Malarndirri McCarthy (NT, Australian Labor Party, Assistant Minister for Indigenous Australians) Share this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

BANKRUPTCY AMENDMENT (DISCHARGE FROM BANKRUPTCY) BILL 2023

The Bankruptcy Amendment (Discharge from Bankruptcy) Bill will amend the Bankruptcy Act 1966 to clarify when a person will be automatically discharged from bankruptcy.

The Bill amends the legislation to accurately reflect the way automatic bankruptcy discharge dates have been calculated by the Australian Financial Security Authority and its predecessors for over thirty years, and will apply both prospectively and retrospectively. This will provide certainty to individuals who apply for bankruptcy or have become bankrupt, creditors and trustees.

The Bill affirms long-standing practice and common understanding of the way the provisions of the legislation have been historically applied. Upon passage of this legislation, the government will take steps to notify all affected parties so they are aware of these measures.

Statement of Affairs and automatic discharge from bankruptcy

For a person to apply to enter into bankruptcy voluntarily, they must file a Statement of Affairs. This document outlines a person's financial circumstances and is used to determine eligibility for bankruptcy. Persons who become involuntarily bankrupt through a sequestration order made by the Court must also file a Statement of Affairs. The information provided enables the trustee to effectively administer the bankrupt person's estate during the period of their bankruptcy.

Under section 149 of the Bankruptcy Act, a person becomes discharged from bankruptcy three years and one day after their Statement of Affairs is filed. The filing of a Statement of Affairs essentially commences a person's period of bankruptcy. This provision was inserted in the Act in 1991 and was intended to encourage those subject to a sequestration order following a creditor's petition to file their Statement of Affairs.

Established practices of the Official Receiver

In practice, individuals often need assistance from the Australian Financial Security Authority, in its capacity as the Official Receiver, in order to provide a Statement of Affairs that is adequate for the purposes of administering the person's estate under bankruptcy.

It has been the long-standing practice of the Australian Financial Security Authority, and its predecessors, to record a bankruptcy applicant's Statement of Affairs as having been filed on the date it is accepted, rather than the date it was initially 'presented' or provided. This practice is designed to support vulnerable people by minimising the risk of an application for bankruptcy being rejected. The process allows bankruptcy applications to be assessed for completeness and, if required, applicants to be supported to identify and obtain missing information. Where a statement of affairs is adequate, it is accepted on the day it is provided, however where it is not, the acceptance date may be later. The same approach has been taken where someone becomes bankrupt involuntarily.

Amendments to align the Act with current practice

The Bill will amend the Act to enable the Australian Financial Security Authority to continue its practice of assessing bankruptcy applications for adequacy before the period of a person's bankruptcy commences.

New provisions will be inserted into the Act to require the Official Receiver to either accept, or refuse to accept, a Statement of Affairs within 14 days of receiving it. This will ensure that decisions are made within a reasonable time, and provide greater certainty to individuals who apply for bankruptcy or have become bankrupt involuntarily.

Validation of discharge dates and decisions

The Bill includes amendments to ensure that the bankruptcy period of those who are, or have been, bankrupt is consistent with the dates recorded by the Official Receiver prior to commencement in respect to the bankruptcy. This will validate decisions made before commencement of the Bill in reliance on those dates. This will allow bankrupted persons, the trustees of their estates, and other entities who rely on the dates within the National Personal Insolvency Index, to be assured that the discharge dates of existing bankruptcies are not being changed.

However, the validation of things done before commencement does not apply to criminal proceedings. This is to ensure that, if a person believes they were wrongfully convicted of a crime due to a mistaken understanding that they were bankrupt at a particular time, the Bill will not restrict their ability to challenge their conviction.

Conclusion

It is essential that there be certainty in the Bankruptcy system. The amendments in the Bill will provide certainty to individuals and industry by affirming a long-standing practice and common understanding of the application of the legislation.

CRIMES AND OTHER LEGISLATION AMENDMENT (OMNIBUS No. 2) BILL 2023

The Crimes and Other Legislation Amendment (Omnibus No.2) Bill 2023 will update, improve and clarify the intended operation of key provisions in the Crimes Act 1914, the Criminal Code and the Australian Crime Commission Act 2002. These amendments are required to support the proper administration of justice and combat serious and organised crime.

Schedule 1 to the Bill amends the Crimes Act to confirm that the Attorney-General has unambiguous authority to make parole order decisions for federal offenders. The amendments put beyond doubt the Attorney-General's duty to make or refuse to make a parole order for a federal offender, even if their non-parole period has expired. This addresses circumstances where it is not possible for a decision to be made prior to the end of a non-parole period, such as where that period is reduced on appeal.

The amendments in Schedule 2 of the Bill will help agencies deal with the threat of serious and organised crime, which poses a grave and enduring threat to Australia's national security and prosperity. In 2020-21, the Australian Institute of Criminology estimated that serious and organised crime cost the Australian community up to $60.1 billion.

