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

I'd like to thank all of those who have spoken on the Social Security and Other Legislation Amendment (Supporting the Transition to Work) Bill 2023, which implements two of the immediate actions the government is taking to deliver on the objectives of our employment white paper.

The changes in the bill will permanently enhance the pensioner work bonus and extend the employment income nil rate period for those on income support, helping to remove barriers to employment and broaden opportunity. It includes amendments to permanently establish the government's temporary changes to the pensioner work bonus that we announced following the Jobs and Skills Summit, giving older Australians more choice and continued flexibility to participate in the workforce if they would like to.

Through this bill, all new eligible pension recipients will have a starting work bonus balance of $4,000 instead of $0. This will mean that, from the outset of commencing on the pension, new recipients will be able to earn more before their pension rate is affected. In addition, we are also retaining, on a permanent basis, the maximum income bank balance of $11,800 for all eligible pensioners and veterans to accrue in their work bonus income bank. These changes are designed to take effect from 1 January 2024 to ensure there's no gap between the end of the current temporary work bonus measure on 31 December 2023. If this bill does not pass in time, the work bonus will revert to its old settings and around 2.35 million pensioners will see their income bank balance reduced and new pensioners will not get a starting balance of $4,000. With these positive amendments we are giving greater scope to all eligible pensioners to earn more income from work before their pension is reduced or cancelled, and greater choice and increased flexibility to participate in the workforce.

I inform the House that we will not be supporting the member for Deakin's second reading amendment. Of course, we reject entirely the points made in that, including that this government is not acting when it comes to cost-of-living relief. Indeed, this government is absolutely acting in a targeted, responsible way for cost-of-living relief. We also don't believe that the proposal put forward by the member for Deakin will adequately ensure that pensioners are encouraged to re-enter the workforce. Our government has thought very carefully about the importance of the starting balance and the higher income bank, so that it does incentivise, particularly, newer pensioners or pensioners coming onto the system to continue to add their skills, knowledge and expertise to the labour market. Our change, also with the increase to the maximum income bank balance cap, will allow for more flexible use by pensioners about when and how they take up that extra work.

Enhancing the work bonus is a priority for this government. This bill also doubles the employment income nil rate period for income support recipients, from 12 to 24 weeks, from 1 July 2024 and extends access to recipients who begin full-time employment. This change is designed to provide more support for people to get into work without the fear that the social safety net won't be there for them when or if they need it again—in particular, a benefit for people receiving the JobSeeker payment and youth allowance (other). It will enable income support recipients to take up employment while retaining access to benefits such as the healthcare card, childcare subsidy and some supplementary payments, and stay active in the system for longer. This measure is designed to smooth the transition from income support into employment and to encourage income support recipients to take up work opportunities, particularly those that might be ad hoc or short-term roles that could turn into longer term work opportunities. Smoothing the transition from income support into employment is incredibly important.

With the measures in this bill, the government is doing more to help Australians of all ages get into work, consistent with our objectives to remove the barriers to employment and broaden opportunities for all Australians. I commend the bill to the House.

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