Australia’s social support system must do more than provide adequate levels
of income support for people in need. It must ensure that people are actively
engaged socially and economically, including in the labour force, to reduce the
risk of long term social and economic disadvantage for themselves and their
families. Many people will require support at different points in their lives
and some may require it for longer periods. Whatever their circumstances, the
social support system should seek to optimise their capacity for participation.
The Reference Group considers that a broad concept of economic and social
participation can provide a positive underpinning for the Participation Support
System. This broad concept extends beyond the traditional focus on financial
self-support and labour force status (employed, unemployed or not in the labour
force) to recognise the value of the many other ways people can participate in
society. It is not possible, and probably not desirable, to draw a clear line
between those activities that could be classed as economic participation and
those that constitute social participation. Paid work has social value and
unpaid work has clear economic value. All activities that build relationships
with others have both economic and social dimensions and should be encouraged
and supported. Social participation, valuable in itself, can also enable people
to develop skills that may be transferable to paid employment.
For some people, therefore, involvement in voluntary work of various kinds
might be an appropriate component of an agreed strategy to develop their
capacity for economic participation. This approach is intended to re-emphasise
an important objective of our proposals for welfare reform – to achieve a more
equitable distribution of employment, ensuring that long term jobless people are
able to compete in the labour market. There is a question as to when and in what
circumstances people should be required to seek paid work. In our view it is
reasonable to require people with capacity who are work-ready, are available for
at least part-time work and have access to job opportunities to seek work that
is suitable, having regard to their personal circumstances. We believe it is
critical that a broader mutual obligations framework recognises, supports and
validates voluntary work and caring, without prescribing any particular form of
social participation. Objectives Overall, our goal is to minimise social and
economic exclusion.
Australia’s success in doing this will be measured by the following three key
outcomes: 1 A significant reduction in the incidence of jobless families and
jobless households. 2 A significant reduction in the proportion of the working
age population that needs to rely heavily on income support. 3 Stronger
communities that generate more opportunities for social and economic
participation. Some of the factors that will be important in helping Australia
achieve these outcomes fall outside our terms of reference. These include
policies designed to support economic and employment growth and to avoid
recessions. Additional responsibilities for the whole community One of the
important principles that underpin our approach to welfare reform is that there
are social obligations that apply to everyone. Alongside a growing emphasis on
individual choice, we must also recognise the importance of obligations and
responsibilities. Social obligations extend beyond individuals to corporate
entities such as business enterprises and trade unions. Businesses, for example,
have obligations to their customers, their employees, and the community at
large, as well as to their shareholders.
