Geoff Lyons (Bass, Australian Labor Party) Share this | Hansard source

I rise to speak on the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Election Commitments and Other Measures) Bill 2011. I am pleased to speak on this bill today because the bill will make a real difference for many Australians. This bill essentially gives effect to three election commitments and two non-budgetary measures: expanding the seniors work bonus; supporting families with teenagers through family tax benefits; making improvements to the provision of the baby bonus to eligible families; ensuring annuities are paid to people affected by thalidomide; and making minor administrative amendments to income management measures. The amendments that the Gillard Labor government has put forward today demonstrate its commitment to the Australian people.

For seniors, this bill seeks to expand the existing seniors work bonus measure to allow working pensioners to keep more of their pension when they undertake paid work. This is a very important measure. Older Australians have made our nation strong and prosperous and deserve to be supported in their later years, whether in work, in retirement or in their caring roles. Many age pensioners take on part-time or occasional work and should be encouraged and rewarded for these valuable contributions to our community. This expansion will allow this to happen. Many age pensioners or veterans affairs income support pensioners of qualifying age, and even some of the grey nomads, want to undertake seasonal work but are concerned about the impact on their pension. These reforms will increase the amount age pensioners can earn before the income affects their pension. This follows on from the Labor government’s election commitment to expand the existing seniors work bonus, which was introduced in September 2009 as part of its secure and sustainable pension reform package to support pensioners who are continuing to make a valuable contribution to the economy via their part-time employment.

I am sure pensioners in my electorate of Bass will be pleased about this measure. If they choose to work a few hours a week over the Christmas period or to help out in a busy season, they will now be able to do so with our more generous work bonus. The new work bonus will allow pensioners to earn $250 per fortnight without its being assessed as income under the income test. Importantly, under these changes, the work bonus can be annualised. This means that pensioners will be able to build up any unused amount of their $250 bonus every fortnight for up to 12 months, and the unused amount can be carried forward between years up to a total of $6,500 per year. This measure improves awards for age pensioners who work and ensures that they will be able to keep more of their pension when they are working part-time.

The second measure I wish to speak on today relates to helping Australian families with teenagers. This bill delivers on the government’s key election commitment to increase family assistance by up to $4,200 a year for teenagers in secondary studies. Currently, most low- and middle-income families experience significant reductions in government assistance when their child turns 16. This is despite the fact that most 16- to 17-year-olds, and a significant number of 18- and 19-year-olds, remain in full-time study and under the primary care of their parents. From 1 January 2012, the maximum rate of family tax benefit part A will increase by around $160 per fortnight for teenagers aged between 16 and 19 who are in secondary school or its vocational equivalent. During the election, we announced that the level of assistance would be increased for 16- to 18-year-olds, but the Labor government has extended this to 19-year-olds who are finishing off their schooling. This significant increase will help families meet the higher costs of older children and encourage more teenagers to stay at school. This initiative supports the Gillard Labor government’s objective to improve completion rates of year 12 and its vocational equivalents.

Research shows that children from lower income families have lower levels of school completion. This finding demonstrates that the cost of educating teenage children is an important barrier for families on low incomes. The independent review of Australia’s future tax system recommended:

Rates of payment should increase with the age of the children to recognise the higher costs of older children.

The Gillard Labor government recognises this, knowing that families with older children can face higher costs, including the costs of groceries, clothes and family activities. But, under the existing system, the maximum rate of family tax benefit part A drops from $208 a fortnight to $51 a fortnight when the child turns 16. Rent assistance also stops when a child turns 16 and families may lose eligibility for family tax benefit part B, the large family supplement and the multiple birth allowance. This sharp drop in family support can encourage teenagers to leave school early if their family is unable to support them in full-time study or training. The drop in family assistance when a child turns 16 is also one of the features of the family assistance scheme most frequently criticised by parents.

This government understands the importance of this measure for Australian families. With this measure, we are resolving problems of the past. We are a government that is listening to the community and supporting families. The Gillard Labor government is committed to a fair family payment system that targets family support to lower and middle income families. The Labor government believe in supporting families to bring up children, continuing the education revolution to give every child a great start in life. We will continue to support families as they raise children and encourage their children to continue in education. Every child deserves the right to a good education and every child should be given the opportunity to meet their full potential.

Another election commitment was to change the baby bonus to help Australian families. This amendment provides for eligible baby bonus claimants to have a larger portion of their baby bonus paid to them up-front, from 1 July 2011, to assist them to meet the initial costs of welcoming a child into their family. Under the changes, parents will be able to get an up-front $500 payment of the baby bonus to help with the arrival of a child. This will help Australian families buy some of the essentials that they need—a safe car seat or a pram, for example. The changes will give families better access to their entitlements in a way that more directly meets their needs.

I am sure this is a measure that the people of Bass will warmly welcome. This is a move that shows that the Gillard Labor government understands the issues facing Australia families and is taking steps to address these issues. The people of Bass know that the Labor government will look after them. We have a good track record with families, with measures including paid maternity leave and investing in our children through building infrastructure in schools with the Building the Education Revolution projects. The people of Bass know that those opposite are a risk to their families. They know this because some of those opposite were key players in orchestrating the most family unfriendly policy in Australian history: Work Choices. Families need security. Without security families are unhappy—it is as simple as that—and the Liberal Party found out about that in 2007.

This bill delivers on three of the government’s important election commitments: improving support for families, improving the delivery of the baby bonus to new parents and better supporting pensioners who work. The bill also makes minor amendments to income management and recognises the unique plight of thalidomide survivors.

The Gillard Labor government is committed to supporting Australian pensioners, families and students. We will continue to strengthen our support through these measures. I commend the bill to the House.

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