Home > Mid-Year Economic and Fiscal Outlook > Appendix A: Policy decisions taken since the 2013-14 Budget > Expense Measures - Employment

Appendix A: Policy decisions taken since the 2013‑14 Budget (Continued)

Expense Measures (Continued)

Employment

Australian Building and Construction Commission — re‑establishment

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Office of the Fair Work Building Industry Inspectorate	‑	5.0	10.0	10.0	10.0

The Government will provide $35.0 million over four years to re‑establish the Australian Building and Construction Commission (ABCC). The ABCC, which will replace the Fair Work Building Industry Inspectorate (FWBII), will administer new guidelines or a legislative code on Commonwealth‑procured construction projects consistent with similar State and Territory government codes, and restore building industry‑specific laws modelled on those in the Building and Construction Industry Improvement Act 2005.

The re‑established ABCC will have increased jurisdiction, powers, functions and resources in line with the former agency that was abolished in June 2012.

Funding for the ABCC will be redirected to the FWBII until the Commission is established.

This measure delivers on the Government's election commitment.

Further information can be found in the press release of 14 November 2013 issued by the Minister for Employment.

Experience+ Job Bonus — cessation

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Employment	‑	‑	‑2.8	‑2.8	‑2.8

The Government will achieve savings of $11.1 million over four years (including $2.8 million in 2017‑18) by ceasing the Experience+ Jobs Bonus from 1 July 2014.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Job Commitment Bonus — establishment

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Human Services	‑	1.2	4.0	2.0	2.5
Department of Employment	‑	0.1	0.4	29.8	55.2
Total — Expense	‑	1.3	4.4	31.8	57.8
Related capital ($m)
Department of Human Services	‑	0.4	2.9	0.8	‑
Department of Employment	‑	‑	‑	‑	‑
Total — Capital	‑	0.4	2.9	0.8	‑

The Government will provide $157.1 million over five years (including $57.7 million in 2017‑18) to assist long‑term unemployed young people to obtain employment by providing Job Commitment Bonuses.

From 1 July 2014, job seekers aged 18 to 30 who have been unemployed for 12 months or more and who are receiving Newstart or Youth Allowance (Other) will be eligible for a $2,500 payment if they get a job and remain off Newstart or Youth Allowance (Other) for a continuous period of 12 months.

Job seekers will receive a further $4,000 if they remain in a job and do not receive Newstart or Youth Allowance (Other) for a further 12 months (that is, a continuous period of 24 months). They will also be eligible to receive the Job Commitment Bonus if they are employed in multiple jobs and do not claim Newstart or Youth Allowance (Other) during the Job Commitment Bonus qualifying period.

The Job Commitment Bonus will be paid through the Department of Human Services.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Increase Employment Participation.

Mature Age Participation — job seeker assistance — cessation

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Employment	‑	‑3.0	‑7.7	‑	‑

The Government will achieve savings of $10.7 million over two years by ceasing the Mature Age Participation — job seeker assistance measure announced in the 2012‑13 Budget. The programme was due to terminate on 30 June 2015.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

This measure implements the savings announced in the Government's pre‑election costings document.

Migrant Communities Employment Fund — cessation

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Employment	‑	‑3.4	‑3.2	‑	‑

The Government will achieve savings of $6.6 million over two years by not proceeding with funding for the Migrant Communities Employment Fund measure, announced in the 2013 Economic Statement.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Registered Organisations Commission — establishment

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Office of the Fair Work Ombudsman	‑	‑	‑	‑	‑

The Government will establish a Registered Organisations Commission (ROC) with the investigative and compliance powers necessary to regulate registered organisations' compliance with the Fair Work (Registered Organisations) Act 2009 (the RO Act). Registered organisations are union and employer organisations that are registered under the RO Act. The RO Act will be amended to better align the obligations of office holders, penalties for misconduct and powers of the regulator with those in the Corporations Act 2001.

The ROC, which will commence operations on 1 March 2014, will be an independent entity within the Fair Work Ombudsman's office. Functions and powers of the Fair Work Commission (FWC) that relate to monitoring and compliance of the financial management obligations of registered organisations will be transferred to the ROC, with costs offset by savings from the FWC no longer undertaking this role.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Better Transparency and Accountability of Registered Organisations.

