Janet Rice (Victoria, Australian Greens) Share this | Hansard source

I move Greens amendment (2) on sheet 1698:

(2) Schedule 3, page 36 (before line 5), before item 1, insert:

1A Point 1066A-F1 (note 2)

Repeal the note, substitute:

Note 2: The application of the ordinary income test is affected by provisions concerning:

(a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);

(b) the work bonus (section 1073AA);

(c) business income (sections 1074 and 1075);

(d) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);

(e) income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);

(f) disposal of income (sections 1106 to 1111).

1B Point 1068-G1 (note 3)

Repeal the note, substitute:

Note 3: The application of the ordinary income test is affected by provisions concerning:

(a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);

(b) the work bonus (section 1073AA);

(c) business income (sections 1074 and 1075);

(d) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);

(e) income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);

(f) disposal of income (sections 1106 to 1111).

1C Subsection 1073AA(1) (including the note)

Repeal the subsection, substitute:

(1) The section applies to a person if the person's rate of social security payment is calculated in accordance with:

(a) Pension Rate Calculator A at the end of section 1064; or

(b) Pension Rate Calculator D at the end of section 1066A; or

(c) Benefit Rate Calculator B at the end of section 1068.

1D Subsection 1073AA(2)

Omit "Module E of that Rate Calculator", substitute "the income test module".

1E Subsection 1073AA(2) (examples 1 and 2)

Omit "pension", substitute "payment".

1F Paragraphs 1073AA(3)(a), (4)(a) and (4A)(a)

Omit "Module E of that Rate Calculator", substitute "the income test module".

1G Paragraphs 1073AA(3)(b) and (4)(b)

Omit "pension", substitute "payment".

1H Subsection 1073AA(4) (example)

Omit "pension", substitute "payment".

1J Paragraph 1073AA(4A)(b)

Omit "pension", substitute "payment".

1K Subsection 1073AA(4A) (example)

Omit "pension", substitute "payment".

1L Paragraph 1073AA(4B)(b)

Omit "pension", substitute "payment".

1M After subsection 1073AA (4C)

Insert:

(4D) For the purposes of this section, the income test module in respect of a person is:

(a) if the person's rate of social security payment is calculated in accordance with Pension Rate Calculator A at the end of section 1064—Module E of that Rate Calculator; or

(b) if the person's rate of social security payment is calculated in accordance with Pension Rate Calculator D at the end of section 1066A—Module F of that Rate Calculator; or

(c) if the person's rate of social security payment is calculated in accordance with Benefit Rate Calculator B at the end of section 1068—Module G of that Rate Calculator.

The amendment will extend the work bonus to other income support recipients. This bill, as we know, creates a work bonus so that age pensioners are able to earn significantly more before their pension gets reduced, which is a good thing; we're supporting this bill. But it really points attention to the fact that you have got people on other income support benefits who aren't getting the same benefit. In fact, they're even more deserving of being able to earn more because their income support is considerably less. Age pensioners get $73 a day, but people on JobSeeker only get $48. This bill will allow age pensioners to earn up to an extra $11,800 in work bonus over a year, but JobSeeker can only earn a work credit of $1,000 before their benefits get slashed. In fact, they face an effective marginal tax rate of somewhere between $60 and $80 for every extra dollar that they earn when they take a few extra available shifts, when they take the opportunity to do the work that's there so they can pay a few bills, so they can get the lawnmower fixed or so they can pay off a loan that somebody has very generously given them.

What this amendment would do is to extend that work bonus that we are now going to put into legislation for age pensioners to other income support recipients to allow them also to get the benefits, to allow people on JobSeeker, people on the disability support pension and people on youth allowance to earn more so that they too don't have to suffer the huge increase in the cost of living. It would mean that they might actually, at least in some weeks, be able to scrape by and afford to put food on the table as well as pay the rent and pay for their medical costs.