Job Bonus legislation passes Parliament

Long-term unemployed people, particularly young Australian job seekers, will receive help to find and keep a job through a Bill that passed Federal Parliament this week.

The Social Security Legislation Amendment (Increased Employment Participation Bill) 2014 implements measures to provide incentives for young people to stay in employment and address some of the barriers faced by the long-term unemployed.

The legislation delivers on two key election commitments from 1 July 2014, the Job Commitment Bonus and the Relocation Assistance to Take up a Job programme.

The Job Commitment Bonus is a new payment that rewards young, long term unemployed job seekers aged 18-30 if they get and keep a job. Young job seekers who have been on Newstart Allowance or Youth Allowance (other) for at least the preceding 12 months will receive $2,500 if they get a job, remain in continuous work and off income support for 12 months.

These same job seekers will be eligible for an additional $4,000 if they remain in continuous work and off income support for a further 12 months, that is 24 months in total.

The Relocation Assistance to Take Up a Job measure is designed to promote workforce participation by encouraging job seekers to move to areas where jobs are available. This programme provides financial support to all job seekers who have been on Newstart Allowance, Youth Allowance (other) and Parenting Payment for at least the preceding 12 months.

Up to $6,000 will be available to support eligible job seekers who relocate to a regional area to take up a job. Up to $3,000 will be available to support eligible job seekers who relocate to a metropolitan area from a regional area to take up a job.

The $3,000 payment will also be available to eligible job seekers who relocate from a capital city with higher unemployment to one with lower unemployment.

Families with dependent children will be provided with up to an extra $3,000, in recognition of any other additional costs. Support provided through this programme will reimburse the actual costs of moving.

Under Labor, the number of young unemployed people blew out by 55,000 and the rate of youth unemployment increased by three percent. The Coalition believes the best form of welfare is a job and these incentives will help to get more young job seekers off welfare and into work.