Tony Abbott says the federal government is pumping $5 billion into the latest employment services project to help people find long-term employment.
"The best way to get someone into their next job is to get them into a job that is absolutely viable today," the prime minister told reporters in Geelong on Tuesday.
"The best preparation for work is work."
The federal government says its new model encourages young job seekers to take up a job and employers to take on new employees.
From 1 July, 66 organisations will deliver one or more jobactive services to job seekers and employers.
Service providers will no longer receive job placement payments and rules around training have been tightened.
There will be a new regional loading for providers in selected regions and a restart program to encourage businesses to employ mature age job seekers.
Work for the Dole will be rolled out nationally to help job seekers learn new skills and remain socially active and engaged while looking for work because "the best form of welfare is a job", Mr Abbott said.
Long-term unemployed people under 50 will be required to take part in work-for-the-dole schemes.
That will let people receiving a government benefit give back to the community, Mr Abbott said.
"I know that's what people want to do."
Job agencies will be encouraged to get unemployed people into short-term work through four-week outcome payments in addition to the existing 12- and 26-week payments.
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