Tougher sanctions for beneficiaries loom
Beneficiaries who fail to comply with jobseeker obligations will have half their benefit paid onto a payment card that can only be used in limited ways.
It’s one of a variety of measures the Government is imposing to move people off benefits and into work.
The social development minister says the number of people on jobseeker support has increased by 70,000. The Government is aiming to have 50,000 fewer people on it by 2030, which it estimates would save the country $2.3 billion in welfare payments.
The changes, to begin next year, will see jobseeker support recipients have to reapply for their benefit every six months and obligation failures observed over a twoyear period rather than one, making it more likely their benefits will be cancelled if they fail to meet obligations. Jobseeker profiles will be mandatory before benefits are paid.
The new “money management” initiative – which would restrict what non-compliant jobseekers can spend – is a “non-financial sanction” for a beneficiary who fails an obligation for the first time. Half of their benefit would be loaded onto a card that can only be used for essential items like food or clothes. The spending restriction would be imposed for at least four weeks, and can only be lifted when the beneficiary completes a required jobseeker activity. During that time they wouldn’t be eligible for hardship assistance.
The money management sanction was an ACT-National coalition commitment.
Social Development and Employment Minister Louise Upston says a traffic light system will show beneficiaries their obligations, and warn them when they’re not meeting them. “There are responsibilities that come with receiving a benefit, and there will be no more excuses for jobseekers not knowing what those responsibilities are.”
Beneficiaries who fail an obligation for the first time will be required to find and complete appropriate work experience with a community organisation for a set duration.
“Our welfare system will always be a safety net that catches people if they fall. But in the past few years it has become a drag net that has captured too many people who can work and allowed them to languish on jobseeker support for too long,” she says.