The Minister for Employment Participation, Brendan O’Connor, today announced the release of the Exposure Draft of the new purchasing arrangements for $3.9 billion new employment services.
Mr O’Connor said a number of recommendations put forward to Government had been adopted in the exposure draft following the release of the Discussion Paper, The Future of Employment Services in Australia in May.
Feedback on the new arrangements was received from more than 190 stakeholders, including employment services providers, employers, unions, job seekers and state and federal parliamentarians.
The Government has taken this advice into account ahead of going to the market and inviting tenders for the new employment services in late September this year.
Main refinements include:
- Proposing that for highly disadvantaged job seekers, the performance of providers be measured on social outcomes such as improvements in literacy and numeracy, as well as employment outcomes;
- Broadening the eligibility for the $41 million Innovation Fund to a wider range of organisations who, in addition to employment services providers, will have an opportunity to put forward innovative ideas to address barriers to employment for individuals and areas that are highly disadvantaged;
- Strengthening the New Enterprise Incentive Scheme (NEIS) with around 18,000 training places being made available under the Productivity Places Program for job seekers who wish to establish their own small business in an area of skills shortage. Highly disadvantaged and Indigenous job seekers will also be encouraged to undertake NEIS; and,
- Greater recognition of provider efforts in preparing more disadvantaged job seekers to find themselves a job.
Mr O’Connor said the new services represented a fundamental reshaping of employment services. More resources will be made available for the most disadvantaged job seekers and will help employers find the workers they need.
Providers can specialise in services for groups of job seekers such as youth, Indigenous, the homeless and those with mental illness.
Further work will be undertaken on social outcomes for homeless job seekers as part of the Rudd Government’s Homelessness White Paper due to be released in September.
The Government will strengthen links with Indigenous Employment Programs and require employment service providers in remote areas to work closely with communities to develop employment opportunities.
The Government is also proposing all successful tenders will be required to develop a strategy for employing and retaining Indigenous Australians in their own organisations.
Under the new services, job seekers will receive tailored assistance, known as an Employment Pathway Plan, which may comprise a mix of employment services, work experience and training.
Mr O’Connor said Work for the Dole will be retained as the primary Work Experience activity.
He said the current system is out of date and is a complex maze of employment programs that don’t address the needs of those who remain unemployed in today’s tight labour market.
It is essential the Government reduces unnecessary administration to allow providers more time for job seekers.
The Government has also committed $1.9 billion over the next five years to provide 630,000 new training places, including 238,000 places for job seekers with the primary aim of addressing skill shortage areas.
Mr O’Connor said the Government will work with Skills Australia to maximise employment opportunities to address skill shortages including through self-employment.
Exposure Draft documents and further information about consultation sessions to be held around Australia between August 6 to 14 is available from www.workplace.gov.au/ESpurchasing.