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A Guide to Newstart - the Active Employment Strategy.

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Parliament of Australia

Parliamentary Research Service Background Paper

A Guide to Newstart — The Active Employment Strategy

Geoff Winter Education and Welfare Research Group 19 June 1991

This paper has been prepared for general distribution to Members of the Australian Parliament Readers outside the Parliament are reminded that this is not an Australian Government document, but a paper prepared by the author and published by the Parliamentary Research Service to contribute to consideration of the issues by Senators and Members. The views expressed in the paper do not necessarily reflect those of the Research Service or of any part of the Parliament.

The content of the paper may be attributed to the author.

ISSN 1034-8107

Copyright Commonwealth of Australia 1991

Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means including information storage and retrieval system, without the prior written consent of the Department of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official d uti es.

Published by the Department of the Parliamentary Library, 1991



3 3 4 4 4 5 5

5 5 6 6

6 6 7









Stages of Unemployment

Cornponents Special Intervention Job Search Assistance Vocational Training

Employment Assistance Skillshare 'JOBS KILLS" Employment Experience Self-employment

Placement Assistance Other Assistance

Evaluation Job Creation Newstart Activity Agreements






A Guide to

Newstart — The Active Employment Strategy


Over a period of years - it has become increasingly evident that unemployment has become not a short-term aberration but a longer-term problem to be addressed. With an apparent much higher (underlying) number of unemployed persons, a large proportion of the unemployed are remaining out of work for long periods of time. After a series of reviews and administrative changes to ensure that unemployment benefits are paid only to those who are genuinely entitled to receive them, the number of recipients has dropped from an equivalent of over 100 per cent in June 1986 to remain at just over an equivalent of 70 per cent of the total number of unemployed persons.1 The provision to the unemployed of income support only has therefore been increasingly seen, particularly by groups such as the Australian Council of Social Service (ACOSS), as an inadequate response by the Government. Various schemes have been introduced from time to time to try to cater for changing circumstances, which in operating alongside existing programs have often led to an uncoordinated approach to the labour market activities of the Government. Following reviews of these programs and much community discussion, the Federal Government announced in February 1990 a new approach, which aimed to consolidate and better co-ordinate most of the existing disparate employment and training programs and place much more emphasis on preparing the unemployed for employment — Newstart, the Active Employment Strategy (AES), to be introduced on 1 July 1991.

This more 'active' approach will consist of two basic forms of income support provided while the unemployed undertake various activities aimed at gaining employment, in some cases in a graduated fashion. This generally means that the longer a person has been unemployed the more involvement the government authorities will have in terms of providing assistance and/or training activities, in order to increase his/her employability. The 'active' approach to unemployment (reduction) has increasingly

become part of overseas experience. The particular emphasis on targeting to maximise the possibility of job creation for each unit of expenditure is apparent in the USA and the Swedish approach has been to spend most of its assistance to the unemployed on labour market programs rather than income support.

Newstart is not based on specific legislation but is a broad approach to the unemployment problem which draws on several existing programs, some enhancements to these announced in the March 1991 Statement and some new components especially introduced to account for problem areas not previously catered for. However in order to implement the Strategy, legislative changes to the Social

Security Act have been necessary, by means of the Social Security (Job Search and Newstart) Amendment Act 1991. The client group of the AES is unemployed people in receipt of Job Search Allowance and Newstart Allowance (see below), so other unemployed people who are involved in the same or similar programs in order to become employable, such as sole parents under the Jobs, Education and Training

(JET) scheme, while not falling directly within the scope of the AES as such, do come

Monthly Economic and Social Indicators, Table 7.2, Department of the Parliamentary Library, Historical Supplement and April 1991.


A Guide to Newstart The Active Employment Strategy

within the Government's wider 'active society' policy. Many of this latter group of people will in fact benefit as a result of structural change being made within the Commonwealth Employment Service (CES) to accommodate the AES.


