Sharman Stone (Murray, Liberal Party, Minister for Workforce Participation) Share this | Hansard source

In responding to the amendments moved by the member for Lalor, let me say that eligibility for the pensioner education supplement, or PES as it is commonly called, was extended through special provisions to the disability support pension transition group—people who claimed and were granted DSP between 11 May 2005 and 30 June 2006 and who transferred to Newstart or youth allowance as part of the Welfare to Work reforms.

The Employment and Workplace Relations Legislation Amendment (Welfare to Work and Vocational Rehabilitation Services) Bill 2006 clarifies who is in the disability support pension transition group for the purpose of receiving the pensioner education supplement. Under Welfare to Work, people in the DSP transition group who are receiving the pensioner education supplement are able to retain their entitlement to PES for the duration of their course even if they do move on to Newstart or youth allowance. PES is not generally available to people on Newstart or youth allowance. There are lots of other supports for training, as you would be aware, for those categories. This special provision for the DSP transition group enables completion of a course already commenced.

The Australian government did not intend that people would retain DSP transition group status indefinitely. It was intended that people would no longer be in the transition group once they had had their first review after 1 July 2006 under the new DSP rules. People in the transition group who were receiving the pensioner education supplement are able to continue receiving PES for the duration of their approved course even if they lose eligibility for the disability support pension after their first review after 1 July 2006. This might happen, for example, if they have their full work capacity back.

Allowing people to retain DSP transition group status indefinitely would, we believe, discriminate against other DSP recipients receiving the pensioner education supplement who do not receive the benefit of retaining their entitlement to the pensioner education supplement if they lose their entitlement to DSP. On that basis, we do not believe the amendments are necessary, and I commend the original bill to the House.

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