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Budget reprieve for young Australians

The government has slashed its unpopular waiting period for jobless Aussies by five months as part of a much more lenient budget approach to Generation Y.

The ditched measure would have required Australians under the age of 30 applying for Newstart and Youth Allowance benefits to wait half a year, thereby saving $1.2 billion.

The delay has been reduced to four weeks, official budget papers released on Tuesday afternoon confirmed, along with a number of other sweeteners aimed at helping the young find work.

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ā€œThe level of youth unemployment in Australia is too high,ā€ Treasurer Joe Hockey told parliament during his budget speech on Tuesday evening.

Helping the young and disadvantaged ā€œget their startā€ was the new message of the Treasurer, who will completely avoid confrontational terms like ā€˜lifters and leaners’.

A total of about $6 billion will be ā€˜invested’ in training for apprentices and vocational students, the government has claimed.

Part of this spending will include 7,500 scholarships of up to $7,500 to incentivise employers to hire and train young people.

The government also announced a $375 million youth employment package over the next four years to get young Australians job ready and unemployed.

A further $18 million will be spent on a national work experience programme for around 6,000 job seekers, and some community organisations will be paid up to $2,000 to help ā€œdisengagedā€ 15-18 year olds return to school, start vocational training or find a job.

The change in rhetoric was significant, even if some of the spending was not (although the reduced welfare waiting periods would cost $1.8 billion over five years, the budget estimated).

Despite the shift, the budget did announce some new crackdowns.

From 1 July 2016, welfare recipients who shirk appointments and fail to meet work-for-the-dole requirements will have their payments cut immediately.

The government also intends to clean up rorting in the vocational training sector with an $18.2 million ā€œenhanced compliance regimeā€.

The regime, to cost $18.2 million over four years, will ā€œprohibit inappropriate market practices and protect vulnerable studentsā€.

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