Jobseekers will no longer have to apply for 20 positions a month and instead be able to look for work online under sweeping changes to the federal government's employment program.
People looking for work will soon be able to use a self-service digital platform to better match themselves with suitable vacancies and help access training, under the reforms set to be trialled within months.
Business groups have embraced the overhaul of the Jobactive program, believing it will encourage more employers to get involved.
The social services sector is also pleased the scheme is getting a makeover, but has warned the government against cutting off people's welfare payments automatically if they fail to meet digital requirements.
Jobactive has been criticised for wasting participants' time with a requirement to apply for 20 jobs a month.
That has forced some people to throw their hat in the ring for jobs outside of their skill set.
Under the changes, mutual obligation arrangements - the criteria people must meet to be part of the system - will be more flexible.
A tough new performance regime will also ensure providers are meeting the needs of users.
Jobs Minister Kelly O'Dwyer says the changes mark the biggest reform of Australia's employment services in more than two decades.
"This is a significant and transformative change," she told reporters in Melbourne on Wednesday.
Savings from switching to an online platform will be reinvested to provide a more intensive, targeted and tailored face-to-face service for those trying to address barriers to finding a job.
But jobseekers will still be able to speak to someone if they require advice, guidance or technical support.
Business figures say the reforms are a step towards encouraging more employers to sign up to be part of the system and offer jobs.
At the moment, just four per cent do so and many feel they waste time sorting through unsuitable applications.
"For the sake of job seekers and their potential employers, we must do much better than that," Australian Chamber of Commerce and Industry chief executive James Pearson said.
The Australian Council of Social Services is pleased disadvantaged jobseekers will receive more intense support and training.
But chief executive Cassandra Goldie says the government should be careful not leave behind Australians who can't access the internet.
She has also warned against introducing automated penalties for jobseekers who don't meet requirements, including cutting off welfare payments.
"This can have unfair and incredibly damaging outcomes."
The government will trial the reforms in Adelaide's southern suburbs and on the NSW mid-north coast from July.
During the trial, existing Jobactive contracts will be extended for two years, with the new model to start nationally from July 2022.
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