Treasurer Jim Chalmers yesterday unveiled a white paper detailing changes aimed at bringing age pensioners and welfare recipients back into the workforce.
The new measures are expected to benefit 138,000 people annually and are slated to be introduced by July next year.
Combatting labour shortages
The initiative comes as part of a broader effort to combat the nation's skills and labour shortages.
Under the new measures, the age pension Work Bonus will be revised, allowing pensioners to earn up to A$300 per fortnight without it affecting their pension.
The scheme is estimated to cost A$42.4 million over three years.
Additionally, welfare recipients who gain employment will be able to retain associated concessions for 24 weeks, doubling the current limit of 12 weeks. This move is costed at A$42.8 million over three years.
Chalmers said the aim of the changes was to "remove key disincentives to taking up work", particularly in short-term and gig economy roles. The government plans to implement the measures by July 1 next year.
The white paper also examined a range of other policy decisions, such as investing A$40 million to expand TAFE training in high-need sectors and the establishment of a national skills passport.
What is ‘full employment’?
It targets a more ambitious full-employment figure than the Reserve Bank of Australia's estimate of 4.5%, redefining the term to take into account labour market under-utilisation.
The paper refers to the government’s view that full employment should be sustainable, inclusive and secure, acknowledging that people currently feel their work is unstable, hard to find or represents fewer hours than they would like to work.
The proposed changes align with broader governmental strategies, including tackling climate change, enhancing productivity and regulating the industrial relations system.
Noteworthy is the planned increase in the employment of Indigenous Australians and improvements to the Local Jobs Program, aimed at better assisting job seekers.
The document also anticipates a surge in the clean energy workforce, projecting a growth from 15,000 workers this year to 34,000 workers in 2033, according to a Deloitte study.
Climate resilience
In terms of the broader economic landscape, the white paper warns that factors such as natural disasters and climate change could act as impediments to productivity. As a countermeasure, the government is developing a National Climate Adaptation Plan to improve Australia’s resilience against extreme weather events.
This paper underscores the critical role of innovation in sectors like agriculture to mitigate these challenges.
The white paper also defends the government's decision to re-regulate the industrial relations system.
Despite claims from the business sector that these proposals could stifle productivity, the document argues for a "more inclusive, fair and productive labour market", with specific reference to the Closing the Loopholes Bill. This legislation aims to crack down on labour-hire malpractices, regulate the gig economy and outlaw wage theft.
The government's approach appears to be twofold: immediate relief for those on income support and age pensions, and longer-term strategies to combat skills shortages and improve productivity.