Encouraging participation

A new compliance framework incorporating suspension will support the participation focus of the new arrangements.

A range of measures will encourage employer demand, particularly for people with disabilities.

Compliance

A suspension based approach to compliance will replace the current breaching approach from 1 July 2006. This is consistent with the directions of the Breaching Review Taskforce. Suspensions will better encourage income support recipients to comply with the conditions of their payment.

The new approach will apply to working age income support recipients with a participation requirement.

As a last resort, payment will be stopped for eight weeks for serious participation failures. Case management will avoid unreasonable hardship on individuals and their families.

Helping employers

A number of strategies will be adopted to promote employer demand to help people with the transition from welfare to work.

Government will work with industry groups and employers to promote better matching of job seekers to employment opportunities.

Two schemes will be expanded to help the employers of people with disabilities. The Workplace Modifications Scheme will be expanded, at a cost of $29 million over four years. The Wage Subsidy Scheme will also be expanded by $12 million over four years.

Elements of the $50 million employer demand strategy

11 2005-06 Budget