Existing import controls have proven insufficient in preventing criminal groups from importing chemicals that contribute to Australia's illicit drug market. Transnational, serious and organised crime actors are using increasingly sophisticated methods to import illicit drugs and precursor chemicals into Australia. Schedule 2 to the Bill makes amendments to the Criminal Code to enhance import controls on chemicals that are commonly used as illicit drugs and precursors but which are also used legitimately by industry—for example, in the manufacture of plastics, adhesives or ingredients in cosmetic products.

Currently, these chemicals can be legally imported into Australia for legitimate industrial use by importers that are registered with the Australian Industrial Chemical Introduction Scheme. However, entities not registered with the Australian Industrial Chemical Introduction Scheme that import the chemicals into Australia only face maximum financial penalties of up to 500 penalty units, and the Australian Border Force is not empowered to seize the chemicals from unregistered importers. These measures will ensure that where listed substances are imported by unregistered entities, the importation of these substances will be subject to appropriate criminal penalties under the Criminal Code and be subject

to seizure by the Australian Border Force. The amendments will also ensure the relevant regulation-making powers under the Criminal Code are capable of listing dual--use substances in a consistent manner.

To fully implement these enhanced import controls, consequential amendments to the Customs Act 1901 and the Defence Force Discipline Act 1982 are included in the Bill.

Organised crime syndicates are well-resourced, highly resilient to traditional investigative and intelligence-gathering techniques and readily adapt to advances in technologies in their attempts to evade detection and disruption.

As Australia's national criminal intelligence agency, the Australian Criminal Intelligence Commission, or ACIC, provides mission critical intelligence to combat the destructive and complex threats Australia faces from transnational, serious and organised crime. The ACIC's unique capabilities are critical to supporting law enforcement's understanding of, and response to, serious and organised crime.

The Australian Crime Commission (Special Operations and Special Investigations) Act 2022 streamlined provisions in the ACC Act to provide greater certainty with respect to the ACIC Board's powers to authorise special ACIC operations and special ACIC investigations, simplify the determination drafting process and make the determinations easier to understand.

The amendments in Schedule 3 to the Bill put beyond doubt the validity of things done in reliance on authorisations given, and special operation and special investigation determinations made.

The amendments are required to ensure that the ACIC can continue to undertake its vital statutory function to combat serious and organised crime in Australia and keep the Australian community safe.

The amendments do not expand or otherwise alter the powers available to the ACIC when undertaking special ACIC operations or special ACIC investigations.

Conclusion

The Crimes and Other Legislation Amendment (Omnibus No.2) Bill 2023 makes amendments that will support the proper administration of justice and help protect the Australian community from the pervasive and multifaceted threat of transnational, serious and organised crime.

I commend the Bill.

HEALTH INSURANCE AMENDMENT (PROFESSIONAL SERVICES REVIEW SCHEME NO. 2) BILL 2023

Australians are rightly proud of Medicare and of the committed group of doctors and other health professionals who deliver Medicare services.

Australians know that the overwhelming majority of our doctors and health professionals are honest, hardworking and comply with Medicare rules.

But they also understand that, at a time of great pressure on household and Government budgets, every dollar in Medicare is precious and must be spent directly on patient care.

The former government was given five separate reviews, including from the Australian National Audit Office, that told them billions of dollars in taxpayer money was being lost each year. They failed to act to protect Medicare.

Strengthening Medicare means safeguarding the taxpayer funds that underpin it and this Government is committed to improving the compliance framework that ensures the integrity of Medicare.

The Health Insurance Amendment (Professional Services Review Scheme No. 2) Bill 2023 builds on the Health Insurance Amendment (Professional Services Review Scheme) Act 2023, which implemented priority amendments in response to the Independent Review of Medicare Integrity and Compliance undertaken by Dr Pradeep Philip, known as the Philip Review. The Philip Review was commissioned by the Government in November 2022 to respond to concerns about the operation of the Medicare system.

While the Philip Review found that the majority of health professionals are well meaning and protective of the health system, it recommended a comprehensive review of legislation relating to Medicare to ensure it is fit for purpose, including amending legislation that hinders the effectiveness of compliance activities.

This Bill will strengthen the operation of the Professional Services Review, known as the PSR, by addressing ambiguities and issues in the legislation, which will protect the integrity of Medicare.

The PSR is an independent agency established under the Health Insurance Act 1973 and is responsible for protecting the integrity of Medicare by investigating whether a person has engaged in inappropriate practice. In doing so, the PSR protects patients and the community in general from the risks associated with inappropriate practice and protects the Commonwealth from having to meet the cost of services provided as a result of inappropriate practice.

