Key features of the welfare to work package

Reform will cover all aspects of the welfare system for working age Australians. The changes represent a substantial $3.6 billion investment in moving people from welfare to work.

Obligations for those who can work

Parents on welfare will generally be required to seek part-time work if their youngest child is aged 6-15. People with disabilities applying for welfare who can work part time will be required to seek part-time work. Existing people on Disability Support Pension will not be affected.

Services to help people into work

Services to help people into work will increase by more than $2 billion. A new comprehensive work capacity assessment will be introduced to better assess and connect people with services.

A new approach to payments

People currently on existing payments will remain on those payments. Single parents with a youngest child aged 6-15 and people with disabilities applying for welfare after 1 July 2006 will be eligible for enhanced Newstart.

Other allowances will be changed to improve the rewards from work.

Better compliance framework

A new compliance framework will provide better incentives for people to meet their obligations.

Helping employers

An employer strategy will help promote the employment of parents, mature age Australians and people with disabilities who can work.

Elements of reform

3 2005-06 Budget