Budget says those under 30 will have to work 25 hours a week to receive Newstart or Youth Allowance

This article is more than 6 years old

This article is more than 6 years old

People under 30 will receive Newstart and Youth Allowance for only six months of the year which they will spend undertaking 25 hours a week on Work for the Dole programs.



The Abbott government’s first budget revealed job seekers applying for Newstart or Youth Allowance, who have not been previously employed, will face a six-month waiting period of no income support before they are eligible for payments by undertaking 25 hours a week in the Work for the Dole program.

Once they have spent six months on the program, they will lose income support for another six months unless they undertake training or study.

People under 25 will not be eligible for the dole and instead will have to apply for Youth Allowance which is about $100 less a fortnight. Newstart and Youth Allowance will also be frozen for the next three years. The six monthly payment system will take effect from July next year.

The current Newstart rate is $510.1 a fortnight which will equate to about $10.20 an hour for their work in the Work for the Dole program. The maximum Youth Allowance payment is $414.40 a fortnight which equates to $8.29 an hour in the program.

In the six months applicants for Newstart and Youth Allowance do not receive income support, they will be required to undertake government-funded job seeking programs.

Newstart applicants will receive one month of income support for every year they worked before applying for the dole and exceptions to the six months of no income support include parents, young people unable to work more than 30 hours a week, part-time apprentices and Disability Employment Service clients.

People who refuse jobs will also be penalised with their income payments withdrawn.

“The government’s welfare changes pare back the widening gap between community expectations and what it can – or should – realistically do. Individual responsibility should be a driving force for building a stronger and more prosperous Australia,” the Social Services Budget guide said.

People are currently eligible for Newstart from 22 years old and that will be increased to 25.

From July 2014 job seekers who have been unemployed for more than a year will have to undertake 15 hours on the Work for the Dole program. This will increase to 25 hours a week from July 2015.

All job seekers who refuse work “without any good reason” according to the budget papers will lose their payment for eight weeks with only one chance to waive the penalty by doing additional activities or proving financial hardship.

The one strike and you're out for eight weeks approach will save the government $20.9m over four years.

The phased approach to the Work for the Dole programs will cost $14.9m over two years.

Newstart and Youth Allowance could face further changes with the government signalling in the papers there will be further “structural reform” to the welfare system after reviews which are currently underway are completed.