Employment Minister Amanda Rishworth has announced what she describes as the biggest reforms to Australia’s employment services system in 30 years, and people like you, with on-the-ground expertise to help shape it.
What’s changing, and why it matters
The current system, run by federal agency Workforce Australia, will be overhauled with $312 million from this year’s budget invested. The rationale is straightforward, that the existing one-size-fits-all approach is letting too many participants fall through the cracks.
The numbers that underpin the reforms are alarming. Approximately 140,000 people or one in five participants have been in the system for at least five years, while the average time spent on JobSeeker is more than six months. The minister has been frank about the fact that people with more complex barriers to employment simply get put in the “too hard basket” or what’s known in the system as parking. Employers have also become disengaged with the current system with unsuitable candidates being recommended affecting their time spent recruiting, training, and ultimately their output.
The proposed reform replaces the single-service model with a three-tiered system. The level of service provided to a participant will be determined by a combination of their skills, health, work history, qualifications, and personal circumstances which influence how ready participants are for employment.
- Service Stream One will provide a simple digital service for people who are work-ready.
- Service Stream Two will see private providers helping participants to build their skills and confidence to return to the job market in face-to-face sessions.
- Service Stream Three is designed to deliver intensive, joined-up support for people facing complex barriers such as older Australians, those with health conditions or disabilities, people in regional areas, or those with limited formal qualifications.
Why career professionals should pay attention
With the reforms aiming to provide better alignment for the people using employment services, encouraging meaningful participation and fostering positive labour market outcomes; the design process will need input from those who understand the realities from the participants side.
If you’ve spent any time working with young people’s concerns about finding work during or after full time education, or supporting clients navigating unemployment or who have struggled to find their footing in a system that wasn’t built with their needs in mind, you already know what “parking” looks like in practice. You’ve seen the frustration. You know which parts of the process work, and which create more barriers than they remove.
Take a seat at the table
The Department of Employment and Workplace Relations (DEWR) has released a discussion paper and are seeking input from “individuals, organisations and the broader community”. You’re encouraged to contribute via submissions that are open until 31 July 2026, one way to help inform how the new model is designed and implemented.
DEWR have also established an Employment Services Reform Lived Experience Panel. It’s an invitation for people who have used Workforce Australia or other employment providers within the past 12-18 months and who are 18 years plus to have their say. So if you, your colleagues, students (or ex-students), or parents in your school community are eligible, it’s an opportunity to share experiences and contribute to the reforms. Expressions of interest are open until 24 June 2026 for those who’d like to get involved.
Keep exploring
You could also consider sharing your thoughts and feedback with members of the Employment Services Reform Advisory Group if other avenues are not open to you. Reforms like this don’t happen often. When they do, the quality of the outcome depends heavily on who has a voice in the process. So if you’re striving for better outcomes for the people you work with, staying up to date and being an active contributor could help.
If you’re looking for resources to share with the young people and families you support as they navigate the world of work, head to our Jobs & Careers page for practical, up-to-date information to help them take their next step. Articles for Educators and the Pondering Careers newsletters could be useful resources for you too.
