House debates

Wednesday, 31 May 2023

Bills

Social Services and Other Legislation Amendment (Strengthening the Safety Net) Bill 2023; Second Reading

12:46 pm

Photo of Peter KhalilPeter Khalil (Wills, Australian Labor Party) Share this | Hansard source

This government has delivered the 2023-24 federal budget, which focuses on tackling our immediate economic challenges whilst also supporting households with cost-of-living pressures—no easy feat. Since we were elected on 21 May 2022, the Albanese Labor government has been working hard and working substantively to deliver the better future and better outcomes that Australians voted for. That includes targeted relief for the most vulnerable Australians, those who need it most. It is good—it's refreshing—to be part of a government that has delivered a budget that lays the foundation for that better future while helping Australians who need it and are under pressure right now.

The budget announced a $14.6 billion cost-of-living package. That's significant. That means around two million income support recipients will be better supported. This bill introduces amendments that will strengthen our social safety net, ensuring all Australians can be supported when they need support. I know many of my constituents and many other people around Australia are doing it tough right now. The cost-of-living pressures are having a serious and adverse impact on the day-to-day lives of many Australians. It's not easy to count every cent just to scrape together enough to pay bills, to find enough to make a trip to the supermarket or to pay the rent. I also know that the loss of a job or being unable to find one is too often beyond an individual's control.

This is why our social security system should also always be accessible and available to those who need it, when they need it. These income support measures will mean additional supports for so many vulnerable Australians. They will help students, older Australians, those with a disability, those experiencing financial hardship, single parents and those struggling to pay rent who are on Rent Assistance. This is such an important start to ensuring that Australian people can get support when they need it most.

The Social Services and Other Legislation Amendment (Strengthening the Safety Net) Bill 2023 and its amendments increase the rate of JobSeeker, youth allowance, parenting payment partnered, Austudy, ABSTUDY, the youth disability support pension and the special benefit. These payments will increase by $40 per fortnight from 20 September this year. That means 1.1 million Australians will get the support they need. That means that we will be supporting people on some of the lowest incomes in Australia who rely on this safety net for their support. With this particular increase in the indexation changes over the last year since May 2022, the base rate of the JobSeeker payment will have increased from $642.70 to $733.10. That's a 14 per cent increase. This means over $90 more in people's pockets each fortnight to help them deal with cost-of-living pressures and equates to over $2,300 in additional support each year. Eligible payments including JobSeeker, parenting payment and Commonwealth rent assistance will also be indexed on 20 September as per normal. This means people will get even more support.

The bill also expands eligibility for the higher rate of JobSeeker to those aged 55 and over who have been on this support payment for nine or more continuous months. This rate currently applies from age 60, but we are making sure older Australians can be better supported even earlier. We know that most people receiving this payment are women, including that demographic of women over 55. We know that older women face additional barriers when looking for work, such as age discrimination. We also know that poverty is the daily reality for so many Australian women. Many experience housing stress and homelessness. Some don't even have enough superannuation or savings because they have been in caring roles for their families or have been in casual or part-time roles. We want to make sure that older Australian women are given the supports they require. We want to ensure that older Australian women are supported after giving back so much to so many—to their families and to their communities—to ensure that they can live with dignity. The amendments in this bill will mean that 52,000 Australians aged 55 to 59 will receive an increase of $92.10 every fortnight.

The government knows that single parents have a tough time trying to balance caring responsibilities with full-time work, study or even looking for work. It's very tough. I am a parent; many of us here are parents. We know that caring responsibilities will not simply end when a child turns eight. In some respects, it gets harder or more challenging. It becomes a different challenge. In fact, as children get older, the demands on parents actually probably continue to grow in many different ways. Single parents will likely be in a better position to take on more paid work as their children get a bit older. The amendments in this bill mean that more people can be eligible for single-parent parenting payments in cases where they have a child under 14. These changes will help more than 57,000 single parents, who will be better off by at least $176.90 per fortnight.

I know many Australians who are currently struggling with the cost of rent. This government knows that rental stress is front of mind for many Australians right now. Young people might line up at a rental inspection for a couple of hours only to get to look at the property and see that the taps don't work and the rent is $800 a week. There's not much supply. I've spoken to many people in my electorate of Wills who are struggling also with rent increases. Many younger people have told me this is particularly concerning for them. They're working or balancing study and work often, and they're struggling with rent increases. It's also a concern for working Australians: teachers, for example, nurses, ambos, people who work in emergency services and aged-care workers. These are the people who supported our communities so brilliantly and kept the wheels turning during the height of the COVID pandemic.

This government will be providing additional support to renters with the largest increase to the rate of Commonwealth rent assistance in over 30 years. This government is finally providing leadership on a significant issue that affects so many Australians. For those who have reached the maximum amount of rent assistance they can get, we're now increasing their payment by 15 per cent. That means around 1.1 million households will benefit from this and be better off, with around an additional $24 per fortnight. This includes those receiving the JobSeeker payment and other working-age payments, student payments, the age pension, the disability support pension, family tax benefit and veterans payments. This 15 per cent increase since May 2022 means the maximum amount of rent assistance for JobSeeker payment recipients who are single and living on their own will have increased from $145.80 to $180.80. That's a 24 per cent increase. That's $35 more each fortnight to help people on low incomes pay their rent.

Of course, rising power prices are one of the biggest burdens on Australian families and business at the moment. As part of the Albanese government's plan to reduce cost-of-living pressures—as part of that $14.6 billion package—more than five million households and one million small businesses will also be eligible for energy relief rebates from 1 July. This government will be helping households to manage cost-of-living pressure through energy relief rebates of up to $500. This will help ease the pressure on families and small businesses, and it will help reduce electricity bills for eligible households and businesses.

The Albanese government has already—from September last year—boosted social security payments for more than 4.7 million Australians in the largest increase to allowances in 30 years. For my part, as the member for Wills, I will continue to support increased rates for payments such as JobSeeker for my community. As a government, we believe a strong safety net is essential. These supports need to be in place for all Australians if and when they need them. The Albanese government will continue supporting people who are doing it tough. The substance and the detail of this whole package, some of which I've outlined, are real. This will make a difference to people's lives. That's why the government has been so committed to supporting Australians during this difficult time, and we will continue to ensure vulnerable Australians are not forgotten.

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