Relocation Assistance to Take up a Job programme — establishment

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Human Services	‑	0.6	..	..	..
Department of Employment	‑	..	3.7	4.2	3.7
Department of the Prime Minister and Cabinet	‑	‑	0.1	0.1	0.1
Department of Social Services	‑	‑	‑4.4	‑13.5	‑19.0
Total — Expense	‑	0.6	‑0.6	‑9.3	‑15.2
Related capital ($m)
Department of Employment	‑	0.3	‑	‑	‑
Department of Human Services	‑	‑	‑	‑	‑
Department of the Prime Minister and Cabinet	‑	‑	‑	‑	‑
Total — Capital	‑	0.3	‑	‑	‑

The Government will provide $16.6 million over five years (including $3.8 million in 2017‑18) to assist long‑term unemployed people relocate to find employment.

From 1 July 2014, job seekers who have been unemployed for 12 months or more, are receiving Newstart Allowance, Youth Allowance (Other) or Parenting Payment, and are participating in Job Services Australia or eligible for Disability Employment Services or Remote Jobs and Communities Programme services will be eligible to participate in the Relocation Assistance to Take up a Job programme.

The programme will cover costs such as air travel and removalists and provide:

up to $6,000 for job seekers to relocate to a regional area (either from a metropolitan or another regional area) and up to $3,000 to relocate to a metropolitan area (either from a regional or another metropolitan area with higher unemployment); and
an additional $3,000 for families with dependent children.

Participants who leave employment within six months of relocating without a reasonable excuse, will incur a 26 week non‑payment penalty before becoming eligible to receive unemployment benefits again.

The measure is estimated to achieve savings of $56.4 million over five years (including $19.5 million in 2017‑18) by assisting eligible long‑term unemployed income support recipients to find a job and remain off unemployment benefits.

The Relocation Assistance to Take up a Job programme Bonus will be paid through the Department of Employment.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Create Jobs by Boosting Productivity.

Seniors Employment Incentive Payment — establishment

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Employment	‑	0.3	18.4	60.1	59.2
Related capital ($m)
Department of Employment	‑	0.5	‑	‑	‑

The Government will provide $197.5 million over five years (including $59.0 million in 2017‑18) to establish a wage subsidy for mature age job seekers.

From 1 July 2014, a payment of $3,250 will be available to employers who hire a mature age job seeker (aged 50 years or over) who has been receiving income support for at least six months.

Payments to employers will only commence after the job seeker has been employed for at least six months. Thereafter, payments will be made in fortnightly instalments over six months until the full amount has been paid.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Create Jobs by Boosting Productivity.

Tasmanian forestry workers assistance project — cessation

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Employment	‑	‑	‑1.2	‑1.2	‑

The Government will achieve savings of $2.4 million by not proceeding with funding for the Tasmanian forestry workers assistance project — extension measure, announced in the Pre‑election Economic and Fiscal Outlook 2013. This measure extended funding provided to ForestWorks to assist redundant Tasmanian forestry workers transition back to employment, including through linking workers with employment service providers and identifying training needs.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Tasmanian Jobs programme — pilot

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Employment	‑	0.2	4.5	1.0	‑
Department of Social Services	‑	‑	0.9	0.2	‑
Total — Expense	‑	0.2	5.4	1.2	‑
Related capital ($m)
Department of Employment	‑	0.1	‑	‑	‑
Total — Capital	‑	0.1	‑	‑	‑

The Government will provide $6.9 million over three years to establish a wage subsidy pilot for Tasmanian job seekers.

From 1 January 2014 to 30 June 2016, the Tasmanian Jobs programme will provide up to 2,000 one‑off payments of $3,250 to any Tasmanian business that hires an eligible job seeker and continues to employ them on a full‑time basis for at least six months.

To be eligible, the job seeker must be receiving Newstart Allowance, Youth Allowance (Other) or Parenting Payment, and must be participating in Job Services Australia or Disability Employment Services. Job seekers must also physically reside in Tasmania for at least six months before the job commences to attract the payment.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Boost Employment in Tasmania.

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