Senator NEWMAN (Social Security) (11:57 AM) —The answer is that we do believe, as I said before, that the incentives introduced by the previous government for unemployed people of any age to seek and take work when it is offered and in the quantities in which it is offered actually are working. The incentives are there and people are making use of it. So there is no particular justification to change that requirement on all unemployed people, not simply those in this age bracket.

We made a special arrangement for students because they were not in the same position as young unemployed people. Students with a full study load are not easily able to fit in some part-time and casual work. We were focusing on doing something a bit different for them because of their special circumstances. If we were to extend that—without justification, as I see it—to those who are not in full-time study, then we would in fact be incurring substantial costs to revenue—in the realm of tens of millions of dollars, I am advised.

I do not believe the case for it has been made out when the reforms that were introduced three years ago are in fact working. We see now that those changes to the income testing have meant that people are taking up that work when it offers. I do not think the young unemployed who are going to be receiving youth allowance will be disadvantaged. They will, in fact, still have access to casual and part-time work where they can get it.