In May 2026, the Federal Government announced major reforms to Australia’s employment services, intended to build a more responsive, effective system that helps more people find meaningful, secure work. Following the announcement, a consultation process was established to seek input on how best to design this future system so it delivers for jobseekers, employers, and communities.
CPD made two submissions, both individually and jointly with partners at the Brotherhood of St. Laurence and The University of Melbourne. Our recommendations focus on shifting the system away from punitive measures toward meeting individual needs, involving local communities, and tailoring support to where people live.
CPD’s submission recommends shifting the system away from punitive measures toward meeting individual needs, involving local communities, and tailoring support to where people live.
Acknowledging that the current one-size-fits-all approach to employment services has largely fallen short in getting people into secure, well-paid work, the government’s proposed reforms aim to build a system that is more tailored and effective.
The reforms are underpinned by 4 core ideals:
The key system change proposed is the delivery of 3 service streams, based on the level of support a jobseeker needs: online and brief intervention, targeted provider support and intensive support.
CPD has been advocating for reforms to Australia’s employment service system for over a decade, arguing that the system must focus on meeting the specific needs of individuals and connecting better with local communities.
Our submissions highlight that this is a key opportunity for practical, ambitious change. Reforms must deliver a whole-of-system transformation to ensure the millions of unemployed and underemployed Australians can secure meaningful work.
Changing the purpose of the system is key. It must be more than a compliance management system for social security payments. Instead, it should focus on collaborating with jobseekers to ensure they reap the full benefits of secure, meaningful work that aligns with their goals.
Key recommendations include:
CPD also recommends permanently embedding the Lived Experience Panel and Employment Services Reform Advisory Group into the Employment Services learning system, and creating place-based governance structures and local practitioner networks to support community-led service delivery.
For too long, Australia’s employment services system has failed to effectively support jobseekers. In 2023, a government inquiry found that “Australia no longer has an effective coherent national employment services system; we have an inefficient outsourced fragmented social security compliance management system that sometimes gets someone a job against all odds”.
The current system focuses on getting jobseekers off welfare payments as quickly as possible, regardless of that job’s quality, fit to the jobseeker’s goals and skills, and broader labour shortages. This is a multi-billion dollar system that is intended to support 2.8 million people who are either unemployed, actively looking for work or looking to work more hours.
Reforming the system to be person-centred, place-based, and focused on stable jobs increases system efficiency and delivers better value for public money. This isn’t just better for jobseekers—it’s better for government, local communities, and employers, helping build a fairer, more prosperous Australia.
