Supporting jobseekers in the transition to work

Enhanced Newstart Allowance

In this Budget, the Government will invest around $300 million over four years to support jobseekers in the transition to work. This includes lifting the Income Free Area under Newstart Allowance, the first increase in over a decade, to $100 a fortnight, and indexing from 1 July 2015. Recipients will be able to keep up to an extra $494 of their income from part-time work over a year, building on the tripling of the tax-free threshold, which has directly improved the rewards for work.

Single principal carer recipients will receive up to $1,600 more support to undertake training to make the most of job opportunities in a changing economy.

Further assistance will also be provided for working single parents who no longer qualify for income support.

In addition, the $1.1 billion Income Support Bonus being paid this year provides a boost for all Newstart Allowance recipients.

More support for jobseekers

An additional $15.7 million will be provided to continue to engage local employment coordinators in 20 vulnerable labour markets to drive local solutions to unemployment.

The Connecting People with Jobs program will be extended, providing support to job seekers who choose to relocate to secure employment or an apprenticeship.

Reducing barriers to work

The Jobs, Education and Training Child Care Fee Assistance (JETCCFA) program helps eligible income support recipients by paying most of the difference between child care costs and the amount of Child Care Benefit received. In 2011‑12, JETCCFA assisted 36,570 parents.

In 2012‑13, additional funding of $29 million will be provided to meet increased demand for JETCCFA. A further $27.2 million over five years will reinstate Year 12 and university enabling courses as an approved activity for eligible parents.