house ofrepresentatives standing committee on employment … · house ofrepresentatives standing...

EMP InquirySubmission No. 86

COTA NATIONAL SENIORSWORKING IN PARTNERSHIP

SUBMISSION to the

Houseof RepresentativesStanding Committeeon Employment and Workplace Relations

Inquiry into employment:increasingparticipation in paid work

COTA NationalSeniorsPartnershipA.C.N. 008 483 574Level2, 3 BowenCrescent,Melbourne,Victoria 3004Telephone:(03)98202655Facsimile: (03)98209886

E-mail: cota(ä~,cota.org.au

www.cota.org.au

September2003

COTA NATIONAL SENIORS

Terms ofReferenceofthe Inquiry

On 25 July 2003, theMinister for EmploymentandWorkplaceRelationsaskedtheHouseof RepresentativesEmploymentandWorkplaceRelationsCommitteetoinquireintoandreporton employmentissuesin bothrural/regionalandurbanandoutersuburbanareas,with particularreferenceto:

• measuresthat canbeimplementedto increasethelevelofparticipationin paidwork in Australia;and

• howabalanceofassistance,incentivesandobligationscanincreaseparticipation,for incomesupportrecipients.

Overviewofissues

Thequestionoftheparticipationofmatureagepeoplein thepaidworkforceis onethathasbeenofongoinginterestto theCouncil ontheAgeingandNationalSeniorsAssociationin recentyears.An overviewofthenewly formedbodyCOTANationalSeniorsandits policy principlesis at attachment1, p13.

Ourconcernsin relationto matureageworkersrelateto thefactthat:

• around30 percentofpeopleaged50 to 64 relyonsomeform ofsocialwelfare

payment

• around50 percentofthepopulationaged50 to 64havenopaidemployment

• 50percentofpeoplebecomingeligible forthemeanstestedagepensionarealreadyreceivingsomeform of socialwelfarepayment(Lim-Applegate,2002,p81).

COTANationalSeniorsbelievesthatthesesummarystatisticsshowthatmatureagepeoplehavebornethecostsoftherestructuringoftheAustralianeconomyoverthepast10 to 15 years.We believethattheretrenchmentofolderworkershasbeenaprincipal tool usedbymanycompaniesandorganisations,in bothpublic andprivatesectorsto carryoutprocessesofrestructuringanddownsizing.Matureageworkershaveeithervoluntarilyleft jobswith thelure ofredundancypackagesorhavebeenselectivelytargettedforretrenchment.

Improvingtheparticipationof matureageworkersis apriority for COTANationalSeniors,thenewly formedpartnershipbodywhich combinesCouncilson theAgeingwithNationalSeniorsAssociation.

Webelieveit critical thatopportunitiesformatureagepeopleareexpandedfor arangeofreasonsincluding:

• preandpostretirementfinancialsecurity

1 Lim-ApplegateH (2002)Outcomesfor matureagedpeoplewho left employmentin thedecadeto

2000,PaperfortheSixth GlobalConferenceon AgeingPerth27-30 October2002, DepartmentofFamily andCommunityServices,Canberra,Australia

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• thehealthandwell beingofolderpeople• theneedofmanypeopleto supportfamilies• socialandeconomicparticipation.

In addition,webelievethattheparticipationofmatureageworkerswill enhanceproductivityandthesustainedgrowthoftheAustralianeconomy.It is alsoanimportantmeansofmanagingthecostsofanageingpopulationsuchasoutlinedin theTreasurer’sIntergenerationalReport(IGR). While wehavereservationsaboutanumberoftheunderlyingassumptionsfor theprojectionsofthe IGRreport,weacceptthatthereis aneedfor longtermplanningand appropriatepolicy formulationto avertanypotentialpressurepointsonGovernmentfinancesasaresultofpopulationageing.

How can theparticipationofmatureagepeoplebe improved?

As eitherjob losersorjob leavers,matureagepeoplefaceverysignificantbarriersinreturningto work. Thereis also a significantgroupofpeople,primarilywomen,whohavehadmarginalorno workforceattachmentdueto caringresponsibilitiesbutwhoareseekingaplacein theworkforce.

Thenatureofthesebarriersis attheheartoftheissuesregardingtheparticipationofmatureagepeoplein paidemployment.

COTANationalSeniorsbelievesthatthebarriersfacedby matureagepeoplearecomplexandinvolve:

• discriminationin termsof recruitmentandretrenchmenton thebasisofage• lackofappropriateskills andtrainingfor employmentin theneweconomy• lackofjobs in particularregionsandlocations• theeffectsoflongtermunemploymentin termsofgettingbackintowork• socialsecurityandtax disincentiveeffects.

