Amanda Rishworth (Kingston, Australian Labor Party, Minister for Social Services) Share this | Hansard source

In summing up, I'd like to thank all members who have been part of this debate today. I think this has been a very constructive debate in which people have clearly indicated a common desire—that is, to support our pensioners to be able to work more, particularly at a time when we've heard that, right across the country, there are skill shortages, and those skill shortages in some places are quite acute. That is why the government has put forward this bill. It does deliver on one of the government's commitments: to address Australia's labour market challenge through practical and targeted solutions.

This was, as I said, an issue that came up at the Jobs and Skills Summit early in September. The Jobs and Skills Summit was a particularly important gathering in which we were able to examine a range of different solutions, and this is one of the solutions because it strengthens the existing incentive for people over age pension age to take up work or to increase the number of hours they work if they wish to do so.

The bill also provides that age pensioners and those receiving equivalent Department of Veterans' Affairs payments will no longer have their pension cancelled after 12 weeks if their income, where it includes some income from employment, exceeds the income limit. Instead, their payments will be suspended for up to two years. An abridged reapplication process will be made available to them should their income no longer preclude them from those payments.

Pensioners whose payments are suspended will keep their concession card for two years, instead of it being cancelled after 12 weeks. So they will retain access to a range of benefits, including cheaper prescription medication. Certainly, in my time recently as the Minister for Social Services, I know that being able to keep that pensioner concession card is really important—being able to retain this and the range of benefits. It's not only Commonwealth benefits; of course, the benefits that the state governments have to offer are really important.

The benefits of this measure also extend to partners of age pensioners, disability support pensioners and equivalent veterans payment recipients, as long as their partner is also receiving the age pension. This measure will strengthen the incentive for older Australians to work, so it is critically important.

I would say at this point that, quite obviously, the government won't be supporting the second reading amendment moved by the opposition. We believe that the proposal that we are putting forward is the right proposal for the right time. This is a time limited proposal, particularly in the area of workforce shortages, when there is an acute need for labour, and we want to provide that upfront income bank to really give that a boost right now. But I foreshadow that we will be moving a government amendment in this place in the consideration in detail stage, which is likely going to happen tomorrow. This is as a result, really, of us listening to the concerns of many in this place. I do note the member for Mayo and the member for Kooyong, as well as Senator Rice in the other place, who did make the point around the length of time. I will be talking to that amendment, but I do foreshadow an amendment in consideration in detail that will provide for this Work Bonus incentive to be extended and be available for 12 months.

This is the way the government has listened and has found what I think is a good, sensible amendment that we will move in consideration in detail, but we won't be supporting the opposition second reading amendment. It doesn't fit with our policy. Neither will we be supporting the Green's second reading amendment, while very noble, to increase the rate of all income support recipients. It's not something that we will be supporting as part of this bill. This is really a sensible proposal, because, of course, at present, only around three per cent of age pensioners earn income from employment, but by providing this incentive and by increasing opportunities to work—even this most marginal increase—a number of older Australians will benefit. Obviously, individuals benefit. I was having a brief conversation with the member for Mayo, who was talking about the great outcomes that happen. My mother, indeed, retired only last year. I probably don't want to give her age away in this place, but she definitely saw the benefit of working after retirement age. So this is an important piece of legislation, and we look forward to voting on this tomorrow. I know that we won't have a vote until tomorrow morning.

In regard to the proposal before us, we have amended the bill, as I said, to have a temporary increase to the Work Bonus. We foreshadow the amendment for that bank, which will cease on 31 December 2023. This extension results in a minor increase to the cost—around $2.5 million over the year—but all of us, I'm sure, will be focused on making sure that pensioners will be communicated with about this. This increase in their income bank is really important because it will allow for that flexibility as well in that upfront bonus.

This is, I think, a really important bill. In addition to keeping the card, this does provides it upfront. I do want to talk a little bit about the benefits of that Work Bonus income bank upfront, because one of the constraints in having an increase in how much you can earn on a fortnightly basis is that it doesn't perhaps take into account some of the seasonal aspects of work. I really like the Father Christmas example. That is a very intense amount of work in a short period of the year, and, of course, without the income bank flexibility, you wouldn't necessarily get to do that sort of intermittent work over the years. That's where I think the bank is particularly important. It will be, as I said, provided upfront, so if pensioners have been waiting and it has been a disincentive for their pension, there will be a real opportunity now, as soon as this bill gets royal assent, for them to be able to go out there and take up those work opportunities.

This complements a range of measures that we have put in place to support senior Australians through our seniors pensioner card, which really came into effect, and I would encourage senior Australians who may not have been eligible before to get on that website and see if they're eligible. This is just another plank in this government's proposal to make the lives of our pensioners and seniors better.

Debate interrupted.

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