David Feeney (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Human Services, Senator Ludwig. Can the minister please tell the Senate what role Centrelink will have in the delivery of the Rudd Labor government’s $10 billion economic security package?

Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

I thank Senator Feeney for the question. In the midst of the global financial crisis, the Rudd government, led by the Prime Minister and the Treasurer, have taken decisive action to strengthen the Australian economy and support pensioners and families during the global financial crisis. This $10.4 billion strategy will strengthen the national economy and support Australian households, given the risk of a deep and prolonged economic slowdown. Whilst the Australian economy is strong and we remain better placed than most other nations, Australia is not immune to the global financial crisis.

As Minister for Human Services, I am very aware of the financial pressures millions of families, seniors, carers and people with disabilities are facing. That is why a down payment for pensioners and families is such an important part of the Rudd government’s $10.4 billion economic security package.

Centrelink will have a significant role in the delivery of this package. The $4.8 billion down payment will be made available through a lump sum payment of $1,400 for singles and $2,100 for couples. This down payment will benefit millions of Australians, including approximately two million age pensioners, 715,000 disability support pensioners, 130,000 carer payment recipients, 107,000 wife and widow pensioners, partners, widows and bereavement allowees, 200,000 veterans affairs service pensioners, 85,000 veterans affairs income support supplement recipients and 320,000 Commonwealth senior healthcare card holders and veteran gold card holders who are eligible for senior concession allowance.

For 440,000 people receiving carer allowance there will be a payment of $1,000 for each eligible person they care for. For families there will be a one-off $1,000 payment for each eligible child in their care, which will be paid to 1.9 million families who receive family tax benefit A and families of another 220,000 dependent children who receive youth allowance, Abstudy or a benefit from the Veterans Children Education Scheme. Around 75 per cent of families with dependent children will benefit from this package.

Centrelink will be delivering this down payment. I am pleased to say that, since the Prime Minister’s announcement, the phones at Centrelink have been ringing off the hook. Understandably, people are interested in how this announcement will affect them personally and are calling in large numbers. I want to take this chance, of course, to remind people that they do not need to contact Centrelink to receive these one-off payments. Centrelink will assess people’s eligibility automatically based on the information they have on customer records.

This package is good news for families, good news for seniors, good news for carers and good news for disability support pensioners. It is decisive action of this government which is committed to acting in the best interest of Australians, and Centrelink will be at the forefront of delivering this important package. Centrelink, of course, will be there to provide the type of support and assistance that families will need during this period. The payments will be provided between 8 December and 19 December 2008—in time for Christmas—during that fortnightly period. Centrelink has significant experience in delivering these types of one-off payments. (Time expired)

David Feeney (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I rise to ask a supplementary question. I thank the minister for his answer. My supplementary question is: when will these payments be made?

Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

Centrelink, of course, has significant experience in delivering these types of one-off payments, and these payments will be paid during that fortnight beginning from 8 December right through to 19 December. So they will generally be paid during that period for the fortnight, very close to their usual payment.

In total, about six million Australians can expect to receive these payments, on or close to their usual payment date, directly into their bank accounts. These bonus payments will operate in a manner similar to one-off payments and will ease the financial pressure on families in these uncertain economic times. Families with eligible children who receive family tax benefit part A will receive the down payment regardless of whether they receive the family tax benefit part A payment in instalments or as an end-of-year lump sum. (Time expired)