Kate Ellis (Adelaide, Australian Labor Party, Minister for Employment Participation and Childcare) Share this | Link to this | Hansard source

I would like to take this opportunity to thank all members for their contributions on this debate. The government's Building Australia's Future Workforce reforms represent a long-term investment in Australia's economy through building the education, the skills and the employment prospects of the Australian workforce. An important part of these reforms is directed towards providing greater incentives for parents, particularly single parents, to engage in the workforce to reduce their reliance on welfare and to provide their family with a better future underpinned by secure and rewarding employment. The Social Security Amendment (Parenting Payment Transitional Arrangement) Bill 2011 represents the first stage of the income support payment reforms contained in the Building Australia's Future Workforce package. This bill is a positive step towards reducing the inequity which exists within the legislative structure of parenting payment.

Under current arrangements recipients of parenting payment are treated differently based upon when they first applied for the payment. This inequity dates back to the 2006 Welfare to Work reforms which allowed for recipients who had applied for the payment prior to July 2006 to stay on parenting payment for up to 10 years longer than those parents who applied for payment after 1 July 2006. From July 2006 persons who claimed parenting payment can only qualify until their youngest child turns eight if the parent is single, or six if the parent is a member of a couple. Prior to July 2006 a person could qualify for parenting payment until their youngest child turned 16.

This bill will amend the Social Security Act so that from 1 July 2011 new children who come into the care of an existing parenting payment recipient will no longer extend the duration of a recipient's preferential treatment. This will serve to minimise the lingering inequity within parenting payment as a result of the 2006 Welfare to Work reforms. Further changes for parents on income support will take effect from 1 January 2013 and will be included in a separate bill to be introduced later this year.

I take this opportunity to once again thank members for their contributions and commend this bill to the House.

Question agreed to.

Bill read a second time.