Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Siewert for the question. I first acknowledge the young people from the Learn Earn Legend! program, the Indigenous work experience program, who are in the gallery. Unfortunately, we are trying to put on a bit of a show for you today by livening the place up. It is usually more respectful and quiet, but some of the senators are looking to perform for your benefit, obviously.

Turning to the question, I indicate that, as the senator knows, the allowances and the pensions are indexed in a different way, as she quite rightly points out. That has been in place for some time. It is the case that both are increased, I think, twice a year by an indexation measure, but the measures are different. I think there is a clear distinction between what the pension is designed to do and what allowances are designed to do, and that is often confused in the public debate. The reality is that the pensions are largely of a permanent nature, designed to support people on an ongoing basis, and the allowances are paid as a means of supporting people who are in a transition stage. The focus of the government has been very much to try and tailor the system so that Newstart provides support for people while we encourage and support them into work and/or training and we try and transition them back into activity that allows them to either work immediately or get support to improve their skills. I know there is a public debate about the rate of Newstart, but I think it is also important that it be sustainable over time and reflect, of course, the other economic pressures. But the pension and allowances are indexed in different ways and have been for some time.