The PSR investigates inappropriate practice through review undertaken by the Director of the PSR and in some cases by a PSR Committee made up of health professional peers of the person under review.

A key amendment in this Bill relates to the requirements for qualifications of Committee members. The legislation was intended to ensure that members of a Committee would be peers of the person under review and have the appropriate skills and experience to assess their provision of services. However, current requirements are too strict to account for a practitioner with an unusual combination of specialties, where there may be fewer than ten practitioners in Australia with the exact same qualifications. In such cases, it has been very challenging to establish a Committee with similarly-qualified members who do not have any conflicts of interest.

Further, the current requirement for Committee members to have the same qualifications as the practitioner has led to incongruous outcomes if the practitioner is providing services in a different field from their formal specialist qualifications. This is also inconsistent with the purpose of the definition of inappropriate practice, which requires consideration of whether a practitioner's conduct in providing services as one kind of practitioner would be considered unacceptable to the general body of that kind of practitioner.

To resolve both issues, the Bill will amend the requirements for Committees to better align with the definition of inappropriate practice, that is, if a practitioner was providing services as one kind of practitioner, the members of the Committee must also be that kind of practitioner. The Bill will also clarify that the requirements are met for a person providing services as more than one kind of practitioner if each Committee member is at least one of the relevant kinds of practitioner and the Committee members are, in combination, practitioners of each of the relevant kinds. For example, if a person was providing services as both a cardiologist and a paediatrician, one Committee member could be a cardiologist and the other a paediatrician, or both

Committee members could be dual-qualified as both cardiologists and paediatricians.

A related change will also clarify how to apply the definition of inappropriate practice, that is, if a practitioner was providing services as more than one kind of practitioner, the test for inappropriate practice is whether their conduct would be unacceptable to the general bodies of each kind of practitioner.

The Bill also makes several other amendments to clarify and improve administration of the PSR Scheme, including to:

Clarifying these matters will ensure that a person under review is clearly aware of how the PSR Scheme should apply to them, and enable the PSR to perform its role more effectively.

The PSR must be able to work efficiently to achieve its objective to protect patients, the community and the Commonwealth from the risks and costs of inappropriate practice. This is essential to ensure that Commonwealth resources are directed to necessary health services and to ensure that Medicare remains sustainable. By supporting the integrity of Medicare, this Bill will ultimately benefit all Australians.

A stronger Medicare means stronger safeguards that protect Medicare and the taxpayer funds that underpin it and the Albanese Government is committed to that task.

SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (SUPPORTING THE TRANSITION TO WORK) BILL 2023

Today, I am introducing a Bill to smooth the transition between income support and employment, and give people more support to get into work.

At the Jobs and Skills Summit last year, there was a clear message and focus on inclusion, promoting equal opportunities and reducing barriers to employment. We took steps to address this, including introducing the temporary Work Bonus boost, the Carer Inclusive Workplace Initiative, and partnering with the Business Council of Australia and the Australian Network on Disability to develop the Career Pathways Pilot for people with a disability.

The next stage in this process was to develop the Employment White Paper, which the Government released in September. This set out a road map to ensure more Australians can make the most of the big shifts underway in the economy and society.

It presented our vision for a dynamic and inclusive labour market in which everyone has the opportunity for secure, fairly paid work and where people, businesses and communities can be the primary beneficiaries of change to thrive.

The White Paper is a commitment to working together, to delivering sustained and inclusive full employment, promoting job security and strong, sustainable wage growth, reigniting productivity growth, filling skills needs, building our future workforce and overcoming barriers to employment and broaden opportunity.

The Bill before you today, the Social Services and Other Legislation Amendment (Supporting the Transition to Work) Bill 2023, represents one of the immediate actions we are taking to deliver on the objectives of the White Paper.

The changes in the Bill will permanently enhance the pension Work Bonus and extend the employment income nil rate period for those on income support.

The changes to the pension Work Bonus will enable older Australians who choose to work, if they are able to do so, to earn more income from working, before their pension is affected.

This builds on the temporary Work Bonus measure the Government announced at the Jobs and Skills summit, which gave all eligible pensioners a one-off$4,000 upfront credit into their Work Bonus balance, and increased their Work Bonus income bank balance from $7,800 to $11,800. This temporary measure is in place from 1 December 2022 to 31 December 2023.

This measure was warmly welcomed by pensioners, stakeholders and peak bodies representing senior Australians.

This Bill will permanently extend these changes from 1 January 2024, to all eligible new recipients over Age Pension age who will commence with a Work Bonus balance of $4,000 from day one, instead of starting with $0.

This will mean from the outset of commencing on the pension, new recipients will be able to earn $4,000 more before their pension rate is affected. Without this change, these new entrants would have to build up their Work Bonus balance over time.

