Social Security (Employment Pathway Plan Requirements) (DEEWR) Amendment Determination 2009 (No. 1)

Administered by Department of Education, Employment and Workplace Relations

Legislation au F2009L03067 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Social Security (Employment Pathway Plan Requirements) (DEEWR) Amendment Determination 2009 (No. 1)

Summary

The Social Security (Employment Pathway Plan Requirements) (DEEWR) Amendment Determination 2009 (No. 1) (Amendment Determination) is made by the Secretary of the Department of Education, Employment and Workplace Relations under subsection 544B (1B) of the Social Security Act 1991 (Act).

 

The purpose of the Amendment Determination is to amend the Social Security (Employment Pathway Plan Requirements) (DEEWR) Determination 2009 (No. 1) (Principal Determination) to support amendments made by the Social Security Amendment (Training Incentives) Act 2009 (Training Incentives Act) to the social security law.  The purpose of the Amendment Determination is to ensure that recipients of youth allowance who are less than 21 years old and who have not completed the final year of secondary school or equivalent are not required to look for work.

Background

Recipients of parenting payment, youth allowance, newstart allowance and special benefit who have participation requirements or activity test requirements under the Act are generally required to enter into an employment pathway plan (EPP) which sets out the activities that they must undertake in order to receive their social security payment. The Act empowers the Secretary to determine the requirements contained in a person’s EPP, and also empowers the Secretary to determine, by legislative instrument, requirements that EPPs must not contain.  The Principal Determination contains the requirements that cannot be included in an EPP.

 

The Training Incentives Act amended the Act to require that recipients of youth allowance under 21 years old, who had not completed the final year of secondary school or equivalent, and who were not undertaking full-time study (called “early school leavers”), would have to undertake at least 25 hours per week of approved training and other activities (subject to some exceptions).  These requirements would be implemented through the early school leaver’s EPP.  The Government decided that early school leavers should be precluded from satisfying the youth allowance activity test by actively seeking work, and the Act was amended accordingly.

 

In order to reinforce the “study first” requirement for early school leavers, the Government decided that early school leavers should not be required to look for work through the terms of their EPPs.  The Amendment Determination gives effect to that decision.

Explanation of the provisions

Amendment Determination

Section 1 states the name of the Determination.

 

Section 2 states that the Determination commences on the day after it is registered.

 

Section 3 provides that the Principal Amendment is amended as set out in Schedule 1 to the Amendment Determination.

Schedule 1 to the Amendment Determination

Item 1 inserts a new section 6 in the Principal Determination to provide that a Youth Allowance Employment Pathway Plan to which section 544DA of the Social Security Act 1991 applies must not contain a requirement to look for work. Such an EPP is one which is in force in relation to a person who is an early school leaver. A youth allowance EPP must require the person to undertake one or more approved courses of training or education or other activities the Secretary considers suitable for the person. This is intended to ensure that, where appropriate, young people who have not completed year 12 or equivalent will take up education and training opportunities in order to improve their employment prospects, instead of undertaking full-time job searches.

Formal Matters

Consultation

The Amendment Determination ensures the existing Determination is consistent with amendments to the Social Security Act 1991 made by the Training Incentives Act, and is consequential to those amendments. No public consultation separate to that undertaken in connection with the Training Incentives Act was considered necessary.

Regulatory Impact Statement

The Amendment Determination does not require a Regulatory Impact Statement (RIS) nor a Business Cost Calculator Figure. The Amendment Determination is not regulatory in nature, will not have an impact on business activity and will have no compliance costs or competition impact.

Authority

Subsection 544B (1B) of the Social Security Act 1991. No preconditions need to be satisfied for the making of this instrument.

 

 

Overview

The Social Security (Employment Pathway Plan Requirements) (DEEWR) Amendment Determination 2009 (No. 1) was enacted to align with the Social Security Amendment (Training Incentives) Act 2009. The legislation was introduced to address the need for modifications to the employment pathway plans for certain youth allowance recipients who are under 21 and have not completed the final year of secondary school or equivalent. This amendment aims to ensure that these early school leavers are not required to look for work but instead focus on approved training or educational activities. The determination was made by the Secretary of the Department of Education, Employment and Workplace Relations under subsection 544B(1B) of the Social Security Act 1991, with the policy objective of reinforcing the "study first" requirement for this demographic to improve their employment prospects.

Scope and Application

The Social Security (Employment Pathway Plan Requirements) (DEEWR) Amendment Determination 2009 (No. 1) applies to recipients of youth allowance who are under 21 years of age and have not completed the final year of secondary school or equivalent, specifically targeting early school leavers. This determination, made by the Secretary of the Department of Education, Employment and Workplace Relations, aligns with amendments introduced by the Social Security Amendment (Training Incentives) Act 2009. Its purpose is to ensure that these early school leavers are not required to look for work as part of their employment pathway plans (EPP), instead mandating them to undertake at least 25 hours per week of approved training and other activities. This amendment reinforces the "study first" policy for this demographic, thereby encouraging them to pursue education and training opportunities to improve their employment prospects. The determination does not extend to other categories of social security recipients or other age groups. It is a Commonwealth legislation, applying nationally across Australia. The Amendment Determination is not regulatory in nature and does not require a Regulatory Impact Statement or Business Cost Calculator Figure, as it does not impose compliance costs or competition impacts.

Key Provisions

The main operative sections of the Social Security (Employment Pathway Plan Requirements) (DEEWR) Amendment Determination 2009 (No. 1) (Amendment Determination) primarily focus on altering the Employment Pathway Plan (EPP) requirements for certain youth allowance recipients. Section 3 of the Amendment Determination amends the Principal Determination by inserting a new section 6 (Item 1 of Schedule 1). This new section 6 states that a Youth Allowance Employment Pathway Plan for an early school leaver must not contain a requirement to look for work (Section 6(1)). Instead, such an EPP must require the individual to undertake one or more approved courses of training or education or other activities deemed suitable by the Secretary (Section 6(2)). This change aims to ensure that young people who have not completed the final year of secondary school or equivalent focus on education and training opportunities to enhance their employment prospects, rather than engaging in full-time job searches. The Amendment Determination imposes specific obligations on the parties governed by it. For recipients of youth allowance who fall under the category of early school leavers, the Act mandates that their EPPs must not include any requirement to look for work. Instead, these EPPs must specify participation in approved training or education courses or other suitable activities. The requirement is designed to support the "study first" principle for early school leavers, ensuring they engage in activities that will likely improve their long-term employment prospects. The Secretary has the authority to determine the specific nature of these approved activities, ensuring they align with the goals of the social security scheme. There are no specific offences, penalties, or civil/criminal consequences outlined in the Amendment Determination for non-compliance with the new EPP requirements. However, failure to adhere to the specified EPP requirements could potentially lead to the cessation of youth allowance payments, as the social security law generally mandates compliance with EPPs for continued receipt of benefits. The primary focus of the Amendment Determination is to ensure consistency with the broader legislative changes introduced by the Training Incentives Act, rather than imposing additional punitive measures. The Determination’s regulatory nature means it does not introduce new compliance costs or competitive impacts, aligning with the broader policy intent of supporting early school leavers through targeted educational pathways.

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