Income support payments will take two forms under the AES — Job Search Allowance (JSA) and Newstart Allowance. The unemployment benefit (or dole), which has been in existence basically unchanged since 1945, will no longer be available. Other payments such as the Formal Training Allowance, the Adult Migrant Education Allowance and the English as a Second Language Allowance will also be abolished

for persons coming under the AES and recipients who qualify will in future receive either of the two AES allowances. Job Search Allowance, currently payable to unemployed people under 18 years of age, will replace the unemployment benefit and be payable to eligible people for periods of up to 12 months. After 12 months,

'qualified' people will receive the Newstart Allowance, but the transfer to it will not be automatic — recipients will have had to apply for it and to have entered into a Newstart Activity Agreement with the CES (see below). It should be noted that people who have been registered with the CES as unemployed for 12 months, whether they have been receiving JSA for all or part of that period or not, may qualify for the Newstart Allowance. Payments will be made at the same rates, and adjusted on the same bases, as currently for unemployment benefits and job search allowances.


Having qualified for the Job Search Allowance by satisfying the activity test (see Appendix A) and/or other requirements, the unemployed person will be expected to search for jobs, make applications, and seek interviews, etc generally without supervision or further assistance during the first three months they are on JSA. After this three months there is a comprehensive review of entitlement by the Department of Social Security (DSS). A number of clients requiring CES intervention, eg because specific problems and/or barriers to employment have been identified, will be referred to that agency. However the CES can decide to case-manage a client without waiting for three months if it is appropriate, eg if a client is disabled or an ex-offender.

At the end of six months of unemployment, whether or not the client has been on JSA, he/she is contacted by the CES for a mandatory interview. The purpose of the interview is to advise the client of his/her eligibility for CES programs assistance and

to identify whether he/she requires more intensive assistance.

Once a person has been unemployed for 12 months or more (long-term unemployed), both the person and the authorities are obliged to become more intensively involved in trying to get the person back into work. If the person wants to continue to receive income support he/she must be prepared to attend an interview and to enter into a written agreement with the Government. This significant provision, called the Newstart

A Guide to

Newstart — The Active Employment Strategy 3

Activity Agreement (NM) (see Appendix B), has not been part of any labour market policy previously.

Job Search Allowance recipients are invited 21 days before receiving their last payment to make contact with the CES to apply for the Newstart Allowance and advised of the requirement to draw up an NAA. In negotiating the NAA the CES takes into account the client's needs, helps the client set goals and develops an agreed action plan which meets the requirements of an NM under the Act. For persons who have met their obligations the Government has provided for several further options under the AES to try to get these long-term unemployed people back into work. The NAA is to be reviewed about three times per year whilst in force, and the CES wiil provide additional staff to maintain client contact for case management, particularly

assistance in the client's (continuing) job search and/or training activities. Special Service Centres have been established within the CES to cater for the longer-term unemployed people and other disadvantaged clients, and are where interviews will be conducted,

After two years of unemployment DSS will conduct an entitlement review.

After three years of unemployment all Newstart Allowance recipients will attend a joint DSS/CES interview. The purpose of the interview is to conduct an extensive reassessment of a client's status and to re-appraise his/her eligibility to transfer to another form of income support, if or as appropriate.

Persons registered with the CES as unemployed who are also otherwise disadvantaged may have access to various programs earlier (as indicated where relevant below) than the unemployed who are not otherwise disadvantaged. The otherwise disadvantaged include the disabled, Aborigines, migrants, older workers (55 years of age and over), sole parents, ex-offenders and youth at risk groups.


Specific AES measures are to be conducted or implemented against a backdrop of continuing standard CES servicing, eg self-service job vacancy boards and matching for jobs by CES staff, and with the client or the CES being able to initiate contact at any time.

Special Intervention

Special Intervention, which was actually introduced on 1 January 1991 as Early Intervention, is a sub-program to assist the transition to work, or vocational training, by providing diagnosis of and remedial training for specific personal barriers to employment, such as functional illiteracy, learning deficiencies or functional skills gaps which prevent changing to new areas of employment, or adaptability to new work

practices or organisation. These problems may be identified as a cause of failure to gain selection for a job or training course or for an early 'drop out' from work or

4 A Guide to

Newstart — The Active Employment Strategy

training and may then contribute to a poor work history and increasing periods on unemployment or other benefit. Funds allocated to Special Intervention are used to purchase diagnostic assessment and remedial training. This component is being

delivered through the CES network and will draw on services available in the community on a fee-for-service basis as necessary. Usually available after three months of unemployment, it is also available to the long-term unemployed where appropriate, and in some cases clients may have immediate access to a relevant Special Intervention program.

