Kate Ellis (Adelaide, Australian Labor Party, Minister for Employment Participation and Childcare) Share this | Hansard source

I thank all members who have contributed to this debate. Our government has both reformed employment services and invested to improve their effectiveness. In reinforcing those improvements, we introduced a new compliance system from 1 July 2009. Last night, in the 2011 budget, we provided for spending over the forward estimates towards employment services of some $8.5 billion. This includes a range of new initiatives to provide greater support for the very long term unemployed, for job seekers with a disability and for those who have become disengaged. We know that with this increased support, with the opportunities that this support provides, so too comes responsibility. This bill delivers on the government's election commitment to modernising Australia's welfare system and introducing tougher measures to ensure that more unemployed people are getting back into work. We have a growing economy and a strong labour market. While millions of jobs have been lost in other advanced economies, employment in Australia has increased by around 750,000 jobs since 2007, driving unemployment below five per cent. At just 4.9 per cent, Australia's unemployment rate is lower than that of almost any of the other major advanced economies. It is at this time, with lower unemployment and employers searching for new workers to come on board, that we must embrace the greater opportunities to connect job seekers with this employment market. It is crucial that we do all that we can to ensure that unemployment payment recipients are participating to the full extent of their abilities. In order to do that, we need them to be actively engaged with the employment services and support that our government provides.

This bill is not about punishing job seekers who have a valid reason for missing appointments or participation in activities. The government are aware of the challenges that job seekers face and we are aware that most job seekers are genuine in their attempts to find work. However, income support does come with responsibility. A strengthening of the compliance system is warranted so that more job seekers are actively engaged in work experience activities, such as training and work for the dole, so that they are getting the skills and experience they need to find a sustainable job into the future.

Throughout this debate, whilst many opposition members have repeated their party-line talking points about nonattendance being a symptom of a broken system under this government, the reality that everybody should take note of is that under the Howard government the appointment attendance rate in 2006-07 was 54 per cent. In 2009-10, under this government's compliance system, it was 58 per cent. I say this so that we have the full facts on the table, but we know that neither of these figures is good enough. We need to work to make sure that everybody is engaging in the supports that are available to them.

The new arrangements seek to improve job seekers' attendance at employment services provider and related appointments. Suspension of payment provides a strong and immediate incentive for job seekers who miss appointments to re-engage quickly. When a job seeker's payment is suspended following a missed appointment, they get all of their money back once they do what is required of them: attend their appointment. This is an effective way of encouraging compliance without taking the punitive approach of immediately applying a penalty that the job seeker cannot get back. The principle that no job seeker should actually lose payment without a warning or a second chance to comply will remain in place. The current range of legislative and administrative protections for vulnerable job seekers will remain in place, with the additional provision that they will not be subject to suspension of payment in the first instance.

The House of Representatives Standing Committee on Education and Employment has scrutinised this bill, as recommended by this parliament, and only this morning tabled its report. I thank the members of the committee for their work and assure them that the government will give serious consideration to all of their recommendations. Indeed, at first reading, I can give in-principle support to all the recommendations.

On the specifics of this bill, the committee makes one specific recommendation regarding this legislation—that is, that we remove the word 'special' from the proposed subsection 42UA, where it is used to describe a situation in which a job seeker would not be expected to give prior notice of their inability to attend an appointment. Following discussions with the opposition and given that the details of circumstances that will be excepted will in fact be explained in guidelines to Centrelink, the government has no objection to this recommendation.

The government has noted a number of committee recommendations around additional measures in relation to this matter. In fact, participation and compliance arrangements are important to ensuring that job seekers engage with education, training and work experience opportunities and, by working with their providers, move off income support and into paid employment.

We know that the current framework is working. In 2010, 82 per cent of job seekers satisfied their requirements, with no participation reports submitted. A further nine per cent received only one participation report. However, a small number of job seekers—in fact, just two per cent—were the subject of over one-third of participation reports for failing to meet their obligations.

As I mentioned earlier, the budget introduced by the Treasurer last night included funding for a range of new employment initiatives, including some $49.8 million for job seeker compliance and participation related measures to improve and streamline the system, to provide targeted assistance to those job seekers who are most at risk of noncompliance and disengagement and to improve our communication of these measures. The measures announced in the budget follow consideration of the recommendations of the Independent Review of the Job Seeker Compliance Framework—the Disney review. They build on the job seeker compliance bill currently before the parliament, which provides for immediate suspension of payment for nonattendance at provider appointments or activities. These budget measures and this bill are consistent with the government's approach to job seeker compliance, which focuses on early intervention and the use of immediate corrective action to keep job seekers on the right path. They will benefit job seekers, especially those who are vulnerable or disengaged. The measures will also help providers by reducing complexity and increasing transparency.

All Australians on income support should have the opportunity of work, but with this opportunity, of course, comes responsibilities. With this bill we are going to firmly expect that people meet those responsibilities. I commend the bill to the House.

Question agreed to.

Bill read a second time.

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