As a result, the more than 195,000 senior Australians who commence on a pension each year will be given added incentive to maintain their connection to the workforce, and continue to add their skills, knowledge and expertise to the Australian labour market. This accords with the evident trend of Australians approaching or at retirement age looking to continue to seize more opportunities for work.

In addition, through this Bill we will also retain on a permanent basis, the maximum income bank balance of $11,800 for all eligible pensioners and veterans to accrue in their Work Bonus income bank.

This means pensioners who are not working regularly are able to accrue credits to this higher maximum balance, allowing them to earn more if they do take up some work, before their pension is affected. It also means that existing pensioners who haven't used their one-off $4,000 credit yet will be able to keep it in their income bank to use at a later date.

These changes to the Work Bonus complement existing arrangements in place that enable Age pensioners to earn an amount of income before their pension begins to be reduced. This includes the income free area and taper rate arrangements—which apply to all types of income—along with the Work Bonus, which is specifically designed to reward pensioners who are working. It provides incentives that mean pensioners with employment income can earn more before their pension is affected, and it is the best way to target additional support to pensioners who take on work.

Indeed, senior Australians have taken the time to write to me and others in the Government directly to explain how the temporary changes Work Bonus changes have supported them to work more and made a real difference in their lives.

Recently I heard from Dawn and Murray—working age pensioners from northern NSW, who do seasonal work. For them, continuing to do some work keeps them mentally and physically active, and their employer values them as mature workers because of their work ethic, commitment, life experience and availability. Dawn and Murray have told me how helpful the increase to the Work Bonus has been for them, particularly with cost of living pressures, enabling them to earn more before their pension is affected.

We want to continue to ensure that older Australians have the option, should they wish to do so, to take up work or work more. Together, the higher maximum income bank balance limit and the starting balance are targeted and effective changes that will deliver real benefits to those pensioners willing and able to take up work. These changes broaden their choices and increase flexibility, while also helping to break down the barriers faced by older Australians who wish to be in the workforce.

In addition to enhancing the Work Bonus, from 1 July 2024, this Bill will also double the length of the employment income nil rate period from 12 to 24 weeks and extend access to people who start full-time work.

This change is designed to provide more support for people to get back into work, without the fear that the social safety net won't be there if they need it again.

The employment income nil rate period is available to recipients of a range of payments, including the JobSeeker Payment, Youth Allowance, Austudy, ABSTUDY Living Allowance, Parenting Payment and pensions.

It enables income support recipients to be considered as still receiving their payment when their fortnightly rate is reduced to nil due to personal or partner income, for the purposes of qualifying for supplementary benefits, including:

Doubling the nil rate period will allow people to stay active in the system—and retain these benefits—when they first get back into work, for longer.

Our consultations during the White Paper process recommended changes to social security settings to ensure recipients are not discouraged from taking up paid work. It is commonly reported that losing access to concession cards and supplementary benefits or having to reapply and wait for income support if things don't work out discourages people taking-up work, particularly short-term or casual work.

We know that people who have some work are twice as likely to ultimately exit income support as those who don't. To improve employment outcomes and get more people off payment, it is critical that they are not dis-incentivised from taking on these short-term or ad hoc opportunities that could tum into longer term work. This measure is designed to address these concerns by doubling the period people are able to stay connected to the income support system and retain access to these benefits to almost 6 months.

The measures in this Bill will also extend access to the nil rate period to JobSeeker and Youth Allowance (other) recipients who commence in full-time work. Currently, these recipients are ineligible for the employment income nil rate period altogether, so their payment cancels as soon as they commence full-time employment.

For example, Hannah is receiving JobSeeker Payment and is offered a full-time, 3-month job working in a supermarket over Christmas. Under current arrangements, if Hannah took up this job, she would not have access the nil rate period. She would lose access to her health-care card, and supplementary payments, and possibly have to reapply for JobSeeker all over again when the job 1s over.

This may deter her from taking up this opportunity

Through the nil rate measure in this Bill, Hannah is supported to get back into work again, with the confidence that the social safety net is there if she needs it—as it is for all Australians in need.

These changes to income nil rate period are expected to benefit around 138,000 people each year, particularly those receiving JobSeeker Payment and Youth Allowance (other).

These measures complement our actions to improve the economic inclusion of people across Australia. With our measures to Strengthen the Safety Net announced in 2023-24 Budget, the Government is providing additional support to working-age and student payment recipients, as well as more support through Commonwealth Rent Assistance and expanded access to Parenting Payment (Single).

These measures commenced on 20 September 2023. They provide practical assistance and mean more money in the pockets of those doing it toughest. This makes a difference.

And now, with the measures in this Bill, the Government is doing more to help Australians of all ages get into work, consistent with our objective remove barriers to employment and broaden opportunity for all Australians.

I commend the Bill.

Debate adjourned.

Ordered that the bills be listed on the Notice Paper as separate orders of the day.