Announcement dates & links
11 December 2024 - Grants now open for the $707 million Remote Jobs Program
13 December 2024 - New Remote Employment Service to help job seekers build skills and strengthen communities
Problem being addressed
Remote Australia generally has thin labour markets and lower employment rates compared to non-remote areas. Many remote communities have a dearth of job opportunities, associated with economic and social issues. Job seekers may not be prepared to enter the workforce immediately when opportunities arise and may face significant barriers to obtaining employment.
Job seekers in remote Australia are currently serviced by the Community Development Program (CDP) which helps support people interacting with labour markets in 60 CDP regions. The CDP was introduced in 2015 and sought to implement a typical work week, with participants completing work-like activities in remote areas to better prepare them for employment.
The Australian Government has committed to replacing the CDP with real jobs, proper wages and decent conditions. The commitment stems from the need to address thin labour markets in remote Australia, which are unlikely to naturally resolve into positive outcomes. Remote job seekers require a high quality, fit for purpose employment service to achieve positive outcomes.
The Australian Government has consulted with remote communities, job seekers, employers, CDP providers, local corporations, council members and other stakeholders on how to replace the CDP. Phase 1 of the consultations heard from over 2,250 people in over 100 remote communities, seeking to listen to and learn from the views of remote community members. Phase 2 of consultations tested the design of the RJED program and heard from over 3,000 people in around 200 remote communities, with over 80 survey and submission responses received, and eight roundtables attended by community organisations, private sector organisations and state/territory and federal government representatives were held.
Proposal
The National Indigenous Australians Agency (NIAA) considered two options to address comparatively lower employment outcomes for Australians in remote communities:
Option 1: Retain the status quo by continuing the CDP.
Option 2: Replace the CDP with two complementary programs:
the new Remote Jobs and Economic Development (RJED) program to create 3,000 jobs with fair pay and conditions
a new remote employment service to provide tailored support to remote job seekers considering their individual goals, barriers, needs and proximity to the labour market.
Based on the information gathered through the consultation process, NIAA considers the preferred approach to be Option 2.
While Option 2 has a higher regulatory burden, this option is more likely to benefit job seekers, remote communities, local employers and community organisations. Option 2 would help to address barriers to employment that are prevalent in remote communities, including training and skills development opportunities, as well as linking participants with suitable employment opportunities. Option 2 includes a new remote employment service designed to better support remote job seekers through a case-management approach to drive engagement and aspiration among participants.
Assessed Impact Analysis outcome
Good Practice
Assessment comments
The OIA has assessed the analysis in the IA is good quality. The IA addresses the seven IA questions and follows an appropriate policy development process commensurate with the significance of the problem and magnitude of the proposed intervention. In particular, the IA has a strong focus on consultation with remote communities and organisations and has incorporated this consultation into the analysis. To be considered exemplary, the IA would have benefited from a more detailed discussion of implementation risks.
Regulatory burden
The NIAA estimates reforming the CDP would increase average regulatory costs by $9.764 million per year, over three years.