Christian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | Hansard source

I thank all the members for their contributions during the second reading debate state of this bill. By way of summation of the second reading debate, I would note that the bill introduces a measure that was announced in the 2016-17 Mid-Year Economic and Fiscal Outlook, which will provide a two-year trial of incentives aimed at increasingly the number of eligible jobseekers who undertake horticultural seasonal work such as fruit picking. The measure responds to valid concerns about the ability of the Australian horticultural industry to attract significant numbers of seasonal workers by introducing three incentives aimed at increasing the number of job seekers who undertake horticultural seasonal work. Incentives will commence as a trial from 1 July 2017 for two years, and will be capped at 7,600 participants. There are three incentives. Under the first, Newstart and youth allowance recipients who have been receiving those payments continually for at least three months will have access to a seasonal horticultural work income exemption. Under this exemption, eligible Newstart and youth allowance recipients who participate in the trial will be able to earn $5,000 a year for eligible seasonal work without it being assessed under the social security income test.

Eligible jobseekers will be able to access the $5,000 income test incentive in each of the 2017-18 and 2018-19 financial years. The concession will apply only to earnings from specified horticultural seasonal work, and 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 and regional Australia. 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 relate mainly 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.

The second incentive is a seasonal work living-away and travel allowance of up to $300 a year for eligible jobseekers who undertake horticultural seasonal work more than 120 kilometres from their home. This payment removes a disincentive to undertake seasonal work by recognising the additional expense that may be incurred by jobseekers travelling significant distances from their principal place of residence to take up an eligible seasonal job. The bill includes a provision so that seasonal work living-away and travel allowance would not be assessed as income for income support purposes. The third incentive is for employment providers, who will be eligible for a provider seasonal work incentive payment of $100 per week for up to six weeks a year for each eligible jobseeker they place with eligible farmers.

These three incentives are expected to cost $27½ 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 incentives for jobseekers to undertake seasonal work will help in responding 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 jobseekers with a practical opportunity to enter the workforce and to build work experience and skills. They are certainly in the best interests of the Australian horticulture industry and jobseekers, and I support the parliament for the passing of these measures.

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