House debates

Wednesday, 31 May 2023

Bills

Social Services and Other Legislation Amendment (Strengthening the Safety Net) Bill 2023; Second Reading

12:12 pm

Photo of Anne StanleyAnne Stanley (Werriwa, Australian Labor Party) Share this | Hansard source

I rise to make my contribution to the Social Services and Other Legislation Amendment (Strengthening the Safety Net) Bill 2023. Australians right now are experiencing the economic after-effects of both the COVID pandemic and the war in Ukraine, with high inflation eroding their wages and fuelling the rising cost of essentials. On 9 May, the Treasurer, the Hon. Dr Jim Chalmers, delivered a strong Labor budget with strong Labor values. It delivers responsible and practical cost-of-living relief that many Australians need now. It's helping to tackle inflation whilst also easing the pressure on households.

The Albanese government has a $14.6 billion plan, and this legislation will implement the measures that will strengthen our social safety net. It is important, at a time of high inflation, that those on lower incomes are provided with some additional relief, because we know that, whilst inflation affects everyone, it disproportionately impacts those on lower incomes, as they are forced to spend more on necessities.

This legislation makes meaningful changes to strengthen the social safety net that many Australians rely on today and many may need in the future. From 20 September this year, there will be an increase to the rates for JobSeeker, youth allowance, Austudy, Abstudy and other payments by $40 a fortnight. Across Australia, 1.1 million people will benefit, and, in my community, more than 12,000 will see an increase to their fortnightly payments. This increase brings the base rate of JobSeeker to $733.10 per fortnight. This doesn't include the regular indexation that will also apply from 20 September. I know the difference that this will make to many who are feeling the effects of the cost-of-living crisis, especially those in my community who are often forced to travel out of the electorate for work, education and health care—and these things create additional barriers for those on social security payments.

Further measures in this bill include lowering the eligibility age for the highest single rate of JobSeeker from 60 to 55 and over, because we know that older Australians who find themselves unemployed are the ones who are less likely to be able to find work again and this is due to several reasons, including health and age discrimination. Last year, there were more than 171,000 Australians aged between 55 and 64 who were unemployed but would have preferred to work. It's an unfortunate reality that older Australians are more likely to remain on JobSeeker payments, with more than half still on the payments after five years. We know the fastest growing group to experience homelessness in Australia are women over 55. This change is in recognition of the difficult challenges that many older Australians face, and it will benefit over 55,000 Australians.

Another change will be to extend the eligibility of parenting payment single till the youngest child turns 14. Currently, single parents on this payment are moved to the JobSeeker payment when their youngest child turns eight. But we know that caring responsibilities do not end then, and neither do the pressures of finding employment and ensuring your financial security. This change will help single parents focus on their children until they are in a much stronger position to take on full-time work and study responsibilities. This is another way in which the Albanese government is tackling gender inequality, because we know that the majority of single parents are women and they are the ones who will benefit most from these changes. Across the country, more than 50,000 single parents will benefit.

With these two measures, more than a thousand will benefit in my community.

The Albanese government also knows that having access to safe, secure and affordable housing is critical to economic, social, mental and physical wellbeing, and therefore it is necessary for the wellbeing of our nation. Australians are acutely aware of the crisis in affordable housing and rent, and, while the Albanese government have long-term policies to help more Australians buy their first home and to boost housing supply, we know that Australians need support now, and that is one of the things this legislation does. It increases Commonwealth rent assistance by 15 per cent, plus the usual indexation from 20 September. The other thing that would help the housing crisis, of course, would be the passage of the housing bill that we have sent to the Senate, and I urge those opposite to reconsider their position and help that go through so that we can start the process of providing more housing for our community.

This is the largest increase in 30 years, and more than 9,000 households in my community and 1.1 million nationwide will benefit from the changes that this rent support will give them. With this increase, the maximum amount of rent assistance for someone on a JobSeeker payment who is single and living alone will have increased by 24 per cent since May 2022.

The Albanese government is also aware of the tough economic conditions facing Australians, and the May budget is a direct response to support those who need it most, because that is what Labor governments do—and this legislation delivers on that plan. But of course we know that there is more to do, and we will be introducing further legislation in the House to continue our plan to help Australians. I commend the Minister for Social Services for introducing this bill and for the work she has done to ensure that Australia's safety net is strong for all Australians that need it. I commend the bill to the House.

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