Category Archives: The Australian

Blitz on remote dole scheme

29th October

The Australian

 

UNEMPLOYED ­Aborigines in remote communities will be forced into work for the dole five days a week, with tough new sanctions for failing to participate, under changes that have in-principle cabinet agreement.

Under the new policy, un­employed people with full work capacity would be forced into 25 hours of “work-like” dole activities spread over the week. Sources said there would not be any activities that allowed people to spend their time “painting rocks”. Instead the activities would replicate real work to ensure unemployed Aborigines were “work ready”.


The scheme will force all ­remote Aborigines into work for the dole but there will be people who will be allowed to do less than 25 hours a week based on their ­“assessed capacity”, which will ­acknowledge that some ­people who are on the general ­unemployment benefit, Newstart Allowance, are parents or disabled.
Sources said the joint cabinet submission by Employment Minister Eric Abetz, Social Services Minister Kevin Andrews and Indigenous Affairs Minister Nigel Scullion greatly increased the sanctions placed on unemployed Aborigines in remote areas who failed to meet their new mutual obligations.
The larger package, including new spending to pay for the massively expanded scheme, must still go back to cabinet for final endorsement.
The Australian has previously foreshadowed that the Abbott government was looking at overhauling Labor’s remote jobs scheme.

Unlike the now downscaled CDEP scheme, under which unemployed indigenous people did work-for-the-dole activities and were paid “top-up wages”, the new scheme will not provide them any extra money for the full-time workload.

Work for the dole is not currently an element of the Remote Jobs and Communities Program, which operates in 60 communities. Jobseekers can be engaged in structured activities that are similar in nature to work for the dole for the amount of time needed to meet their mutual-obligation ­requirements. The scheme is loose and does not force most people into activities every day.

The Coalition has concluded that the $1.5 billion nationwide scheme has been failing to engage Aborigines in work.

The $120 million already spent equates to about $433,000 per successful job placement of six months or more.

The data reveals that only 30 per cent of the 37,000 unemployed Aborigines registered with the scheme were engaged in work for the dole and similar structured mutual-obligation activities.

Under the RJCP, which was introduced by the previous Labor government, a single provider in each region is contracted to work with individuals, communities and local employers to help more people into jobs and build stronger communities.
The program was designed to provide a more integrated and flexible approach to employment and participation services for people living in remote areas. It began in July last year with five-year contracts.

Under the changes considered by cabinet, these job agencies will be forced to roll out a huge work-for-the-dole program for the unemployed people they manage.
The changes will be made separately to consideration of Andrew Forrest’s broader welfare review, but the recommendations from his report will inform the thinking behind the changes.

The Forrest review called for many substantial changes, including the introduction of a national “healthy welfare” card that would prevent spending on alcohol and gambling, a significant reduction in the number of income-support payments, and bans on young people accessing welfare unless they are training or in work.

The mainstream work-for-the-dole scheme will also be reformed, under plans already announced. Extending work for the dole and the creation of new wage subsidies for the long-term unemployed will be a key part of the proposed system.

Almost $900m will be spent on extending the work-for-the-dole scheme over three years from next July. Jobseekers aged 30-49 will be required to do 15 hours’ work a week, while people aged 50-60 will be asked to do 15 voluntary hours a week of an approved activity.

Work for the dole will be mandatory for all jobseekers younger than 50 unless they are working part-time or, in limited cases, undertaking training for a specific job that is in demand in their local area.

Macklin: McClure dole plan will leave welfare recipients worse off

THE AUSTRALIAN
OCTOBER 09, 2014

LABOR’S Jenny Macklin has attacked a plan by the government’s welfare review to give people on payments an interim ‘no financial disadvantage’ period after changes are introduced, saying it will still “leave people on income support worse off”.

Ms Macklin said the McClure review is “nothing more than Tony Abbott and Joe Hockey’s next round of savage cuts to vulnerable Australians”.

The draft McClure report has called for a simplification of the welfare payment system, reducing it to four new payments: a tiered working-age payment, a disability support pension (only for profound disabilities), an age pension and a child payment.

The McClure panel is keen to recommend in its final report that “no one is financially disadvantaged” by the radical welfare changes in the short term.

Under the final recommen­dations, people currently on the DSP with a work capacity would be put on the new “working age payment” and required to do job-search activities and training but would not be financially penalised in the short term.

Currently, the DSP pays $166 a week more than the general unemployment benefit, Newstart Allowance.

However Ms Macklin said giving people a “grace period” would mean nothing if welfare recipients were going to be left worse off in the long run.

“The reality is that vulnerable Australians will be hit hard by the recommendations of this review,” she said.

“The Abbott Government’s first Budget has already tried to rip billions of dollars out of the pockets of low income Australians. Now Tony Abbott and Joe Hockey are hunting for their next round of savage cuts. It seems the Budget was just the start for this cruel and short-sighted Government”.

Ms Macklin said while Labor is not against simplification in principle, the opposition is concerned that simplification is this Government’s code word for cuts.

“Labor will not support another attack from Tony Abbott and Joe Hockey on the most vulnerable members of our community”.

She added: “Tony Abbott needs to explain to low-income Australians — already reeling from the budget — exactly how they will be affected by the McClure Review and by how much. Mr Abbott should also explain why he is so intent on ripping money away from welfare recipients, whilst at the same time paying $50,000 to wealthy women to have a baby”.

One in four on Newstart Allowance has significant disability

THE AUSTRALIAN
OCTOBER 03, 2014 12:00AM

ONE in four unemployed people on the Newstart Allowance has a significant disability, according to new data from the Department of Human Services.