Job Search Assistance

Job search skills training is available for people who lack the skills necessary for finding and competing for jobs successfully through either Job Clubs or Job Search Training Courses (JSTC's). Job Clubs provide intensive supervised training and resources for job hunting over three weeks. The Clubs are operated by the CES and suitable external organisations such as community groups and educational institutions. JSTC's are short-term courses comprising up to 22 hours of formal job search training conducted for people who are 'work ready' through external organisations such as TAFE and community groups. As part of the AES some enhancements were scheduled from 1 January 1991, particularly the linking of job search training assistance to the information and advisory services provided by the CES, by means of targeted videos, enhanced printed materials and translation into community languages. The Job Search Assistance component is available after three months of unemployment.

Vocational Training

One of the options available after six months of unemployment (earlier for otherwise disadvantaged people) is a JOBTRA1N course, provided by TAFE colleges and non-TAFE community providers, such as through Skil!share projects. (Extended co-operation between Federal and State/Territory authorities has made the TAFE college places available.) JOBTRAIN provides short-term vocational training assistance based on opportunities in the local labour market and tailored to client needs and their suitability for training. It is available also to those unemployed clients who are also otherwise disadvantaged before the six-month stage.

Employment Assistance

The Employment Assistance component of the AES is delivered through the JOBSTART general wage subsidy program under which partial wage subsidies are provided for up to 26 weeks to employers in the private sector who hire people who have been unemployed (but not necessarily on JSA) for six months or more (or less than six months if the unemployed person is otherwise disadvantaged). Subsidy rates

are geared to the age and relative disadvantage of the jobseeker and increase at 12 months and again at 24 months of unemployment. When subsidies have been

A Guide to

Newstart — The Active Employment Stratepi 5

maintained at stable proportions of the total wages paid JOBSTART has been shown to be perhaps the most effective way in securing a return to stable employment, and may be even more so if there are more flexible linkages with the JOBTRAIN program, which are proposed under the AES.

Individual clients may receive assistance from two or more of the above components linked together, for up to a total of 52 weeks over a two-year period.


Skillshare provides skills training, employment-related assistance (including personal support and referral) and enterprise activities by groups in the community, with demonstrated capacity to deliver these services, to assist long-term unemployed people, and other unemployed disadvantaged groups who do not have ready access to other employment, further education or training opportunities to obtain and retain employment or to proceed to further education or training. Skillshare projects are

managed by community organisations (sponsors) who are required to design programs of activities on the basis of an assessment of local labour market conditions, the needs of individuals in the target group in the local area and the availability and nature of other relevant programs and services. Skillshare guidelines require sponsors to secure a contribution towards project operating costs from the local community, the

current level being 20 per cent of the grant provided for any project. Skillshare provides the largest number of places of any of the components of the AES.


The newest component of the AES, JOBSK1LLS is a training and work experience program under which up to six months work experience and training will be provided on projects of community benefit, over the next two years. Participants will receive a training wage, set at 80 per cent of the award wage for the work being undertaken, whilst on the program.

Employment Experience

For persons unemployed for two years or more, part-time (up to three days per week) employment experience in the community sector and local government can be made available. Participants must be registered with the CES and are expected to accept job offers if and when they arise.


Under the New Enterprise Incentive Scheme (NE1S), the Commonwealth provides increased support and training and the States/Territories contribute capital assistance and business advice for people who wish to work in their own businesses.

6 A Guide to Newstart —

The Active Employment Strategy

Placement Assistance

For clients who have been placed in employment, the CES and the community sector will provide support mainly in the form of advice with the aim of trying to ensure the client stays in the employment gained. Additional services such as training advice will also be provided if a client has been unemployed for two years or more. For people unemployed for three years or more external agencies will be contracted to provide intensive employment placement services, on a fee-far-service basis, fees being paid only on placement of a client in permanent employment.

