Employment minister Amanda Rishworth has announced that jobseekers will no longer be forced to submit 'endless' pointless job applications, as the government overhauls the mutual obligations system. The changes, outlined in a National Press Club address, aim to replace the current 'one size fits all' model with three separate streams tailored to a jobseeker's skills and work readiness.
New Three-Stream Model
Under the new system, jobseekers will be placed into one of three streams: a digital service for those work-ready but needing job-finding help; a targeted provider-led stream to build skills and confidence; and intensive services for those with complex requirements, offering more time, flexibility, and support. Rishworth criticised the current system for incentivising providers to ignore those with complex needs, noting that one in five Workforce Australia participants—around 140,000 people—have been in the program for five years or more, a figure that is worsening.
Criticism of Privatised Model
Despite the reforms, the privatised employment services model will continue, drawing criticism from welfare advocates and unions. Greens senator Penny Allman-Payne called the reforms 'a screw-up,' arguing that Labor's own 2023 inquiry concluded privatisation had failed. The Community and Public Sector Union's national secretary, Melissa Donnelly, said jobseekers are 'sick of being lectured by flashy entrepreneurs milking the government for millions.' Economic Justice Australia warned that privatised providers with power to suspend payments pose a direct threat to survival.
Mutual Obligations to Be 'Meaningful'
Rishworth signalled that mutual obligations activities must be 'meaningful' and tailored to individual circumstances. For those close to the labour market, job applications in their interest areas are appropriate; for those far from it, endless applications are pointless. She cited the disability job service Inclusive Employment Australia as an example where compliance action is now a 'last resort.'
Reactions and Next Steps
Opposition employment spokesperson Jane Hume backed the three-stream model but expressed concern about winding back mutual obligations. The Australian Council of Social Services called for the system to be abolished entirely. Exact details of the new system will be developed over the next year through consultations with employers, jobseekers, and providers.
