Senate debates

Wednesday, 21 March 2018

Bills

Social Services Legislation Amendment (Welfare Reform) Bill 2017; In Committee

9:35 am

Photo of Michaelia CashMichaelia Cash (WA, Liberal Party, Minister for Jobs and Innovation) Share this | Hansard source

Thank you, Senator Siewert. In relation to schedule 6, widow allowance, I'll just take you through the information that I have. As you are aware, if the bill goes through it will be closed to new entrants from 1 July 2018 because of the changes in relation to the bill. So people who would have otherwise claimed widow allowance will be exempt from mutual obligation activities if they satisfy the criteria that currently apply to widow allowance—that is, they were born on or before 1 July 1955, ceased to be a member of a couple since turning 40, have no recent workforce experience and are not a member of a couple.

Over the forward estimates, the total population of people who will be on Newstart allowance, so the jobseeker payments that we're now referring to in this schedule, from March 2020 who would otherwise have been granted widow allowance is estimated as 4,818 over five years, so to 2021-22. Existing widow allowance recipients will be unaffected by the closure, remaining on the payment until they reach the age pension age, and then they will transfer to the age pension. From 1 January 2022, widow allowance will cease and around 400 recipients who are over age pension age but who do not meet the age pension residence qualification rules would be transferred to the age pension under one-off transition arrangements.

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