Stephen Parry (Tasmania, Liberal Party) Share this | Hansard source

The Social Security Amendment (Flexible Participation Requirements for Principal Carers) Bill 2010 follows on from recommendations in the Participation Review Taskforce report published in August 2008 and implements a related 2009-10 budget measure relating to more flexible participation requirements for parents. The bill alters or creates exemptions available to principal carers on income support. I wish to make it clear that the coalition sees these exemptions as reasonable ways to address some oversights in the legislation. However, I wish to also restate the coalition’s very firm commitment to the principle of mutual obligation.

Mutual obligation breaks the cycle of idleness and habits of apathy that can develop during long periods on welfare, which I am sure all those in this chamber would agree. It allows people to give back in return for welfare assistance. It gives welfare recipients new experiences, including positive work experiences—sometimes for the first time in their lives. It also makes welfare a disincentive for those who may see it as an excuse not to work.

The Labor government has been soft on mutual obligation. The proportion of Newstart allowance recipients having an obligation to work has declined under Labor. The coalition does not believe that this is necessarily good public policy for a variety of reasons. According to industry sources, the number of individuals on income support gaining exemptions from mutual obligation requirements has increased from a low of less than 10 per cent under the Howard government to in excess of 30 per cent in some areas. Also, the number of penalties imposed for breaches of mutual obligation requirements fell from 32,000 in 2007-08 to 19,406 in 2008-09.

The ‘three strikes and you’re out’ penalty has not been rigorously applied. The Labor government has done away with the requirement for jobseekers to be present at Centrelink and from 1 July unemployed people will not have to be present to hand in forms in person at Centrelink offices; instead, Newstart recipients will be able to report online or by phone. Under this government the Work for the Dole timeframe extended from six months to 12 months and Work for the Dole numbers have been slashed from 22,362 in 2005 to 12,695 in 2010.

The mutual obligation is the cornerstone of our welfare system. To ensure that the system is functional, the Australian people need to have information about the number of people fulfilling their mutual obligation requirements, what sort of requirements they are fulfilling and those with exemptions. On behalf of the coalition, I move a second reading amendment that has been circulated in the chamber:

At the end of the motion, add:

                 but the Senate:

             (a)    expresses its grave concern about the lack of enforcement of mutual obligation participation requirements under the Rudd Government; and

             (b)    calls on the Government to regularly publish transparent statistics regarding the number of benefit recipients with no participation requirements.