Ursula Stephens (NSW, Australian Labor Party, Parliamentary Secretary Assisting the Prime Minister for Social Inclusion) Share this | Hansard source

It certainly is. Briefly, so that everyone listening is quite sure of what this legislation is all about, the Social Security and Other Legislation Amendment (Employment Entry Payment) Bill 2008 relates to the employment entry payment. This employment entry payment is a lump-sum payment that will be made to eligible recipients of certain social security payments who are returning to employment, who are commencing employment or whose income from employment rises above a threshold amount. This payment will help cover costs associated with their employment. It is a payment of $104, or $312 for people with a partial capacity to work or who are on a disability support pension. Those payments do not have to be repaid. The government is clear that the type of assistance that will remain available to eligible income support recipients includes the working credit, special employment advances, the job seeker account and other assistance which is available through employment service providers. In answer to the questions that Senator Abetz posed, I think it is very clear that the intent of the legislation is to ensure that eligible income support recipients will remain eligible for the assistance that is available through employment service providers.

Also some consequential amendments need to be made in the related legislation, being the Social Security Administration Act 1999 and the Income Tax Assessment Act 1997, to ensure that appropriate administration and transitional arrangements and appropriate tax treatment occur. The cessation of eligibility from 1 July this year means that, where employment starts after 1 July, an employment entry payment will not be made unless a claim for an advance of that payment is made before that date. Currently, a person has 28 days to lodge a claim for an employment entry payment from the start of the employment in respect of which the claim is being made. Some principal carer payment and parenting payment recipients and those with a partial capacity to work have 56 days from the start of their employment to lodge their claim. This means that employment entry payments will be made up to 56 days after the repeal of the provisions.

Centrelink has advised that the time frame and details of implementation are able to be delivered upon. Of course, the underlying rationale of the employment entry payment was as an employment incentive and to aid with the costs of starting a job. Other measures introduced subsequent to the employment entry payment mean that this specific form of assistance is not necessary. They include the special employment advance, which was introduced in 1999; the job seeker account, introduced in 2001; and working credit, introduced in 2003, all of which provide specific financial assistance and means to smooth people’s entry into work. On that basis, I commend the legislation to the Senate.

Question agreed to.

Bill read a second time.