To improvetheparticipationofmatureagepeoplein thelabourmarketeachofthesebarrierswill needto beaddressed.In thisprocessthereneedsto berecognitionofthediversityofcircumstancesandbackgroundsofmatureageworkersandtheirpreexistingrelationshipto thelabourmarket.Matureageworkersareasdiverseasanyothergroupin thecommunity.

While populationageingin thelongrunmayfix theproblemsof theparticipationrateofmatureagepeople,thereis a seriousproblemin theshortto mediumtermwhichmustbetackled.

It is vitally importantthat actionis takennowto improvetheemploymentprospectsofmatureagepeoplein thelabourmarket.Withoutaction, a largecohortofpeoplewill enterretirementwith insufficientsavings,andtheywill experiencesocialandeconomicexclusion.In addition,thereis aseriouslossofskills andproductivityto theeconomy.

It is alsoimportantto considerthatthereareno certaintiesfor thefuturein regardtoanimprovementin employmentopportunitiesfor olderworkers.Stereotypicalattitudesanddiscriminatorypracticesarelikely to persistformanyyears.In addition,

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ongoingeconomicrestructuringwill continueto poseverysignificantchallengesforolderworkers.It is critical thatsoundlabourmarketpoliciesaresetin placenow withaview to managingtheseissuesoverthelongterm.

1. Agediscrimination andemployerattitudes

Thereis no questionthat agediscriminationis asignificantbarrierfor manymatureagepeople.

Thegraphsbelow arederivedfrom a Drake ManagementConsultingsurveyof over500 seniorexecutivesandhumanresourcemanagersnationwidein 1999.

Source:DrakePersonnelLimited, 1999.

The results of this surveyare confirmed by anotherlargejob agency/managementconsultantgroup in Australia, Morgan & Banks, which regularly surveys4,125employersnationallyand coversthe employmentintentionsof employersof over2.5

million workers.

Preferred age groups when recruiting and selectingemployees

70%60%50%40%30%20%10%0%

50&over 41-50 31-40 20-30

Preferred age group when retrenching employees

70%60%50%40%30%20%10%0%

50&over 41-50 31-40 20-30

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Its quarterlyJob Index publishedin October1999 showedthat half of Australianorganisationsbelievethat olderworkersarelessproductivethanyoungerworkers.Byinference,then,thereis a greatreluctanceto employolderworkers.

Wehadthoughtthatthesituationmayhaveimprovedin thelast fewyearssincethesesurveysweretakenbutweareconvincedby ourongoingcontactwith matureagepeoplethatagediscriminationremainsamajorbarrier.

Agediscriminationlegislationhasbeenin placein Australiain StatejurisdictionsforsomeyearsandtheFederalGovernmentis currentlyin theprocessofestablishingnationallegislation.While stateagediscriminationlegislationhasbeeneffectiveinbanningsomeofthemoreovertformsofdiscrimination(suchasputting agelimits inadvertisements),it hashadlittle effectoncovertdiscrimination(decisionsabouthiring andfiring basedonage.)Theefficacyofthesoon-to-beintroducedFederalagediscriminationis yetto be tested.

Olderworkerstell COTANational Seniorsthatagediscriminationis thesinglemostimportantcauseoftheproblemstheyface.Thesignificanceofthis factorshouldnotbeunderestimated.However,weunderstandtheinterplayof agediscriminationwithotherfactors:

• Theproblemsoffinding ajobwhileunemployed.It is mucheasierto find ajobwhenonehasajob.However,swift, unplannedretrenchmentmeansthat theindividualis forcedinto ajobsearchfrom apositionofunemployment.Thewayretrenchmentshavebeenhandledcanleadto a significantlossof self-esteemandconfidence,which canimpactonaperson’scapacityto copewith therigorousdemandsofjob searching.

• Thelongeroneis unemployed,thehighertheprobabilityofremainingunemployed.Thisphenomenonis knownashysteresisin thelaboureconomicsliterature.

• Therehavebeensignificantchangesin businesspracticein thepasttento fifteenyears:eg. flatterstructures,relianceon contractorsandtechnologicalchange.To alargeextent,theentireworkforcehasbeenaffectedby thesechanges,however,matureagepeoplemaybemoreaffectedbecausetheyhavehadthelongestexposureto earlierworkforcestructuresandcultures.

• Theunemployedperson’sskills maynotbecompatiblewith employers’currentneeds.

Mostly, employerawareness-raisingstrategiesaimedatcultural changefocuson largecompaniesorpublic sectororganisations,especiallylocatedin themajorcapitalcities,withhumanresourcedivisionswheretherecanbesomeflexibility andforwardplanningin regardto theirworkforces.Thesegenerallyinvolve expertspeakerspresentingthebusinesscasefrom acost-benefitpoint ofview for companiestomaintainandemploytheirolderworkers. Suchaforum, TheAgelessWorkforce,washeldin Sydneyon27 August2003,co-hostedby NationalSeniorsAssociationandtheAustralianChamberofCommerceandIndustry.

