Mitch Fifield (Victoria, Liberal Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

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

Leave granted.

The speech read as follows—

This Bill introduces a measure that was announced in the 2016-17

Mid-Year Economic and Fiscal Outlook that will provide a two year trial of incentives aimed at increasing the number of eligible job seekers who undertake horticultural seasonal work, such as fruit picking.

The measure responds to concerns about the ability of the Australian horticulture industry to attract sufficient numbers of seasonal workers by introducing three incentives aimed at increasing the number of job seekers who undertake horticultural seasonal work.

The incentives will commence as a trial from 1 July 2017 for two years and will be capped at 7,600 participants over the two years. There are three incentives.

Under the first incentive, Newstart and Youth Allowance (Other) recipients who have been receiving those payments continuously for at least three months will have access to a Seasonal Horticultural Work Income Exemption. Under this exemption, they will be able to earn up to $5,000 each year without it being assessed under the social security income test.

A period during which a person did not receive Newstart and Youth Allowance (Other) because of employment income (known as an employment income nil rate period) will count towards the period of three months continuous receipt.

Eligible job seekers will be able to access the $5,000 income test incentive in each of the 2017-18 and 2018-19 financial years. Eligible job seekers who participate in the second year of the trial will have access to the $5,000 income test concession for up to 12 months from when they enter the trial in the second year. However, if they participate in the second year of the trial, any unused balance from the first year will expire.

The concession will only apply to earnings from specified horticultural seasonal work. Eligible employment for this measure will be seasonal, short-term employment in the horticulture industry picking and packing fruit, nuts or other crops in rural or regional Australia. The Employment Secretary may determine by way of a legislative instrument what constitutes qualifying seasonal horticultural work.

Employment could be directly with a farmer or with a contractor/labour hire company where the principal business is the supply of labour for harvest.

Qualification rules will be relaxed for this group so that they continue to qualify for Newstart and Youth Allowance (Other) while undertaking eligible horticultural seasonal work. The amendments in the Bill mainly relate to this incentive.

This income test concession will provide a strong incentive for jobseekers to participate in the trial and undertake horticultural seasonal work and a practical opportunity to build work experience and skills.

As an example, currently, a recipient of Newstart Allowance who is single and has no children can earn $104 a fortnight before their payment starts to be reduced and $1036.34 a fortnight before their Newstart Allowance reduces to nil.

Under this measure, if the Newstart Allowance recipient participates in the trial, they could earn up to $5,000 from qualifying horticultural seasonal work over a 12 month period and continue to receive the full rate of Newstart Allowance.

Under the second incentive, Newstart and Youth Allowance (Other) recipients who have been receiving those payments continuously for at least three months and participate in the trial would be eligible for a Seasonal Work Living Away and Travel Allowance of up to $300 each year, if they undertake horticultural seasonal work more than 120 km from their home.

This payment removes a disincentive to undertake seasonal work by recognising the additional expense that may be incurred by job seekers travelling significant distances from their principal place of residence to take up an eligible seasonal job.

The payment will generally be made on a weekly basis ($50 per week to a maximum of $300 over six weeks), although employment providers will have the flexibility to tailor the payment to suit the needs of the job seeker. For example, a provider may provide a greater amount up front to cover higher initial accommodation or transport costs.

There would be no requirement for the job seeker to acquit the payment. If a job seekers employment ends part way through a working week, the job seeker would only be entitled to the payment for the completed part of that week.

The Bill includes a provision so that the Seasonal Work Living Away and Travel Allowance would not be assessed as income for income support purposes.

Under the third incentive, Employment providers, including jobactive, Transition to Work and Disability Employment Services, will be paid a $100 per week placement incentive fee for a maximum of six weeks for each job seeker that they successfully refer to a seasonal job as part of the trial.

Providers will remain eligible for the payment for as long as the job seeker remains employed, for a maximum of six weeks, in the seasonal job.

This Seasonal Work Incentives measure is expected to cost $27.5 million over the forward estimates.

This amount includes funding for the Department of Social Services and the Department of Employment to evaluate the effectiveness of these incentives during the two year trial period. The evaluation will be completed before the end of the trial to enable the Government to consider whether incentives to encourage people to take up seasonal work should be continued.

Conclusion

The incentives for job seekers to undertake seasonal work will help to respond to the concerns of the Australian horticulture industry about their ability to attract sufficient numbers of seasonal workers.

They are aimed at helping to increase the number of unemployed Australians who participate in seasonal work, and therefore the number of seasonal workers available to work on Australian farms and orchards.

The incentives will also provide job seekers with a practical opportunity to enter the workforce and to build work experience and skills.

In the best interest of the Australian horticulture industry and job seekers, I seek the support of the Parliament for the passing of this measure.

Debate adjourned.