The Federal Government says it will increase employment for the marginalised with a new scheme. 

Treasurer Jim Chalmers has revealed initiatives to encourage seniors and welfare recipients to rejoin the workforce and help tackle labour shortages. 

The changes will allow them to earn more without losing benefits and retain concessions for 24 weeks after employment.

Effective from July 1 next year, these adjustments aim to benefit 138,000 people annually, costing $42.8 million over three years. 

The Age Pension Work Bonus test will also see enhancements, with recipients able to earn $300 per fortnight without affecting pension payments.

The government says it acknowledges the challenge of designing efficient transfer payment systems, emphasising the need for balance between generosity, cost, and employment incentives.

Other proposed measures include a national skills passport concept, $40 million for TAFE training expansion, support for Indigenous employment, and flexibility improvements to the Local Jobs Program.

The government's goal is to tap into the 2.8 million job seekers, focusing on education, retraining, and climate adaptation to meet future labour market demands.

While the clean energy workforce is set to grow, the white paper highlights the impact of natural disasters and climate change on productivity and the importance of workforce readiness.

The white paper also supports labour market reforms to promote fairness and inclusivity, addressing issues like wage theft and labour hire.

“When it comes to combating entrenched community disadvantage and helping people break down big barriers to employment, one size does not fit all. This is about partnering with the people who know these places best so we can back the policies and programs that work,” Chalmers said.