Nick Xenophon (SA, Nick Xenophon Team) Share this | Hansard source

I make a brief contribution, given that I have spoken on this issue on a number of occasions previously in the context of the so-called backpackers tax. I can indicate that I and my colleagues, including Rebecca Sharkie, the member from Mayo in the other place, strongly support this legislation because this is an idea that we put to government and an idea that we pushed for. We are now seeing it crystallised in this legislation. I note the comments of Senators Cameron and Siewert, but this is a start. This is not supposed to be a panacea to the dilemma that unemployed people who are on Newstart get slugged with effectively an incredibly high marginal tax rate or very strong punitive measures if they earn more than $104 a fortnight they get hit with 50 cents in the dollar reduction in their benefits until it whittles away to nothing. I think it is about $1023 a fortnight, and they are the latest figures I have.

On 20 September last year at Ceravolos Ashton Valley Fresh premises in South Australia, in the electorate of Mayo, along with Rebecca Sharkie, I met with Susie Green from the Apple and Pear Growers Association of South Australia and the Cherry Growers Association of South Australia, the Adelaide Hills fruit producer, Joyce Ceravolos of Ceravolos orchards, Andrew Flavell of Flavell Orchards, Ashley Green of Lenswood Apples and Tony Hannaford of Torrens Valley Orchards. We spoke to them about their issues in finding people to do their picking and the horticultural work they need, particularly on a seasonal basis. This was in the context of the backpackers tax issue, which was causing a lot of concerns in the regions, in agriculture and specifically in horticulture. They all agreed that it would be a very good idea to supplement the income of Australian job seekers—those on unemployment benefits—by giving them a fair go and an opportunity to earn thousands of dollars each year for this work without it in any way penalising their unemployment benefits.

That is why this particular program to allow that income to be earned is so important. My colleagues—Senators Griff and Kakoschke-Moore and Rebecca Sharkie, the member for Mayo—all see this as a very important first step to break that nexus and to ensure that young people are given a fair go to be able to work without being penalised as they are now. The current system with its very low threshold has been in force for many years under successive governments, coalition and Labor. It acts as a real disincentive for job seekers to give it a go and to work, even in seasonal work or any type of work, without being hit with severe punitive measures. This will mean that a number of young people in this trial of several thousand job seekers around the country will actually have a chance to earn up to $5,000. They will actually have a chance to get a taste of working in, for instance, horticulture and in agricultural concerns. Who knows whether literally hundreds of those 6,000 job seekers will find long-term permanent employment as part of this trial. That is my hope and that is the hope of my colleagues.

I note the Greens have moved the second reading amendment. Senator Siewert has moved that amendment. I can tell Senator Siewert that we support the amendment. We believe that the low income threshold is a punitive measure that needs to be broadened out. This punitive measure needs to be mitigated against significantly by allowing unemployed people in this country the chance to earn more without being penalised severely, as they are now. So, of course, we will support that. But this is a first step. This is something that we as a team fought for and that we as a team believe is good for the regions, good for agriculture and good for horticulture in particular. It will give literally thousands of young Australians a chance to get into the workforce, a chance to earn a supplementary income and a chance not to be penalised, as they have been in the past.

I want this trial to work. I want this trial to be expanded. I want us to think differently about the way we treat unemployed people in this country who are penalised so heavily even if they earn a bit of income, even for seasonal work, where they are slugged so severely and which acts as a huge disincentive for people to give it a go in the workforce. So, with those words, I can indicate that we strongly support this measure. It is something that we instigated. It is something that we believe should be given a go. We also support the second reading amendment. We would like to think this trial is the start of something that can be expanded more broadly, because we believe that there are huge social and economic benefits not just for those unemployed Australians but also for small and medium businesses around the country.