Linda Burney (Barton, Australian Labor Party, Shadow Minister for Families and Social Services) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Social Services. Can the government confirm that Australians who withdrew their super early and have it in the bank are now subject to the liquid assets waiting period for payments like JobSeeker, and that the government wants to extend that waiting period to half a year?

Stuart Robert (Fadden, Liberal Party, Minister for the National Disability Insurance Scheme) Share this | Link to this | Hansard source

I thank the member for her question. For the benefit of the House, the liquid assets waiting period is the period that people must wait before being paid an allowance if they have funds above the maximum reserve the day after the date they ceased work or study, or at a date of claim. It varies from one week to 13 weeks at present and is applied as whole weeks, and the maximum reserve amount available to a customer is to be used to calculate it. The vast majority, about 95 to 97 per cent, of people do not have a liquid assets waiting period applied. On average, people who fulfil the full 13 weeks have about $74,000 in liquid assets, and a liquid asset does not include a house or a car. In many circumstances—and I'm sure the member will be interested in this—the liquid assets waiting period can be waived where the customer would be in severe financial hardship. People do not need to spend any specific amount of their liquid assets before they're allowed onto payments. Once the waiting period is served, no matter the amount of assets they have outstanding, they will receive their payments.

Tony Smith (Speaker) Share this | Link to this | Hansard source

I just ask the minister to pause for a second. I always allow a preamble and some context. We're quite a way into the answer—in fact, quite a way into the time allowed for the answer, almost half. He really does need to bring himself to what was a specific question with respect to early withdrawal of superannuation. The minister has the call.

Stuart Robert (Fadden, Liberal Party, Minister for the National Disability Insurance Scheme) Share this | Link to this | Hansard source

The bill before the House that the member refers to will increase the maximum length of the waiting period from 13 to 26 weeks—the maximum length, noting that the current period from zero to 13 weeks is a scale, and 95 to 97 per cent of Australians—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The minister will resume his seat. The Manager of Opposition Business, on a point of order.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for the Arts) Share this | Link to this | Hansard source

It's on direct relevance, Mr Speaker. The question very specifically asks whether it applies to people who have accessed early superannuation and if that's the cash they have in their bank.

Tony Smith (Speaker) Share this | Link to this | Hansard source

The minister does need to address himself to the question.

Stuart Robert (Fadden, Liberal Party, Minister for the National Disability Insurance Scheme) Share this | Link to this | Hansard source

Increasing the maximum wait only affects those—

Tony Smith (Speaker) Share this | Link to this | Hansard source

No, I'm just going to say to the minister—

Stuart Robert (Fadden, Liberal Party, Minister for the National Disability Insurance Scheme) Share this | Link to this | Hansard source

from a cash point of view—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The minister will pause for a second. I have been as clear as I can. And I uphold the point the Manager of Opposition Business made. The question, without me going through it again, was whether the subject matter the minister's talking about applies to early withdrawal of superannuation. That was the question. He needs to address it—or resume his seat—or I'll move on to the next question.

Stuart Robert (Fadden, Liberal Party, Minister for the National Disability Insurance Scheme) Share this | Link to this | Hansard source

The liquid assets waiting period applies to all cash held by Australians, regardless of source, because it deals with liquid assets. The new maximum 26-week period will only apply to single people with no dependent children with total liquid assets of $18,000 or more, or $36,000 or more for all claimants, noting that it will not actually apply to 95 to 97 per cent of Australians, regardless of the form of liquid asset, which excludes their house or their car.