Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

My question is to Senator Evans, representing the Minister for Families, Community Services and Indigenous Affairs. The Minister for Families, Community Services and Indigenous Affairs has just confirmed that the single rate of the pension, which is indexed in line with the increases in the male total average weekly earnings, will increase by $8.55 a week but that the allowance payments such as Newstart, which are linked to the consumer price index, will increase by a maximum of just $1.45 a week. Why is the government continuing to use different models of indexation given the increasing disparity this is causing between income support payments? Does the government think this disparity is fair?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank Senator Siewert for the question. I first acknowledge the young people from the Learn Earn Legend! program, the Indigenous work experience program, who are in the gallery. Unfortunately, we are trying to put on a bit of a show for you today by livening the place up. It is usually more respectful and quiet, but some of the senators are looking to perform for your benefit, obviously.

Turning to the question, I indicate that, as the senator knows, the allowances and the pensions are indexed in a different way, as she quite rightly points out. That has been in place for some time. It is the case that both are increased, I think, twice a year by an indexation measure, but the measures are different. I think there is a clear distinction between what the pension is designed to do and what allowances are designed to do, and that is often confused in the public debate. The reality is that the pensions are largely of a permanent nature, designed to support people on an ongoing basis, and the allowances are paid as a means of supporting people who are in a transition stage. The focus of the government has been very much to try and tailor the system so that Newstart provides support for people while we encourage and support them into work and/or training and we try and transition them back into activity that allows them to either work immediately or get support to improve their skills. I know there is a public debate about the rate of Newstart, but I think it is also important that it be sustainable over time and reflect, of course, the other economic pressures. But the pension and allowances are indexed in different ways and have been for some time.

Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I am presuming that the minister is aware that over 60 per cent of people on Newstart are on it for over 12 months. Is the minister confident that $145 a week will adequately offset cost increases that a job seeker living $130 below the poverty line has in housing, utilities, transport and food costs?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I acknowledge the senator's interest and knowledge in this area, but my advice is that around 60 per cent of Newstart recipients stay on payment for less than 12 months. But I am happy to be corrected if that is not right. As I said, I know Senator Siewert has a broad grasp of these issues.

The other thing to say is that, in terms of this transitional payment, the Newstart allowance is only one element of a range of payments and service offerings—things like rent assistance, telephone allowance, pharmaceutical allowance and, obviously, family tax benefits for those people who are supporting children. So I think one has to put all this in the broader context of other payments that are made to support people. But it is the case that the payment is a basic payment, and there is no doubt that it does mean that people do not have a high standard— (Time expired)

Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. There has been some confusion in the media over the last couple of days about the different levels of allowances between those living on Newstart and those who are on the minimum wage. Could you confirm that those living on the minimum wage are also able to access full family tax benefit and rent assistance?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I will have to take that part of the question on notice. I saw some debate about the differences with the minimum wage, but I do not have a brief on that, so I do not want to mislead the Senate. I will get an answer for the senator as soon as I can on the comparative entitlements, but I did make the point that the Newstart allowance is only one part of the support that is available to people who might be out of work, particularly those who have children or who need other special assistance. There are a range of services through Job Services Australia to try to assist them back into training or work. We have made endeavours to improve the thresholds that provide a greater return for those who take on part-time work, and I think that is an important change. But I will take on notice the senator's second supplementary question and get her an answer in more detail.