Deborah O'Neill (Robertson, Australian Labor Party) Share this | Hansard source

I rise to speak in support of the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Further Election Commitments and Other Measures) Bill 2011. I support this bill because, as an Australian and a member of the Australian Labor Party, I deeply value the role that families in our society play. I have long believed that if a government is one that supports families it will provide the necessary financial support for families who find themselves experiencing financial hardship.

I firmly believe that you cannot state in this parliament that you support families unless you support comprehensive, efficient and effective family support. During my previous career as a teacher, I gained firsthand experience of how financial hardship can devastate families. Indeed, as a member of parliament and through the experiences of my wonderful staff and the work that they do for our community, I know that we are often confronted with constituents who are experiencing financial hardship in their families. This bill succeeds in advancing the cause of alleviating financial hardship for just such families.

The main provision in this bill that I support is the increased flexibility it provides for families seeking an advance on their family benefit payments. Such flexibility can ensure that unexpected costs can more easily be paid without relying on credit and thereby worsening the financial position of these families. Under this bill the maximum rate of advance payment would be linked to the family's rate of payment. Overall, a maximum amount of $1,000 will apply. The general maximum rate of payment that can be advanced under this bill is 7.5 per cent. Currently, the maximum advance amount is fixed at $324. This full amount can be advanced only twice a year, specifically on 1 July and 1 January. Sadly, that legal requirement and nicely organised program does not actually fit with the reality of people's lives. We need to consider that the reason that many families need to advance their benefits is that unexpected expenses may incur not on 1 July and 1 January.

All families will on occasion experience unexpected costs, and I am sure that all members in this House have experienced this themselves. Such costs can relate to the breakdown of whitegoods in a house, a car needing to be repaired or urgent repairs needing to be made to a house. In fact, I am mindful of my own experience when, two days before Christmas and very shortly after the birth of our second child, our washing machine broke down. Gladly, we were employed and were able to pull the money together. But I can remember going shopping with my mother on that occasion for a washing machine and thinking that I would be very sensible and buy a cheaper version. My mother looked at me in disgust and said, 'Look at the size of your family and the ages of your children. You'd better figure out, darling, that all your washing days are ahead of you. You need to buy the right washing machine.' Those sorts of decisions which need to be made, and based on the guidance of those who have gone before us who can lead us in the right direction about how we sensibly can spend money, are going to be enabled by allowing flexibility for people who want to make good decisions in the interests of their family, just as I did on that occasion just a couple of days before Christmas.

Similarly, we cannot forget that medical expenses are often unpredictable—in fact, they are always unpredictable—and that such expenses can have a devastating impact on family budgets. People do not and cannot plan their sicknesses. They do not organise sickness around peak earning times. Under this legislation, families that are receiving assistance from the Commonwealth will be able to request their entitlements in advance at any point of the year, as required. This allows for those less financially adaptable members of our society to manage the complex and challenging realities of living. This provision will enable the advances that they need when they are required, and it is a vast improvement on the previous, inflexible system where advances were available only twice a year. Whilst enabling advances to be made, the previous system was limited in its effectiveness because the advances were not in tune with the needs of real people and real living. This legislation accepts that flexibility is a critical factor in determining the success of such a program, allowing advances that can then be repaid through adjustments via ongoing fortnightly entitlements. The bill provides families with an additional choice and additional ownership of their own financial futures by allowing them to manage their family budget.

Importantly, this bill represents a much needed alternative to the option that currently exists where families that might be disadvantaged are required to rely on credit cards or, even worse, extremely high-interest small loans when unexpected costs arise. This bill also provides a much needed alternative to simply having to make do without an important family requirement when confronted with an unexpected cost. The assistance with financial literacy that this measure offers is also evident. Importantly, a safeguard will be provided in that Centrelink will not approve an additional advance payment if it is clear that it would result in financial hardship.

I am proud to support this reform because it represents this government's strong and proud record in sensible and practical reforms to the welfare system. This flies in the face of general criticisms of those opposite that this government has not succeeded with a reform agenda nor achieved positive economic and welfare reform. Additionally, it flies in the face of criticisms that reform cannot occur in this parliament. As the Minister for Infrastructure and Transport, the Leader of the House, put on record last Thursday, 26 May, as of 1.30 pm last Thursday the Gillard government has passed 112 pieces of legislation through this House in eight months. This compares with the 108 bills passed in the first 12 months of the Howard government. Apart from productivity and efficiency, this legislation reveals other Labor government commitments.

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