Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary for Disabilities and Carers) Share this | Hansard source

I thank all senators who have contributed to the debate. This legislation delivers on the government's election commitment to modernise Aust­ralia's welfare system and introduce measures to ensure that more unemployed people are getting back into work. As we know, we have a growing economy and a strong labour market. While millions of jobs have been lost in other advanced economies, employment in Australia has increased by about 750,000 jobs since 2007. At just 4.9 per cent, Australia's unemployment rate is lower than those of almost all of the other major advanced economies. It is at this time, with lower unemployment and employers searching for new workers, that we must embrace the greater opportunities to connect job seekers with this employment market.

In the 2011 budget our government allocated $8.5 billion for spending over the forward estimates toward employment services. This includes spending on a range of new initiatives to provide greater support for the very long-term unemployed, for job seekers with a disability and for those who have become disengaged. With this increased support and with the opportunities that our economy provides, so too comes responsibility. It is crucial that we do all that we can to ensure that unemployment pay­ment recipients are participating to the full extent of their abilities. In order to do that, we need them to be actively engaged with the employment services and support that our government provides. These measures are not about punishing job seekers who have a valid reason for missing appointments or not participating in activities. The gov­ernment is very aware of the challenges that job seekers face, and we are aware that most job seekers are genuine in their attempts to find work. However, income support does come with a responsibility.

A strengthening of the compliance system is warranted so that more job seekers are actively engaged in work experience activities such as training and Work for the Dole so that they are getting the skills and experience they need to find a suitable job into the future. The new arrangements seek to improve job seekers' attendance at employment service providers and related appointments. Suspension of payment provides a strong and immediate incentive for job seekers who miss appointments to re-engage quickly. When a job seeker's payment is suspended following a missed appointment, they get all of their money back once they do what is required of them—that is, once they agree to attend the appointment. This is an effective way of encouraging compliance without taking the punitive approach of immediately applying a penalty that the job seeker cannot get back. The principle that no job seeker should actually lose payment without a warning or a second chance to comply will remain in place. The current range of legislative and administrative protections for vulnerable job seekers will also remain in place, with the additional provision that they will not be subject to suspension of payment in the first instance.

The House of Representatives Standing Committee on Education and Employment has scrutinised this bill, and on 11 May it tabled its report. On the same day, the Minister for Employment Participation and Childcare, the Hon. Kate Ellis, gave in-principle support to the committee's recom­mendations and indicated that the gov­ernment would give serious consideration to all of them. With the support of the opposition, the government has accepted the committee's recommendation to remove the word 'special' from subsection 42UA where it is used to describe a situation in which a job seeker would not be expected to give prior notice of their inability to attend an appointment. The government has now given more detailed consideration to the rest of the committee's recommendations. Several recommendations related to the need for clear communication for job seekers and clear guidance and training for employment service providers and Centrelink staff. Those recommendations have been adhered to in the development of the communication material, the guidelines and the training materials for these policy changes. Further, the department has advised that implementation is progressing on all of the remaining recommendations.

While it made no specific recom­mendations in this regard, the committee also suggested that it would be valuable for the government to provide a response to the remainder of the Independent Review of the Job Seeker Compliance Framework, the Disney review. The measures relating to the job seeker compliance framework, which were announced in the budget the night before the committee's report was tabled, were developed following consideration of the recommendation for the Disney review. The budget included $49.8 million to improve and streamline the compliance system, to provide targeted assistance to those job seekers who are most at risk of noncompliance and disengagement and to improve communication between Centrelink and providers. These budget measures and this bill are consistent with the government's approach to job seeker compliance, which focuses on early intervention and the use of immediate corrective action to keep job seekers on the right path. They will benefit job seekers, especially those who are vulnerable or disengaged. These measures will also help providers by reducing complexity and increasing transparency. All Australians on income support should have the opportunity of work, but with this opportunity, of course, comes responsibilities. With this bill we are going to firmly expect that people meet those responsibilities. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.