around a points-based activation system that will give participants more choice and control.”
But the government has maintained its commitment to enforcing mutual obligation requirements.
This is despite advocates for people on welfare being concerned that even with the new government's changes people will still need to satisfy rigorous criteria to get support.
Mr Burke has previously said it was "too late" to abandon the point-based system completely, maintaining it was the right concept but needed tweaking.
The “points-based activation system” (PBAS) requires job seekers to earn 100 “points” through job search or other activities including study, training, hours of employment or work for the dole.
Those who don't meet the requirements can face losing initially half, and then up to all of their fortnightly welfare payment or having this cancelled for continued non-compliance.
Shadow Minister for Employment Michaelia Cash said the previous government's approach had helped unemployment fall to 3.9 per cent during its time in power.
"This system was designed with the job seeker in mind," she said in a statement.
"We will hold the government to account to ensure that these changes still allow the system to do what it is designed to do - get more people into jobs."
The government’s reforms will now also increase the points value attached to a number of the activities, Mr Burke said, to “help people get job-ready”.
"A new system means a fresh start," he said.
"This decision will give participants a number of months to adjust to the new system with little risk of financial penalty."
This would include the points value of people starting work increasing from 20 to 50 points, and getting a driver’s licence rising from 20 to 25 points.
Attending a job interview as well as attaining skills for education and employment would rise 20 to 25 points.
Meanwhile, participating in an Adult Migrant English Program would rise from 25 points (for more than 15 hours per week) and 15 points (for up to 15 hours per week).
Other changes would see additional points offered for participating in the Defence Force Reserves, self-help and support groups, counselling as well as drug and alcohol rehabilitation.
Mr Burke also said changes would ensure someone participating in full-time study or training that “improves their long-term job prospects" would not be penalised.
“This includes ensuring that vulnerable individuals will have no job search requirement if they are undertaking approved short full-time courses,” he said.
“It is important to note that people who continue to do exactly what they did under the old system – apply for 20 jobs a month – will still meet their points requirements,” Mr Burke said.
But Unemployed Workers Union spokesperson Jeremy Poxon said it was “incredibly disappointing” the new government had maintained its support for mutual obligations, and not removed them completely.
“We don’t think there is a humane way to reform the system,” he told SBS News.
“Especially in a cost of living emergency that’s forcing the poorest people in our community into a system of activities and hoops they need to jump through.”
A single person on the JobSeeker payment currently receives $642.70 per fortnight, which equates to around $46 a day.
Mr Poxon said despite Labor’s proposed changes the requirements would still be onerous on unemployed people seeking welfare payments.
“This is still a brutal system that’s forcing people into so many hours of activities for their paltry income,” he said.
Mr Poxon welcomed the decision to wipe penalties accrued under the mutual obligation system, but said this alone did not go far enough.
“The problem is this new system will just immediately start forcing people to accrue demerits again in huge numbers.”
ACTU assistant secretary Scott Connolly said the union welcomed the Albanese government's new approach to "helping people get back to work."
"This initiative is step in the right direction and an encouraging first step," she said.
“Australians deserve to be supported to study, work through their barriers, and get back to employment."
