Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) Share this | Hansard source

by leave—I move opposition amendment (1) and request (2) on sheet 1978 together:

(1) Schedule 2, Part 1, page 4 (line 3) to page 13 (line 18), omit the Part, substitute:

Part 1 — Jobseeker payment increase for certain persons who have turned 55

Social Security Act 1991

1 P oint 1068-B1 (table B, item 4A, column 2, paragraph (b))

Omit "60", substitute "55".

2 Point 1068-B1 (table B, item 4B, column 2, paragraph (b))

Omit "60", substitute "55".

3 Point 1068-B1 (table B, item 5, column 2, paragraph (a))

Omit "60", substitute "55".

4 Application of amendments

The amendments of the Social Security Act 1991 made by this Part apply in relation to working out the following:

(a) the rate of a person's jobseeker payment for days occurring on or after 20 September 2023;

(b) the rate of a person's farm household allowance under the Farm Household Support Act 2014 for days occurring on or after 20 September 2023.

(2) Page 33 (after line 26), at the end of the Bill, add:

Schedule 4 — Increase to income free areas for certain working age payments

Part 1 — Disability support pension (under 21)

Social Security Act 1991

1 Point 1066A-F3 (table item 1, column 3)

Omit "$2,184", substitute "$9,204".

2 Point 1066A-F3 (table item 1, column 4)

Omit "$80", substitute "$354".

3 Point 1066A-F3 (table item 2, column 3)

Omit "$1,924", substitute "$8,580".

4 Point 1066A-F3 (table item 2, column 4)

Omit "$70", substitute "$330".

5 Point 1066A-F3 (table item 3, column 3)

Omit "$1,924", substitute "$8,580".

6 Point 1066A-F3 (table item 3, column 4)

Omit "$70", substitute "$330".

7 Point 1066A-F3 (table item 4, column 3)

Omit "$1,924", substitute "$8,580".

8 Point 1066A-F3 (table item 4, column 4)

Omit "$70", substitute "$330".

Part 2 — Youth allowance

Social Security Act 1991

9 Paragraphs 1067G-H29(a) and (aa)

Omit "$400", substitute "$630".

10 Paragraph 1067G-H29(b)

Omit "$150", substitute "$300".

Part 3 — Austudy payment

Social Security Act 1991

11 Point 1067L-D28

Omit "$400", substitute "$630".

Part 4 — Jobseeker payment

Social Security Act 1991

12 Point 1068-G12

Omit "$150", substitute "$300".

Part 5 — Parenting payment (partnered)

Social Security Act 1991

13 Point 1068B-D27

Omit "$150", substitute "$300".

Part 6 — Application of amendments

14 Application of amendments

(1) The amendments of the Social Security Act 1991 made by this Schedule apply in relation to working out the following:

(a) the rate of a person's disability support pension, youth allowance, austudy payment, jobseeker payment or benefit PP (partnered) in respect of days occurring on or after 20 September 2023;

(b) whether a person's farm household allowance under the Farm Household Support Act 2014 is payable in respect of days occurring on or after 20 September 2023.

(2) For the purposes of indexing an amount:

(a) specified in:

(i) the table in point 1066A-F3 of the Social Security Act 1991, as amended by this Schedule; or

(ii) paragraph 1067G-H29(a) or (aa) of that Act, as amended by this Schedule; or

(iii) point 1067L-D28 of that Act, as amended by this Schedule;

(b) on the first indexation day for the amount that occurs after the day this item commences;

the current figure for the amount immediately before that first indexation day is taken to be that specified amount.

Statement pursuant to the order of the Senate of 26 June 2000

Amendment (2)

Amendment (2) is framed as a request because it amends the bill to increase the ordinary income free area for the disability support pension (under 21), youth allowance, austudy payment, jobseeker payment and parenting payment (partnered) under the Social Security Act 1991. As the income free area is the amount of income a person can receive before their payment begins to decrease, increasing the income free area would result in some recipients receiving a higher rate of payment and would also increase the number of people for whom payments are payable.

Increasing the income free area for youth allowance and jobseeker payment under the Social Security Act 1991 will also increase the number of people for whom the farm household allowance is payable under the Farm Household Support Act 2014. This is because the income free area for youth allowance and jobseeker payment is used to work out whether the farm household allowance is payable.

