Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Hansard source

I thank Senators Abetz and Siewert for their comments in the debate on the Social Security Legislation Amendment (Connecting People with Jobs) Bill 2010. However, I reject Senator Abetz’s comments regarding the government’s agenda. The government has had an extremely strong agenda in terms of employment participation. The stimulus for nation building and jobs was targeted at keeping people in employment: 200,000 jobs were supported and protected by the stimulus package while, at the same time, workers, who otherwise may have lost their jobs, were kept in employment and could keep food on their tables and roofs over their families’ heads. That is what the government stands for.

This bill is a key component of the government’s Connecting People with Jobs trial. It aims to improve labour mobility and support for long-term unemployed job seekers. The Connecting People with Jobs trial will commence on 1 January 2011. It will provide support for long-term unemployed job seekers living in areas with high unemployment rates and keep them connected with jobs in other parts of Australia. Job seekers who relocate to take up an ongoing full-time position or apprenticeship will be reimbursed up to $9,000 for relocation expenses and other needed supports. Under the trial, job seekers will be eligible for reimbursement of up to $3,000 for relocating to a metropolitan area or $6,000 for moving to fill a job in a regional area. They may be eligible for an additional $3,000 if they are relocating with their family.

Relocation, as we know, often has high costs, especially when it involves moving interstate or even across the country. These job seekers will have sought employment in their current location for at least 12 months but may have lacked the resources to move to take up employment further afield. As part of Labor’s election commitment, employers will also be eligible for a wage subsidy of $2,500 to create an upfront incentive for taking on these job seekers. This is in recognition of the additional support and assistance individuals will need in the early stages of their employment in the new location. While this trial will encourage the long-term unemployed to relocate to take up a job, this bill seeks to create an incentive for individuals to stay in their new location and to keep them in sustainable employment. Specifically, the bill seeks to strengthen associated compliance measures for job seekers who have been assisted to relocate to a job under the trial by extending to 12 weeks the period of nonpayment of income support, should a relocating job seeker leave the job within the first six months as a result of a voluntary act or of misconduct.

We know that job seekers were previously subject to an eight-week non-payment period. In relation to Senator Siewert’s comments can I just say that under the trial, if a job seeker leaves their relocation employment without good cause within the first six months, the standard non-payment period will be increased from eight weeks to 12 weeks. The important point is that this will happen if they leave ‘without good cause’. Job seekers will of course have an opportunity to explain their situation to Centrelink.

The national unemployment rate currently sits at 5.4 per cent, which is down from 5.7 per cent a year ago. However, the truth is that the employment situation varies across the country. In the modern age there is a need for greater labour mobility—that is something we all accept—and relocating part of the workforce to meet employer demand is an effective measure of achieving this. The Connecting People With Jobs trial will enhance the flexibility of the labour market by encouraging additional relocation activity to help better match labour supply with demand. The funds for relocation will provide job seekers with assistance for things such as airfares, removals, temporary accommodation, post-placement support and mentoring. I think that is very important: it is not just about the relocation expenses; it is also about post-placement support and mentoring. It will also provide employers with the workers they need to grow their businesses and ensure that people have sustainable employment into the future.

Question agreed to.

Bill read a second time.