Amanda Rishworth (Kingston, Australian Labor Party, Minister for Social Services) Share this | Hansard source

I present a supplementary explanatory memorandum and—by leave—move amendments (1) and (2), as circulated, together:

(1)   Schedule 3, item 1, page 36 (line 13), omit "30 June 2023", substitute "31 December 2023".

(2)   Schedule 3, item 2, page 37 (line 26), omit "30 June 2023", substitute "31 December 2023".

These are sensible government amendments, and I would like to say that the government has listened. There has been some discussion. I thank Senator Rice in particular, with whom we've had some very productive discussions, along with a number of crossbenchers here in the House—the member for Mayo, the member for Goldstein, the member for Kooyong and the member for Fowler. What this seeks to do is extend the legislation for this boost in the income bank for pensioners, which was due to end on 30 June 2023, to 31 December 2023. This is a government that listens. We've heard from the community that a good 12 months to see if this income boost is to work—and we believe it will—is a good period of time to support this trial. This was announced as a workforce incentive policy at the Jobs and Skills Summit, and after discussion and consultation we believe this is a sensible amendment. The time frame for the work incentive bill ceasing at 30 June 2023 allows the Department of Social Services to assess the uptick in workforce participation by older Australians and those receiving eligible payments, and to analyse trends across labour markets.

As a government now responsible for addressing what is a difficult budget position, we believe that our measures do need to be responsible and meet their clear objectives. We must be responsible, and that's why we have a time limit on this measure to assess its impact and its success. The six-month extension is a sensible one, and the government will make this amendment today. This will allow new age pensioners, and other eligible pension recipients of age-pension age who are coming onto their pension from 1 July 2023, to also benefit, allowing what will be a relatively smooth transition if those pensioners do want to continue to do more work. It means that from the commencement until 31 December 2023—not 30 June—age pensioners, disability support pensioners and carer payment recipients over age-pension age, as well as certain veterans' entitlement recipients over qualifying age, will have $4,000 credited to their work bonus income bank for use during that year.

Once passed through the House and the Senate, all existing eligible payment recipients of the age pension will receive the automatic top-up of their work bonus income bank. I think this is a sensible amendment, and I ask for the support of the House.

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