Scott Morrison (Cook, Liberal Party, Minister for Social Services) Share this | Hansard source

I thank members for their contribution to the debate. The Social Services Legislation Amendment Bill 2015 will cease social security payments to certain people who are in psychiatric confinement because they have been charged with a serious offence, and in many cases the most serious offences you can imagine. As announced in the 2014-15 MYEFO, the measure will apply to people who have been charged with a serious offence and who, due to a mental impairment, are in psychiatric confinement. This includes people who have not been convicted or are considered not fit to stand trial. The original policy intention will essentially be restored for people in these circumstances, which is that a person cannot access social security payments while in psychiatric confinement as a result of criminal charges. The exclusion of those who have not been accused of a serious crime is a beneficial measure.

The present arrangements under which most people confined to a psychiatric institution may be considered to be participating in a course of rehabilitation and therefore attract social security payments are based on a 2002 Federal Court decision which broadened the definition of 'a course of rehabilitation' beyond the original intent. Social Security payments are provided as a safety net for those in need to help meet daily living needs in the community. The person's needs while in psychiatric confinement, including funding of their treatment and rehabilitation, are in fact the responsibility of the relevant state or territory government during that time.

This measure is to stop the cost-shifting from the state to the Commonwealth. The state charges up to 85 per cent of someone's income support payment to go to their accommodation and living costs. There is no reason why the Commonwealth has responsibility for an individual's needs at any time while they are in state care. There are measures in the bill to make sure that someone will be able to seek income support payments when their rehabilitation gets to a stage that they are getting integrated back into the community.

This measure will apply if the serious offence with which the person has been charged is a violent one. That includes murder, attempted murder, manslaughter, rape or attempted rape. In certain circumstances where people are integrated back into the community, social security payments may resume. The measure applies from 1 July 2015. I commend the bill to the House.

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