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Version 0 Version 1
Young Australians to face six-month wait for unemployment benefits Young Australians to face six-month wait for unemployment benefits
(about 20 hours later)
PeoplePeople
under 30 will receive Newstart and Youth Allowance for only six months of theunder 30 will receive Newstart and Youth Allowance for only six months of the
year which they will spend undertaking 25 hours a week on Work for the Doleyear which they will spend undertaking 25 hours a week on Work for the Dole
programs.programs.
TheThe
Abbott government’s first budget revealed job seekers applying for Newstart orAbbott government’s first budget revealed job seekers applying for Newstart or
Youth Allowance, who have not been previously employed, will face a six-monthYouth Allowance, who have not been previously employed, will face a six-month
waiting period of no income support before they are eligible for payments bywaiting period of no income support before they are eligible for payments by
undertaking 25 hours a week in the Work for the Dole program.undertaking 25 hours a week in the Work for the Dole program.
OnceOnce
they have spent six months on the program, they will lose income support forthey have spent six months on the program, they will lose income support for
another six months unless they undertake training or study.another six months unless they undertake training or study.
PeoplePeople
under 25 will not be eligible for the dole and instead will have to apply forunder 25 will not be eligible for the dole and instead will have to apply for
Youth Allowance which is about $100 less a fortnight. Newstart and YouthYouth Allowance which is about $100 less a fortnight. Newstart and Youth
Allowance will also be frozen for the next three years. The six monthly paymentAllowance will also be frozen for the next three years. The six monthly payment
system will take effect from July next year.system will take effect from July next year.
TheThe
current Newstart rate is $510.1 a fortnight which will equate to about $10.20 ancurrent Newstart rate is $510.1 a fortnight which will equate to about $10.20 an
hour for their work in the Work for the Dole program. The maximum Youth Allowance payment ishour for their work in the Work for the Dole program. The maximum Youth Allowance payment is
$414.40 a fortnight which equates to $8.29 an hour in the program.$414.40 a fortnight which equates to $8.29 an hour in the program.
In theIn the
six months applicants for Newstart and Youth Allowance do not receive incomesix months applicants for Newstart and Youth Allowance do not receive income
support, they will be required to undertake government-funded job seekingsupport, they will be required to undertake government-funded job seeking
programs.programs.
NewstartNewstart
applicants will receive one month of income support for every year they worked beforeapplicants will receive one month of income support for every year they worked before
applying for the dole and exceptions to the six months of no income supportapplying for the dole and exceptions to the six months of no income support
include parents, young people unable to work more than 30 hours a week,include parents, young people unable to work more than 30 hours a week,
part-time apprentices and Disability Employment Service clients.part-time apprentices and Disability Employment Service clients.
PeoplePeople
who refuse jobs will also be penalised with their income payments withdrawn.who refuse jobs will also be penalised with their income payments withdrawn.
“The government’s“The government’s
welfare changes pare back the widening gap between community expectations andwelfare changes pare back the widening gap between community expectations and
what it can – or should – realistically do. Individual responsibility should bewhat it can – or should – realistically do. Individual responsibility should be
a driving force for building a stronger and more prosperous Australia,” thea driving force for building a stronger and more prosperous Australia,” the
Social Services Budget guide said.Social Services Budget guide said.
PeoplePeople
are currently eligible for Newstart from 22 years old and that will beare currently eligible for Newstart from 22 years old and that will be
increased to 25.increased to 25.
FromFrom
July 2014 job seekers who have been unemployed for more than a year will haveJuly 2014 job seekers who have been unemployed for more than a year will have
to undertake 15 hours on the Work for the Dole program. This will increase toto undertake 15 hours on the Work for the Dole program. This will increase to
25 hours a week from July 2015.25 hours a week from July 2015.
All jobAll job
seekers who refuse work “without any good reason” according to the budgetseekers who refuse work “without any good reason” according to the budget
papers will lose their payment for eight weeks with only one chance to waivepapers will lose their payment for eight weeks with only one chance to waive
the penalty by doing additional activities or proving financial hardship.the penalty by doing additional activities or proving financial hardship.
The oneThe one
strike and your out for eight weeks approach will save the government $20.9m strike and you're out for eight weeks approach will save the government $20.9m
over four years.over four years.
TheThe
phased approach to the Work for the Dole programs will cost $14.9m over twophased approach to the Work for the Dole programs will cost $14.9m over two
years.years.
NewstartNewstart
and Youth Allowance could face further changes with the government signallingand Youth Allowance could face further changes with the government signalling
in the papers there will be further “structural reform” to the welfare systemin the papers there will be further “structural reform” to the welfare system
after reviews which are currently underway are completed.after reviews which are currently underway are completed.