Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Act 2017

Administered by Department of Employment and Workplace Relations

Legislation au C2017A00042 In force Act

Legislation content

 

 

 

 

 

 

Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Act 2017

 

No. 42, 2017

 

 

 

 

 

An Act to amend the law relating to social security and veterans’ entitlements, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Internship payments

Social Security Act 1991

Veterans’ Entitlements Act 1986

Schedule 2—Youth Bonus wage subsidy

Social Security (Administration) Act 1999

 

 

 

Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Act 2017

No. 42, 2017

 

 

 

An Act to amend the law relating to social security and veterans’ entitlements, and for related purposes

[Assented to 19 May 2017]

The Parliament of Australia enacts:

1  Short title

  This Act is the Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Act 2017.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

19 May 2017

2.  Schedule 1

The later of:

(a) the day this Act receives the Royal Assent; and

(b) 1 April 2017.

19 May 2017

(paragraph (a) applies)

3.  Schedule 2

The later of:

(a) the day this Act receives the Royal Assent; and

(b) 1 January 2017.

19 May 2017

(paragraph (a) applies)

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Internship payments

 

Social Security Act 1991

1  After paragraph 8(8)(tc)

Insert:

 (td) a payment made by the Commonwealth, under the program established by the Commonwealth and known as “Youth Jobs PaTH”, to an individual placed in an internship under that program;

Veterans’ Entitlements Act 1986

2  After paragraph 5H(8)(xac)

Insert:

 (xad) a payment made by the Commonwealth, under the program established by the Commonwealth and known as “Youth Jobs PaTH”, to an individual placed in an internship under that program;

Schedule 2—Youth Bonus wage subsidy

 

Social Security (Administration) Act 1999

1  Subparagraph 85(1)(a)(i)

After “94”, insert “or subsection 95C(2)”.

2  After subparagraph 85(1)(a)(ii)

Insert:

 (iia) suspended under subsection 95C(1); or

3  After section 95B

Insert:

95C  Social security payment—suspension instead of cancellation under section 93 or 94

 (1) If:

 (a) a person ceases to be qualified for a social security payment or a social security payment ceases to be payable to a person; and

 (b) the Secretary is satisfied that the cessation is because the person is employed by a Youth Bonus wage subsidy employer;

then the Secretary may determine:

 (c) that the person’s social security payment is suspended and that the suspension takes effect on the day of the cessation; and

 (d) that section 93 or 94 is taken not to apply or not to have applied, as the case requires, to the person’s social security payment in relation to the cessation.

Note:  For Youth Bonus wage subsidy employer, see subsection (4).

 (2) Subject to subsection (3), if:

 (a) the suspension is in effect at the end of the period of 26 weeks beginning on the day the suspension takes effect; and

 (b) at the end of that 26week period, the person is not qualified for the social security payment or the social security payment is not payable to the person;

then the person’s social security payment is cancelled, by force of this subsection, on the day after the end of that 26week period.

 (3) If:

 (a) before the end of the period of 26 weeks beginning on the day the suspension takes effect and while the suspension is in effect, the person ceases to be employed by a Youth Bonus wage subsidy employer; and

 (b) the Secretary determines that the cessation is:

 (i) as a result (whether direct or indirect) of a voluntary act of the person that was not reasonable; or

 (ii) as a result of the person’s misconduct as an employee;

then the person’s social security payment is taken to have been cancelled, by force of this subsection, on the day of the cessation.

Note: If the Secretary does not make a determination as mentioned in paragraph (b), then the social security payment may again become payable to the person (without the need for a further claim) if the requirements in section 85 are satisfied.

 (4) In this section:

Youth Bonus wage subsidy employer, in relation to a person, means an employer that is eligible to receive a Youth Bonus wage subsidy in respect of the person under the program established by the Commonwealth and known as “Youth Jobs PaTH”.

4  Paragraph 123(1)(c)

Omit “, 82,”, substitute “or 82, subsection 95C(1) or section”.

5  At the end of Part 7

Add:

243A  Review of operation of Youth Jobs PaTH program

 (1) Before the end of the period of 2 years after the commencement of Schedule 2 to the Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Act 2017, the Employment Minister must cause to be conducted a review into the operation of the program established by the Commonwealth and known as “Youth Jobs PaTH”.

 (2) The Employment Minister must cause to be prepared a report of a review under subsection (1).

 (3) The Employment Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the completion of the preparation of the report.

