Tanya Plibersek (Sydney, Australian Labor Party, Minister for Social Services) Share this | Hansard source

I want to thank the member for Calwell for his excellent contribution to the debate, as I thank members on both sides who have contributed to the debate. I particularly want to thank the newly elected members who spoke about what these social security reforms will mean in their local communities. These debt reforms will make a big difference in particular to many women who have suffered or continue to suffer financial coercion and abuse. In wiping 1.2 million underdetermined debts from the backlog in 2025-26 alone, the government is also sparing many thousands of low-income Australian families the stress of being pursued for small debts. We are directing taxpayer money more efficiently to the task of helping people who need it now, focusing compliance action on large and deliberate debts, and moving our social security system a step further away from the shame of robodebt.

This Labor government has shown we are willing to tackle longstanding problems and to do so fairly and in close consultation with the people who have been most affected. Since the introduction of this bill, officials from my department have continued to consult with the agencies who will administer these changes and the representatives of the people who will be most affected. In particular, I want to thank Economic Justice Australia, National Legal Aid and the Australian Council of Social Service, who have dedicated their time to advising the government on this bill. There's always more to do in making our social security system fairer, safer and easier to use. These organisations represent the experiences of so many Australians, and I believe the collaborative approach that we've brought to this legislation lays a foundation for us to achieve further reforms.

The Senate Community Affairs Legislation Committee has also inquired into this bill and carried out further consultation. I really want to thank the members of the committee for their considered report and for the support offered for this bill. The committee, too, heard strong advocacy from social security recipients and their representatives. This lived experience is reflected in key parts of the legislation, particularly in the debt reform measures. The CEO of Single Mother Families Australia, Ms Terese Edwards, told the committee:

For many years—in fact, decades—people who rely upon our safety net have been demonised, and when there are cuts they're usually to social security. Where there's more work for people to do, it's in the social security system. This is a cultural statement as well. This is why it is—

an—

administrative outcome, but … also a cultural statement, and this cannot be lost. We're hoping that this will build on the fantastic work of saying to Australians, 'If you are in need of our social security net, you can do that with respect and without feeling like you are not being believed and knowing that you will be safe to do that.'

The Social Security and Other Legislation Amendment (Technical Changes No. 2) Bill 2025 is an important step towards a better social security system delivering measures which will produce fairer outcomes for Australians. These measures reform the way we manage social security debts and resolve the longstanding issue of income apportionment. As I said when I introduced this bill, past governments used income apportionment in good faith with a genuinely held but incorrect understanding of the law. The Albanese government has never used income apportionment, but, with this legislation, we are resolving this historic issue in the fairest and most reasonable way possible. By validating the past use of income apportionment we spare taxpayers the cost of having government recalculate millions of debts going back decades. That would be, of course, very stressful for income support recipients who may have incurred a debt decades ago, and it would be both expensive and pointless for taxpayers. This validation also recognises the important fact that, based on Services Australia's sampling, in most cases affected by income apportionment, a debt was still owed but was miscalculated around the edges.

The government's resolution scheme is carefully designed to remedy those mistakes. People with historic debts potentially affected by income apportionment will be eligible to apply for payments of up to $600. Any payment they receive will reflect the size of the debt in question and the most generous interpretation of the possible impact income apportionment had on it. I'll release additional details about the scheme soon. We will continue to work with non-government organisations to monitor people's take-up of the scheme, making sure the process is as simple as possible. I'll just repeat one assurance I've already made: no-one is obliged to participate in this scheme and no-one is prevented from exercising any legal rights to pursue a claim relating to their debt.

The debt reform measures in this bill will bring material changes to many Australians under financial pressure. The bill increases the small debt waiver threshold to $250, to be indexed annually in line with the consumer price index It brings the old thresholds into a single, unified amount, and, through indexation, this amount will maintain its value relative to the broader economy. The 1.2 million undetermined debts that this will wipe from the backlog in 2025-26 alone are 1.2 million debts that Services Australia will not waste time and resources chasing. The government is strengthening compliance measures to ensure this provision is not exploited, but we know the vast majority of people engage with our social security system honestly and in good faith.

The bill also expands access to the special circumstances waiver, to protect victims-survivors of financial abuse and coercion. This is a very important measure. This change provides an explicit recognition of the fact that this abuse can manifest in a victim being coerced into not meeting certain payment requirements. Decision-makers will now be able to take these circumstances into account in considering a special circumstances debt waiver. This provision addresses another point of weaponisation of the social security system, and it responds to calls from stakeholders articulated through both the National Plan to End Violence against Women and Children 2022-2032 and the Royal Commission into the Robodebt Scheme. Our implementation of this reform is of keen interest to many advocates in the family, domestic and sexual violence area and advocates for social security reform also. It does bring policy change for Services Australia, and the leadership of Services Australia has assured the parliament through the Senate committee hearings that they are ready to deliver this change across the country.

Someone who has been coerced into taking on a social security debt should not be further victimised and punished by a system that should be offering her support. The Albanese Labor government believes in a strong social security system. Part of that commitment means taking on protracted policy challenges which others have put in the too-hard basket. With the passage of this legislation, our system will be stronger, fairer and more responsive to the needs of the Australian community. It's the end result of a major body of work encompassing some very, very complex and contested legal and policy matters. I want to thank the many officials who've dedicated themselves to this work, and also the Minister for Government Services for her cooperation and support. The government remains committed to implementing the remaining recommendations of the robodebt royal commission. Members should note that three-quarters of these are now implemented or well progressed, and I look forward to getting on with the rest of them. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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