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Theseforumsareimportantto setin train theprocessofculturalchangeandto gainpublicrecognitionoftheissues.At thesametime, thereneedsto berecognitionthatmuchemploymentgrowthis in small to mediumenterpriseswhich areseekinghighlevelsofflexibility from theirworkforcesandareoperatingwithin highly competitiveconstraints.Othertypesofstrategiesmaybeneededto assistthesebusinessesto takeonboardthemessagesabouttheageingworkforceandthebenefitsofemployingmatureworkers.Theproblemofagediscriminationareespeciallyvexedin smallercommunitieswith anarroweconomicbase.

Agediscriminationis theoutcomeof acomplexsetof forcesat work in this societyandtheeconomyincluding:

• outdatedandstereotypicalattitudesacrosssocietyaboutthecapacitiesofmatureagepeople

• ashortageofjobs for all who want to work andtheneedto rationemployment

• abeliefthatyoungpeopleneedjobsmorethanolderpeople

• averyrapidprocessof economicandlabourmarketchangethathasparticularlydisadvantagedolderworkerscompetingforjobs in theneweconomy

• thefocusonolderworkersin termsofretrenchmentanddownsizingprocesseswhichhasresultedin youngerprofilesin management.

Thereneedsto beactiononawiderangeoflevels to counteragediscriminationandmanyplayersareneededto havearole, including:

- theCommonwealthto takeleadershipin termsofpublic policy- forward-thinkingemployersto setexamplesandestablishbestpractice- COTANational Seniorsto keepthemessagesin thelimelight- JobNetworkandotheremploymentserviceprovidersto ensurethatmatureage

job seekersarepromotedto employers.

Strategiesfor overcomingagediscrimination

1.1 Major publicityeventssuchastherecentAgelessWorkforceSymposiuminSydneyareameansofkeepingtheissuesin thepublic eyeandshouldbecontinued.

1.2 Thereis aneedfor targetedstrategiesfor small to mediumsizedenterprisesandinregionalcommunitiesonemploymentpracticesin relationto olderworkers.Thismaywarrantfurtherresearchandinvestigationoftheissues.

1.3 Employmentagenciesin JobNetworkcanhavean importantrolein forging linksto employersandpromotingmatureageworkers.

1.4ThenewCommonwealthlegislationon agediscriminationshouldbe linked to aneducationcampaignonthebenefitsofemployingmatureagepeople.

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2. Ensurepeoplehaveaccesstoflexible, affordableandrelevanttrainingfor thenewlabourmarket.

Thereis evidencefrom ourownworkonmatureageemploymentthat economicrestructuringacrossAustraliahasmeantthattherearesignificantareasofskillmismatchbetweenlocal workforcesandtheemergingjob opportunities.Addressingthesemismatchesthroughreskilling andretrainingcould improvetheparticipationofmatureagepeoplein theworkforce.

Areasandregionsthat aremostaffectedarelikely to havebeenmanufacturingoragriculturalcentresin thepastwhich arenow experiencingaboomin serviceindustriesorhighvalueaddedexportindustries.

Suchareasoftenhavepoolsof longtermunemployedorprematurelyretiredmatureagepeoplewhoseskills arenotsynchronisedwith theneweconomy.

COTANational Seniorsbelievesthatmuchmorecouldbedoneto equipthesepeopleforjobsin thenewlabourmarket.However,werecognisethecomplexitiesaroundthis. Manynewjobsfor instancearein agedandcommunitycare.Theextentto whichworkersfrom manufacturingoragriculturalbackgroundswill wishto trainfor work inagedcareis not clear.Certainlyit will beanoptionfor somebutthereneedstorecognitionofthebarriersfor others.

It is alsoimportantto recognisethat while someareasandregionsareexperiencingeconomicresurgencefollowing industryrestructuring,this doesnotnecessarilytranslateinto employmentandunemploymentremainshighin anumberof areas.

Trainingandskill developmentareratedveryhighlyby matureagepeoplein termsofwhattheybelievewouldhelpthemmostgetajob. However,affordabilityandavailabilityofcoursesaswell aslinkagesto realjob opportunitiesaretheissuesformanypeople.Flexibility andarticulationinto thenationaltrainingsystemarecritical.

In addition,thereneedsto beamuchgreatercommitmentto lifelong learningmoregenerallyacrossthecommunity,including for peoplein employment.Muchmorecanbedonewhilepeoplearestill in work to reducetherisk ofunemploymentandtoensurethat skills arekeptrelevantto thecontemporaryworkforce.

