Janet Rice (Victoria, Australian Greens) Share this | Link to this | Hansard source

by leave—Given that it's seven minutes to eight, I move:

(1) Clause 2, page 2 (at the end of the table), add:

(2) Schedule 3, page 36 (before line 5), before item 1, insert:

1A Point 1066A-F 1 (note 2)

Repeal the note, substitute:

Note 2: The application of the ordinary income test is affected by provisions concerning:

(a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);

(b) the work bonus (section 1073AA);

(c) business income (sections 1074 and 1075);

(d) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);

(e) income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);

(f) disposal of income (sections 1106 to 1111).

1B Point 1068-G1 (note 3)

Repeal the note, substitute:

Note 3: The application of the ordinary income test is affected by provisions concerning:

(a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);

(b) the work bonus (section 1073AA);

(c) business income (sections 1074 and 1075);

(d) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);

(e) income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);

(f) disposal of income (sections 1106 to 1111).

1C Subsection 1073AA(1) (in cluding the note)

Repeal the subsection, substitute:

(1) The section applies to a person if the person's rate of social security payment is calculated in accordance with:

(a) Pension Rate Calculator A at the end of section 1064; or

(b) Pension Rate Calculator D at the end of section 1066A; or

(c) Benefit Rate Calculator B at the end of section 1068.

1D Subsection 1073AA(2)

Omit "Module E of that Rate Calculator", substitute "the income test module".

1E Subsection 1073AA(2) (examples 1 and 2)

Omit "pension", substitute "payment".

1F Paragraphs 1073AA(3)(a), (4)(a) and (4A)(a)

Omit "Module E of that Rate Calculator", substitute "the income test module".

1G Paragraphs 1073AA(3)(b) and (4)(b)

Omit "pension", substitute "payment".

1H Subsection 1073AA(4) (example)

Omit "pension", substitute "payment".

1J Paragraph 1073AA(4A)(b)

Omit "pension", substitute "payment".

1K Subsection 1073AA(4A) (example)

Omit "pension", substitute "payment".

1L Paragraph 1073AA(4B)(b)

Omit "pension", substitute "payment".

1M After subsection 1073AA(4C)

Insert:

(4D) For the purposes of this section, the income test module in respect of a person is:

(a) if the person's rate of social security payment is calculated in accordance with Pension Rate Calculator A at the end of section 1064—Module E of that Rate Calculator; or

(b) if the person's rate of social security payment is calculated in accordance with Pension Rate Calculator D at the end of section 1066A—Module F of that Rate Calculator; or

(c) if the person's rate of social security payment is calculated in accordance with Benefit Rate Calculator B at the end of section 1068—Module G of that Rate Calculator.

(3) Page 38 (after line 27), at the end of the Bill, add:

Schedule 4 — Earlier access to the age pensio n

Social Security Act 1991

1 Subsection 23(5A) (table item 4, column 3)

Omit "66 years and 6 months", substitute "65 years".

2 Subsection 23(5A) (table item 5, column 3)

Omit "67 years", substitute "65 years".

3 Subsection 23(5D) (table item 4, column 3)

Omit "66 years and 6 months", substitute "65 years".

4 Subsection 23(5D) (table item 5, column 3)

Omit "67 years", substitute "65 years".

Veterans' Entitlements Act 1986

5 Subsection 5QB(2) (table item 4, column 3)

Omit "66 years and 6 months", substitute "65 years".

6 Subsection 5QB(2) (table item 5, column 3)

Omit "67 years", substitute "65 years".

7 Subsection 5QB(5) (table item 4, column 3)

Omit "66 years and 6 months", substitute "65 years".

8 Subsection 5QB(5) (table item 5, column 3)

Omit "67 years", substitute "65 years".

9 Application of amendments

The amendments made by this Schedule apply in relation to a person on and after the commencement of this item.

(4) Page 38 (after line 27), at the end of the Bill, add:

Schedule 5 — Increase rat e of income support payments

Social Security Act 1991

1 Subsection 1061JU(1)

Omit "half".

2 Point 1064-B1

Repeal the table, substitute:

3 Point 1065-B1

Repeal the table, substitute:

4 Point 1066A-B1

Repeal the table, substitute:

5 Point 1066B-B1

Repeal the table, substitute:

6 Point 1067G-B2

Repeal the table, substitute:

7 Point 1067G-B3

Repeal the table, substitute:

8 Point 1067G-B4

Repeal the table, substitute:

9 Subpoint 1067L-B2(1)

Repeal the table, substitute:

10 Point 1067L-B3

Repeal the table, substitute:

11 Point 1068-B1

Repeal the table, substitute:

12 Point 1068A-B1

Omit "$21,470.80 per year ($825.80 per fortnight)", substitute "$32,032.00 per year ($1,232.00 per fortnight)".

