Announcement date
7 December 2023
Link to announcement
www.dewr.gov.au/new-voluntary-parent-service
Problem being addressed
Some parents of young children can benefit from extra support to help them, when they are ready, to prepare for the workforce while also prioritising their caring roles. This is particularly relevant if they have been out of the labour force for some time. By addressing their individual vocational and non-vocational challenges, parents can work towards achieving their education and employment goals. In the longer term, this can contribute to improving the economic security of parents and their participation.
The government announced on 5 May 2023 (and included in the 2023–24 Budget) that participation in the ParentsNext pre-employment program would become voluntary immediately, and that it would be replaced by a new voluntary program that better meets the needs of parents.
Proposal
Under the recommended option in this Impact Analysis, a new voluntary pre-employment service for vulnerable parents of young children will start in November 2024. The service will be delivered by organisations chosen for their capacity to deliver the new, strength-based, parent-centric service except in one location where delivery by the Australian Public Service will be piloted. To ensure that there is no gap in support for participants, the ParentsNext program, which was due to end in June 2024, will be extended for 4 months until the new service commences.
Engagement with the new program will be voluntary. Interested parents of children aged under 6 years can be connected to a service through Services Australia or make contact directly with a service which would assess their eligibility and register them for assistance.
Assessed Impact Analysis outcome
Adequate
Assessment comments
To be assessed as ‘good practice’ under the Australian Government Guide to Policy Impact Analysis, the Impact Analysis would have benefited from further elaboration on the evaluation approach, including firmer details on obligations of specific parties, key products, and review or decision points following implementation.
Regulatory burden
The Department of Employment and Workplace Relations estimates the new voluntary program will have an annual regulatory cost of $8.78 million, averaged over the contract period of three years. The Department estimates the 4 months extension of the existing ParentsNext program will have a regulatory cost of $3.94 million.
This Impact Analysis was required due to the benefits available to the large number of parents who may participate in the new voluntary service. Almost all estimated regulatory burden is attributed to organisations engaged to deliver the services following their response to an approach to market.