Federal Budget 2016: $100 a week internships to lure 120,000 youths off the couch

YOUNG people languishing on welfare will be paid $200 a fortnight on top of the dole to complete internships as part of an $840 million plan to get them off the job queue.

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YOUTHS languishing on welfare will be paid $200 a fortnight on top of the dole to complete internships as part of an $840 million plan to get them back into the workforce.

The daring work placement strategy is part of a three-pronged attack to get under-25s contributing to the economy rather than relying on taxpayer-funded welfare, which will bust the $190 billion barrier by the end of 2019-20.

Treasurer Scott Morrison, formerly the social services minister, devised the plan after speaking with businesses who said they would be willing to employ young Australians with limited skills if the government funded the risk of training them.

Federal Treasurer Scott Morrison outside Parliament House today. Picture: AAP Image/Sam Mooy

The four-year proposal, which will assist 120,000 youths, will start with an ­intensive pre-employment program to provide basic skills before the jobless are placed in internships of up to 12 weeks.

The final stage will involve employers hiring the jobseeker and receiving a wage subsidy of up to $10,000 over the first six months of employment. Money for the Youth Jobs PaTH Programme has been transferred from other schemes deemed to not be working.

Mr Morrison said jobless youths had a significant ­impact on the “long term ­liabilities of the country”.

The Turnbull government has been told those who languish on the dole during their early years rarely get off the taxpayer tab.

“We must do better than this,” Mr Morrison said.

“We must try new ­approaches, not just keep doing the same old thing. And we must keep trying until we get it right.”

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Treasurer Scott Morrison hands down his first Budget last night.

Mr Morrison said the incentive, that would also have employers paid $1000 to take on a work placement during the internship phase, would be welcomed by employers.

“Australian businesses, ­especially small businesses, have told me they want to give young people a go, but we need to do more to get young people ready for a job, so businesses don’t carry all the risk,’’ he said.

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“Young people have told me how they need people to get alongside them to help them to develop the confidence, skills, attitudes and ­behaviours that are expected by employers so they can get a job and stay in a job because that is what they want.”

Mr Morrison said the best form of welfare was a job.

“This is real work for the dole,’’ he said.

Youth unemployment is a serious issue in parts of Western Sydney and Northern NSW. In 2012, a whopping 12 per cent of Australian kids aged under 15 grew up in jobless families.

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Originally published as Federal Budget 2016: $100 a week internships to lure 120,000 youths off the couch