13 Point 1068B-C2

Repeal the table, substitute:

14 After section 1198B

Insert:

1198BA Adjustment of ABSTUDY payment amount

If:

(a) a person is receiving a payment under the scheme known as the ABSTUDY scheme that includes an amount identified as a living allowance; and

(b) the amount of that living allowance equates to less than $88 per day;

then the amount of that living allowance is to be increased by an amount equal to the shortfall.

15 Application of amendments

The amendments made by this Schedule apply in relation to a payment period that commences on or after the commencement of this item.

(5) Page 38 (after line 27), at the end of the Bill, add:

Schedule 6 — Mutual obligations and participation requirements

Part 1 — Removing employment pathway plans

Social Security Act 1991

1 Subsections 14A(1) and (2)

Omit "and Division 3A of Part 3 of the Administration Act".

2 Subsection 14A(7)

Repeal the subsection.

3 Subsection 23(1) (paragraphs (aa) and (a) of the definition of compliance penalty period )

Repeal the paragraphs.

4 Subsection 23(1) (definition of Employment Department )

Omit "Division 3AA of Part 3 of the Administration Act", substitute "the Fair Entitlements Guarantee Act 2012".

5 Subsection 23(1) (definition of Employment Minister )

Omit "Division 3AA of Part 3 of the Administration Act", substitute "the Fair Entitlements Guarantee Act 2012".

6 Subsection 23(1) (definitions of employment pathway plan , satisfies the employment pathway plan requirements and unsuitable )

Repeal the definitions.

7 Paragraphs 500(1)(c) and (ca)

Repeal the paragraphs.

8 Subsections 500(2), (2A) and (2B)

Repeal the subsections.

9 Subparagraph 540(1)(a)(ii)

Omit "or", substitute "and".

10 Subparagraph 540(1)(a)(iii)

Repeal the subparagraph.

11 Subsection 540(2)

Repeal the subsection (including the notes), substitute:

(2) A person satisfies this subsection if the person:

(a) has attained the minimum age for youth allowance (see section 543A); and

(b) is not yet 18 years old; and

(c) satisfies the criteria prescribed by the Minister.

(2A) The Minister may, by legislative instrument, prescribe criteria for the purposes of paragraph (2)(c).

Note: A person receiving youth allowance, and who receives employment services from a remote engagement program provider, may also qualify for a remote engagement program payment: see Part 2.13.

12 Subsection 540AB (1)

Omit "and ending in accordance with subsection (3)".

13 Paragraph 540AB(1)(e)

Repeal the paragraph.

14 Subsection 540AB(3)

Repeal the subsection.

15 Paragraph 593(1)(b)

Repeal the paragraph.

16 Subsection 593(1AC)

Repeal the subsection.

17 Paragraph 59 3(1D)(e)

Omit "; and", substitute ".".

18 Paragraph 593(1D)(f)

Repeal the paragraph.

19 Subsection 593(1F)

Repeal the subsection.

20 Paragraphs 729(2)(bc) and (bd)

Repeal the paragraphs.

21 Subparagraphs 729(2)(d)(i) to (iic)

Repeal the subparagraphs.

22 Paragraph 729(2)(da)

Repeal the paragraph.

23 Subparagraphs 729(2)(dc)(iii) to (vii)

Repeal the subparagraphs.

24 Paragraph 729(2)(g)

Repeal the paragraph.

25 Subsections 729(2A) and (2B)

Repeal the subsections.

26 At the end of Part 3 of Schedule 1A

Add:

151 Persons not required to comply with employment pathway plan requirements

(1) For the purposes of applying this Act and the Administration Act on and after the commencement day in relation to a person, the person is taken to:

(a) satisfy the employment pathway plan requirements; and

(b) satisfy the Employment Secretary that the person is willing to actively seek and to accept and undertake paid work in Australia, except particular paid work that is unsuitable to be done by the person.

(2) For the purposes of this section, commencement day means the day Schedule 6 of the Social Services and Other Legislation Amendment (Workforce Incentive) Act 2022 commenced.

152 Persons under 18 receiving youth allowance

If a person:

(a) was qualified for youth allowance in accordance with subparagraph 540(1)(a)(iii) immediately before the commencement of Schedule 6 to the Social Services and Other Legislation Amendment (Workforce Incentive) Act 2022; and

(b) has attained the minimum age for youth allowance (see section 543A); and

(c) is not yet 18 years old;

then the person is taken to have satisfied the criteria prescribed by the Minister for the purposes of paragraph 540(2)(c) until youth allowance ceases to be payable to the person.

Social Security (Ad ministration) Act 1991

27 Divisions 2A, 2B and 2C of Part 3

Repeal the Divisions.

28 Divisions 3AA and 3A of Part 3

Repeal the Divisions.

29 Transitional rules

(1) The Minister may, by legislative instrument, make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by this Part.

(2) To avoid doubt, the rules may not do the following:

(a) create an offence or civil penalty;

(b) provide powers of:

(i) arrest or detention; or

(ii) entry, search or seizure;

(c) impose a tax;

(d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;

(e) directly amend the text of this Act.