Lifelonglearningshould,attheminimum,encompassthefollowing characteristics:

• High level accessibilityin termsoftime, costandlocation.

• Modularity— componentsofeducationshouldbe linked to eachother.

• Recognitionofprior learning.

• Locallybased.

• Relevantto bothspecificlabourmarketneedsandbroaderpersonalandsocialinterests.

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• Diversityin approaches,venues,methods,content.

• Appropriateuseoftechnology.

Wehavegatheredthatthereis a lot of interestin theBITES program(BasicITEnablingSkills for OlderWorkers)which hascomeonstreamin 2003.But placesarelimited andit is only availableto peoplereceivingaCentrelinkpayment.

Strategiesfor improvingthematchbetweenemergingjob opportunitiesandtheskills ofmatureageworkers.

2.1 Flexiblesubsidiesfor matureagepeopleto takeup relevanttrainingfor localjobopportunities.

2.2 Trainingneedsto articulatewith andaccreditedinto thenationaltrainingsystem.

2.3 Supportfor acultureoflifelong learningin Australiato encompasspeopleinwork:

- Developinganexplicit policy ofeducationfor olderadults.- Reducingbarriersto existingeducationandtrainingopportunitiesfor older

adults suchascosts,timeandlocation.- Providingincentivesfor theeducationandtrainingofolderadultsin the

workplace.- Extendingcommunityandinternet-basedlearningoptions.- Fosteringthedevelopmentofmethodologiesforthe learningof olderadults.- A nationalpolicy frameworkfor adultlearningasrecommendedbyAdult

LearningAustralia.

2. 4 TheBITESprogramfor olderworkersbeextendedto anyjob seekerovertheageof45 whetheronbenefitsornot.

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COTA NATIONAL SENIoRS

3. A mature ageemploymentstrategyfor regionalAustralia.

Matureageemploymentissuesareverycomplexin regionalareaswherethereis highunemploymentandsloweconomicgrowth.Matureagepeoplehaveoftenbeenleftbehinddueto structuralchangesin thelocal economy.Therearealsoproblemsofmatureageunemploymentin areaswhichhaveexperiencedaninflux ofmatureagepeople,oftenretiredorsemi-retired,becauseoftheamenityofthearea.

Formanypeoplein theseareas,movinglocationsis not aviable-optiondueto themassivepricedifferentialsin housingnowexistingbetweencapitalcitiesandregionalareas.Nor is it a desirableoption,wheretheremaybestrongfamily andcommunityconnections.In anycase,it is importantthatregionalcommunitiesretaintheirpopulationandbeencouragedto grow.

Australianeedsto haveamuchstrongercommitmentto investmentin regionalareasto takepressureoff capitalcitiesandto ensureabalancedpatternofgrowth.Innovativeapproachescanbeusedto bothstrengthenthelocal economyandprovideopportunitiesformatureagepeopleto usetheirskills.

A rangeofapproacheswereproposedin theMcClurereportonWelfareReformbuttheprogresson theirimplementationis not clear.(ReferenceGroupon WelfareReform,ParticipationSupportfor a MoreEquitableSociety,2000,pages45-52).TheReferenceGroupidentifiedanumberofwaysof generatingemploymentinregionalareasaffectedby structuralchange:• communityeconomicdevelopment• communitybusinesspartnerships• socialentrepreneurship• fosteringmicro-businesses

Thereferencegroupmade12 recommendationsin relationto thesefourstrategies(seeattachment2, p14).A numberoftherecommendationsneedfurtherdevelopmentfortheirimplementation.Thesecouldform thebasisfor amatureageemploymentstrategyforregionalAustraliaandareasundergoingsignificantstructuraladjustment.

WerecognisethatanumberoftherecommendationsoftheMcClurereporthavebeensubsumedinto policy initiatives throughtheSustainableRegionsStrategyby theDepartmentofTransportandRegionalServices.(Seeattachment3, p15). However,weareoftheview thatmuchmoreneedsto bedoneto link theSustainableRegionsactivitieswith outcomesfor matureageworkerswhohavebeenaffectedby structuralchange.

Strategiesfor improvingemploymentopportunitiesin regionalAustralia.

3.1 Develop amatureageemploymentstrategyfor regionalAustraliabasedonrecommendationsEl to E12ofthereportoftheReferenceGrouponWelfareReform,ParticipationSupportfor aMoreEquitableSocietyform ausefulbasisfor thesestrategies.

3.2 Ensurethattherearespecifiedoutcomesformatureageworkersin thepolicyinitiativesoftheSustainableRegionsStrategy.

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4. Preventinglongterm unemployment

COTANationalSeniorsbelievesthatin orderto increasethelabourforceparticipationofmatureagepeople,apreventativestrategyin termsoflong termunemploymentis essential.

