A revamped, more flexible work-for-the-dole scheme has the capacity to transform remote Indigenous communities by tackling the major driver of social dysfunction, according to Indigenous Affairs Minister Nigel Scullion.
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The range of activities that meet the work test will be expanded to include volunteering at school canteens, delivering meals on wheels and learning to drive, but breaches for non-compliance will be immediate under legislation introduced on Wednesday.
Describing the new scheme as "best practice", Senator Scullion told Fairfax Media it was the result of a rare collaboration with the Labor Party and close consultations with communities.
"It's not the normal parliamentary way but we have been working with the opposition frankly and openly about this and I think it's a better piece of work as a consequence," he said.
The changes are designed to improve the Community Development Program, which was introduced in July, and included incentives to start up and support small businesses and support for organisations operating in remote communities.
Senator Scullion said the message from remote community leaders was that passive welfare was becoming the norm and driving dysfunction and anti-social behaviour.
The revamped scheme draws on key elements of the Community Development Employment Projects (CDEP) scheme that was established in 1977 and axed by the Howard government in 2007.
Senator Scullion said communities had argued that, under the old scheme, non-compliance issues were resolved in a day. They now took up to eight weeks to resolve under the scheme that was "complex and confusing" for individuals.
This led to increased substance abuse, family violence and low school attendance rates, he said.
Under the new scheme, employment providers would pay workers on a weekly basis, instead of them being paid fortnightly by Centrelink. Providers would also be able to apply immediate financial penalties on those who fail to meet obligations.
While the legislation is still to go through Labor's internal processes, veteran Northern Territory MP Warren Snowdon predicted a positive outcome, saying he was "very encouraged by the level of engagement and consultation".
The legislation will be referred to a committee before being debated when Parliament resumes in the new year.