Scott Morrison (Cook, Liberal Party, Minister for Social Services) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill will introduce four 2015 budget measures in the Social Services portfolio, along with certain other measures from the 2014 budget and earlier fiscal decisions.

The 2015 budget measures incorporate the reintroduction (with modifications), or the replacement, of three 2014 budget measures previously introduced in the Social Services and Other Legislation Amendment (2014 Budget Measures No. 4) Bill 2014—referred to here as 'the No. 4 bill'.

Specifically:

From 1 July 2015, the one-week ordinary waiting period currently applying to Newstart Allowance and Sickness Allowance will be extended to Youth Allowance (other) and Parenting Payment. The measure will also tighten the existing severe financial hardship waiver and change the current rules so the ordinary waiting period is served after any other waiting periods. This bill is amending last year's budget measure so that Widow Allowance claimants will not be affected by the measure.

From the delayed start-up date of 1 July 2016, the age of eligibility for Newstart Allowance and Sickness Allowance will be increased from 22 to 25. Young people between the ages of 22 and 25 may apply for Youth Allowance (other) instead. Young people aged 22 to 24 in receipt of income support before or on 30 June 2016 will not be affected and will remain on the higher Newstart rate.

The maximum age of eligibility for the Youth Disability Supplement will also be increased to 24 for recipients of Youth Allowance (other). This change in age requirements will align payments for young unemployed people with those for students, reducing the disincentive to continue study. There is greater flexibility to earn while on Youth Allowance, so this change will strengthen the incentive for unemployed 22- to 24-year-olds to seek part-time work.

The 2014 budget measure, Stronger Participation Incentives for Job Seekers under30, which sought to introduce a six-month waiting period for under-30s applying for Newstart Allowance, Youth Allowance or Special Benefit, will no longer be implemented.

Instead, this bill introduces a four-week waiting period for under-25s applying for Youth Allowance or Special Benefit. This measure will start from 1 July 2016, and will only apply to job seekers assessed as job ready. Job seekers affected by this measure will also participate in rapid activation pre-benefit activities to ensure they are looking for work.

Around $8.1 million in emergency relief funding will be made available to provide assistance to job seekers, affected by the measure, who are experiencing hardship. This measure encourages young people to make every effort to look for work and maximises their chances of finding work.

The fourth 2015 budget measure in the bill will cease the Low Income Supplement from 1 July 2017.

The bill also takes the opportunity to reintroduce some amendments relating to indexation that are currently before the parliament in the No. 4 bill.

The first of these indexation amendments will maintain at level for three years the income free areas for all working age allowances (other than student payments) and for Parenting Payment Single—from the existing start date of 1 July 2015.

The second will maintain at level for three years the income free areas and other means test thresholds for student payments, including the student income bank limits—with a new start date of 1 January 2016.

These are important measures to support the sustainability of the social security system and the nation's budget. This government believes that the best form of welfare is a job. We do not want to see young Australians seeking out welfare as a career choice. We do not want to see a shuttle run from the school gate to the Centrelink front door. This bill is about changing that culture. We cannot write off a generation of young Australians by saying to them, 'Welfare is a career of choice.' Not in this country, not under this government. I commend the bill to the House.

Debate adjourned.