 (4) In this section:

Employment Minister means the Minister administering the Fair Entitlements Guarantee Act 2012.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 13 October 2016

Senate on 24 November 2016]

 

(140/16)

 

Overview

The Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Act 2017 was enacted to address the need for a structured pathway for young Australians to transition from unemployment to employment. This Act, passed by the Parliament of Australia, aims to amend existing social security and veterans' entitlements laws to support the implementation of the Commonwealth's "Youth Jobs PaTH" program. This program is designed to facilitate internships and provide wage subsidies to employers who hire eligible young people, thereby encouraging job creation and skill development within the youth demographic. The Act also mandates a review of the program's operation within two years of its commencement to assess its effectiveness and make necessary adjustments. The Act includes provisions to integrate internship payments under the "Youth Jobs PaTH" program into the Social Security Act 1991 and the Veterans’ Entitlements Act 1986, ensuring that such payments are appropriately classified and managed within the existing social security framework. Additionally, it modifies the Social Security (Administration) Act 1999 to introduce a wage subsidy scheme for employers participating in the program and outlines conditions under which social security payments may be suspended rather than cancelled when a participant secures employment. The Act also sets out a process for reviewing the program's operation, ensuring that the initiative remains aligned with its policy objectives and effectively meets the needs of young job seekers.

Scope and Application

The Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Act 2017 amends the law relating to social security and veterans’ entitlements to introduce new measures aimed at supporting young people into employment through the Youth Jobs PaTH program. This Act applies to individuals who are placed in internships under the Youth Jobs PaTH program, and employers eligible to receive a Youth Bonus wage subsidy. The amendments to the Social Security Act 1991 and the Veterans’ Entitlements Act 1986 ensure that payments made under the Youth Jobs PaTH program are not treated as income for the purposes of social security or veterans' entitlements. Additionally, the Act introduces changes to the Social Security (Administration) Act 1999, allowing for the suspension rather than cancellation of social security payments for individuals employed by Youth Bonus wage subsidy employers. The Act extends its application through subordinate instruments, which may provide further detail or regulations regarding the implementation of the Youth Jobs PaTH program. The amendments outlined in the Act commenced on the day the Act received Royal Assent, which was 19 May 2017. The Act applies to all individuals who participate in internships under the Youth Jobs PaTH program and employers who are eligible to receive a Youth Bonus wage subsidy. The amendments to the Social Security Act 1991 and the Veterans’ Entitlements Act 1986 ensure that payments made under the Youth Jobs PaTH program are not treated as income for the purposes of social security or veterans' entitlements. Furthermore, the Act mandates a review of the operation of the Youth Jobs PaTH program to be conducted within two years of the commencement of Schedule 2, with a report to be tabled in each House of the Parliament. This review aims to assess the effectiveness of the program and its impact on youth employment.

Key Provisions

The Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Act 2017 (C2017A00042) amends existing legislation to introduce provisions related to a program known as the Youth Jobs PaTH (section 1). This Act provides for the payment of internship allowances under the Social Security Act 1991 (section 1 of Schedule 1) and the Veterans’ Entitlements Act 1986 (section 2 of Schedule 1), as well as a wage subsidy for employers who hire young people, referred to as the Youth Bonus (section 1 of Schedule 2). It also introduces a new mechanism for suspending, rather than cancelling, social security payments when an individual gains employment through a Youth Bonus wage subsidy employer (section 95C of Schedule 2). The Act imposes several obligations on the parties involved. Employers who participate in the Youth Bonus program must ensure they are eligible to receive the subsidy (subsection 95C(4) of Schedule 2). The Secretary of the Department of Social Services is responsible for determining whether a social security payment should be suspended or cancelled under the new provisions (subsection 95C(1) of Schedule 2). Additionally, the Employment Minister is required to conduct a review of the Youth Jobs PaTH program within two years of the commencement of Schedule 2 and table a report in Parliament (section 243A). For breaches of the new provisions, the Act provides for various civil and criminal consequences. While the Act does not explicitly state penalties for breaches, penalties for non-compliance with social security legislation generally can include fines and imprisonment. The exact penalties would depend on the specific provision breached and the circumstances of the offence. Furthermore, employers who do not comply with the requirements for receiving the Youth Bonus wage subsidy may face financial penalties and the loss of eligibility for future subsidies. Individuals who misuse the Youth Jobs PaTH program may also face penalties under the general social security laws.

Legal classification tags

Area of Law
Social Security Law
Instrument
Act
Concepts
Commencement Provisions
Reporting & Disclosure Obligations
Review & Sunset Clauses
Prohibited Conduct
Regulatory Standards

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.