Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

I can indicate that the opposition will not be opposing the Social Security and Other Legislation Amendment (Employment Entry Payment) Bill 2008, but it is worthwhile briefly setting out the history of this particular piece of legislation. The objective of the legislation is to repeal the employment entry payment. That will be effective as of 1 July 2008. The employment entry payment was in fact first introduced by Labor in 1989 via the Newstart program. It was introduced to help the unemployed meet certain short-term costs of moving into and retaining full-time work. It is interesting to note that this bill was introduced by the Deputy Prime Minister on 29 May 2008 and it is one of the measures that the government believe will save them something around the $60.8 million mark over a five-year period. Of course, the Labor Party trumpet this as being part of their economic responsibility. Removing these payments just goes to show how economically responsible they are.

The interesting thing is that, since it was elected in 1996, the Howard government tried to remove these payments and time and time again the then Labor opposition opposed the move. All that nonsense has now been exposed by the Labor Party saying—following the Peter Garrett line—‘Don’t listen to what we say in opposition; look at what we do in government.’ What they have done is to say, ‘Yes, the Howard policy that we frustrated and refused to pass through the Senate time and time again during the 11½ years of the Howard government suddenly is very good policy.’ I can promise the minister and I can promise the government that, unlike those opposite, we do not play politics on these issues. If it is good policy under us, it is also good policy under Labor.

It is worthwhile listening to some of the statements made back in 1999 by the current Treasurer, Mr Wayne Swan. He criticised the Howard government measures on this basis:

With the stroke of a pen, another small but very important measure, which encourages the movement from welfare to work, has been knocked out. Once again, the government has put its boot in and pushed down the most vulnerable sections of the community who should be encouraged to move from welfare to work or from welfare to education.

That was Mr Wayne Swan opposing our proposals on 9 March 1999. In relation to this matter, on 25 March 1999 he said:

If the government really believes in helping young people get into jobs, why is it currently trying to abolish the employment entry payment?

Mr Albanese also said on 9 March 1999:

We should be about encouraging people in employment rather than imposing additional burdens upon them. But this is consistent with the lack of compassion shown by this government.

The Labor Party are now showing all this same lack of compassion, if we are to believe the nonsense of Mr Swan and Mr Albanese all those years ago. I say to them: no, the Labor government are not showing a lack of compassion in relation to this; they are making a good case. It was a case that was before them but that they rejected for mean, political reasons. That was the only reason: to try to beat up an issue and pretend that somehow they were the champions of those who were on welfare. Clearly these measures are seen as being appropriate. It is just a pity that the Labor Party have not been consistent on this—as, in fact, they have failed to be consistent on so many other things.

In the response by the minister, I would be pleased if I could have these few questions answered. Is it possible that some job seekers will no longer be able to access a payment? I would be obliged if I could be advised of that in the summing up by the minister. On 2 June 2008, at Senate estimates, my colleagues were asking the Department of Education, Employment and Workplace Relations how many people would be disadvantaged as a result of removing this payment. The department at that stage was unable to provide an answer. Given that they have now had another three weeks or so, hopefully an answer to that question will be forthcoming. Similarly, we would be interested to know how this decision will impact on those on a disability support pension who are enrolled with a disability employment network provider, because it appears that no additional compensation will be available for these people. As I indicated, we do not oppose the legislation.

Ursula Stephens (NSW, Australian Labor Party, Parliamentary Secretary Assisting the Prime Minister for Social Inclusion) Share this | Link to this | Hansard source

I thank—

Andrew Murray (WA, Australian Democrats) Share this | Link to this | Hansard source

Senator Abetz.

Ursula Stephens (NSW, Australian Labor Party, Parliamentary Secretary Assisting the Prime Minister for Social Inclusion) Share this | Link to this | Hansard source

Senator Abetz for those questions. Bear with me, please, Senator. As you know, I am not the person who has responsibility for this legislation, but I will do my best.

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Nor do I, but it is easier to ask the questions than to answer them; I will give you that.

Ursula Stephens (NSW, Australian Labor Party, Parliamentary Secretary Assisting the Prime Minister for Social Inclusion) Share this | Link to this | Hansard source

It certainly is. Briefly, so that everyone listening is quite sure of what this legislation is all about, the Social Security and Other Legislation Amendment (Employment Entry Payment) Bill 2008 relates to the employment entry payment. This employment entry payment is a lump-sum payment that will be made to eligible recipients of certain social security payments who are returning to employment, who are commencing employment or whose income from employment rises above a threshold amount. This payment will help cover costs associated with their employment. It is a payment of $104, or $312 for people with a partial capacity to work or who are on a disability support pension. Those payments do not have to be repaid. The government is clear that the type of assistance that will remain available to eligible income support recipients includes the working credit, special employment advances, the job seeker account and other assistance which is available through employment service providers. In answer to the questions that Senator Abetz posed, I think it is very clear that the intent of the legislation is to ensure that eligible income support recipients will remain eligible for the assistance that is available through employment service providers.

Also some consequential amendments need to be made in the related legislation, being the Social Security Administration Act 1999 and the Income Tax Assessment Act 1997, to ensure that appropriate administration and transitional arrangements and appropriate tax treatment occur. The cessation of eligibility from 1 July this year means that, where employment starts after 1 July, an employment entry payment will not be made unless a claim for an advance of that payment is made before that date. Currently, a person has 28 days to lodge a claim for an employment entry payment from the start of the employment in respect of which the claim is being made. Some principal carer payment and parenting payment recipients and those with a partial capacity to work have 56 days from the start of their employment to lodge their claim. This means that employment entry payments will be made up to 56 days after the repeal of the provisions.

Centrelink has advised that the time frame and details of implementation are able to be delivered upon. Of course, the underlying rationale of the employment entry payment was as an employment incentive and to aid with the costs of starting a job. Other measures introduced subsequent to the employment entry payment mean that this specific form of assistance is not necessary. They include the special employment advance, which was introduced in 1999; the job seeker account, introduced in 2001; and working credit, introduced in 2003, all of which provide specific financial assistance and means to smooth people’s entry into work. On that basis, I commend the legislation to the Senate.

Question agreed to.

Bill read a second time.