Prime Minister Tony Abbott has urged young Australians not to waste their lives as the government unveiled details of its revamped work-for-the-dole scheme.
From July, unemployed people aged 18 to 30 in 18 areas who have been receiving Youth Allowance or Newstart for 12 months or more will have to work 15 hours a week to get the dole.
"What we have said to the young people of Australia is don't waste your life - leave school and either improve your education or get a job," Mr Abbott told parliament.
But welfare groups say restarting work for the dole will be less effective than wage subsidies.
The areas targeted in the first phase have high youth unemployment, which has averaged 13 per cent nationally since the September 2013 election.
The government will not need to change legislation to restart the program initiated under the Howard government.
The National Welfare Rights Network said work for the dole had proven ineffective in the past as a way of getting people into long-term jobs.
Programs should focus on new skills, providing work activities that offer a better chance of getting into long-term jobs and increasing and indexing payments.
Network spokesman Gerard Thomas said previous studies of work for the dole found many people had less time to look for work and wage subsidy programs had a better success rate.
A government study showed 47 per cent of extremely disadvantaged job seekers in wage subsidy programs were still in work after six months - more than double that under the previous work-for-the-dole program.
Labor employment services spokeswoman Julie Collins said that while the government was rolling out work for the dole it was cutting other programs which had been proven to work.
"They need meaningful work and meaningful training to connect them with the work," she said.
Australian Council of Social Service chief Cassandra Goldie said the focus should be on joint ventures with business leaders, investors, communities and social services.
"A first step would be to increase the availability of places in cost-effective wage subsidy programs, mentoring, career counselling and vocational programs," she said.
Ms Goldie said the government had accepted the value of work subsidies in announcing in the budget a $10,000 payment to employers who hired workers over the age of 50.
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