Helping more young people to earn or learn
While the majority of young Australians are fully engaged in education and employment, approximately 10 per cent of people (or about 320,000) aged 15 to 24 are unemployed or not in the labour force and not studying.
Census data show that people of prime working age who have completed Year 11 or 12 have an unemployment rate of less than 5 per cent, compared to more than 7 per cent for those whose highest level of educational attainment was Year 10 or less.
Focusing on Indigenous youth
The Government will redirect $50.7 million for a new Indigenous Youth Career Pathways Program that will provide supported school‑based traineeships to assist Indigenous students in selected schools to complete their education and transition into further education and/or work.
Earning or learning
In 2009, the Government strengthened participation requirements for 15 to 20 year olds on income support who had not completed Year 12 or equivalent, requiring them to be either earning or learning. In this Budget, the Government will extend the 'Earn or Learn' requirements to those aged 21.
This is part of broader changes to delay access to Newstart Allowance by one year so that 21 year olds will now get the same payment rate whether they are employed, in training or a student. A more generous income free area and working credit will reward part‑time work as a stepping stone to full‑time employment.
Support to keep teenagers in school
Delivering on its election commitment, the Government will provide $772 million over five years to increase Family Tax Benefit Part A for dependent 16 to 19 year olds in full time secondary study. This will increase the level of support by up to $4,208 a year for 16 and 17 year olds, and by up to $3,741 a year for 18 and 19 year olds, helping families to meet costs and support their teenagers to stay in school.
Youth unemployment is consistently higher than the national rate
Source: ABS cat. no. 6291.0.55.001.