Brian Mitchell (Lyons, Australian Labor Party) Share this | Hansard source

I'm pleased to speak in support of the Social Security and Other Legislation Amendment (Supporting the Transition to Work) Bill 2023. This bill implements social security measures announced in the government's employment white paper released on 25 September this year.

The employment white paper is a comprehensive roadmap for achieving a dynamic and inclusive labour market in which all Australians have the opportunity to secure fairly paid jobs. It envisions a country where workers, employers and communities can thrive and adapt to changing times. It's an ambitious vision that we are determined to turn into reality. It outlines the government's ambition for a dynamic and inclusive labour market in which Australians have the opportunity for secure, fairly paid jobs in a country where workers, employers and communities can thrive and adapt. Of course this segues nicely with the legislation that we have put to the House and the Senate, and which has come back in part from the Senate, which is all about getting jobs that are fair and also adaptive to the new environment.

Frankly, this is a critical piece of legislation that will have a significant impact on the lives of older Australians and those transitioning from income support to employment. The bill is a pivotal part of the Albanese government's efforts to ensure more Australians can benefit from the transformations taking place in our economy and society in the coming decades.

One of the key measures within the legislation is the enhancement of the pension work bonus. This measure reflects our commitment to giving older Australians greater choice and flexibility in their workforce participation. We will permanently increase the maximum work bonus income balance from $7,800 to $11,800. This enables pensioners to continue reaping the benefits of the elevated maximum work bonus balance. In addition, new pension entrants over the age pension age will receive an upfront credit of $4,000.

Many older Australians are choosing to supplement their age pension—an age pension they deserve—with paid work. No-one should be financially disadvantaged by choosing to stay in the workforce longer or returning to the workforce after some time away. In Lyons there are some 13,500 people receiving the age pension, all of whom can potentially benefit from these changes to the work bonus should they choose to. It's important to say that. This is a matter of choice. No-one on our side believes that age pensioners should be forced back into work, but I know from personal experience a lot of age pensioners are keen to remain in the workforce if they're able to.

I've already spoken to a handful of my constituents who are looking forward to this change. Like Malcolm, a pensioner from Old Beach, who recently wrote to me about wanting to increase his hours of work as a way of keeping active and in touch with his local community. Of course employers will benefit from these changes too. In many regional and rural areas, businesses are dealing with pretty chronic staff shortages. I know this is the case in particular for some of the hospitality venues on Tassie's east coast. This measure gives employers access to experienced people who are keen to work.

Indeed, the work bonus initiative is not just about providing financial support; it's about recognising the wealth of experience and skills that older Australians can bring to the workforce. And when I talk about experience, I don't just mean position-specific hard skills. Older Australians bring life experience, maturity, wisdom and emotional intelligence to the workplace, often providing mentorship to younger workers. Not to mention, we know there are benefits for the older workers themselves: mental health benefits, social inclusion, staying active and community engagement to name a few. By increasing the work bonus, we hope to encourage more older Australians to remain engaged in the labour market should they wish to do so.

The changes brought about by this legislation will come into effect on 1 January next year, pending its successful passage through the parliament. This transition ensures there is no gap between the existing temporary measure and the commencement of these new, ongoing provisions. To maintain the integrity of the system, the work bonus measure includes safeguards to prevent individuals from cycling on and off payments in order to receive multiple new-entrant bonuses of $4,000. We've seen how easy it is for people to take advantage of good intentions, so we're trying to corral this as much as we can. It's important to note that the costs of this measure are only incurred if pensioners actively engage in work. The indicative cost for this enhancement is approximately $42.4 million over the forward estimates from 2023-24—an investment that we are confident will yield substantial returns in terms of the economic contributions of older Australians and the wellbeing of our community.

Another crucial aspect of this legislation is the extension of the employment income nil rate period. We recognise that transitioning from income support to employment can be challenging and the fear of losing access to essential benefits can deter people from even considering taking up work, particularly short-term, casual and gig-economy jobs. Frankly, it can all be a bit too hard to go through the rigmarole of dealing with Centrelink and the paperwork involved for what may be temporary, casual work.

A division having been called in the House of Representatives—

Proceedings suspended from 17 : 21 to 17 : 38

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