Other Assistance

Under the AES, mobility assistance, which applies to people who need to relocate in order to take up employment or training opportunities, is being enhanced, as is regional assistance in the form of training and retraining assistance for people in remote locations who are not relocating for whatever reason.


There appears to be little disagreement within the community that the ideas behind Newstart are sound and worthwhile: just as it has been generally accepted that Australia needs a more highly skilled employed labour force, so should there be an upgrading of skills amongst those wishing to be employed, in the first instance to

make them employable. The AES is casting a wide net: approximately 260,000 training places are being made available in 1991-92, a figure which includes those for non-AES clients (some components eg JOBTRAIN, JOBSTART and Skillshare which fall within the AES are also available to people who are disadvantaged other than by long-term unemployment, eg sole parents under the JET scheme), The AES addresses mainly 'structural' unemployment — the unemployment mainly resulting from lack of skills, etc amongst potential workers and regional or locational problems. This is where one of the major criticisms of this approach arises — in times of recession with rapidly rising unemployment which is of a 'cyclical' nature, does the Government

have its funding priorities in the 'correct order? Should the Government be doing more via macro-economic policy?

Job Creation

The AES quite deliberately does not include a specific public sector job creation scheme. Whilst there are claims that schemes such as the recent Community Employment Program were effective, there seems little doubt that they are a short-term

stop-gap measure, they tie up substantial bureaucratic resources and sometimes give the impression of people being put into jobs which occupy them rather than have them doing something genuinely productive, ie not 'real jobs'. Such schemes are very costly but they do provide work experience for significant numbers of people. But

A Guide to

Newstart — The Active Employment Strately 7

macro-economic policy which increases employment generally would enhance the goals of the Strategy, and remains the only genuinely 'active' employment strategy.

The sincerity of the Government will be tested by whether there will be jobs available for people who successfully complete courses or who have met other requirements under the AES. When the AES was foreshadowed in February 1990 there were 593,700 unemployed persons, ie persons who had not worked at all, even for one

hour, in the survey week and 121,600 of those had been unemployed for 12 months or more (with a further 65,300 unemployed for six but less than 12 months). 2 By April 1991 there were 856,300 unemployed persons of whom 182,500 were unemployed for 12 months or more and a further 121,700 were unemployed for six but less than 12 months.3 The projected number of training places for the unemployed who come within the scope of the AES and for other unemployed disadvantaged groups

provided by the Federal Government in 1990-91 was approximately 210,000 (see Appendix C), so a rise to 260,000 clearly does not maintain the ratio of training places to relevant people. With the numbers of unemployed forecast to rise even further over the next few months at least, a point made even by the Government, there will be

greater strain on the resources under the Strategy and even less likelihood of gaining jobs for those clients who have met their commitments under it. Thus the Government will come under increasing pressure to make more funds available to alleviate the

problem, but more likely in the direction of more direct job creation through macro-economic policy.

Newstart Activity Agreements

The other major criticism of Newstart concerns the NAA's. One aspect of their provisions is being opposed on civil liberties and social justice grounds — the perceived coercion implied in the necessity to sign a written agreement in order to continue to be provided with income support (the Newstart allowance). Opponents of this provision are claiming that it is unnecessarily harsh given that clients are already receiving income support (the Job Search Allowance) and they are moving on to the next stage of the AES because they (still) cannot find work. On this latter point there is further opposition because there is no guarantee that there will be training

places available or other services provided unless the Government increases funding to meet the anticipated demand for them. The proponents of the AES claim on the other hand that no-one will be placed in an untenable position if they are genuine cases, and that there are enough alternative provisions under the terms of the NAA

(see Appendix B) with which any client not able to gain a training place will be able to conform in order to have the Newstart allowance paid to them.

However the crux of the opposition is most likely the discretionary nature of the powers vested in the authorities. The possibility exists, more so in times of limited funding and increased demand for AES services, that over-zealous or inexperienced

2 The Labour Force, Australia, ABS Cat. No. 6203.0, February 1990.

3 The Labour Force, Australia, ABS Cat. No. 6203.0, April 1991.


A Guide to Newstart — The Active Employment Strategy

officers may abuse or misuse their powers and cut off the income payments to a perhaps increasing number of clients, thereby unnecessarily causing hardship. This is more likely when a lack of available jobs leads CES/DSS staff to focus on administration of payments and not employment counselling and training. This may occur particularly in cases where an unemployed person is approaching age-pension age, or is a client particularly difficult to place. Another argument put forward by opponents of the NAA is that if the authorities have no intention of implementing the controversial provisions because of, for example, the economic situation or political fallout, then the provisions should not be in the legislation at all.

