Budget crackdown won’t shorten the dole queue

THE AUSTRALIAN MAY 26

Out of work.

Out of work. Source: TheAustralian

FIFTY per cent of dole recipients do not have to look for work, because of a doubling of job-search exemptions granted in the past four years.

Treasury figures reveal the ­Abbott government expects the average time on the dole to remain at four years and four months, despite its welfare crackdown.

New Department of Social Security data reveals that 734,866 unemployed people were receiving Newstart or its junior version, Youth Allowance (other), last month — an 8 per cent increase in the space of a year.

Two-thirds of them had been out of work for more than a year, as long-term unemployment surged 10 per cent.

And 432,183 dole recipients were exempt from job-search requirements — an 11 per cent increase during the year and more than double the 2009 figure.

Of those, 60,719 were exempt because they were volunteering or working part-time, an important stepping stone to get off welfare.

Another 74,042 had a doctor’s certificate declaring them to be ill or “incapacitated’’.

The data shows 204,665 other dole recipients were exempted from job-hunting due to “other ­activities’’.

They include unemployed parents with more than three children, who do not have to seek work if they are the principal carer.

Nor do those who home school their children, or supervise distance education. Exemptions are also given for studying, or suffering a “major personal crisis’’ such as bereavement, domestic ­vio­lence or homelessness.

Newstart recipients in their 20s are generally required to apply for 10 jobs a fortnight and attend regular interviews with job-search agencies.

Social Services Minister Kevin Andrews yesterday said the number of Newstart and Youth Allowance recipients classified as “non-jobseekers’’ had more than doubled since 2009.

“Under Labor, there was a massive increase in the number of people on unemployment benefits classified as ‘non-jobseekers’,’’ he said.

The federal budget papers reveal the Abbott government does not expect to shorten the dole queue in the next four years, despite its tough measures to make the under-30s wait six months for Newstart.

It calculates the average time on Newstart to remain longer than four years, with the mean duration of income support rising from 229 weeks this financial year to 235 weeks by 2017-18.

Mr Andrews yesterday said he was “very concerned’’ because the payments were not meant to be permanent.

Under changes in the budget, unemployed people younger than 30 will have to wait six months to receive Newstart or Youth ­Allowance, starting from January next year.

The waiting period will be waived for those who work part-time, study, are the principal carer of a child or who are in the most disadvantaged categories, such as the homeless or mentally ill.

Assistant Minister for Employment Luke Hartsuyker said the government wanted to ensure that “all Australians who have the ­capacity to work are working’’.

He provided separate Employment Department data showing that one in three “active jobseekers’’ had been exempted from looking for work.

Australian Council of Social Services spokeswoman Rebecca Vassarotti yesterday said two in every three Newstart and Youth Allowance recipients remained on the payment for more than a year.

“The long-term unemployed often face complex barriers to work and there are a limited number of entry-level or low-skilled positions available,’’ she said.