Budget2016

Youth employment

Creating an innovative pathway to work for young people.

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Real jobs for young people

As Australia transitions to a more diversified economy, it is critical to ensure that young people have the opportunities to thrive in the growing sectors where their skills can be put to use.

Due to their lack of experience, often youth have difficulty getting the start they need in the workforce.

The Government is investing $840 million in an innovative Youth Employment Package to help up to 120,000 young people over four years secure jobs.

Youth Jobs PaTH

To achieve this, the Government  has created a new Youth Jobs PaTH (Prepare-Trial-Hire) Programme for young people. The Youth Jobs PaTH responds directly to business feedback that more needs to be done to increase young people’s employability and to provide them with real work experience.

The pathway will be open to vulnerable job seekers under 25 years of age who are in employment services.

The Youth Jobs PaTH Programme comprises three stages that can be undertaken flexibly, allowing young job seekers to tailor a pathway to work that best suits their needs and builds on their individual strengths and experiences.

Stage one of the pathway is intensive pre-employment skills training, which will help prepare young job seekers for work by providing them with the basic employability skills they need  in a workplace.

Stage two is an internship placement that links young people with businesses, providing valuable work experience and allowing them to trial the job seeker’s fit in the workplace.

Up to 30,000 job seekers each year will gain a four to twelve week placement in an industry of their choosing. Interns will receive an incentive payment of $200 a fortnight paid in addition to their income support, and businesses will receive an upfront payment of $1,000 to host them.

At stage three, employers who hire an eligible young job seeker in an ongoing job will receive an accelerated wage subsidy of up to $10,000, paid over six months through simpler and more flexible arrangements.

Enterprising youth

Supporting self-employment and entrepreneurship among youth.

In addition to creating the Youth Jobs PaTH Programme, the Government is investing an extra $88.6 million in supporting those job seekers, including young people, who wish to start their own business.

This complements the Government’s National Innovation and Science Agenda and will help more young Australians capitalise on the opportunities presented by Australia’s economic transition.

The Government is encouraging entrepreneurship, including through expansion of the successful New Enterprise Incentive Scheme (NEIS).

Eligibility for NEIS will be broadened to allow access to self-employment training and mentoring for job seekers who are not on income support, including those not in employment, education or training.

An additional 2,300 NEIS places each year will also be funded, making a total 8,600 places available annually.

The Government will also establish new ‘Exploring Being My Own Boss’ workshops to engage young job seekers to explore self-employment, in addition to Self-Employment Starter Packs and appointing Inclusive Entrepreneurship Facilitators in selected locations with high youth unemployment.

These measures will connect more job seekers, including youth, with the business training, finance and networks they need to develop their innovative ideas into successful businesses.

“Our economic plan for jobs and growth will help young Australians get real jobs.”

Treasurer Scott Morrison

Learn more about our plan with regular email updates