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

I'd like to, in summing up this debate, thank all of those who have contributed to this debate on what is an important bill that will make a difference to the lives of the most vulnerable in our community. The Social Services and Other Legislation Amendment (Strengthening the Safety Net) Bill 2023 is an important part of delivering our budget. This bill will implement the income support measures that make up part of the government's $14.6 billion cost-of-living plan to provide broad based support to millions of Australians in different settings and circumstances. This bill strengthens our social safety net and furthers the government's commitment to support those who need it the most.

This bill will increase the rate of working-age and student payments by $40 per fortnight, including the JobSeeker payment, youth allowance, parenting payment partnered, Austudy, ABSTUDY and other related payments. This increase will flow to around 1.1 million Australians, providing important cost-of-living relief. As a result, the base rate of JobSeeker will increase to $733.10 a fortnight. That is before the regular indexation that will also be applied on 20 September.

This bill also extends the eligibility for the highest single rate of JobSeeker payments by reducing the qualifying age from 60 to 55 for those who have been on the payment for nine months or more continuously. This measure means that people who are aged 55 to 59 will be better off by at least $92.10 a fortnight. This change recognises the challenges that many older people can face when they are looking for a job, such as age discrimination and poor health.

The government is also extending the eligibility to parenting payment single to the single principal carer where the youngest child is under 14 years of age. Under existing arrangements, when their youngest child turns eight, single parents who remain on income support move to the JobSeeker payment, which is paid at a lower rate than parenting payment single. As a result, the government's decision to extend eligibility for parenting payment single will support around 57,000 single parents on JobSeeker, who will automatically be transferred to the higher payment once the implementation of this bill is done on 20 September, meaning they'll receive an extra $176.90 per fortnight. Of course, this change recognises that the challenge of balancing care and work as a single parent doesn't end when a child turns eight. The new age limit of 14 for the youngest child will deliver more support until the youngest child has settled into high school and typically requires less direct supervision from their parents.

As part of this package, the bill will also increase the maximum rates of Commonwealth rent assistance by 15 per cent. We know that people are struggling with the cost of rent, and renters on income support are at particular risk of rental stress and housing insecurity. Around 1.1 million households who are paying high enough rent to receive the maximum rate will be better off by up to $31 per fortnight depending on their household. This includes recipients of JobSeeker payment and other working-age payments such as student payments, age pension, disability support pension, family tax benefit and veterans payments. Together these changes will provide additional support for around two million Australians who are doing it tough.

All measures are due to commence on 20 September subject to the passage of the legislation. I know in this debate a number of members, particularly of the crossbench and including the member for North Sydney, have raised being able to see these measures commence as soon as possible, and I appreciate that sentiment. The member for North Sydney has moved a second reading amendment to bring forward the start date. The government is not able to bring forward the start date of these payments. It has designed these measures to take effect as soon as practicable. All changes to the social security payments do require amendments to primary legislation. This means the parliament does need to consider these. In addition, Services Australia also needs time to implement the ICT and system changes required to successfully deliver these measures. Services Australia has advised that the lead time required is until 20 September, assuming the bill passes the parliament, to enable all arrangements to be put in place. I understand this includes ITC system build and changes, service delivery changes, technical and business verification, testing quality assurance, customer communication, and staff training, among other things.

Under these measures, nobody will be worse off as a result of the government's measure. This new measure, once legislated and the system is ready to deliver parenting payment single, participants will continue to be administered in accordance with the current provisions. Services Australia will communicate with affected individuals around the change in their circumstances, On 20 September, as a result of the system build, Services Australia will automatically transition single parents who are principle carers with a youngest child under 14 and who are on the JobSeeker payment automatically to parenting payment single.

The member for Deakin has moved a second reading amendment calling on the government to scrap the $40 per fortnight increase to working-age payments like JobSeeker and instead provide additional support for those on the lowest payment. This would deny 1.1 million people an increase in their base rate payment. Alternatively, the member for Deakin said, instead of the $40 a week payment, those opposite would double the income-free area to $300. Firstly, we don't know how much it would cost because the opposition has not put forward any costing arrangements whatsoever. But I think it is important to think about the reality of this. This would deny more than 75 per cent of people on JobSeeker payment who are currently reporting no earnings whatsoever. Then there are those who are earning below the current $150 a fortnight threshold who would, if this change was to go through, receive no extra assistance through a base rate increase of JobSeeker. When we are looking at this measure, this is about supporting people with the cost of living. There is no evidence that what those opposite have put forward would in any way increase workforce participation, because we know that those who are relying on JobSeeker have many barriers to getting into work. It may be health barriers or it may be skills barriers—particularly those foundation skills—which stop them from being able to get to work. We want to be supporting them to get those skills and to find meaningful employment. But our $40 increase provides direct assistance to Australians who do rely on the safety net now and who are doing it tough. I encourage the opposition to rethink their opposition to the $40 and to not pursue their second reading amendment.

In response to the second reading amendment of the member for Brisbane, the member has called on significant additional funding across all income support payments. We believe that the package that we put forward today is a significant package of $9.5 billion in income support. It is the largest set of permanent increases to Commonwealth income support payments in 14 years, excluding the extraordinary COVID support payment. We believe these are responsible changes that have been carefully calibrated to provide additional support to those on the lowest income support payments, and that don't add to inflation. Of course, this cost-of-living relief has to be seen coupled with the power bill relief, the record investment in Medicare bulk-billing, cheaper medicines and our targeted increases, as outlined in this bill, for income support payments. This will make a real difference for many people.

The Albanese government believes in a strong social security safety net. We do not want to demonise people for needing the support, particularly when they find themselves in difficult circumstances. We will always do what we can to support people who are doing it tough and who are in need of assistance. I commend the bills of the House.

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