Treasurer Joe Hockey. Photo: Alex Ellinghausen
The Abbott government is backing down on its controversial plan to make younger people seeking the dole wait up to six months before receiving welfare in a radical departure from its tough "lifter or leaner" language seen in last year's budget.
Instead of asking people under 30 to wait six months before receiving the dole, the Coalition will now seek to extend the existing one-week waiting period to four weeks for people aged under 25.
It is a major backdown from one of the harshest measures included in the Coalition's first budget but the one-month waiting period could still face a hostile response in the Senate.
Under a $330 million "Back to Work" plan to be unveiled when the budget is released on Tuesday night, the Coalition will target young people experiencing difficulty getting into work.
The plan will involve:
- $106 million for "intensive support trials" for young migrants and young people with mental illnesses finding it difficult to enter the workforce
- $212 million for a new "transition" program helping young people who have abandoned their studies or employment and deemed at risk of being on long-term welfare, find work
- $14 million for teenagers who leave school before Year 12 find a job
The government had wanted to force young people to wait for six months before signing onto the dole in an attempt to make them "earn or learn".
The measure was designed to save the budget $1.2 billion over four years but was highlighted by government critics as one of the 2014 budget's harshest measures. It was due to begin in 2015 but was blocked in the Senate.
Budget leak says Govt will lower period young ppl kicked off income support from 6mths to 1mth - its still cruel #Budget2015 #budgetfail
— Rachel Siewert (@SenatorSiewert) May 12, 2015
Speaking to the media earlier on Tuesday, Treasurer Joe Hockey foreshadowed the move when asked if there would be a change to the planned six-month wait.
"You'll see a changed version of that … you'll see it tonight," Mr Hockey said.
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