There were 173,060 Newstart Allowance recipients with a disability at March 2014, and 24.9 per cent were receiving support from a Disability Employment Service or had a “partial capacity to work”.

More than 133,000 Newstart recipients were assessed as having a work capacity of less than 29 hours a week (at December 2013).

The main disability types are assessed, and broken down by the top 10 medical conditions. The main health barrier experienced by jobseekers on Newstart was physical disabilities, which affected the largest cohort of jobseekers.

Maree O’Halloran, of the Nat­ional Welfare Rights Network, said the figures were alarming.

“Some jobseekers have more than one disability and 100,600 jobseekers had physical disabilities affecting their limbs, shoulders and upper arms, spine and another musculo-skeletal disorder,” she said.

These jobseekers had problems lifting, walking long distances or standing for long periods.

“Over 72,000 jobseekers experienced depression or were dealing with psychiatric/psychological disorders or coping with anxiety. Other common disabilities included hypertension, which affected 12,410 jobseekers, and circulatory system problems, which was a serious problem for 10,365 people on Newstart.

“It is extremely common for people to experience both a physical disability (and) a mental health condition.

“At Welfare Rights, we see large numbers of unemployed people battling major health issues; many are also impacted by housing problems or are experiencing family violence. Sometimes, the employment service system fails to adequately support these jobseekers.

“The extra costs of managing their disability is a constant challenge on an inadequate Newstart of less than $260 a week. Some are going without food or essential medications to cover accommodation,” Ms O’Halloran said.

Social Services Minister Kevin Andrews said “taxpayers expect their money to be used to support those in genuine need and our approach is making sure this happens. More than 2000 people apply for the (Disability Support Pension) every week, so we need a thorough process to ensure that those who need financial assistance get access to the benefit.”

The government said in 2012-13 there were 127,173 DSP claims.

Welfare Rights said there was a danger that the Newstart Allowance would become the main payment for people with disabilities as governments imposed tighter conditions on the DSP.

“It is essential that Newstart is increased to a rate that allows people to meet the essential costs of living.”

Disabled face loss of benefits for compliance failures

October 08, 2014 12:00AM

The Australian

THE tough new rules targeting people under 35 on the disability support pension mean their payments will be either suspended or cancelled if they fail to comply with strict eligibility rules.

Welfare Rights will today put out an analysis of the changes that passed the Senate last week that shows for the first time since Australia introduced social security assistance for people with disabil­ities early last century that people receiving the DSP will knock up against a tough compliance ­regime.

And the government has plans to make a tough penalty system even tougher, with its Strengthening the Job Seeker Compliance Framework Bill, which is being investigated by a senate committee.

National Welfare Rights Network president Maree O’Halloran said: “New jobseeker compliance arrangements will now apply to people with disabilities. Their payments will be either suspended or cancelled if they don’t attend a participation interview, do not enter a compulsory agreement or if they fail to undertake a compulsory activity.”

People who fail to comply for a third time within a 12-month ­period will have DSP payments cancelled. They will be forced to reapply under the tougher 2012 Impairment Tables, which make it much harder to get on the DSP.

Information also released by the Department of Social Services reveals that almost half of those targeted for DSP medical reviews — also a 2014-15 budget measure — have a psychiatric or psychological disability. Senate estimates hearings revealed that 48 per cent, or 13,350, of people picked for a medical review had a psychological or psychiatric condition as their primary disability.

A spokeswoman for Social Services Minister Kevin Andrews confirmed that a participation plan had to include a compulsory work-focused activity.

The spokeswoman said: “The Abbott government was able to begin this measure on July 2014 because of changes legislated by the Gillard Labor Party in July 2012.

“The Labor Party legislated for DSP recipients under 35 years who have a capacity of eight or more hours a week to take up participation plans. However, the participation plans had no compulsory activities”.

‘Repackaged’ welfare cuts head to Senate after Labor supports changes

 2nd October 2014

THE Abbott government is hoping to make its controversial budget welfare cuts more attractive by sending them to the Senate in a different form. 

It has repackaged stalled legislation into four new bills — a move it considers will maximise the chances of getting its changes past hostile Senate crossbenchers.

Labor is claiming a victory for itself and the people by forcing the government into what it labelled a “humiliating backdown”.

“This is your victory over Minister Andrews and Tony Abbott,” Opposition Leader Bill Shorten told parliament.

Social Services Minister Kevin Andrews preferred a more pragmatic explanation, saying repackaging the bills may be more attractive to Senate crossbenchers.

The government denies it has backed down on its welfare changes, arguing nothing has changed.

Measures reintroduced to the lower house maintain all its planned changes affecting the young unemployed, pensioners and families.

They include forcing young people to work for the dole, moving under 25s onto the lower Youth Allowance, families with children aged over six being cut off from the Family Tax Benefit B payment and raising the age pension eligibility to 70 by 2035.

Mr Shorten said the compromise had destroyed the credibility of the budget and the Prime Minister.

“This is the government defeated.”

Mr Andrews instead claimed a victory, saying with the support of Labor $2.7 billion worth of non-controversial welfare cuts would pass parliament.

“That’s actually success,” he said.

The government’s “principal position” was to stand by its changes but it will be open to “sensible talks” with crossbenchers over the coming days and weeks.

That may include making under-30s wait one month instead of six for the dole.

 

WELFARE CHANGES PASSED LOWER HOUSE WITH LABOR BACKING:

* Rename carbon tax compensation payment to energy supplement

* Freeze indexation for two years on asset value for all working-age payments

* Disability support pensioners under 35 to be reviewed for work ability

* Limit six-week overseas travel portability for student payments

* Include untaxed super in assessing access to Commonwealth Seniors Health card

* Only those earnings