Federal Budget 2014: Unemployed face big changes to Newstart, Work for the Dole
DOLE bludging may have been a valid lifestyle option for Aussies in years gone by, but the Federal Budget contains major shake-ups to stamp it out.
NEWSTART payments to unemployed Australians under 25 will be axed in a radical reshaping of assistance to jobseekers.
While under 25s will get the less generous Youth Allowance, under 30s who join the jobless queue will have to wait six months before they get government support — and then only if they participate in the Work for the Dole scheme for 25 hours a week.
If they are still unemployed six months later, benefits will again stop for six months in an effort to encourage young Australians not to rely on handouts.
The changes will kick in from January 2015.
“Work gives people a sense of self, and work helps to build a sense of community,” Treasurer Joe Hockey said in his Budget address.
“This is why young people should move into employment before they embark on a life on welfare.”
The new scheme will encourage Australians under the age of 30 to learn, with a new Trade Support Loan to encourage the uptake of apprenticeships.
Reforms will see recipients under the age of 35 encouraged to participate in Work for the Dole or receive training to increase employment prospects.
The Disability Support Pension will also be included in the crackdown after the Budget revealed it was costing Australian taxpayers $16 billion annually.
Recipients of the Disability Support Pension living overseas will see their benefits disappear altogether.
More than 700,000 Australians were unemployed in April this year, according to the Australian Bureau of Statistics, up 32,000 from the year before.
Originally published as Federal Budget 2014: Unemployed face big changes to Newstart, Work for the Dole