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Training Supplement for Newstart recipients.

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The Hon Julia Gillard MP

Minister for Education. Minister for Employment and Workplace Relations Minister for Social Inclusion Deputy Prime Minister

1 July, 2009

Media release

Training Supplement for Newstart recipients

From today, a temporary Training Supplement will be available to Newstart and Parenting Payment recipients without a year 12 or equivalent qualification who undertake training.

The Training Supplement is a modest, practical measure to ensure those most at risk of becoming long term unemployed in the days of the global recession are properly skilled when the economy begins to recover.

This $74.1 million targeted, time limited, measure reflects the Government’s commitment to provide extra support to job seekers during the global recession while skilling Australia for a productive future.

The Training Supplement of $41.60 per fortnight will be available to people receiving Newstart and Parenting Payment.

The Training Supplement will be available to people without a Year 12 or equivalent qualification or those who need to undertake training at the Certificate II level or higher to re-skill for the future.

It is estimated that more than 50 000 low skilled job seekers will take up this measure over the period 1 July 2009 to 30 June 2011.

This commitment builds on the Government’s suite of measures to help the unemployed skill up or re-skill to improve their job prospects when the economy recovers:

• a $1,158 bonus to sign up to training ($950 Training and Learning Bonus plus $208 Education Entry Payment); • a place to study (711 000 Productivity Places including 319 000 available for job seekers); and • extra income ($41.60 per fortnight, Training Supplement).

Together these measures will provide people on Newstart and Parenting Payment undertaking a twelve month course with the equivalent of an additional $43 per week in financial assistance.

The payment will be available for people commencing approved training between the period

1 July 2009 and 30 June 2011. The payment will be available until any approved training commenced in this period is completed.

From today, the Rudd Government will also strengthen the conditions unemployed young people must meet to receive Youth Allowance as part of the Compact with Young Australians agreed to by the Council of Australian Governments.

Anyone under the age of 20 without a year 12 or equivalent qualification and not in full time work must be in education or training in order to receive youth allowance.

This same condition must be met if the parents of young people in the same circumstances wish to receive Family Tax Benefit Part A.

The requirement for young Australians to be earning or learning will ensure individuals and the nation is well placed to take up opportunities in the future.

The Rudd Government stands ready with intensive support and quality training opportunities to ensure the nation is ready to work when the economy begins to recover.

These are difficult times for many Australians but by working together the Government is confident we will emerge from the global recession a stronger and even more resilient nation.

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