Hollie Hughes (NSW, Liberal Party) Share this | Hansard source

The Morrison government has always believed that a welfare system should be accurate, fair and simple. The legislation that will deliver on this rock-solid commitment will make it easier for welfare recipients to report income and improve the accuracy of our payment system. Recipients can now report their earnings in real time, and the taxpayers who fund this support can be confident that every cent can be accounted for. The single touch payment will be fast and fair. In streamlining the process of reporting employment income to Centrelink, recipients will report their income when it is paid by their employer, not when it is earned. From 1 July, this will make it easier to report income correctly and better support people receiving the right amount of income support each time it's paid. There will be no more or less than the amount for which they're eligible, and this will reduce the likelihood of overpayments.

More than 1.2 million welfare recipients each year who also earn an income will be able to report their earnings simply as it appears on their pay slip. The days of complicated reporting will finally be over, with no need for recipients to undertake a calculation to report their or their partner's earnings based on the number and value of shifts they've worked. As it stands, reported earned amounts can require recipients to undertake multiple calculations. From July 2020, the Australian Taxation Office will begin providing employment income details to Services Australia to assist payment recipients to report accurately. Where single touch payment data is used, recipients will still be responsible for correctly reporting their income and will retain the ability to review, edit or add additional employment income before finalising their report to Centrelink. This will support payment recipients to accurately report their employment income, ensuring that they get paid the right amount from Centrelink. Employer provided payroll information will be used to make it easier for welfare recipients to accurately report income. It is not a retrospective compliance measure. The subsequent improvements in payment accuracy are expected to deliver savings to government of $2.1 billion over four years.

The Morrison government is seriously committed to ensuring that all Australians in need of financial support are able to receive the precise amount of their entitlement without any impact on eligibility criteria. This new process of modernising Australia's social security system by allowing technology to prevent overpayments before they happen does not diminish the individual's responsibility for reporting correctly. This is nothing less than what the Australian taxpayer demands. The Morrison government feels a deep sense of responsibility to deliver on fulfilling the expectation of Australians to make every cent of their tax payments count. This new process will meet that expectation without eroding the support we pledge to those who need it. The Social Services and Other Legislation Amendment (Simplifying Income Reporting and Other Measures) Bill will make great inroads into ensuring Australia's welfare system remains sustainable well into the future.