Employment Minister Announces Tailored Mutual Obligations for Jobseekers
Employment Minister Amanda Rishworth has indicated that mutual obligations for welfare recipients will be customized, ending the requirement for jobseekers to submit "endless" applications for roles they may not be qualified for.
Despite this announcement, welfare advocates and a prominent trade union have criticized the reforms as insufficient, arguing that the privatised employment services model has failed and should be completely overhauled. Rishworth acknowledged that the current system does not provide adequate support.
Proposed Overhaul of Employment Services System
In her address to the National Press Club, Rishworth outlined a significant restructuring of the employment services system. The existing "one size fits all" approach will be replaced by three distinct streams based on a jobseeker's skills and readiness for work:
- A digital service offering "individualised resources and brief interventions" for work-ready individuals needing assistance in finding suitable job matches;
- A "targeted provider-led" stream designed to help individuals develop skills and confidence to secure employment;
- More intensive services for those with complex needs, providing additional time, flexibility, and support to build confidence and capabilities.
Rishworth highlighted that many unemployed individuals are "languishing" due to insufficient assistance. She criticized the current system's incentives, which encourage providers to prioritize placing individuals who are easier to help over those with complex needs. She noted that approximately 20% of participants in the Workforce Australia program—around 140,000 people—have been in the program for five years or more, with this number increasing.
Criticism of the Privatised Model
Despite these changes, the privatised model will remain in place. Greens Senator Penny Allman-Payne condemned this decision, stating it would continue to funnel jobseekers into a "failed system."
"These reforms aren’t a shake-up, they’re a screw-up," she said.
"Labor’s own inquiry into employment services in 2023 concluded that privatisation had failed and that ‘fundamental change is needed’. The reforms suggest that Labor hasn’t read its own report."
Allman-Payne also criticized the government for not announcing plans to reform the system despite a 2025 Commonwealth Ombudsman report identifying issues.
Development and Consultation on New System
The specific details of the new system were not disclosed on Wednesday. They will be developed over the next year through consultations with employers, jobseekers, and providers. However, Rishworth indicated that mutual obligations activities will be revised to be more meaningful.
Australia has previously reported numerous instances where the mutual obligations system was deemed unfair or harsh, sometimes requiring people to complete menial tasks or resulting in Centrelink payment suspensions.
Rishworth emphasized that while mutual obligations will remain, the activities must be meaningful and tailored to individual circumstances.
"If you are close to the labour market, then putting in job applications in jobs that you’re interested in and that are in your goal plan are clearly an appropriate activity. If you are very far from the labour market and do not have work ready skills, there is no point in that participant putting in endless applications," the minister said.
She cited the example of disability job service Inclusive Employment Australia, which has made compliance action a "last resort."
"I don’t believe that people are going into the system and deliberately looking [at] how not to engage and contribute, but we need to make those mutual obligations meaningful to actually getting a job," she said.
Responses from Unions and Advocacy Groups
The Community and Public Sector Union welcomed the announced changes but expressed disappointment that the reforms did not go further to overhaul the privatised model, which they say has failed job seekers, employers, and the government.
"Australian job seekers are sick of being lectured by flashy ‘entrepreneurs’ who are milking the government for hundreds of millions of dollars and providing a broken, profit-driven service in return," said national secretary Melissa Donnelly.
"This privatisation fantasy has caused untold damage, and while today’s announcement is very welcome, progress must not stop here."
Economic Justice Australia, part of the working group consulting on the changes, also called for reforms to the privatised model.
"Wherever privatised employment service providers are given the power to suspend people from essential payments, not only will there always be a power imbalance, there will be a direct threat to people’s ability to survive," said chief executive Kate Allingham.
