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Government Announces Three-Tier Overhaul of Workforce Australia

Funded with A$312.2 million, the redesign will match jobseekers to tailored support, overhaul how providers are paid to reduce ‘creaming’, remake mutual‑obligation rules, with details set through a formal consultation process.

Overview

  • The Albanese government unveiled the package on Wednesday, committing A$312.2 million over five years and launching a discussion paper plus an expert advisory group to design how the changes will work in practice.
  • Jobseekers will be triaged into three service streams: a digital self-service for those close to the labour market, targeted provider-led help for people needing skills and confidence, and intensive joined-up support for people with complex barriers.
  • Ministers said mutual obligations will be retained but rewritten to be fairer and proportionate to each person’s circumstances instead of the current one-size points system.
  • The reform will change how private providers are paid to stop ‘creaming’—the practice of prioritising people who are easiest to place—and to reward better, longer-lasting job matches.
  • More than one million Australians use Workforce Australia each year, about 20% have been on the caseload for five years or more, and the redesign responds to long-running criticism including a 2023 parliamentary inquiry that faulted the system’s focus on sanctions over outcomes.