Other objections which have been raised' are:

(i) there will be too much power in the hands of local CES staff; (ii) agreements may be vague and open-ended; (iii) agreements will be negotiated under duress; (iv) agreements will not always be negotiated with an

experienced officer; (v) there is little access to independent advice; (vi) people with poor literacy or English language skills will have great difficulty negotiating NAA's; (vii) written warning will not be given in all cases before

allowances are terminated; (viii) inadequate resources in the CES.

It should be noted however that, as currently with unemployment benefits, clients have the right of appeal against reduction or cancellation of payments, and payments will continue or be reinstated until the appeal is determined. (But, again, there is discretion not to continue payment while the appeal is being considered.)


Budgeted outlays for the specific programs listed above as components of the AES (but including non-AES spending where they are available to non-AES clients) were approximately $325m ($310m excluding running costs) in 1990-91. This is a gross amount and excludes any outlays by the CES which relate to Newstart programs. For the introduction of Newstart the Federal Government will increase the gross amounts available for labour market programs for unemployed people by about $1 1Orn in 1991-92. As people move off unemployment benefits by being included in these programs or by gaining jobs as a result of them the Government expects to save approximately $40m in 1991-92, additional to other savings, due to the 'success' of the existing programs, which have not been estimated.

4 New scheme too harsh in recession, in lift-out section, Impact, ACOSS, June 1991.

A Guide to Newstart — The Active Employment Strategy 9


Newstart is an initiative designed to deal with deficiencies in the labour market, particularly those related to skilling. It presents an integrated approach to addressing these problems at the national level. The changes to eligibility and access will mean a more systematic progression of assistance available for unemployed persons as duration of unemployment increases, with greater access for the more disadvantaged. If the components are appropriately implemented the Strategy has the potential at least to be effective in achieving its goals. It cannot be expected to solve all problems for the labour market participants involved but should assist a better matching of

people to jobs. The goals of Newstart are as much as any program can be expected to achieve given that it is a national government initiative subject to funding and other constraints and given that there is a general opposition in the community to too much government involvement or interference at micro levels (other than for industry reform). It therefore cannot be expected to solve individual firms' problems. In concert with education, training and other labour market programs and with co-operation rather than confrontation between the various participants in the economy this program could become a vital and valuable catalyst to unemployment reduction. However it has been predicated on levels of assistance etc. based on relatively predictable numbers of people involved: with the recent rapid increase in unemployment its purpose and value may be lost as the recession diverts attention from long-term goals to short-term potential solutions. The success of at least some of the components of the Strategy will depend on how quickly the Government can or will respond by

increasing the levels of services required, especially in relation to increased funding and the resulting places available, or on whether the Government will 'hold the line in the face of possibly overwhelming pressure to try other, short-term, solutions. Whether the elements of compulsion in some components of the Strategy are desirable, especially if such components are oversubscribed, and whether they can or should be enforced in a declining labour market are also open to question.

It is generally accepted that as duration of unemployment increases the likelihood of returning to work decreases, a nexus the Strategy is trying to break, but which perhaps should be seriously considered when determining the mix of programs within the AES. The success or otherwise of the Strategy will also depend in part at least

on how it fits into the Government's overall labour market approach: to give it a better chance of success, other labour market areas of, for example, wage policies, award restructuring and equal opportunity programs could be integrated where appropriate with the Strategy's components.

A Guide to

Newstart — The Active Employment Strategy


ACOSS Australian Council of Social Services












Active Employment Strategy

Australian National University

Commonwealth Employment Service

Department of Employment, Education and Training

Department of Social Security

Jobs, Education and Training

Job Search Allowance

Job Search Training Course

Newstart Activity Agreement

New Enterprise Incentive Scheme

OECD Organisation for Economic Co-operation and Development

TAFE Technical and Further Education

A Guide to

Newstart — The Active Employment Strategy 11


Employment Outlook, OECD, 1987.

