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New employment services model

Regulation Impact Statement – Department of Employment

On 1 July 2015, the Australian Government announced the start of jobactive, the new government-funded employment services model. It is delivered by contracted providers which assist eligible job seekers to prepare for and find employment, as well as to comply with various requirements in return for income support. The new model varies from the previous employment services arrangements in place since July 2009, Job Services Australia. The key objective of jobactive is to promote stronger workforce participation by people of working age and help more job seekers move from welfare to work. The changes are intended to improve job outcomes, better meet the needs of employers, increase job seeker activation and reduce service prescription and red tape. Principal changes under jobactive are contracting of a smaller number of providers, larger servicing regions, longer contract terms, a greater emphasis on outcomes in the payment and performance frameworks for providers, requirements for providers to monitor job seekers’ job search, and use of new information technology to reduce administrative and compliance burdens. A Regulation Impact Statement (RIS) was prepared and certified by the Department of Employment. The RIS is not yet compliant with the Government’s RIS requirements as the former Prime Minister granted the Department an extension of time for the preparation of regulatory cost burden estimates. These will need to be agreed by the Office of Best Practice Regulation (OBPR) by 30 September 2015. The OBPR will provide a final assessment of the RIS when the regulatory cost estimates are agreed.