Patrick Dodson (WA, Australian Labor Party, Shadow Assistant Minister for Reconciliation) Share this | Hansard source

I rise to speak on the Social Security Amendment (COVID-19 Supplement) Bill 2020. It is important that the Senate debates this bill, because it addresses important issues about the government's response to the recession and it calls on the government to do more for those who have been forgotten or left behind, including those who rely solely on social security payments—the unemployed, Australians with disabilities and carers.

Unlike the government, Labor acknowledges that age pensioners, disability pensioners and carers have endured increasing costs in relation to protecting their health during this pandemic. Unlike the government, Labor acknowledges that Australians on unemployment support require certainty about the level of support they are receiving during this uncertain and difficult time. Labor moved amendments in the House to the government's coronavirus measures bill to expand support to age pensioners, disability pensioners, carers and Australians on unemployment support. Labor's amendments called for the government to continue the coronavirus supplement beyond December, instead of delivering a cruel Christmas cut to $2.2 million Australians; to provide increased support for pensioners, including age pensioners, disability support pensioners and those receiving carer payments to reflect the increased cost that people have faced in protecting their health; and to announce a permanent increase to the base rate of the JobSeeker payment.

Ultimately, only the government has the power to improve these supports. Everyone in this parliament knows this. This is why during the last sitting period Labor sought to be constructive and pragmatic by proposing these amendments, amendments that were reasonable and responsible. Labor was willing to work with the government to make these measures a reality, but the government used their numbers to vote the amendments down in the House. Unless the government supports these measures in the House of Representatives, they simply cannot be a reality—it's great to control the treasury bench. The Prime Minister said, 'We're all in this together,' and yet our pensioners and carers have been left behind. He said, 'We're all in this together,' but the 1.8 million Australians who are expected to be on unemployment support by the end of this year have no certainty as to what level of support will be available to them.

When the government introduced the coronavirus supplement in April, it was an admission that, for Australians out of work, payments were simply far too low to live on. The old Newstart rate was trapping people in poverty and acting as a barrier to getting work. People couldn't afford the basics or the clothes, transport, training and tools they needed. For many, including single parents, the increase in the payment meant they could finally pay overdue bills, buy fresh food, get new shoes and fix the car. In remote stores, there were increases in the fresh food, whitegoods, clothes and shoes that people were able to purchase. This is why it is unacceptable that the government plans to reduce the rate of unemployment payments all the way back down to the old rate of Newstart, around $40 or so a day for many people.

In a country like Australia, people should not be forced to live in poverty. Poverty and disadvantage are not inevitable. What the corona supplement has shown is that it is a policy choice; we choose for people live in poverty rather than create constructive measures for them to prosper.

It was revealed in the latest round of Senate estimates that 1.8 million Australians are expected to be on unemployment support by the end of the year. That is one million more people than were relying on unemployment payments at the end of 2019. The simple fact is that this recession has more than doubled the number of people who are unemployed and need to access social security.

This is the first time many families have needed to rely on unemployment support. It is going to be a very, very anxious Christmas for these Australians. They have no certainty about what level of support will be available to them beyond December. As far as we know, the government is scheduled to cut unemployment support to the old base rate of $40 a day. These Australians who have lost their jobs cannot plan their finances or household budgets because they simply don't know what level of support they will be provided. Many are worried about how they will afford essentials, cover rent and pay bills.

With more jobseekers than job vacancies, there are simply not enough jobs for everyone who needs one. It is even more difficult to find jobs out in the regions—the result of the government's failure to deliver a job program for our regions. In fact, Anglicare's recent job snapshot found that there are almost 100 people who are unemployed for every entry-level job. Yet, for some reason, our Prime Minister and the government seem intent on blaming Australians for losing their jobs or demonising those Australians who are doing it tough.

It seems everyone except the Prime Minister and the Treasurer acknowledges that the old base rate of JobSeeker is not appropriate. Labor has called on the Morrison government to deliver a permanent increase to JobSeeker. The government could give certainty to millions of Australians on unemployment simply by providing a permanent increase to JobSeeker. Not only is this a compassionate response; it's also good for our economy and jobs.

We know that Australians receiving social security spend on local and small businesses. It means local and small businesses have more to spend on jobs and wages. Unemployment support is economic support. When you cut unemployment support, you jeopardise jobs. The question for the government is: how many jobs will be lost when you cut the unemployment support in December? We've heard Senator Siewert raise many questions in relation to that. What's the figure going to be? The government simply do not know. Labor has asked them, but the government don't know the economic impact of their decision. Deloitte Access Economics has some idea, though. They estimated that 145,000 Australian jobs will be lost as a result of the government's scheduled unemployment cuts in December.

I will turn now to the impact of the pandemic and the recession on people with disability and carers. We know these people have been among the worst hit. People with disability are disproportionately vulnerable to serious infection from coronavirus, due to their pre-existing health conditions and their reliance on support workers. According to the Brotherhood of St Laurence, people with disability have experienced increased costs directly as a result of the onset of the pandemic in Australia, including higher grocery costs—the cheapest brands sold out with panic buying—increased costs in private transport, higher utility bills and shipping and delivery charges.

It is important to note that people with disability were already experiencing high rates of unemployment and poverty during pre-pandemic times. People with Disability Australia says that Australians with disability have the second-highest relative risk amongst the OECD nations of living in poverty. Prior to the pandemic, people with disability were already struggling with the cost of accessing the health services they needed. According to the Australian Institute of Health and Welfare, in the People with disability in Australia 2020 report, three in 10 people with disability can't afford to see a dentist; one in 13 delay seeing a GP, because they can't afford to; one in 22 don't see a specialist; and one in 28 can't go to hospital. The onset of the pandemic only exacerbated these issues.

In a survey by Children and Young People with Disability Australia, 64 per cent of respondents were unable to buy essential supplies, including specialty dietary products and hygiene products; one in five were unable to purchase essential medications; one-third had NDIS services cancelled; and one in five experienced the loss of income. According to the survey, financial insecurity was a constant theme, with some households having to make some tricky decisions on how they would prioritise spending.

In June we saw the release of a survey from People with Disability Australia, which found that nine in 10 people with disability experienced increased expenses due to the ongoing pandemic, 31 per cent reported increased spending on health care and one in five reported increased spending on sanitiser and hygiene products. The government's freeze of the pension in September impacted three-quarters of a million Australians on the disability support pension and almost 300,000 Australians on carer payments. The freeze came at the worst possible time, in the middle of Australia's most severe economic contraction in a century.

We know that older Australians, like people with disability, have a particularly high risk of serious infection from coronavirus. We have seen the devastating impacts this virus has had as a result of the government's failure to protect our aged-care system. This has meant that pensioners have had to take extra precautions to remain safe and protect their health during this time. It has meant buying more hand sanitiser and protective wear such as masks. It has meant added transport costs and paying premiums to have groceries delivered. Our pensioners have done the right thing. They have worked hard all their lives. They have contributed. They deserve our respect.

Pensioners were doing it tough under this government prior to the pandemic. They have been facing rising health, dental, energy and grocery bills for years. These rising costs have only been exacerbated by the pandemic, and they continue to be exacerbated by the government through a combination of three factors: the pension freeze, the unrealistic inflated pension deeming rates and the inflated interest rates charging pensioners just to access equity in the ownership of their homes. (Time expired)