Graham Perrett (Moreton, Australian Labor Party) Share this | Hansard source

I rise to speak to the Social Security Legislation Amendment (Fair Incentives to Work) Bill 2012. This bill demonstrates the Gillard Labor government's commitment to deliver for working families, particularly for those parents looking to re-enter the workforce or, as previous speakers have said, for those parents this nation needs to re-enter the workforce. This bill includes amendments that will give effect to the following measures as announced in the 2012-13 budget: parenting payment reforms, liquid assets waiting period amendments and income maintenance period amendments. Today I will focus on the first two reforms.

The parenting payment reform brings forward the gradual alignment of parenting payment rules that was announced as part of the Building Australia's Future Workforce package in the 2011-12 budget, which reduced the maximum age for a youngest child to 12 years from 1 January 2013. Through this amendment to the bill, from 1 January 2013, grandfathered parenting payment recipients will be treated for income support the same as non-grandfathered recipients. This will further align all types of parents and is a fairer treatment of all parents, who will all now be eligible for parenting payment until their youngest child is six years for partnered parents or eight years for single parents—instead of the current 16 years.

The amendments will remove the grandfathering provisions that apply to parenting payment recipients who have been receiving payment since before July 2006. Currently, these recipients are able to receive payment until their youngest child turns 16; while parents who claimed parenting payment after 1 July 2006 are only eligible until their youngest child turns six if partnered or eight if single. The more generous income test provisions for single principal carers on Newstart allowance will apply to eligible single parents affected by the earlier cessation of grandfathering. This change was introduced as part of the Building Australia's Future Workforce measures and will remain, giving greater incentives to parents to find work and be rewarded for their efforts. We have heard from all the previous speakers to this debate on both sides of the chamber about the benefits, the dignity and the change that come with employment.

The changes to parenting payment grandfathering will ultimately reduce the average duration on income support by providing greater incentives for these parents with school aged children, primarily single mothers, to engage in the workforce. This will provide good working family role models for children, which is important as having a working parent can contribute to developing positive attitudes and behaviours, not to mention the economic benefits for the nation. The changes will encourage parents to get back into the workforce, providing longer term benefits for families, children and, obviously, our economy overall.

Regarding the liquid assets waiting period amendments, from time to time some Australians find themselves in a position where they have to rely on government income support. We are fortunate that we are a nation that can afford to do this. Unfortunately, there are many parts of the world where this is not the case, where poverty is endemic. The Gillard Labor government believes these people deserve to be supported, if they need government support, while getting back to work or studying. These amendments would allow newly unemployed Australians and new students to hold onto more of their savings and better adjust their household budgets to reflect their new circumstances. A liquid asset waiting period is from one to 13 weeks, depending on the amount of liquid assets a person has. The amount of money above the relevant threshold determines the waiting period, up to the maximum 13 weeks. A previous temporary doubling of the liquid assets waiting period threshold, which was included as an element of the April 2009 Jobs and Training Compact response to the global recession, ceased on 31 March 2011. The government is now in a position where it can afford to reinstate these thresholds permanently.

The new LAWP maximum reserve amounts, doubled from the current levels, represent an appropriate balance between requiring people to rely on their own resources before seeking income support and, on the other hand, providing fair and reasonable access to support, without overly reducing a person's modest savings while they look for work. The changes will allow many people to access income support more quickly and reduce the extent to which they must expend or draw down their liquid assets, such as savings, before getting income support. The LAWP may be waived in full or in part where a person is in severe financial hardship.

Unemployment is not something that Australia's workers plan for, but, unfortunately, it does occur. Reducing a student or unemployed person's modest savings before they can access income support means it is harder for them to restructure their budget and handle the bills they have already accrued. This added security will also allow them to focus on the most important issue, which, obviously, is finding new employment. The government expects that around 21,000 people, 14,000 singles and 7,000 partnered people or people with dependent children, each year will begin receiving income support up to five weeks earlier as a result of this measure. These new thresholds will commence on 1 July 2013.

This bill is about delivering on key Labor fundamentals by helping those people who need income support the most—those looking for work or those raising a young family. When I talk to people in my electorate, I hear about the mining boom. Some people are taking advantage of that. I have had builders say that the only renovations they are doing at the moment are for properties of people who are connected with the mining industry. The other thing to consider is people who are not able to tap into this boom. The reality is that we have a patchwork economy. As an MP from Queensland and being married to a North Queenslander, I know that in Cairns and Port Douglas unemployment is peaking at around 14 per cent. Occupancy in places like Port Douglas is down to rates that are almost unsustainable. That proud tourism industry definitely needs a helping hand, especially when the exchange rate is as high as it currently is. The legislation before the House goes some way towards helping people get back into employment. I am proud to be on this side of the House supporting this bill. I commend it to the House.

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