Assistant Minister for Employment Luke Hartsuyker today announced a change to the New Enterprise Incentive Scheme (NEIS) Allowance.
NEIS is a programme that provides practical help and support to eligible unemployed Australians to start and run their own small business. Participants receive the NEIS Allowance, which is equivalent to Newstart Allowance, while their new business is being established.
People who start in the scheme from 1 July 2014 will receive the NEIS Allowance for nine months, instead of 12 months. NEIS participants will continue to receive 12 months of support and advice from experienced small business mentors on organisational, financial and marketing issues to help the new business develop and succeed.
“NEIS is a targeted programme that helps up to 6,300 job seekers each year,” Mr Hartsuyker said.
“After nine months in the programme many job seekers are generating sufficient income from their business to be commercially viable, and in many cases, are also working part time,” Mr Hartsuyker said.
“This change is about balancing support for NEIS participants with the need to repair the Budget mess left behind by the former Government.
“NEIS will continue to be available to those job seekers who wish to become self employed and who can develop and sustain a viable business plan.
“The Government is committed to ensuring more Australians are in work and is investing in a range of practical programmes to achieve this goal.
“From 1 July 2014, a range of new measures will commence to help job seekers move from welfare to work sooner.
“The new Job Commitment Bonus for young job seekers, the Restart wage subsidy for mature age workers and Relocation Assistance to Take Up a Job programme will help more job seekers to find and keep a job.
“Our revamped Work for the Dole programme will also help job seekers to demonstrate the skills and attitudes that employers are looking for in job candidates.
“I encourage all job seekers and employers to take advantage of these new incentives and support.”
The change to NEIS Allowance will provide a saving of $57.5 million over four years. Participants who commenced NEIS prior to 1 July 2014 will not be affected by the change.
For more information visit: www.employment.gov.au/new-enterprise-incentive-scheme-neis