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Tony Burke
Welfare advocates have called on employment minister Tony Burke to delay introducing a points-based mutual obligation system. Photograph: Lukas Coch/AAP
Welfare advocates have called on employment minister Tony Burke to delay introducing a points-based mutual obligation system. Photograph: Lukas Coch/AAP

Employment minister urged to delay rollout of points-based system for jobseekers

This article is more than 1 year old

Survey of unemployed people suggests ‘harm was actually being designed into the system’, academic says

The employment minister, Tony Burke, has been urged to pause a new “points-based” mutual obligations system as a new survey finds many jobseekers are fearful it will make their lives tougher.

Guardian Australia reported last week that under the “points-based activation system” (Pbas) jobseekers will be required to acquire 100 “points” through job search or other activities including study, training, hours of employment or work for the dole.

The system, which starts 1 July, replaces the rigid 20 job applications a month requirement that frustrated jobseekers and employers for many years.

While the system is aimed at giving jobseekers more flexibility to meet their obligations, departmental guidelines revealed that some activities – such as full time work for the dole or full time study – would still not be enough to obtain the required 100 points in a month.

Others have raised concerns about the increasing use of automation to determine whether jobseekers keep their welfare payments or have them stopped.

The Australian Unemployed Workers Union does not support mutual obligations and would like them abolished, but it otherwise called on Burke to pause the new system for a minimum of three months while it’s reviewed.

“We don’t think the Pbas should go ahead,” said AUWU national secretary Daniel Levy. “We do think it will be much worse.”

The union conducted a snap online survey of 447 jobseekers, which found respondents were most concerned about the automated nature of the new system, worried about their ability to reach 100 points and also about being penalised due to difficulties with the online system.

“Most respondents anticipate severe negative impact from the transition to Pbas, and relatively few are unsure about the likely effects,” the survey report said.

It found 78.5% expected “some or severe impact from the new requirements, and 83.5% “anticipating the same from the new point system failing to account for their circumstances”.

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David O’Halloran, an adjunct professor at Monash University who has researched the employment services system and assisted with the survey, said many of the 289 respondents who offered additional comments used words like “harm, hurt, terror, fear, punishment”.

“In terms of the wellbeing or individual harm, people felt it was not going to do them any good,” said O’Halloran, who also volunteers with the AUWU.

“What was of serious concern was suicide was explicitly mentioned in nine responses.”

He said the responses suggested participants felt like “harm was actually being designed into the system” and that in his view it was “still based on the assumption, if you’re unemployed, you don’t want to work”.

He acknowledged people who replied to the survey were more likely to already have a negative view of the employment services system.

One respondent to the AUWU survey said they were “sick and tired of being treated like a criminal by the [government] simply because I have lost employment due to circumstances beyond my control” while another suggested “‘robodebt’ is being replaced with ‘robotask’”.

points based activation system

O’Halloran added that a consistent theme was the lack of information respondents had about changes that come into effect next month.

The Australian Council of Social Service has also warned the requirements are too onerous, and that people with barriers to work, limited digital literacy or poor internet access will experience significant challenges with online reporting. The new system has garnered lukewarm support from employment services providers.

The changes passed parliament this year under the Coalition with the then Labor opposition’s support.

Burke has been silent on the new Points Based Activation System (Pbas) and on Wednesday a spokesperson for the minister again declined to comment.

The Greens senator Janet Rice said it was “not up to the department to set policy, it’s up to the new Labor government”.

Rice said the new system “had the potential to be confusing and hard to navigate for lots of Australians”.

It was “based off a broken premise that if you don’t tick all the right boxes, you don’t deserve to have your basic needs covered or a roof over your head”.

The Pbas system will come into force when the new Workforce Australia employment services model replaces Jobactive next month.

About half of all jobseekers engage with an online portal, rather than job agencies, which will focus on more disadvantaged unemployed people.

The Department of Education, Skills and Employment has said those in the Workforce Australia system would have their “own individually tailored points target that reflects their personal circumstances and local labour market”.

Those who couldn’t meet their target should contact the digital services contact centre (DSCC), which could ensure their requirements were “appropriately tailored”.

Several critics have already criticised the automated nature of the Australian welfare compliance system used to police whether jobseekers have met their obligations or should have their payments suspended.

Under the new system, the spokesperson said the “department’s IT system will calculate whether sufficient points have been reported to meet the participant’s points target”.

“Where insufficient points have been reported, the IT system will notify the participant that they have not met a requirement and what they need to do to meet the requirement,” they said.

“They have two business days to resolve the missed requirement, or their payment may go on hold.

“Participants are also advised to contact the DSCC or their provider to discuss their impacting circumstance or any assistance required.”

People will be spared a payment suspension in their first month using the new system.

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