House debates

Thursday, 11 March 2010

Social Security and Family Assistance Legislation Amendment (Weekly Payments) Bill 2010

Second Reading

11:27 am

Photo of Tanya PlibersekTanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Hansard source

The Social Security and Family Assistance Legislation Amendment (Weekly Payments) Bill 2010 implements a key reform of the Australian government’s white paper, The road home: a national approach to reducing homelessness, which was released in December 2008. To support the government’s goal to halve homelessness and to offer accommodation to all rough sleepers who seek it by 2020, state and territory governments and the Commonwealth together have committed more than $1.1 billion to increase services for people who are homeless or at risk of homelessness. On top of this, a further 80,000 social and affordable homes will be added to Australian housing stock by 2012 through the Nation Building Economic Stimulus Plan and through our National Rental Affordability Scheme, as well as the measures for remote Indigenous housing.

The white paper on homelessness committed all governments to work hard to prevent homelessness, to give people the support they need to remain in their homes and to link our new housing initiatives with the intensive specialist support that is needed to break the cycle of homelessness. We know that there is a critical need for housing and we have acted to boost its supply, but resolving homelessness is not just about providing a roof and four walls. There are a number of other challenges that people need to overcome to find housing and to stay housed. The government’s white paper highlights the need to address these challenges.

Centrelink, as the critical first-to-know agency, plays a crucial part in addressing these challenges, and I really want to congratulate the management and staff of Centrelink for the thought and effort that they have put into addressing this issue of homelessness. Centrelink’s role in identifying people who are at risk of homelessness is critical to reducing and preventing homelessness as well as helping people stabilise their housing situation, and Centrelink has been both willing and able to change the way that it has traditionally worked to better support people who are vulnerable to homelessness.

Centrelink is responsible for providing 6½ million customers, many of whom are disadvantaged and vulnerable, with income support payments. Centrelink has introduced procedures to identify customers who are homeless or at risk of homelessness and who may require extra assistance from a Centrelink social worker to get the support they need to stay housed. Enhancing Centrelink’s ability to identify people at risk of homelessness will enable the Australian government to improve and tailor our service to those people who are most vulnerable to homelessness, and it will prevent people from becoming homeless.

Centrelink, in October 2009, established its Centrelink community engagement officers across Australia. These officers are working with non-government organisations such as drug and alcohol rehabilitation services, mental health services, hostels, boarding houses, refuges and drop-in centres to provide some of the most vulnerable people in our community with better access to income support and other services available through Centrelink. I cannot stress enough how important this role is. We know that there are a number of people who are homeless who have no income because they are illiterate or, for mental health reasons, they are unable to cope with filling in their Centrelink forms or going into a Centrelink office. Getting these people the income that they are entitled to under our social security system is the first and most critical step to finding and maintaining a roof over their head. With no money coming in, there is absolutely no way that you can keep a roof over your head.

This bill delivers another critical Centrelink reform. As part of the Australian government’s strategy to prevent homelessness, this bill introduces weekly payments for the first time for people who are homeless or at risk of homelessness. We know that some Australians can find themselves in financial difficulty as they have problems budgeting and spend their fortnightly welfare payments too quickly. In some cases, we know that vulnerable people—again, often people who suffer with a mental illness—can be imposed upon by people they see as friends to hand over their fortnightly payment. This can result in their having no money to pay for all of the essentials—obviously, rent, food and other necessities. These vulnerable customers will be able to choose to receive their income support payments weekly instead of fortnightly. It is important to emphasise that this is a voluntary measure but one that has been enthusiastically accepted by many people during the trial period and, indeed, by welfare organisations who support the most vulnerable Australians.

Although the total amount of a person’s welfare payment will stay the same, making payments weekly will allow the most disadvantaged welfare payment customers to budget more easily. It will also give these vulnerable Australians an opportunity to stabilise and improve their circumstances. Currently, for people receiving social security payments, the social security law is unclear about whether the secretary has the discretion to determine that more than one payment can be made in respect of an instalment period. This bill clarifies that, for individuals in a declared class, a social security payment may be made on a weekly basis in respect of a 14-day instalment period. Accordingly, weekly payments will be made available to customers on commencement of a legislative instrument defining ‘vulnerable customer’.

The bill also makes changes to the family assistance law. Vulnerable customers who receive family tax benefit in addition to income support will be given the opportunity to receive their income support payment weekly. At present, the government’s intention is to limit weekly payments to income support payments while retaining family assistance payments on a fortnightly basis. However, this bill amends the family assistance law and introduces the capacity to make weekly payments for family tax benefit and baby bonus, allowing the government to respond to changing circumstances as necessary.

These changes are intended to assist Australia’s most vulnerable people, who are experiencing financial hardship, and consequently to prevent these people from becoming homeless. It is an important measure. Once again, I want to congratulate the management and staff of Centrelink, who, although they are a very large organisation, focused very efficiently and nimbly on the part they can play in reducing the vulnerability of people to homelessness and to helping homeless Australians stabilise their lives, get a roof over their heads and move on to more regular and rewarding lives.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.

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