The Morrison government has announced the scrapping of two controversial Indigenous employment programmes, including the remote Community Development Program (CDP), commonly known as work-for-the-dole, and the Employment Parity Initiative (EPI). The CDP will be phased out later this year and replaced in 2023 by a new programme co-designed with Indigenous communities, while the EPI will end by June 2022.
Indigenous Australians Minister Ken Wyatt said the new remote jobs programme would be developed through a co-design process starting in the second half of this year, with pilots in locations reflecting remote Australia’s economic diversity. He emphasised that the government had heard community concerns about the CDP, which has been labelled punitive and akin to modern-day slavery by critics. A 2019 federal review found that 36 per cent of participants believed their communities were worse off under the scheme.
A class action by 350 CDP workers from nine remote communities in Western Australia, alleging the programme is racially discriminatory, is ongoing. The budget papers included a contingent liability for the government to defend the case, which returns to court in July. Wyatt confirmed that all current CDP provider agreements would be honoured, but participants can now engage in work-like activities on a voluntary rather than mandatory basis.
The EPI, part of the $4.9bn Indigenous Advancement Strategy (IAS) created in 2014, has faced heavy criticism for channelling millions to large corporations. At least $91.7m was allocated to ten big companies, including Crown Resorts, Wesfarmers, Woolworths, Fortescue Metals and Accor Hotels. Payments were triggered when an Indigenous employee remained employed for at least six months. Crown Resorts, under scrutiny for alleged money laundering, received a $3.6m grant and was paid $2.29m for placing 230 Indigenous employees.
Greens senator Lidia Thorpe condemned the EPI as a “slush fund” for the government’s “big donor mates”, arguing that billion-dollar companies do not need taxpayer funds to employ Aboriginal people. “Our communities need this money,” she said. The IAS was established by the Abbott government in 2014 to improve Indigenous outcomes.
