Angie Bell (Moncrieff, Liberal National Party) Share this | Hansard source

I rise to speak on the consideration in detail for the Social Services portfolio and the working-age payments and Pension Loan Scheme. The Morrison government is investing more than $9 billion in the 2021-22 budget to strengthen the social security safety net to ensure support is there for those who need it most. It's especially important at this time when so many Australians have been through such difficulties and changes in their circumstances. We have already legislated a package of measures that permanently increases the base rates and income-free areas of working-age payments, including JobSeeker. From 1 April, 2021 the base rate of these working-age payments was increased by $50 a fortnight and the income-free area for JobSeeker payment and youth allowance was increased to $150 per fortnight. Australians without access to paid leave who are required to quarantine, self-isolate or care for someone as a result of COVID-19 can also continue to access income support under those measures. The increases for working-age payments strike the right balance between support for people who need it and incentives for people to take up work. Approximately 1.9 million working-age-payment recipients are already benefiting from these measures.

At home in Moncrieff on the Gold Coast, at the height of the pandemic, there were over 15,000 in my community who received the JobSeeker coronavirus supplement, and now that number has fallen to 10,158 people on JobSeeker payments who will continue to benefit from this historic increase. There are almost 2,000 students in my electorate who will also benefit from the increase in support, as well as over 1,500 single parents.

This is the biggest year-on-year increase to the rate of unemployment benefits since 1986, when I was about 17, and it has been delivered under this government, the Morrison government. It's also the largest-ever budget measure in respect of working-age payments. The pandemic caused a once-in-a-lifetime disruption to the labour market, and, while the comeback in Australia's economy is already underway, we know we'll continue to confront more challenges ahead. During the pandemic, we have stood side by side with all Australians, and these new permanent arrangements continue to make good on that commitment to supporting Australians as they look for work.

The Morrison government is also improving the Pension Loans Scheme to increase its flexibility and make it more attractive to Australians of pension age. We want our older Australians to enjoy greater financial independence and quality of life. The Pension Loans Scheme is a reverse-mortgage loan product. It allows Australians of pension age to unlock the equity in their home to generate additional retirement income. Participation in the scheme is voluntary and participants have complete discretion as to how they spend their money.

From 1 July 2022, Pension Loans Scheme recipients will benefit from a no-negative-equity guarantee and access to capped advance payments. We're also introducing a campaign to raise awareness of the scheme. The no-negative-equity guarantee means participants will not have to repay more than the market value of their secured Australian property. Up to two lump-sum advances in any 12-month period will be accessible for recipients, up to a total value of 50 per cent of the maximum annual rate of age pension. Based on current rates, lump-sum payments of up to around $12,385 per year would be available for singles and up to around $18,670 for couples. As highlighted by the retirement income review, drawing on a small portion of home equity can substantially improve the retirement outcomes for older Australians. The changes to the scheme will give our older Australians more choice and more options to enjoy their life in retirement.

This government is giving a leg-up to all those Australians who need extra help with our safety net, whilst also balancing taxpayer contributions to our great liberal democracy. My question to the minister is: can the minister advise how many older Australians could benefit from these changes to the Pension Loans Scheme?

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