On 13 October 2016, the Hon. Mr Angus Taylor MP, Assistant Minister for Cities
and Digital Transformation, introduced into the House of Representatives the
Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire)
Bill 2016 (the bill).
On 10 November 2016, the Senate referred the provisions of the bill to
the Senate Education and Employment Legislation Committee for inquiry and
report by 21 November 2016.
On 21 November 2016, the Senate approved an extension to the reporting
date until 28 November 2016.
Conduct of the inquiry
Details of the inquiry were made available on the committee's website.
The committee also wrote to key stakeholders, groups and organisations to
The committee received 15 submissions, as detailed in Appendix 1.
Given the short reporting timeframe, the committee decided not to hold
public hearings for this inquiry.
Structure of the report
Chapter two of this report examines the background to, and detail of the
bill and the related Prepare-Trial-Hire (PaTH) program, which aims to give
young job seekers under 25 years of age the employability skills and real work
experience they need to get a job.
Chapter three considers the key issues identified by submitters in relation
to the bill, including the:
use of the term 'internship';
absence of greater detail about the PaTH program;
level of the incentive payments to interns; and
possibility of a 'churn' culture in which employers dismiss
interns once the employer's subsidy payments have been received.
Compatibility with human rights
The Statement of Compatibility with Human Rights accompanying the
Explanatory Memorandum noted that the bill engages the following rights:
the right to social security (Article 9 of the International
Covenant on Economic, Social and Cultural Rights (ICESCR));
the right to an adequate standard of living (Article 11(1)
the right to work (Article 6 ICESCR); and
the right to equality and non-discrimination (Article 2(2) ICESCR
and Article 26 of the International Covenant on Civil and Political
The statement concluded that the bill protects these rights and 'to the
extent that the bill provides for differential treatment for young people, the
measures taken are reasonable, necessary and proportionate to achieve a
The Parliamentary Joint Committee on Human Rights assessed the bill as
not raising human rights concerns.
Scrutiny of Bills Committee
The Senate Standing Committee for the Scrutiny of Bills had no comment
to make on the bill.
Financial Impact Statement
The Explanatory Memorandum detailed that the internship payment
amendments (Schedule 1) would have no financial impact while the Youth Bonus
wage subsidy amendments (Schedule 2) would have the budgetary impact set out it
Table 1.1—financial impact
Expense ($ million)
It should be noted that the financial impact described in the
Explanatory Memorandum relates only to the cost of the PaTH program for the
Department of Employment.
The committee thanks the organisations which made submissions to this
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