Matureagepeopleareveryvulnerableto long termunemploymentoncetheyhaveleft ajob. Theaveragedurationofunemploymentfor matureagepeopleis around2years,morethandoublethat ofyoungerpeople.In addition,webelievethatlongtermunemploymentoftenultimatelyleadsto withdrawalfrom theworkforcealtogether.

Ofgreatconcernto COTANationalSeniorsin recentyearshasbeenthenumberofpeoplewehaveencounteredwho havebeenretrenchedfromjobs andwho havenotbeengivenanyassistancein termsofreturnto work. This is in partaneffectofthesocialsecurityassetstestwhichdisqualifiespeoplefrom paymentsif theirassetsareabovea certainlimit — this canoccurfor instancewhenaredundancypackagehasbeenreceived.Thespinoff from this is thatthesepeoplearenot eligible for labourmarketsupportandassistancethroughCentrelinkandtheJobNetwork.

It is clearfrom ourwork withmatureagepeoplethat activeassistanceis critical foranymatureagepersonwho becomesunemployedor is seekingto returnto workafteraperiodofabsencesuchasfor caring.

Oftensuchpeoplehavebeenin onejob oroneoccupationformanyyearsandareoutoftouchwith developmentsin theneweconomy.Manyhavenotappliedforjobs formanyyearsandareunawareofcontemporaryjob searchmethods.Immediateassistanceis critical.

Wehavealsofoundthat matureagepeopleareoftennot goingto JobNetworkforassistance.This maybebecausetheydo notknow whatservicestheJobNetworkhasto offer or it maybebecausetheydo nothaveconfidencein theservice.

Australianbusinessesandservicesgenerallyneedto takemoreaccountofthenewandemergingneedsofanageingpopulationandworkforce.TheJobNetworkis onesuchservice.TheJobNetworkneedsto recognisethedistinctneedsandcharacteristicsofits matureageclients:

- alongpastexposureto particularworkingenvironmentsand/orexperiencein aparticularoccupation

- anorientationtowardsretirementandlater life- experienceofolder-agediscriminationin employment- changingpersonalandwork-relatedaspirations- ahistoryofsignificantcontributionto societythroughpaidemployment,family

andcommunitylife.

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While everyoneis affectedby socialandeconomicchanges,thereareimportantconsiderationsin termsoftheresponsesthatpeoplein mid-life areableto maketothesechangesincluding:

- theneedto consolidateone’sfinancialpositionwith aview to retirementandolderagein theshort-mediumterm

- greaterwarinessofrisks involved in certainactivities(egestablishingabusiness)- thesenseoflesstime availableto achievemajorgoals(eg undertaking3 or 4 year

universitydegreeto qualify for aparticularoccupation).

COTANationalSeniorsbelievesthatJobNetworkcouldoffer abetterandmorerelevantserviceto matureagejob seekersif therewasbetterunderstandingofthecharacteristicsandneedsofthis groupincludingthediversity ofneedsandcircumstancesofpeoplewithin it. A serviceenvironmentin JobNetworkwhich wasmorein tunewith theneedsofanageingworkforcecouldassistin improvingconfidencein theserviceandusagerates.This in turn couldassistin preventinglongtermunemploymentandimprovingmatureagelabourforceparticipation.

On anothernote,a significantnumberofmatureagepeoplehavetold usthatincentivesshouldbeprovidedto employersin orderto helpthemgetajob or “a footin thedoor” sothattheycanprovetheirvalue.Weareawarethat wagesubsidyprogramshavebeenout offavourwith governmentsaroundtheworld for someyearsbecauseofcriticismsoftheirexpense,marginaleffectsoncreatingadditionalemploymentandshort termnature.However,thereis acaseto considerarangeofalternativemechanismsthatmayassistmatureagepeoplein getting“a foot in thedoor”- for example,in-worktraininggrantssuchasprovidedto matureagepeopleintheUK orpayroll tax exemptionsby StateGovernments.Theremayalsobepotentialfor usingtargettedwagesubsidiesto helpthemostdifficult to placematureagepeople.

Strategiesfor preventinglong term unemployment

4.1 Immediateaccessto labourmarketassistancefor anymatureageperson

becomingunemployedthroughJobNetworkagencies.4.2 ImprovedservicethroughtheJobNetworkso thatit is moreamenableto dealing

with matureagepeople.This meanseducationandtrainingthroughtheJobNetworkin termsofissuesfor anageingworkforceandolderworkers.

