Kate Ellis (Adelaide, Australian Labor Party, Minister for Employment Participation and Childcare) Share this | Hansard source

in reply—The Social Security Legislation Amendment (Connecting People with Jobs) Bill 2010 is a key component of the government’s Connecting People with Jobs trial and aims to improve labour mobility and improve support for long-term unemployed job seekers. I thank the members who have contributed to this debate: the member for Greenway—and I note her athletic abilities she displayed in order to get here from the other chamber to contribute and put her support for these measures on the record—the member for Capricornia, the member for Lyons and the member for Parramatta, who is very excited about these measures. I also note the support of the opposition and the remarks of the member for Farrer.

Whilst the member Farrer did indicate the coalition’s support, because she said this is very similar to a coalition pilot program that was in force, I want to put on the record the differences for the benefit of the House. The previous coalition government did put in place a very small pilot program but the evaluation of that pilot showed that it selected people who in many cases would have gone on to get jobs themselves anyway. In essence, it was providing a plane ticket, a train ticket and relocation costs. Whereas this is a national initiative which is targeted in particular at long-term unemployed people and people in areas of high unemployment.

Under this trial, job seekers who relocate to take up an ongoing full-time position or apprenticeship will be reimbursed up to $9,000 for relocation expenses and other needed supports. Under the trial, job seekers will be eligible for reimbursement of up to $3,000 for relocating to a metropolitan area or $6,000 for moving to fill a job in a regional area. They may be eligible for an additional $3,000 if they are relocating with their family.

We know that relocation often has high costs, especially when it involves moving interstate and across the country. These job seekers have sought employment in their current locations already for at least 12 months but they may lack the resources to take up employment further afield. It was part of Labor’s election commitment also that employers be eligible for a wage subsidy of $2,500 to create an upfront incentive for taking on these long-term unemployed job seekers. This is in recognition of the additional support and assistance that individuals will need in the early stages of their employment in a new location.

While this trial will encourage the long-term unemployed to relocate to take up a job, the bill seeks to create an incentive for individuals to stay in their new location and to keep them in sustainable employment there. Specifically, this bill seeks to strengthen the associated compliance measures for job seekers who have been assisted to relocate for a job under the trial by extending to 12 weeks the period of non-payment of income support should a relocating job seeker leave their job within the first six months as a result of a voluntary act or as a result of misconduct. Previously, a job seeker was subject to an eight-week period of nonpayment. This bill does not alter existing mechanisms for exemptions for such non-payment period penalties that are administered by Centrelink.

We know that the national unemployment rate currently sits at 5.1 per cent, down from 5.7 per cent a year ago. However, the truth is that the employment situation across Australia varies greatly. In this modern age there is a need for greater labour mobility, and relocating parts of the workforce to meet employers’ demand is an effective method of achieving this. The Connecting People with Jobs trial will enhance the flexibility of the labour market by encouraging additional relocation activity and helping to better match labour supply with demand. The funds for relocation under this trial will provide job seekers with assistance for things such as airfares, removalists, temporary accommodation and post-placement support and mentoring. It will provide employers with the workers they need to grow their businesses and will help to get people off income support and into sustainable jobs—we all know how important that is for them as individuals, for their families and for our national economy. In summary, I commend this bill to the House and look forward to seeing a successful trial with some great results for the long-term unemployed.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.

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