Mike Kelly (Eden-Monaro, Australian Labor Party, Parliamentary Secretary for Defence Support) Share this | Hansard source

I would like to thank all those members who have taken part in the debate on the Social Security Amendment (Liquid Assets Waiting Period) Bill 2009. This bill will assist people who lose their job and who have modest levels of liquid assets to access income support more readily. It is an appropriate and fair measure and in the context of the current global financial crisis it is right to ease the pressure on job seekers resulting from current thresholds. The bill gives effect to the government’s 11 February 2009 commitment to double the relevant liquid assets threshold amounts for social security purposes for the period 1 April 2009 to 31 March 2011. This is a targeted and responsible measure in the current extraordinary economic circumstances.

This amendment will mean that single people with liquid assets of less than $5,000 and members of couples or people with children with liquid assets of less than $10,000 will not have to serve a liquid assets waiting period. The bill also excludes the surrender value of life insurance policies from the definition of liquid assets for social security purposes. This will mean that life insurance policy surrender values will not be taken into account in calculating any applicable liquid assets waiting period or determining severe financial hardship for the purposes of eligibility for income support. These measures will mean that people seeking income support will not have to exhaust nearly all of their liquid assets or to cash in their life insurance before payments such as Newstart allowance become available to them.

Measures in this bill will help people with everyday financial pressures and commitments, often incurred when they were working and earning a wage, who find that they need income support in hard times. The bill provides for the changes to the liquid assets waiting period thresholds to be for a two-year period. The bill also provides a mechanism to extend the period that the changes to the liquid assets test waiting period thresholds will operate if required. The government has also committed to undertake a review to consider the effectiveness of the thresholds proposed by this bill in consultation with key stakeholder groups.

The measures in this bill, together with the government’s $42 billion economic stimulus package, support for apprenticeships, training investments, particularly through the Productivity Places Program, and additional employment services providing immediate access for newly redundant workers announced in February by the Prime Minister and the Minister for Employment Participation—all of these measures—demonstrate that the government is responding to the impact of the global financial crisis on working families and the most vulnerable in our society. That is why the government has acted decisively in responding to the social and economic challenges we face through measures such as those included in this bill. I commend the bill to the House.

Cead mile failte.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

Ordered that the bill be reported to the House without amendment.

See this speech in context