4.3 Investigatevariousoptionsfor employerincentivesto employmatureagepeoplesuchaspayrolltax exemptions(aStateGovernmenttax) or in-worktraininggrants— andtargettedwagesubsidiesfor difficult- to- placematureagepeople.

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5. Supportingpeopleto takeopportunitiesin part time, casualandcontractwork andportfolio employment.

In ourexperience,thereis still astrongdemandamongstmatureagepeoplefor fulltimepermanentwork. Theypoint to thedifficultiestheyfacein thepart-timeandcasuallabourmarket:

• earningenoughto live on;• thelackofcoveragefor sick leaveandotherbenefits;• if onCentrelinkpayments,thehavocofgettingbackonto benefitsfollowing a

short termjob;• theuncertaintyofmanyjobs;and• thedifficulty ofbalancingtwo ormorejobsin aportfolio arrangement

However,therealityis thatmuchgrowthin theneweconomyis in parttime, casualandcontractwork.

Increasinglymatureagepeopledo acknowledgethattheywouldneedto look atportfolio employmentasanoptiongiventhegrowthofthesesortsofjobs. Seeattachment4, p 16, for discussionofportfolio employment.

We acknowledgethatthenewWorkingCreditschemedueto commenceon 20September2003will amelioratesomeoftheproblemsmatureagepeoplehaveencounteredto date.

This schemewill helppeopleto “smoothout” theeffectofparttime andcasualworkon theirCentrelinkpaymentby allowing themto “bank” theirpotential earningcapacityat arateof $24perweek.Thismeansthat afteraperiodof 12 monthsforexample,apersononNewstartAllowancewhohasnot workedat all, wouldhaveabankof$1248potentialearningcapacity— soif theygot a casualjob for 3 weeksduringtheChristmasrushearning$400perweek,this-wouldnotaffect theirCentrelinkpayment.

However,the incometestfor payments,particularlyNewstartAllowance,remainssevere.Individualscanonlyearn$31 perweekbeforetheyloseNewstartat arateof50 centsin thedollar for incomebetween$31 and$71 perweekandthen70 centsinthedollar for incomeabove$71. Peopletell usthat this is adisincentiveto takingparttimework. Hencetheycontinueto seekout full timeworkinstead.

Matureagepeoplealsoreportthat if theytakeasecondjob, theyaretaxedfor thatjobat thehighestmarginalrate.While theywill bereimbursedattheendofthefinancialyearfor anyexcessivetaxpaid,theyneverthelessconsiderthatthesetax arrangementsareadisincentivein termsoftaking asecondjob.

Strategiesfor improvingincentivesforpart time, casualandcontractwork

5.1 Moresupportfor matureagepeoplein termsoftappinginto opportunitiesin thenewlabourmarketanddeveloping“portfolio” employment.

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5.2 Investigationofthepotential for easingofthe incometestforpeoplereliantonsocialsecurityincomesto encouragetakeup ofparttime, casualandcontractwork.

5.3 Furtherresearchinto thepotentialforrevisionoftaxationarrangementswhichcreatebarriersto portfolio employment.

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ATTACHMENT 1: ABOUT COTA NATIONAL SENIORS

COTANationalSeniorsPartnershipis thelargestseniors’organisationin Australiawith morethan270,000individualmembersandover 1500seniorsorganisationsunderits umbrella.It offersmembersavastrangeofservicesandbenefitsandis aninfluentialvehiclefor contributingto policy debatesaffectingolderpeopleinAustralia.

ThePartnership,effectivefrom 11 December2002,joinedtheStateandTerritoryCOTAsandCouncilon theAgeing(Australia)withNationalSeniorsinto ajointnationaloperationthatmergesandsharesvariousoperationsoftheelevenorganisations.

With its combinedindividual andorganisationalmembershiprepresentingall aspectsofAustralianseniorsinterests,COTANational SeniorsPartnershiphasapre-eminentrole in representing,advocatingfor andservingolderpeoplethroughoutAustralia.Intermsofpolicy, it adheresto fourprinciples:

PolicyPrinciple 1: maximisingthesocialandeconomicparticipation ofolderAustralians.

ThePartnershipseeksto maximiseopportunitiesfor socialandeconomicparticipationby olderAustralians,includingpromotingpositiveapproachesto thecontributionofseniorsandtheageingoftheAustralianpopulation,andby breakingdownagediscriminationin all areasofsocialandeconomiclife.

PolicyPrinciple 2.’ promotingsustainable,fair andresponsiblepoliciesThePartnershipis committedto thedevelopmentoffair andsustainablepoliciesforseniorsthattakeaccountoftheneedsoftheentirecommunityin theshortandlongterm. It developspolicieswhich arefiscally andeconomicallyresponsibleandwhichfairly balancethecompetingneedsandinterestsofdiversegroupsamongsttheseniorpopulationandothersectorsofthecommunity.

