Senate debates

Monday, 23 March 2020

Bills

Assistance for Severely Affected Regions (Special Appropriation) (Coronavirus Economic Response Package) Bill 2020, Structured Finance Support (Coronavirus Economic Response Package) Bill 2020, Appropriation (Coronavirus Economic Response Package) Bill (No. 1) 2019-2020, Appropriation (Coronavirus Economic Response Package) Bill (No. 2) 2019-2020, Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Bill 2020; In Committee

8:53 pm

Photo of Mathias CormannMathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Hansard source

As I indicated in the chamber earlier today, our income support system is residency based. The government is indeed introducing a coronavirus supplement of $550 per fortnight where the eligibility is driven by a residency-in-Australia requirement. Access to jobseeker payment and youth allowance, however, is available to people residing in Australia who are Australian citizens and permanent residents, assuming all other eligibility criteria are met. It will not be available to people in Australia on temporary visas, other than some people in limited circumstances on special category visas.

Australia's social security system is a non-contributory, residents based system. It is primarily designed to support Australian citizens and permanent residents. In order to enhance access to these payments for permanent residents we are temporarily waiving the newly arrived residents waiting period in order to assist permanent residents to get access to jobseeker payments. Generally residency requirements still apply, and most temporary visa holders do not qualify for jobseeker payments and other forms of income support.

In relation to temporary visa holders, special benefit is available to specified temporary visa holders. Classes of temporary visa holders eligible for special benefit are specified in the legislative instrument and currently include temporary partner visas, temporary humanitarian visas and bridging visas for victims of human trafficking.

The Minister for Families and Social Services has the ability to declare new visa types to be eligible for special benefits, so that is not a function of this amendment; that is a power that the minister already has. Visa types such as temporary resident, other employment and temporary resident skilled employment will be included by the minister in the near future. Special benefit is paid at the same rate as jobseeker payment—previously Newstart allowance—for those aged 22 years and older or youth allowance for those aged under 22 years. To qualify for special benefit people must be in financial hardship and unable to earn a sufficient livelihood for themselves and any dependents. Claims must meet a hardship test based on their liquid assets. Those who're expected to only need payment for less than 13 weeks must have liquid assets of less than two weeks worth of payment, $565.70 for a single person with no children aged 22 years or older. To access the special benefit, in addition to meeting the hardship test, they must have experienced a substantial change in circumstances. Special benefit has a stronger income test than other payments. Any income or income support—for example, free accommodation—is deducted dollar for dollar. Other payments have a tapered income test.

The short answer is that we are not proposing to extend those arrangements to visa holders beyond newly arrived residents with permanent residency still serving their newly arrived residents waiting period and those who are temporary resident, other employment and temporary resident skilled employment visa holders. They are the ones that will be covered by this supplement beyond youth allowance, jobseeker payments, recipients of parenting payment, recipients of partner and single farm household allowance, and special benefit recipients.

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