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Media CentreWELFARE TO WORK – MORE TRAINING PLACES10 May 2005 MINBUD 17/05 The Australian Government is providing an additional $157.8 million over three years from 2006-07 to assist older Australians and parents to make a successful transition back into the workforce as part of the Welfare to Work initiative. The 2005-06 Budget introduces the Welfare to Work initiative - a comprehensive reform of the welfare system for working age Australians. The initiative tackles the twin goals of reducing welfare dependency and lifting work participation, while maintaining a strong safety net for those who need it. The package boosts funds available to train Australians preparing to re-enter the workforce. Technical and further education funding Funding of $42.6 million over three years from 2006-07 will be provided to expand education and training opportunities for parents and older workers who have been away from the workforce. "Welfare to Work encourages self-reliance and recognises the best form of income is from paid employment. However, some people will require access to education or training before they can seek work," Minister for Vocational and Technical Education, Gary Hardgrave, said today. "Up to 12,300 places will be available over the three years to assist parents and older workers receiving welfare payments to obtain qualifications that will improve their employment prospects and help them re-enter the workforce. "This training will ensure parents and older workers seeking work will be able to have up-to-date skills that are recognised by employers across Australia." Funding for these places will be available from July 2006. These funds will be included in the Australian Government’s offer to the States and Territories for a new Commonwealth-State Training Funding Agreement for 2005 to 2008. The Government is also re-directing $43.3 million from its 2002-03 welfare reform package Recognising and Improving the Capacity of People with a Disability (RICP) to this reform package to provide additional places for people with a disability. States and Territories have already been offered $4.9 billion over 2005-2008 under a Commonwealth-State Training Funding Agreement including the RICP funding. Some $39 million of the extra $42.6 million for parents and older workers will be available over the calendar years 2006-2008 taking the total funding offer to almost $5 billion. Language, Literacy and Numeracy Programme funding Increased funding of $8.2 million for the Language Literacy and Numeracy Programme will provide an additional 2,900 places as part of the Welfare to Work initiative. The training provided will increase the English language and/or literacy and numeracy competency of those moving from welfare to work. "The Australian Government’s Language Literacy and Numeracy Programme helps clients who need to overcome poor language, literacy and numeracy skills in order to win and keep a job, or undertake study and training," Mr Hardgrave said. "A recent review found that more than 85 per cent of clients were satisfied with the quality of assistance and services provided under the programme." Career Planning Programme An additional $312,000 will be provided under the Welfare to Work initiative each year from 2006-07 to 2008-09 to support a further 1,200 parents each year with career advice as they prepare to return to work. This will boost current funding for the Career Planning Programme to $3.37 million in the first year and provide 13,700 places each year. The additional funding will provide a total of $11.3 million for the Programme over the period 2006-07 to 2008-09 for 41,000 places. "The Programme provides professional career counsellors to assist jobseekers make appropriate and realistic career choices," Mr Hardgrave said. "Through the Programme, individuals develop career planning skills as they take steps to participate in the workforce, whether deciding on a course of study, upgrading existing skills or finding the right job." Reducing the taper rate for Youth Allowance, Austudy and ABSTUDY recipients From 1 July 2006 the taper rate for Youth Allowance students, Austudy and ABSTUDY recipients will be reduced to enable full-time students to keep more of their allowance while working. This initiative is consistent with the changes in personal income testing for Newstart Allowances and Youth Allowance job-seekers. "Student allowances already have a generous fortnightly income-free area of $236, providing an incentive for students to remain engaged in employment while undertaking their studies. This is combined with the Student Income Bank, which helps students to keep more of their allowance during periods of higher earnings (such as during end of year holidays)," Mr Hardgrave said. "The change in the taper rate for income over $316 per fortnight reduces the effect on a student’s allowance from 70 cents to 60 cents in the dollar. For a student who earns $500 in a fortnight this means that from 1 July 2006 they will keep an extra $18.40 of their allowance."
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