Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

I thank Senator Siewert for her question. As she indicated, I am representing a minister who is representing another minister, so there is a long chain back to where we can try to get some answers for you. The liquid assets waiting test involves a waiting period that is applied to ensure that people with substantial assets use their assets for self-support before calling on the community for income support. For the benefit of the chamber, this is a test that applies to youth allowance, Austudy, Newstart allowance and the sickness allowance recipients whose liquid assets exceed the specified threshold. Liquid assets include cash, shares and term deposits and moneys due or able to be paid by the person’s former employer and other readily realisable assets.

As part of the global recession response, the liquid asset waiting period was temporarily doubled to $5,000 for a single person with no children and $10,000 for all other recipients for the period 1 April 2009 through to 31 March 2011. This was a measure that was included in the jobs and training compact of the 2009-10 budget. Given that circumstances have substantially improved across the economy as a result of the strong economic management of this government, there is now a situation which is much better for people. There has been no decision to extend these temporary arrangements beyond 31 March 2011. This wait can be waived if a person is in severe financial hardship because they have incurred unavoidable or reasonable expenditure, including cost of living, while serving the waiting period. So there is an opportunity for there to be discussion around that matter. But the government has determined to stick—(Time expired)