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

I move:

That this bill be now read a second time.

The government has taken the cost-of-living challenges faced by Australians seriously in this budget. Through our $14.6 billion cost-of-living plan, the government is providing broad based support, to help millions of Australians in different settings and circumstances. Historic investments in Medicare, cheaper medicines, and help with power bills.

But we know that cost-of-living pressures have a disproportionate impact on those on the lowest incomes, and that is why the government is providing targeted support to strengthen Australia's social safety net.

The Social Services and Other Legislation Amendment (Strengthening the Safety Net) Bill 2023 will implement these measures—it includes amendments that will provide additional assistance to benefit around two million people.

These are responsible changes, which are carefully calibrated to balance providing additional support to those on the lowest income support payments, without adding to inflation.

The measures in the bill deliver on our commitment to consider the rates of payments ahead of every budget. They deliver on our commitment to provide additional assistance where we can, to those Australians doing it tough, particularly those on income support payments.

This bill will increase the rate of working-age and student payments by $40 per fortnight. This includes the JobSeeker payment, youth allowance, parenting payment (partnered), Austudy, Abstudy, youth disability support pension and special benefit.

This will provide additional support to 1.1 million people.

While income support payments are regularly indexed to keep pace with changes in the cost of living, with this $40 increase, we are providing additional support that recognises the financial hardships and challenges faced by people on these payments.

As a result, the base rate of JobSeeker will increase to $733.10 per fortnight—and that's before the regular indexation that will occur on 20 September which will also be applied.

This means that since the Albanese Labor government came into power in May 2022, the base rate of JobSeeker will have increased by 14 per cent, up from $642.70. This represents over $90 more in people's pockets each fortnight to help with the cost-of-living pressures. It equates to $2,300 in additional support each year.

This is a responsible increase, and it bolsters our safety net, which is there for all Australians if they need support.

In addition, the bill includes amendments that expand eligibility for the higher single rate of JobSeeker to those aged 55 and over, who have been on payment for nine continuous months or more. This currently applies to people over the age of 60.

Over the past decade, the proportion of mature-aged recipients on JobSeeker has significantly increased. Older Australians find it harder to get back into work, often due to age discrimination or poorer health.

The evidence shows that older Australians are more likely to be long-term JobSeeker payment recipients, with 81 per cent of people aged 55 and over on the payment for more than a year.

Over half of this cohort will spend more than five years on payment, compared to less than one-third of the general JobSeeker payment population.

We also know that women over 55 are at higher risk of homelessness in Australia.

The government remains committed to tackling age based discrimination in workplaces, but this change recognises that there's still work to be done and older Australians do need more support.

As result of this change, 52,000 older Australian aged 55 to 59 years—55 per cent of whom are women—will benefit from an increase of at least $92.10 per fortnight.

Of course, the government's priority is always to support people into work—with the dignity of work and the economic security it brings. But even with the low unemployment rate, over 75 per cent of people on the JobSeeker payment do not report any earnings.

This is often due to complex barriers to employment, such as discrimination, caring responsibilities or a partial capacity to work due to a physical, intellectual or psychiatric impairment.

The government's Employment white paper will look across employment policies at what levers we can use to increase participation and support people into work.

But this bill will increase working-age and student payments, because it focuses on easing financial pressures for Australians who rely on the safety net and who are doing it tough.

The bill also support single parents, who are overwhelmingly women, to balance their caring responsibilities and paid work. This balancing act of caring and paid-work responsibilities doesn't end when a child turns eight.

The government is investing $1.9 billion to extend eligibility to parenting payment single to single principal carers with a youngest child under 14 years of age. Currently when a recipient's youngest child turns eight they are moved to a lower rate of JobSeeker payment.

As the Prime Minister has said, single parents carry the world on their back. He has also said that this would make a big and immediate difference for tens of thousands of mums, dads and children right across Australia.

This means around 57,000 eligible single principal carers on JobSeeker payment whose youngest child is under 14 years will be transferred to the higher parenting payment single rate of $922.10. This is an extra $176.90 per fortnight in their basic payment to help with the costs of raising children.

These recipients will also benefit from additional supplementary payments and a more generous parenting payment single income test arrangements.

Single principal carers face many barriers to employment and financial security due to the costs associated with caring for young dependent children on their own.

The new age limit of 14 for the youngest child will deliver more support until children have settled into high school and require less direct supervision from their parents.

This measure ensures that from 20 September 2023, parenting payment single recipients remain on payment until their youngest child turns 14. Recipients will continue to receive the same payment rate and retain the same supplementary payments and mutual obligation they currently have.

This measure will benefit many women and First Nations recipients. We know that 95.5 per cent of the parenting payment single population are women and around 19 per cent are First Nation recipients.

This measure helps single parents to balance caring responsibilities along with looking for work, and supports those parents to do the most important job—and that is raising their children.

The government understands access to secure and affordable housing has significant social, economic and personal benefits. We recognise that many people are struggling with high rental costs, and renters on income support are at particular risk of rental stress and housing insecurity.

That is why, as part of this bill, the government is increasing Commonwealth rent assistance maximum rates by 15 per cent, in addition to the usual indexation of payments, effective from 20 September 2023.

This is the largest increase to Commonwealth rent assistance maximum rates in more than 30 years, equating to around $700 million a year extra, on top of the roughly $5 billion the government spends on rent assistance each year.

Around 1.1 million households who are paying rent high enough to receive maximum rent assistance will be better off by up to $31 per fortnight, depending on their household type.

This includes recipients of JobSeeker payment and other working payments, student payments, people on the age pension, disability support pension, family tax benefit and veteran payments.

Since the Albanese government came into power in May 2022, the maximum amount of rent assistance for a single person on JobSeeker who is living on their own will have increased by 24 per cent. This is $35 more in their pocket each fortnight to help them pay rent.

Commonwealth rent assistance is the government's most direct lever to quickly provide assistance to those payment recipients who are renting. Our budget measure will help address the pressure associated with housing costs for a significant number of vulnerable households.

The income support measures reflected in this bill will increase support to around two million Australians who are doing it tough.

As a result of this bill:

This is meaningful, responsible, targeted cost-of-living relief to those who need it most.

This bill provides additional help to those who face significant barriers to work, even in an economy where the unemployment rate is very low.

It includes compassionate and evidence based measures that strengthen Australia's safety net, providing the platform for single parents, people on income support and their families to get ahead and create a better future.

The Albanese Labor government believes in a strong social security system. We will not demonise people for needing support. Australia's social safety net should be there for people when they need it. We will always do what we can to support people who are doing it tough and need assistance.

I commend the bill to the House.

Debate adjourned.