Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Hansard source

I rise to sum up on the Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Bill 2016. This bill introduces legislative amendments that help give effect to the Youth Jobs PaTH Program announced in the 2016-17 budget as part of the Youth Employment Package. The best form of welfare that any government can provide is a job. We know that when seeking to enter the labour market for the very first time many young people do not have the skills and experience employers look for. This can make it harder to get a start. It can leave them susceptible to long-term unemployment and welfare dependency. The Liberal-Nationals government is committed to supporting young people to acquire the skills they need in order to move from welfare into work. The Youth Jobs PaTH—prepare-trial-hire—program will maximise the chances of jobseekers under 25 in getting a job, in obtaining employment. It has three elements. Prepare: employability skills training to help young jobseekers learn the skills expected by employers so that they are more competitive when they are applying for a job. Trial: voluntary internships of four to 12 weeks to give jobseekers a chance to show what they can do in a real workplace, with financial incentives to participate for both businesses and jobseekers. Hire: a new youth bonus wage subsidy of up to $10,000 to support businesses wanting to hire young people.

These three initiatives—skills training, real work experience and wage subsidies—are an investment by the coalition government in the future of Australia's young people. Young people are the leaders of tomorrow. This will instil confidence and encourage their transition into employment. It will enhance their employability to maximise the chances of obtaining a job and moving off income support—obtaining a job and keeping that job. It will also allow them to experience a broad range of personal and financial opportunities that come with being employed. These amendments are designed to help young jobseekers by making sure that young people undertaking PaTH internships receive the full benefit of their participation. Youth Jobs PaTH internship incentive payments to participants will not be considered as income for social security and veterans' entitlement purposes, and that is important. This means the participants will receive the full amount of the incentive payments on top of their existing social security payments or their veterans' entitlements. The amendments also aim to ensure that eligible young people, in particular circumstances, will be able to have their social security payments restored without having to make a new claim. If they lose their job, through no fault of their own, with an eligible employer within 26 weeks of ceasing to receive income support they can then reconnect to government services and income support.

In conclusion, the passage of this bill will ensure young people are afforded every opportunity to become fully engaged and job ready to maximise their chances of finding work as quickly as possible. Youth unemployment imposes significant economic costs through lower workforce participation and related welfare costs—as a regional member of parliament, I know this as well as anyone, youth unemployment rates generally being higher in regional areas than they are elsewhere—not to mention the greater social cost to the young person, their families and our local communities. It comes at a great cost.

We cannot stand idly by while there are tens of thousands of young people who stand to be at risk of long-term welfare dependence—I would say intergenerational welfare dependence. I call upon those in this place to support Youth Jobs PaTH and this legislation, which will give young jobseekers the full benefit of this program.

See this speech in context