Emma McBride (Dobell, Australian Labor Party, Assistant Minister for Mental Health and Suicide Prevention) Share this | Hansard source

On behalf of the people in my community of Dobell, in the northern part of the Central Coast of New South Wales, I'm pleased to speak in support of this bill, the Social Security and Other Legislation Amendment (Supporting the Transition to Work) Bill 2023. It has broad support across the parliament and broad support across my electorate. This is because, as the member for Macquarie has just said, this is a commonsense amendment with practical benefits which will flow not just to individuals but also to local communities and regional economies, like mine, on the Central Coast of New South Wales, and Susan's, in the Blue Mountains.

In Dobell we have a population which is older than the national average. Some one in five residents currently living in Dobell receive the age pension. Across the Central Coast, almost 70 per cent of people aged 65 years and over receive the age pension—which, again, is higher than the state average. I've heard from many seniors in my community about their experiences and their exposure to cost-of-living pressures.

Our government, the Albanese Labor government, is providing cost-of-living relief in many ways to help ease these pressures, particularly through our investment in Medicare, the largest since it was introduced 40 years ago. As the Assistant Minister for Rural and Regional Health, I know just how big a difference this will make, especially for older people living in communities like mine. In addition to that, I know from many conversations on the Central Coast that removing barriers to allow pensioners to earn a little more—some extra income—will make a genuine difference to households in my community.

As members know, the current work bonus measure was an outcome of the Jobs and Skills Summit last year. It aligns strongly with the priorities in our employment white paper, and I know, when it was first announced, people in my community were very keen to see it introduced and keen to know more about it. It began as a temporary measure and, with the passage of this bill, it will become permanent. This will be an ongoing and permanent change.

The increase in the work bonus since it was first introduced has allowed age pension recipients the flexibility either to remain in roles that they enjoy and find personally and professionally fulfilling or to re-enter the workforce and continue to earn without reducing their pension. New recipients of the age pension in particular will benefit from the $4,000 work bonus starting balance. As we know, this is a group of people who are much more likely to be keen to carry on in paid work. Pensioners will also benefit from a permanent increase to the maximum income bank balance limit, from $7,800 to $11,800. With the existing extension set to end on 31 December, passage of this bill will mean there is no gap between the temporary measure and the beginning of these new, ongoing provisions.

One person to benefit is Mark from Blue Haven in my electorate. Mark is 71, and he contacted my electorate office earlier this year. He was concerned because he'd heard that the work bonus measure was ending. It had allowed him to earn some more to cover his expenses while still maintaining his pension, and the benefits associated with it, and staying connected with his workplace and the broader community. It's people like Mark that will now be able to benefit from this measure in an ongoing manner.

We want our seniors to be supported in doing all of these things—staying connected in work, keeping their pension and the associated benefits, and earning a little more if they want to. I know that Mark represents the many seniors in my community who support this change, and I look forward to updating Mark and others on its passage through the parliament.

Obviously, the work bonus change offers the option of an important top-up to a pensioner's income and to their household. Equally, at a time when skills shortages persist in regional communities like mine that are an hour and a half outside of major cities—we have a persistent skill shortage, but it's only being exacerbated at the moment—our government is investing in many skills measures, and this is one of them. So, in many sectors of the economy where we have experienced, willing and capable older workers who are keen to stay in the workforce, it makes sense to encourage them to do so and to support their efforts in doing so. Older Australians bring a wealth of experience, expertise, skills and economic value to workplaces and boost regional economies right around the country. I know employers too, and I have spoken about this with the local chamber of commerce, Business NSW (Central Coast), and I know that they are very keen to see these changes and will welcome the prospect of additional capacity and capability in our local labour market.

Alongside these pension changes, the supporting the transition to work bill will address disincentives to those in the income support system taking up new work by extending the nil rate period from 12 to 24 weeks. I spoke about this with the member for Richmond earlier and about the real benefit that this will make in communities like mine and like hers. It means that people can stay active in the income support system. The example that we were talking about is someone who might be engaged in starting a new job and who's not sure whether it will be the right fit for them or for the employer, but, at the same time, they have the security to be able to retain other benefits such as concession cards, childcare subsidies and other payments for longer when they first get back into work. I think that it's really important in this job market at the moment to make sure that people have that certainty and that stability for their families and for their households. Once again, my own community is strongly representative of why this practical change is a positive step towards more employment and empowerment for low-income households. We know that people who have some work are twice as likely to exit income support as those who don't have work, so removing barriers to employment opportunities, even if they're short term to begin with, can change an individual's outlook for the better.

Lastly, I'd like to touch on the social and health benefits. As an assistant minister for health, I know just how important being engaged in the workforce is for people's mental health and wellbeing. For many older Australians, there are great benefits to be had from continuing to work. We know that staying in work keeps people connected in their community and connected in their workplaces and leads to many mental and physical health benefits. Many choose to volunteer for the same reasons, and I want to note the equal importance and value that we place on volunteering and the vital contribution that volunteers make across our community. Employment, inclusion, social engagement, physical activity, financial security—all these are protective factors for good mental health, to boost your mental health and wellbeing.

As the Albanese government progresses cost-of-living relief and other equity measures such as those in this bill, we are also motivated by a drive for greater equity, stronger mental health and stronger communities. The Albanese Labor government is working every day to address cost-of-living pressures across portfolios, across the whole of government. Once again, I'm pleased to support this bill as a positive part of that agenda.

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