Part 2 — Removing the program of support

Social Security Act 1991

30 Paragraph 94(2)(aa)

Repeal the paragraph.

31 Subsections 94(3A), (3C), (3D) and (3E)

Repeal the subsections.

32 After paragraph 94(5)(a)

Insert:

(ab) a person participates in voluntarily; and

33 Sections 94A to 94F

Repeal the sections.

(6) Page 38 (after line 27), at the end of the Bill, add:

Schedule 7 — Jobseeker eligibility

Social Security Act 1991

1 Subparagraph 593(1)(g)(i)

Omit "22 years of age", substitute "18 years of age".

2 Application of amendments

The amendments made by this Schedule apply to a person who makes an application for a jobseeker payment on or after the commencement of this Schedule.

I will speak about amendments (3), (5) and (6) and my other two amendments so that we don't take up too much time. But I flag that if we do get to vote on (3), (5) and (6) that we won't require a division on them.

As I foreshadowed in my speech, we have a suite of substantial amendments for this bill. They pick up on the fact that while this bill makes very welcome changes to enable age pensioners to earn more it does not do the same for other income support recipients who are on lower rates of payment. Aged pensioners struggle to survive, particularly if they're in private rental on the pension rate. Imagine then, if they're struggling, that people on income support, who are on considerably less, are also struggling. Our amendments seek to address both of those issues.

Amendment (2) is critical and core to this bill. It says: 'Okay, great, increase the work bonus for age pensioners. We want to see that work bonus extended to other income support recipients, including JobSeeker and DSP recipients.'

We know that all working age social security payments are below the Henderson poverty line. The Greens's choice is that we should be legislating to be increasing them all to above $88 a day. The very least that we need to be doing is to be allowing all income support recipients to have the same benefits that are being proposed for age pensioners in this bill, to enable them to earn more. As I said in my second reading contribution, at the moment the amount that somebody on JobSeeker is able to earn before their JobSeeker payments get slashed is $1,000 in the equivalent of the work bonus and work credit, whereas this bill is allowing age pensioners to be earning $11,800, and yet it's a double whammy because people on JobSeeker only get that $48 a day compared with $73 a day for the age pension. That's the rationale behind item 2 of our amendments.

Item 3 is to provide earlier access to the age pension. We have increasingly got people who have worked hard all their lives and who up until when it was changed were able to access the age pension at the age of 65. They are now having to wait until the age 67, and we know that people approaching retirement age often have limited capacity to continue working, particularly if they've been working in heavy labour jobs and are desperate because they're no longer able to work. They're stuck on JobSeeker and are not able to access the age pension, despite the fact that the likelihood of them getting work and being able to work is very, very low. We feel that reducing the age for the age pension back down to 65 would really benefit these people.

Item 4 of the amendments I've moved is to be raising the rate of income support above the poverty line for everybody, and that's in line with our Greens policy of moving towards a guaranteed livable income so that everybody on income support is able to access the money that they need in order to be able to live and not to be living in poverty. We can afford it, just as we seemingly can afford $250 billion of the stage 3 tax cuts. Instead of giving that money to the very wealthy in our society—income tax cuts that every one of us in this place will benefit from to the tune of $11,000 a year—instead of going ahead with the stage 3 tax cuts, we could actually spend the money to lift people out of poverty. We know that, by increasing the amount of income support, it actually enables people to get themselves back on their feet and enables them to seek work. It puts them in a position to seek work because if you are homeless, if you are starving, if you suffer from malnutrition, if you can't afford the medical care you need, you are not in a good place to be able to get work.

Item 5 is to abolish mutual obligations. Again, we know that these are punitive conditional measure, and they don't help people who are trying to survive on a payment rate that's way below the poverty line. We know that mutual obligations are costing us a huge amount of money and achieving nothing, so let's abolish mutual obligations. We saw during the COVID pandemic, when mutual obligations were abolished, that more of the people on income support and the people on JobSeeker were seeking work. They were in a position seek work, not because they had to go and apply for their 20 jobs a week and to be jumping through the hoops of their employment agencies but because getting rid of those punitive obligations actually freed them up to be doing meaningful work. Also, they had double their normal income, which put them in a position to be looking for work. The final amendment I moved is to lower the age of qualification for JobSeeker from 22 to 18 years old, which is in line with advocacy from the National Union of Students and the Foundation for Young Australians, which called on the government to address the gaps faced by people aged 18 to 22 years who are trying to access income support. Given the time, I will leave my contribution there at this stage.

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

The question is that amendments (3), (5) and (6) on sheet 1698 be agreed to.

Question negatived.

Janet Rice (Victoria, Australian Greens) Share this | Link to this | Hansard source

by leave—Madam Acting Deputy President, I ask that the Australian Greens be recorded as being opposed to the motion.

Progress reported.