The effect of the amendment would increase expenditure under the standing appropriation in section 242 of the Social Security (Administration) Act 1999 and section 105 of the Farm Household Support Act 2014.

Statement by the Clerk of the Senate pursuant to the order of the Senate of 26 June 2000

Amendment (2)

If the effect of the amendment is to increase expenditure under the standing appropriation in section 242 of the Social Security (Administration) Act 1999 and section 105 of the Farm Household Support Act 2014 then it is in accordance with the precedents of the Senate that the amendment be moved as a request.

The coalition's amendment and request remove the $40 increase per fortnight for JobSeeker and related working-age payments and replaces it with an increase to the income-free areas of $150 per fortnight. These payments include JobSeeker, disability support pension under 21, youth allowance, Austudy payment and parenting payment partner. There is nothing in this bill as it stands that genuinely reduces barriers for Australians to get into work. At a time when we have hundreds of thousands of job vacancies right across the country, we believe that removing barriers and incentivising people to take up work is the most appropriate way not only to deal with supporting Australians who are on working-age payments but also to support our labour market.

The tightness in the labour market is absolutely obvious for every Australian to see. Every second business seems to have a sign in the window, looking for people to fill job vacancies or to fill vacant shifts. At a time of historically-low unemployment rates, we believe that the coalition's amendment will go a long way to help, as I said, both jobseekers and the businesses who are so desperately crying out for Australians to come and work in their business. We also recognise that millions of Australians go to work every day to pay their taxes that allow governments to provide the safety nets that they do in our social welfare system. But the reality is we have a situation where Australian businesses are crying out for employees, and we have hundreds of thousands of job vacancies. There is a reasonable expectation that we, as the legislators in this place, will put in place incentives to enable those opportunities to be taken up. We believe encouraging jobseekers by giving financial incentives is a far superior way of encouraging Australians who are on working-age payments to get into the workforce.

Obviously, typically, at a time of low unemployment, those opposite see it more as a priority to simply increase the base rate while providing no additional incentives or breaking down any barriers. We would say to the Labor Party: 'Look at ways that are actually going to help Australians get off working-age payments.' Despite what the minister said in his contribution to the previous amendment, we know that those Australians on working-age payments who report earnings are more than twice as likely to take on full-time employment. This is an investment in the longer term to see Australians on working-age payments make that little bit extra so they can move from being on payments to being fully independent and in the workforce.

It's not just the coalition who appreciates the benefits of increasing income-free areas. At the recent Senate inquiry, we heard about the benefits from the law reform officer from Economic Justice Australia:

At present the income free area for JobSeeker, Parenting Payment Partnered and Youth Allowance constrains recipients' opportunities for training and experience by severely limiting the numbers of hours they can work before facing deductions to their income support.

The executive manager for Community and Family Care, from Wesley Mission:

We find that people want to engage, but, as soon as their ceiling is maxed out, they'll stop, or the employer limit can't give them full and proper support.

Our amendment encourages those 77 per cent of Australian jobseekers who have reported no earnings to get out there, put their toe in the water and test out the market before we see it eating into their JobSeeker payments.

We know the longer you are out of the workforce, the harder it is to return. We believe incentivising work, not incentivising welfare, is the best approach to get people back to the workforce, filling those job vacancies, helping those businesses creating jobs and opportunity, and creating wealth for our country. That is why we think it is absolutely important that the coalition's policy is the best proposal for payments to recipients because we know it's not just about the economic dividend paid to working-age payment recipients; we know it's more broadly around assisting them in terms of their wellbeing, sense of purpose and opportunities for their future life.

We believe the coalition's amendment is sensible and reasonable. We encourage the government, and we certainly encourage the Australian Greens, to consider supporting the increase in the income-free area as proposed by this amendment because it is absolutely fair. It reflects the nuances across the working-age payment system because not all working-age payments have the same existing income-free areas for reasons that Labor put in in the first place. We believe this amendment is about the dignity of work and the dignity of having a mission. That's why we believe our approach is superior. We urge all senators to consider this amendment and request.