PolicyPrinciple 3: protectingandextendingservicesandprogramsthatareusedand valuedbyolderAustralians

ThePartnershipdevelopspoliciesandprovidesadviceonmaintainingandimprovingservicesandprogramswhich seniorsuseandvalue.Theseincludeprimaryhealthcare,hospitals,pharmaceuticals,employmentservices,utilities, public transport,residentialcare,housingandcommunitycare.It will seekto ensurethatthereis anadequate“safetynet” ofservicesandincomesupportwhich all seniorscanaccessaccordingto fair andequitablecriteriain orderto maintainareasonablequalityoflife.

PolicyPrinciple 4: focusonprotectingagainstandredressingdisadvantageThePartnershipbelievesthat all seniorshavetheright to security,dignity, respect,safety,highstandardsoftreatmentandcareandto equalparticipationin thecommunityregardlessofincome,status,background,location,frailty oranyothersocialor economicfactor.As aresultwewill haveastrongfocusonseniorswho aremostvulnerableordisadvantagedin termsofthesecriteria.

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ATTACHMENT 2: RECOMMENDATIONS OF THE REFERENCE GROUPON WELFARE REFORM:SOCIAL PARTNERSHIPS - BUILDiNGCOMMUNITY CAPACITY

Medium to long term

El Build on theStrongerFamiliesandCommunitiesStrategyandRegionalSolutionsto developanongoingprogramto promotethebuildingof socialcapitalandthedevelopmentof socialpartnerships.

E2 Government,businessandcommunitycontinueto exploretogetherstrategiesforcommunitycapacitybuilding, includingresearch,bestpracticeandopportunitiesforpartnershipsin this area.

E3Broadenopportunitiesfor ongoingdialoguewithbusinessregardingtheirrole intheParticipationSupportSystem.

Initial steps

E4Furtherdevelopandexpandtherole ofRural TransactionCentresasafocusforcommunitycapacitybuilding in ruralandremotecommunities.

E5ResourcethePrimeMinister’s CommunityBusinessPartnershipto promoteandsupportbusinessinvolvementin socialpartnerships,includingtheestablishmentoflocal communitybusinessnetworksto supportpartnershipsbetweenbusinessandcommunities.

E6Encourageandsupportcompanieswith extensiveinvolvementin regionalanddepressedcommunitiesto takealeadingrolein demonstratingtheeffectivenessofcommunity-businesspartnerships.

E7Developpilots to encouragebusinessto investin communityeconomicdevelopmentandto providebusinessleadershipskills to disadvantagedcommunitiesto helpgeneratecommunityeconomicdevelopment.

E8 EnsurethattheStrongerFamiliesandCommunitiesStrategyis implementedwiththecloseparticipationofbusinessandcommunityinnovators.

E9 Developstrategiesto fosterthegrowthofmicro-businesses,particularlyinregionalandotherdisadvantagedcommunities.

ElO Developanon-lineclearinghouseforideas,casestudiesandgeneralinformationto supportthegrowthofsocialentrepreneurship.

Eli Continueandincreasesupportfor small andmicrobusinessdevelopmentprogramssuchastheNew EnterpriseIncentiveSchemeandfunding for theestablishmentofbusinessincubators.

Ei2 Reviewprogramsacrossgovernmentwhich supportcommunitycapacity

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building andencouragesocialpartnershipsin orderto ensurethemosteffectivetargetingofresourcesandtheidentificationandapplicationofgoodpractice.

ATTACHMENT 3: SUSTAINABLE REGIONS PROGRAMME,DEPARTMENT OF TRANSPORT AND REGIONAL DEVELOPMENT

SustainableRegionsis apilot programme,offeringaplanned,integratedapproachto structuraladjustmentin specificcommunities.Theprogrammecurrentlycovers8 regions:

o FarNorthEastNSW, containingtheLocal GovernmentAreas(LGAs)ofTweed,Ballina, Byron, LismoreandKyogle;

o CampbelltownlCamden,NSW,containingtheLGAs ofCampbelltownandCampbell;

o Gippsland,VIC, containingtheLGAs of Latrobe,BassCoastShire,BawBaw(east),SouthGippsland,WellingtonandEastGippsland;

o AthertonTablelands,QLD, containingtheLGAs ofAtherton,Eacham,HerbertonandMareeba;

o WideBay-Burnett,QLD, containingtheLGAs ofBiggenden,Bundaberg,Burnett,CherbourgCommunityCouncil,Cooloola,Eidsvold,Gayndah,HerveyBay,Isis, Kilkivan, Kingaroy,Kolan,Maryborough,Miriam Vale,Monto, Mundubbera,Murgon,Nanango,Perry,Tiaro,WondaiandWoocoo;

o Kimberley,WA, containingtheLGAs ofBroome,Halls Creek,Derby-WestKimberleyandWyndham-EastKimberley;

o PlayfordlSalisbury,SA, containingtheLGAs ofPlayfordandSalisbury;and

o NorthWestandWestCoast,TAS, containingtheLGAs ofKingIsland,CircularHead,Waratah/Wynyard,Burnie,CentralCoast,Devonport,Latrobe,KentishandWestCoast.

