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Australia unveils biggest employment services shakeup in 30 years with new three-tier system
The Australian government is scrapping the one-size-fits-all Workforce Australia model and replacing it with a three-tiered system to help unemployed Australians find work based on their individual circumstances. Employment Minister Amanda Rishworth will detail the reforms at the National Press Club.
The Australian government is set to announce the biggest overhaul of employment services in approximately 30 years, scrapping the current one-size-fits-all Workforce Australia model. Employment Minister Amanda Rishworth will unveil the details in a speech at the National Press Club, outlining a new three-tiered system designed to match unemployed Australians with the level of support they actually need.
Under the current system, anyone receiving government income support such as JobSeeker is connected to a provider through Workforce Australia. However, critics have argued that providers have a financial incentive to prioritise people with strong qualifications and employment histories over those who need more intensive assistance. The new model aims to address this fundamental flaw in the system.
Tier 1 will be a digital service for people who are job-ready and simply need help finding the right position. Tier 2 will offer more targeted support for those who need help building skills and confidence to return to the workforce. Tier 3 will provide intensive, wraparound support for people facing complex barriers to employment, such as mental health challenges, unstable housing, or recovery from serious workplace injuries.
The government is also addressing longstanding concerns about mutual obligations, the requirements that welfare recipients must meet to continue receiving payments. Under the previous coalition government, strict enforcement of these obligations sometimes resulted in vulnerable people having their payments cut unexpectedly due to technical glitches or circumstances beyond their control. The system has also been criticised as a box-ticking exercise that causes unnecessary stress and anxiety.
The reforms are expected to affect hundreds of thousands of Australians who currently receive employment-related government support. The government is promoting the changes as a shift from a punitive approach to a supportive one, where the system works with people rather than against them. The new model is expected to be phased in over the coming year as existing contracts with employment service providers are renegotiated.