Income Support for the Unemployed in Australia: Towards a More Active System, Bettina Cass, Social Security Review, Issues Paper No. 4, and An Overview, Social Security Review, 1988.

Commonwealth Employment and Training Schemes since 1973, J. Gardiner-Garden, Department of the Parliamentary Library, May 1989.

Reforming Income Support for the Unemployed, B. Howe, Minister for Social Security, November 1989.

Reforming family income support; reforming labour markets, B. Cass, Social Policy Review, 1989-90.

Income Support and Unemployment, ACOSS, Paper No. 15.

ACOSS Election Briefing Kit 1990, ACOSS, Paper No. 33.

The Unemployment Crisis: Proposals for alleviating hardship and improving prospects, ACOSS, Paper No. 38.

Economic Statement, February 1990, Federal Treasurer and Minister for Finance.

Budget Paper No.1, Budget Statements, 1990-91.

Explanatory Notes, Employment, Education and Training Portfolio, 1990-91, DEET, Budget Related Paper No. 6.6A.

An Analysis of Australian Labour Market Programs, Alan Stretton and Bruce J. Chapman, Discussion Paper No.247, Centre for Economic Policy Research, ANU, December 1990.

Governments new scheme falls short, J. Freeland, Impact, ACOSS, February 1991.

Review of Labour Market Program Activity and Outcomes, DEET Program Monitoring Report, various.

Recession swamps extra employment initiatives, Impact, ACOSS, April 1991.

New dole scheme — Newstart or false start, Impact, ACOSS, Lift-out section, June 1991.


A Guide to Newstart — The Active Employment Strategy



Source: Social Security (Job Search and Newstart) Amendment Act, 1991

For Job Search Allowance and Newstart Allowance —

522 & 601. (1) Subject to subsection (3), a person satisfies the activity test in respect of a period if the person satisfies the Secretary that, throughout the period, the person is: (a) actively seeking; and (b) willing to undertake;

paid work that in the opinion of the Secretary is suitable to be undertaken by the person.

(2) A person also satisfies the activity test in respect of a period if: (a) the Secretary is of the opinion that, throughout the period, the person: (i) should undertake particular paid work that, in the opinion of the Secretary, is suitable to be done by the person; or

(ii) should: (A) undertake a course of vocational training; or (13) participate in a labour market program; or (C) participate in another course; approved by the Employment Secretary which is likely to: (D) improve the person's prospects of obtaining suitable paid work; or (E) assist the person in seeking suitable paid work; or (iii) in a case where the person lives in an area where:

(A) there is no locally accessible labour market; and (B) there is no locally accessible vocational training course or labour market program; should participate in an activity suggested by the person and approved by the Employment Secretary; and (b) the Secretary notifies the person that the person is required to act in accordance with the

opinion; and (c) the person takes reasonable steps to comply, throughout the period, with the Secretary's requirement.

(3) If a person fails to take reasonable steps to comply, throughout a period, with a requirement of the Secretary under subsection (2), the person cannot be taken to satisfy the activity test in respect of that period in spite of any compliance of the person with subsection (1).

For Newstart Allowance only —

601. (4) A person also satisfies the activity test in respect of a period if, throughout the period, the person is taking reasonable steps to comply with the terms of a Newstart Activity Agreement between the CES and the person.

(5) If a person fails to take reasonable steps to comply, throughout a period, with the terms of a Newstart Activity Agreement between the CES and the person, the person cannot be taken to satisfy the activity test in respect of the period in spite of any compliance of the person with subsection (1).

A Guide to

Newstart — The Active Employment Strategy 13


NEWSTART ACTIVITY AGREEMENTS Source: Social Security (Job Search and Alewstart) Amendment Act, 1991

604. For the purpose of this Part, each person in receipt of a newstart allowance is to have a written agreement, in a form approved by the Employment Secretary, with the CES, to be known as a Newstart Activity Agreement.


605. (1) If a person who has made a claim for, or who is in receipt of, a newstart allowance is not a party to a Newstart Activity Agreement, the Secretary must require the person to enter into such an agreement.