• In thelatestBudgettheprogrammewasextendeduntil 2005-06,althoughnomoremoneywasallocated.Theprogrammeis expectedto costup to $100.5millionoverthis period.

• SustainableRegionsaimsto createapartnershipbetweenall spheresofGovernment,theprivatesector,theSustainableRegionAdvisoryCommittee(SRAC) andotherorganisationsin theregion. Together,theseorganisationswillworkto createself-reliantregions. Thefocusis onenvironmental,socialandculturalissuesaswell aseconomic.

• Prioritiesfor theprogrammearedeterminedby local communitiesguidedby theirSRAC,alocally-basedadvisorygroupcomprisingbusiness,communityandlocalgovernmentrepresentativesandat leastonememberfrom therelevantAreaConsultativeCommittee.As well asdeterminingpriorities, this groupundertakesanynecessaryactivitiesandrecommendsprojectsfor funding to theMinister.TheDepartmentofTransportandRegionalServicesattendsSRACmeetingsasanobserverandto provideinformationon programmeissues.

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• ExamplesofprojectsfundedunderSustainableRegionsinclude:

o $378,000in supportfor ajoint projectbetweenTourismMacarthurandtheUniversityof WesternSydneyto developaco-ordinated,strategicapproachinvolving the local industry.

o $835,000to expandahatcheryin theFarNorthEastNSWregionandassistanotherbusinessto relocateto thearea.Theprojectis expectedto createjobs in theregionandprovideflow-onbenefitsto thelocaleconomy.

o $213,075in supportfor aninnovativeproject,aimingto repair130 haoffish habitatstretchingfrom TweedHeadsto Ballina. WetlandCareAustraliabelievesthatin five yearstimetherehabilitationprojectcouldequateto an extrafive million fish usingtherehabilitatedarea.

ATTACHMENT 4: PORTFOLIO EMPLOYMENT

Theideaofportfolio employmenthasincreasingcurrencyin thecontemporarylabourmarketwhich is markedby thedemiseoftraditionalmanagementstructures,permanency,protectedindustrialconditionsandin theAustraliancontextthestronggrowthofpart-time,casualandcontractwork.

Portfolio employmentembodiestheideaofanindividual marketinghis orherskillsacrossarangeofemployersratherthanbeingformally attachedto onesingleemployer.An individualthusmayhaveonepermanentpart-timejob for 2 daysperweekandsupplementtheincomefrom this job with ad-hoccontractworkwithseveralotheremployers.

It is a conceptthatis clearlymostsuitedto occupationsorprofessionswhichareat theupperendof skill developmentsuchasIT professionals,lawyers,editorsorresearchers.It is lessclearhowwell the conceptworksfor unskilledor semi-skilledoccupations.

COTANationalSeniorsdoesnotnecessarilybelievethatportfolio employmentis themostdesirableorrealisticemploymentoutcomeformanymatureagepeople.However,COTANationalSeniorsbelievesthat:

• matureagepeopleshouldbewell-equippedto takeadvantageof opportunitiesintheneweconomyandunderstandshiftsin thecontemporaryemploymentmarket

• part-time,contractorcasualwork canbean importantsteppingstoneto full timeemployment

• somematureagepeoplemayhaveapreferencefor portfolio employment.

Somemajorreferencesrelatingto portfolio employmentinclude:

Cohen,L. & Mallon, M. 1999, ‘The transitionfrom organisationalemploymenttoportfolio working: perceptionsofboundarylessness’,Work,EmploymentandSociety,vol. 13, no. 2, pp. 329-352.

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Grigg,J. 1997,Portfolio Working:A Practical Guideto Thriving in theNewWorkplace,KoganPage,London.

Hakim, C. 1994, WeAreAll SelfEmployed,Berrett-Koehler,SanFrancisco.

Handy,C. 1995,TheEmptyRaincoat:MakingSenseoftheFuture,Arrow Business,London.

Holz, H. 1999,TheConciseGuideto Becomingan IndependentConsultant,JohnWiley & Sons,New York.

Letcher,M. 1997,MakingYourFutureWork,PanMacmillan,Sydney.

Sheehy,G. 1996,NewPassages:MappingYourLifeAcrossTime,HarperCollins,Sydney.

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