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AUSTRALIA

Mixed Budget blessings

  • 11 May 2011

The stand-out item in this year's Federal Budget is the long overdue upgrading of support for mental health. The increase in funding for this program and commitment to put in place a 10 year roadmap this year are most welcome. This will enable expansion of services, additional prevention and early intervention for children and young people and improved access to the primary health system for people with a mental illness.

As foreshadowed by the Prime Minister and Treasurer over the last month or two, a major thrust of this Budget is to promote increased engagement of people who have been excluded from employment and training into a pathway for skills development and, where possible, employment. The scale of the investment in training is substantial, with a National Workforce Development Fund being created to deliver 130,000 new training places and $1.75 billion being allocated to improve vocational education and training programs.

A further $143 million is provided for a literacy, language and numeracy program, reflecting evidence over recent years that such programs require substantial investment in order to assist job seekers.

In contrast, too little attention has been given to the complex needs of the very-long-term unemployed. While a $95 million wage subsidy component is designed to assist employers who hire a very-long-term unemployed person, this alone is unlikely to address the pre-employment needs of many job seekers in this situation.

In addition to the literacy, language and numeracy issues faced by many jobseekers, achieving a successful job pathway for many long-term unemployed people requires a range of intensive support programs and intermediate labour market programs. Moreover, the history of employer subsidy schemes in the past is patchy.

I also fear that, despite good intentions, the shift in work experience requirements for this group from six to 11 months could lead more job seekers to drop out of income support payments altogether.

Amid a number of positive employment-focused initiatives, it was a significant missed opportunity for a Welfare to Work reform agenda not to bring Newstart and Youth Allowance payment levels up to a minimum standard to cover essential living costs. An independent Entitlements Commission should be established to make objective recommendations about adequate levels of payments.

The disability support pension was another focus of this budget. It was pleasing that DSP recipients can now work up to 30 hours per week and keep their benefits. At the same time, the

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