Christian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | Hansard source

We have before us the Business Services Wage Assessment Tool Payment Scheme Amendment Bill 2016. In providing a summary to the second reading debate I would like to thank all of the members opposite for their various contributions. I particularly want to thank the member for Jagajaga.

The policy space that is pertaining to ADEs has several related but nevertheless distinct and severable issues. They are presently until this point running in parallel. This bill resolves one of those issues. Centrally, in resolving litigious issues—about which I will speak in a moment—this bill is an important part of establishing certainty and continuity in what has been a very crowded policy space in which a number of issues running parallel have created a degree of uncertainty, which is not in the best interests of those people who are and have been employed in Australian disability enterprises.

I will further note that I have listened to the member for Jagajaga, and she has raised some of the related issues in this area. I understand and appreciate her concern on those issues. I would, again, like to put forward my appreciation for her cooperation with respect to the passage of this bill, and note, again, that a primary and substantial virtue of this bill is in resolving present litigation that in itself provides a very substantial source of certainty in what is a very busy, crowded and uncertain policy space. This is the foundation from which other issues can then be resolved. I will go as far as to say that it is almost a necessary condition to the resolving of all of the other parallel issues that have been mentioned in the second reading debate with respect to Australian disability enterprises.

The bill itself gives effect to the settlement agreement between the Commonwealth and the applicant in the representative proceedings in the Federal Court of Australia. Both the Commonwealth and the applicant accept that the settlement agreement is a fair and equitable outcome. The bill delivers on the government's priority to ensure that all Australians who can work and want to work have access to employment opportunities. Australian disability enterprises—or ADEs, as I will refer to them, in shorthand, in this short speech—play an essential role in providing these opportunities for Australians with a disability. ADEs provide supported employment to Australians with a disability who have significant needs, ensuring that they can continue working.

The Commonwealth's payment scheme helps to provide certainty to supported employees that their employers will not close because of concerns about employers' perceived liability for discrimination following the Federal Court decision, in 2012, in the matter of Nojin v the Commonwealth of Australia [2012] FCAFC 192. The improvements to the payment scheme provided for in this bill will increase payments to every eligible supported employee, provide certainty for employers, give eligible supported employees more time to register and apply for the scheme, and remove several impediments to providing payments quickly. The bill achieves this while maintaining the protections necessary to ensure people have choice and control, including appointment of nominees and review mechanisms.

This bill increases the payment under the scheme from 50 per cent to 70 per cent of the difference between the wages that employees were paid and the wages they would have been paid if they had been assessed under a productivity-only tool. The bill preserves the benefits of the payment scheme, including: making payments under the scheme eligible for a lump sum in arrears tax offset; ensuring a payment under the scheme does not count as income, which reduces the risk of affecting an individual's social security entitlements; and indexing payments under the scheme to the CPI rate, each year, in the period relating to payment amounts. The parties to the representative proceedings have agreed that in combination with these modifications the change to 70 per cent is a fair outcome for the relevant eligible supported employees.

Advocates for supported employees, such as the AED Legal Centre and People with Disability Australia, also agree that the increased payment amount is just and a win for employees with a disability. This is a win not only for the class represented in the representative proceedings but also for everyone currently eligible for the scheme. Although the amendments in this bill will give effect to the settlement agreement, the Commonwealth will ensure that everyone currently eligible for the scheme will benefit from the increased proposed payment. The bill will also allow a deceased person's legal personal representative to engage with the payment scheme on their behalf. Any money that would have been paid to the person will now be able to be paid to the person's estate. The bill will also ensure that people who have already received a payment under the scheme will benefit from the increased payment by ensuring that they receive a top-up. Top-ups will be automatic, and people will not have to make an additional application or provide further information to the government.

Many eligible supported employees have not yet registered for the scheme. Under the current act, eligible supported employees will only be paid if they register for the scheme by 1 May 2016. This bill extends the dates for registering, applying for and accepting the payments from the payment scheme by a further 12 months so that people have more time to register for the scheme and submit applications.

As has been described, the bill amends the legal advice provision to provide that the requirement for legal advice is voluntary, rather than mandatory. In effect, this removes a current impediment to participants receiving their payments quickly, especially for those who receive small offers of payment. Access to independent legal advice and financial counselling will continue to be funded under the scheme by the Commonwealth, and the government remains committed to ensuring people are able to make informed choices about accepting a payment offer.

When the government established the payment scheme, it was committed to providing choice and control for supported employees and to providing an alternative to the representative proceedings. This bill will improve the payment scheme for those eligible supported employees who choose to participate in the scheme. Once the bill is passed by the parliament and the terms of the settlement are accepted by the court, the proceedings will be dismissed. All parties in the representative proceedings share the purpose that this bill is passed and that the Commonwealth is able to make payments based on the 70 per cent principle as soon as is practicable.

This bill demonstrates Australia's commitment to ensuring the most favourable outcome for supported employees, their families and carers. It is supported by all parties in the representative proceedings as well as by advocates of supported employees. It will provide a speedy and fair resolution for class members of the representative proceedings and provide improved outcomes, in the form of increased payments, for all eligible supported employees. This bill will remove any perceived liability from ADEs and provides ADEs and the 20,000 workers they support with greater certainty to operate into the future.

Combined with the many measures that the government has put forward to improve the independence and viability of the supported employment sector, this bill will play a very important role in helping people with intellectual disability enjoy the greater quality of life that Australians gain from employment. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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