Trevor Veale

Motivated job seekers to be given extra $100 a week

MOTIVATED young job seekers will be $100-a-week richer if they take up training and internships under new incentives to get into the workforce.

But it comes at a price.

Almost $500 million will be cut from Work for the Dole and the $240 million Job Commitment Bonus will be cease to exist to fund the new scheme.

The Federal Government has pledged $752 million over four years to establish the awkwardly titled Youth PaTH (Prepare-Trial-Hire) program for under-25s.

Up to 30,000 young people will be eligible for the three-staged plan to get them off welfare and contributing to the economy.

Treasurer Scott Morrison said the first step involved an intensive pre-employment training program to get youths job-ready.

"The first three weeks of training will focus on skills such as working in a team, presentation and appropriate IT literacy," he said.

"A further three weeks of training will centre on advanced job preparation and job hunting skills."

Youths would next undergo a four to 12-week placement with local businesses, with interns paid an extra $200 a fortnight on top of existing income support while they complete their internship.

Businesses that host an intern will receive a one-off $1000 up-front payment.

The final stage offers a wage subsidy of up to $10,000 to employers who hire young job seekers, paid over six months instead of the current 12 months.

"It is worth trying new ways to get young people into real jobs," Mr Morrison said.

"The cost of not doing so resigns thousands of young Australians to a lifetime of welfare dependency."

From October, Work for the Dole will only be available to job seekers who have been involved in the government's Jobactive employment program, instead of the current six months.

The Job Commitment Bonus will be completely scrapped.

An extra $88.6 million over four years will go towards expanding the existing New Enterprise Incentive Scheme to promote young entrepreneurship, through workshops, publicising available grants and setting up local mentors in areas of high youth unemployment.

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