Michaelia Cash (WA, Liberal Party, Minister for Jobs and Innovation) Share this | Hansard source

In the first instance, I'll just speak to the amendments that you've moved and then I'll address the question. I acknowledge Labor's support for the schedules that establish the new jobseeker payment, which will be the main working-age payment, and their support for the schedules that streamline the Department of Human Services' collection of tax file numbers and the alignment of social security and disability discrimination law.

The government does not support the amendments proposed by the opposition, moved by Senator Pratt. The government has paid attention to the views of interested parties and the opposition and has proposed and supported a range of amendments to this bill in both the House and the Senate which will ensure the ongoing sustainability of the welfare system.

In relation to the cessation of the wife pension and the bereavement allowance, schedules 3 and 4, the government does not support the amendments proposed by Labor to schedules 3 and 4 which would have the effect of continuing the wife pension and the bereavement allowance into the future. Ceasing these payments is an important part of building a simpler system that provides more encouragement and support for people transitioning to work. The amendment proposed by the government will provide an additional payment to newly bereaved pregnant women, to ensure that no bereaved pregnant women will be disadvantaged by the cessation of the bereavement allowance.

In relation to the amendments to schedule 9, it is disappointing that Labor is not supporting schedule 9, which is designed to increase the chances of older unemployed people finding work. A recent OECD report found there is an unmet activation potential in Australia's labour market and recommended increasing participation requirements for several cohorts, including older Australians. Unemployed people aged 55 to 59 have many productive years ahead of them. This measure, complemented by new and existing assistance, will help mature-age jobseekers gain skills and find work.

In relation to schedule 10, it is again disappointing that Labor is not supporting this schedule, which changes the start date for some participation payments. We know that more than one-third of jobseekers take longer than two days to connect with their jobactive or Transition to Work provider. This measure is all about ensuring that jobseekers are connecting as quickly as they can to the services that are there to help them find a job and move off welfare.

In relation to schedules 12 to 14, the bill also includes important measures that will better encourage jobseekers with substance abuse issues to pursue treatment to address their issues so that they can find work and ultimately become self-reliant. The changes to reasonable excuse provisions are needed because it is not consistent with community expectations that jobseekers are able to repeatedly avoid their requirements due to drug and alcohol misuse while refusing to participate in treatment, despite being able to. The changes to exemptions for mutual obligation requirements will also support jobseekers with substance abuse issues to remain connected to their employment services provider and engage in suitable activities to address their barriers.

The Labor amendments to remove these changes to reasonable excuse and exemptions would simply ensure that vulnerable jobseekers with substance abuse issues are left alone to struggle with their substance abuse, rather than being supported to overcome their issues. While the government is amending the bill to remove the drug-testing trial, the government remains committed to this measure and believes that randomised drug testing can be an effective way of identifying welfare recipients for whom mandated treatment could be successful.

In relation to schedule 15, the targeted compliance framework, the Labor amendment introducing broader discretion to the targeted compliance framework would retain one of the ineffective features of the current compliance framework which allow providers to effectively ignore noncompliance, even where the jobseeker has no reasonable excuse. This results in inconsistent and unfair application of penalties. The National Social Security Rights Network acknowledged this in its evidence at the Senate committee hearing, stating that the new framework deals with a range of problems in the existing system. They include an arbitrary levelling of penalties, depending on provider discretion. Under the new compliance framework, providers will still exercise discretion as to whether or not they find the excuse offered by the jobseeker to be acceptable, in which case no financial penalty or demerit will be applied. The appointment will just be rebooked, as currently occurs. However, they will be unable to ignore blatant noncompliance with no excuse. DHS will also retain the discretion they currently have in relation to all decisions about applying financial penalties.

In relation to schedule 17, 'Information management', the opposition's amendment would also remove the ability to streamline the process of referrals for welfare fraud prosecution, which is central to combating welfare fraud and maintaining the integrity of the social security system. On that basis, the government will not be supporting any of the Labor amendments.

Senator Pratt, in relation to your question concerning the cessation of the wife pension, you may be aware that Senator Cameron and I discussed this at the last hearing of this bill in December of last year. In relation to the questions that you've asked, I am advised that, no—the government did not consider grandfathering these women and has not costed grandfathering them, as it would create additional complexity, which would be contrary to the intent of the welfare reform bill. Most wife pension recipients living overseas will experience an estimated average loss of $457.10 per fortnight, as the majority of these women currently receive a part-rate of payment due to insufficient Australian working-life residency and/or income and assets. These recipients have access to other income sources besides their wife pension payments, such as foreign pensions and investment income.

The TEMPORARY CHAIR: Senator Pratt, could I just clarify that you're moving all amendments on sheet 8236? Is leave granted for those amendments to be moved together?