Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I table the explanatory memorandum relating to the bill and 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—

SOCIAL SECURITY AND OTHER LEGISLATION AMENDMENT (SELF-EMPLOYMENT PROGRAMS AND OTHER MEASURES) BILL 2022

SECOND READING SPEECH

Today I am introducing the Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) Bill 2022, which amends the social security law and related elements of the veterans' and family laws. This will make clear that the law operates in the same way when participants access self-employment services through the Self-Employment Assistance program as through the New Enterprise Incentive Scheme (NEIS).

Small businesses are a vital part of the Australian economy, with 2.4 million small businesses actively trading and employing around 4.7 million people. Supporting and encouraging the development of new small businesses can give Australians the opportunity to be their own boss and own a business that offers them secure work and financial independence.

Self-employment is an excellent alternative to traditional employment for Australians who want to use their existing skills and experience in a work environment of their choice. It also assists Australians who struggle to apply their skills in other labour market settings to use those skills and succeed. That's why people with disability - who still face significant challenges having their skills recognised by employers - are more than 40 per cent more likely to be self-employed than the general population.

The Labor Party has a strong history of supporting new small businesses. It was the Hawke Government that launched the New Enterprise Incentive Scheme, or NEIS program, in 1985 to help unemployed Australians create their own employment opportunities. Since then, NEIS has successfully helped over 198,000 Australians to start and run small businesses.

NEIS achieved excellent outcomes for the diverse range of participants who accessed its services. Three months after exiting the program 82 per cent of participants remained in employment and 68 per cent were still running their business. More than half of the participants who accessed NEIS over the past seven years were women.

Since the onset of COVID, NEIS helped many businesses pivot to deliver services in new and innovative ways to remain viable. This demonstrated that government can play a key role in helping businesses adapt in uncertain times.

The services available under NEIS were expanded when it was replaced by the new Self-Employment Assistance program on 1 July 2022.

Eligible people interested in self-employment will be able to receive free help to generate and validate business ideas, so they can make informed decisions about whether self-employment is a good fit for them and their families.

Participants in the program who want to develop their skills and prepare their business can access free accredited training and help to prepare a comprehensive business plan.

Eligible business owners who have recently started trading, or who need help to adapt their business in a changing economic environment, will be able to access appropriate business mentoring and advice.

As was the case under NEIS, eligible income support recipients who access the program can receive a Self-Employment Allowance from the government. This helps supplement the income a participant earns from their business, so they can reinvest their business' earnings back into the business.

Self-Employment Assistance is building on the NEIS program's legacy of success by continuing its valuable support, but through more flexible services that help a wider range of people secure their future.

This Bill will update the social security, veterans' and family laws to make clear that Self-Employment Assistance payments will be treated in the same way by the law as other NEIS payments. The same will apply if the Employment Secretary notifies a different name for Self-Employment Assistance. The Bill will therefore provide increased clarity for participants as they support themselves while establishing their businesses.

Self-employment continues to be a viable pathway for many to help them move off income support, earn their own income and contribute economically to their communities. However, it takes time and other support to establish a small business, including financial support.

To support and foster self-employment opportunities we bring this Bill to the Parliament.

The Bill also makes a small number of minor technical amendments to clarify or remove redundant material from the social security law, consequent to the recent Streamlined Participation Requirements Act.

I commend this Bill to the chamber.

Ordered that further consideration of the second reading of this bill be adjourned to the first sitting day of the next period of sittings, in accordance with standing order 111.