Craig Kelly (Hughes, Liberal Party) Share this | Link to this | Hansard source

It is a privilege to have the opportunity to continue my comments on the Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Bill 2016. I actually was not going to speak on this bill but I heard the member for Lalor talk about the movie The Pursuit of Happyness. It is actually a true story based on an American gentleman named Chris Gardner. He was born in 1954 to an underprivileged background. His childhood was racked with poverty, domestic violence, alcoholism and family illiteracy. In his late 20s he found himself in jail. Coming out of jail with no experience, no college education, no degree and no connections, he took on an internship, which is what this legislation is all about. He took on an internship at a stockbroking firm to learn the ropes. He realised that with that background, without having an education, he had to strive harder, work harder and work smarter. He had to use his time as best he could. They say he was the first to arrive at work and the last to leave, even though he was unpaid on an internship.

Eventually, he got a job. He then went on to work for another broking firm and then took the risk of breaking out on his own. With $10,000 in capital and the only piece of furniture being a single desk, he started up his own broking firm, called Gardner Rich. The rest is history. He went on to have a net worth today of over $60 million. He made his first million dollars by the age of 34 and, to celebrate, he bought himself a black Ferrari previously owned by Michael Jordan.

He owns a multimillion dollar apartment in Chicago's Trump Tower, and President-elect Trump has said of Chris Gardner that his story is a tremendous lesson in tenacity. He has also recently written a book titled Start Where You Are: Life Lessons in Getting from Where You Are to Where You Want to Be. One of the chapters is 'Learn the ropes first, then conquer Rome'. The story of the movie The Pursuit of Happyness, the true life story of Chris Gardner is something that should be held up as an example of entrepreneurship, of tenacity and of hard work, and the reason that having internships is such an important part of our economy.

If Chris Gardner were here I am sure he would speak of the importance of internships and the importance of this coalition policy. We know what those in the Labor Party have. This is to the young Chris Gardners out there today in Australian society who will take advantage of this policy to get themselves an internship, to lift themselves up and create a success of their lives. To think that the Labor Party is going to vote against this, well, it tells us everything about the modern Labor Party. I commend the bill to the House.

Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Link to 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.

Tony Smith (Speaker) Share this | Link to this | Hansard source

The original question was that this bill be now read a second time. To this, the honourable member for Chifley has moved as an amendment that all words after 'that' be omitted with a view to substituting other words. The immediate question is that the amendment be agreed to.