(Transcript from SBS World News Radio)
The federal government has dropped its plan to force unemployed people to apply for a minimum of 40 jobs per month.
The decision follows a furious backlash from business groups and particularly small business who said they would not be able to process a massive increase in job applications.
Job searches will now be kept at the current requirement of 20 applications a month.
The backdown is part of a $5 billion shake up of employment services, which will apply from July next year
Amanda Cavill reports.
(Click on the audio tab above to hear the full report)
The federal government is defending its decision to abandon plans to force jobseekers to apply for 40 positions a month.
The government's proposal to double the job application target for Newstart Allowance recipients was widely criticised as punitive for jobseekers and an administrative nightmare for businesses.
Prime Minister Tony Abbott says the government has listened to the public feedback and the status quo of 20 applications will remain.
He denies it's an embarrassing backdown.
"Surely the whole point of consultation is to refine and, where necessary, adjust what you are doing. Some people might like to put a pejorative on it. I would like to say isn't this the whole point of consultation? Consultation that can't result in any change is meaningless. The consultations that this Government has will be fair dinkum. And that is why these things are the first word not the last word from the Government."
The Prime Minister has conceded the government has made some major changes to the practicalities of the policy.
Mr Abbott says they're designed help both employers and job seekers benefit.
But the opposition leader Bill Shorten says it seems everyone but the government knew the plan would not help jobseekers find work and created havoc for small business.
"They've backed down on the stupid idea of asking people to send 40 job applications each month which was clearly going to become a beauracratic nightmare. Small business couldn't believe it when they heard the government come up with this stupid idea. This is a government who's already backed down on their stupid ideas to raise the working age to 70, they've back down on putting through some of their unfair cuts to family payments into the budget at this point."
Employment Minister Eric Abetz says the government has acknowledged the policy would have put a burden on business and possibly diminish the value of job applications.
But he has told the ABC he believes it should be the full-time job of the unemployed to find employment.
"This is a government absolutely committed to wanting to do the very best for the employed. Because the data is overwhelming - if you are unemployed, the physical health, mental health, self-esteem, social interaction of that individual are all diminished. And therefore we do the individual and their family and the community a great service by assisting them in pursuing as many job applications as possible, which means they'll come off unemployment that much sooner.
Greens Leader Christine Milne says she is pleased the government has changed its mind and admitted it got the plan fundamentally wrong.
She says the government must now also abandon plans to force under 30s to wait six months before they can claim the dole.
"Where they now have got it fundamentally wrong as well. is saying that unemployed people should live on nothing for six months. Well that's the next thing that has to go. They need to recognise the real leaders in Australia are the big corporates that are not paying tax. They should get into the tax evasion issues of the big corporates rather than trying to make life harder for people that have got nothing."
The opposition is also calling on the government to drop is plans for work for the dole.
However the government says it plans to press ahead with its plan to extend the work for the dole program.
Those under 30 will have to complete 25 hours a week of the program while older job seekers between age 30 and 50 will have to complete 15 hours a week.
People over 60 can volunteer to participate in the program.
Co-ordinators will be contracted in each employment region to source work for the dole places and work with host organisations and employment service providers.
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