There is a lot of merit to Tony Abbot’s proposal to tighten the compliance rules on Youth Allowance and Newstart Allowance recipients aged under 30 that would requiring them to work in areas experiencing labour shortages.

The public is generally unaware there is a thorough suitability test on the activities offered to jobseekers on income support. One of the components of the suitability tests involves a travel time rule.
The travel time rule says jobseekers that have the capacity for full time work do not have to take up employment or training if the travel time is more than 90 minutes. As a result, there are no requirements to move to areas experiencing labour shortages.
Given there are workers on modest salaries not receiving benefits who travel more than 90 minutes to work, the suitability test is generous.
The generosity continues as employment service providers assist jobseekers to meet the cost of travel by paying for petrol, public transport tickets, car repairs and even bicycles as part of the suitability test.
Removing the 90-minute travel rule will have a positive affect on those targeted jobseekers in two key ways not directly related to skills shortages:
First, the effect would be felt mostly in areas of high youth unemployment such as the Coffs Harbour and Gold Coast regions.
Providing support and assistance to relocate to areas with greater opportunities will challenge the torpor many young people fall into when they drift to areas with irregular seasonal work and high rates of unstable accommodation. The proposal could take pressure off local homeless services - more than half of the 105,000 homeless are under 25 years of age
Second, many will take up suitable work or a combination of work and training within their own labour market radius.
Employment service providers in regional areas will tell you quietly there are jobseekers deliberately residing 90 minutes away to dodge steady work. A considerable amount of taxpayers’ money is spent brokering opportunities for such jobseekers and the rules should seriously take this into consideration. Abbott’s proposal will give those few recalcitrants a shake-up, as it will be harder to avoid having their benefits suspended or cut.
Some jobseekers on income support do voluntarily travel more than required 90 minutes; some are eligible to be relocated to stronger labour markets and are grateful for the assistance offered by employment service providers to make the move; and eligible sole parents are often assisted with relocation costs to safer and more supportive areas more conducive to work, training and schooling.
Abbott’s proposal, as it is currently understood, intends to focus on those young jobseekers with full time capacity. I presume that those with families will be exempt. If Abbot’s proposal includes new money for relocation and related costs than many people will take up the offer and the support. This can only be a good thing for jobless families.
Paul Howes, Secretary of the Australian Workers Union, has already jumped on the proposal as punitive. Jobseekers on income support, he has suggested, do not have the capacity to acquire skills in mines and other workplaces.
No one is suggesting training and skills transference would not be part of Abbott’s proposal. Opportunities for formal training, traineeships and apprenticeship already exist.
If Labor want an informed debate, then it could realise the results of Sharman Stone’s 2007 voluntary relocation pilot to evaluate its success.
Provided the support is there, Abbott’s challenge to young Australians to value work is a worthy one. It is the status quo that is punitive as it keeps young people within a circle and a cycle of welfare dependency.
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