(2) The Secretary may require a person who has entered into a Newstart Activity Agreement to enter into another such agreement instead of the existing one.

(3) The Secretary is to give a person who is required to enter into a Newstart Activity Agreement notice of: (a) the requirement; and (b) the places and times at which the agreement is to be negotiated.


606. (1) A Newstart Activity Agreement with a person is to require the person to undertake one or more of the following activities approved by the Secretary: (a) a job search; (b) a vocational training course;

(c) training that would help in searching for work; (d) paid work experience; (e) measures designed to eliminate or reduce any disadvantage the person has in the labour market not being measures compelling the person to work in return for payment of newstart

allowance; (f) participation in a labour market program conducted by the CES; (g) an activity proposed by the person (such as unpaid voluntary work proposed by the person).

(2) The terms of an agreement, which include the specification of the activities that the person is to be required to undertake, are to be approved by the Secretary.

(3) In considering whether to approve the terms of an agreement with a person, the Secretary is to have regard to the person's capacity to comply with the proposed agreement and the person's needs.

(4) In having regard to a person's capacity to comply with an agreement and the person's needs, the Secretary is to take into account: (a) the person's education, experience, skills, age and physical condition; and (b) the state of the labour market in the locality where the person resides; and

(c) the training opportunities available to the person; and (d) any factors that the Secretary considers relevant in the circumstances.

(5) An agreement with a person:


A Guide to Newstart — The Active Employment Strategy

(a) may be varied or suspended; and (b) if another Newstart Activity Agreement is made with the person, may be cancelled; and (c) may be reviewed from time to time at the request of either party to the agreement.

(6) An allowee who is a party to an agreement is to notify the Secretary of any circumstances preventing or affecting the allowee's compliance with the agreement.

Failure to negotiate

607. (1) If:

(a) a person has been given notice under subsection 605 (2) of a requirement to enter into a Newstah Activity Agreement; and (b) the Secretary is satisfied, because of the person's failure to: (i) attend the negotiation of the agreement; or

(ii) respond to correspondence about the agreement; or (iii) agree to terms of the agreement proposed by the CES; or otherwise, that the person is unreasonably delayed entering into the agreement;


(c) the Secretary may give the person notice that the person is being taken to have failed to enter the agreement; and

(d) if the notice is given — the person is taken to have so failed.

(2) A notice under paragraph (1) (c) must;

(a) be in writing; and (b) set out the reasons for the decision to give notice; and (c) include a statement describing the rights of the person to apply for the review of the decision.

NOTE: Refusal to enter a Newstart Activity Agreement disqualifies a person for newstart allowance — see paragraph 593 (e).










10,567 5,376


6,800 2,600

(d) 90,000 61,018

A Guide to Newstart - The Active Employment Strategy 15




Programs/client 1989-90

Projected Year to date

1990-91 (July 1990-Mar 1991)

Early Intervention (a)

JOBTRAIN - Total 45,705

- Total, excl. sole parents, disabled35,467 - NEWSTART (b) 11,793

- Sole parents, total 5,604

- Sole parents, JET 2,363

- Disabled 4,634

JOBSTART - Total 34,600

- Total, excl. sole parents, disabled26,900 - NEWSTART (b) 7,778

• Sole parents, total 1,400

- Sole parents, JET 310

- Disabled 6,300

Job Clubs 10,371

Job Search Training Courses (JSTC) 8,182 Job Clubs and JSTC - Total 18,553

- Total, excl. JET 18,182

- NEVVSTART (b) 4,472

- JET 371

Skillshare - Total (c) 75,775

- Total, excl. sole parents, disabled66,419 - Sole parents 4,905

- Disabled 4,451

- NEVVSTART (b) 4,183

NEIS - Total 470

- Disabled 23

TOTAL 175,103



Unemployment beneficiaries, excl. NEWSTART (b) 119,189 NEWSTART (b) - Total 68,530 50,682

Sole parents - Total 18,748 16,989

- JET 13,252

Disabled - Total 23,674 17,548

(a) Special Intervention from 1991-92. (b) Original pilot scheme. (c) 1989. (d) 1990.

Source: DEET.