Senate debates

Wednesday, 6 July 2011

Questions without Notice

Pensions and Benefits

2:08 pm

Photo of Anne UrquhartAnne Urquhart (Tasmania, Australian Labor Party) Share this | | Hansard source

My question is to the Minister representing the Minister for Families, Housing, Community Services and Indigenous Affairs, Senator Arbib. Can the minister please inform the Senate on any new financial assistance measures that have come into effect recently that will assist Australian families to make ends meet?

Photo of Mark ArbibMark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | | Hansard source

I thank Senator Urquhart for her first question and welcome her to the Senate. From 1 July, a large number of positive changes came into effect, arising out of the budget, that will support families financially and make it easier for them to make ends meet. We know parents need affordable and quality child care. That is why the government has improved the effectiveness of the childcare rebate to allow it to be paid fortnightly. These more regular payments, coming into play last Friday, will help families balance their budgets and build on the government's increase to the childcare rebate from 30 per cent to 50 per cent of out-of-pocket costs.

Since last Friday, Australian families will also benefit through an expansion of the education tax refund for school uniforms, a change that will help many parents with their back-to-school expenses. There are also new baby bonus arrangements for families to get more of their payments upfront, to help with those big purchases that parents need to make when a new baby comes into the family. We are talking about payments for cots or for prams.

More than two million families will now benefit from indexation increases to their family payments as well. The maximum fortnightly rates for family tax benefit part A and part B will both be increased, which amounts to, for family tax benefit part A, $113 per child under 13 each year and, for family tax benefit part B, $95 per family. All low-income earners will get more in their pay packet each week through the low-income tax offset, which will mean another $300 in their pockets during the year rather than at the end of it. As a government, we are continuing to deliver for families into the future. From 1 January next year, parents will receive a boost to family assistance for families with older teenagers of up to $4,200 extra a year. (Time expired)

2:10 pm

Photo of Anne UrquhartAnne Urquhart (Tasmania, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Can the minister advise the Senate on the progress of paid parental leave and how the government is assisting parents with cost-of-living pressures as well as supporting workforce participation? Are there any alternative approaches to these measures?

2:11 pm

Photo of Mark ArbibMark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | | Hansard source

I am very pleased to inform the Senate that almost 31,000 parents are currently receiving paid parental leave payments—right now. Since paid parental leave began on 1 January this year, more than 69,000 Australian parents have applied in total, including casual workers, part-time workers, the self-employed and also contractors. Parents who are eligible will receive up to 18 weeks paid parental leave at the national minimum wage, currently around $590 per week.

Our paid parental leave system has been good for families, helping parents to take time off work to recover and to care for and bond with their new baby. Since 1 July, employers are able to pay the government paid parental leave through their usual pay cycle, and there is no need for special bank accounts or special reports. It is worth noting that the Productivity Commission reco­mmended the employer role in this scheme because it would help business retain skilled staff. In terms of alternative approaches, despite this historic reform, I note there is an alternative approach— (Time expired)

2:12 pm

Photo of Anne UrquhartAnne Urquhart (Tasmania, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a further supplementary question. We also know that seniors are facing significant cost-of-living pressures. Can the minister outline to the Senate any other government programs that are assisting families and seniors with cost-of-living pressures?

Photo of Mark ArbibMark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | | Hansard source

The government recognises the cost-of-living pressures faced by many pensioners. We also recognise the enormous contribution that they have made and continue to make to our nation. That is why this government delivered the most significant reforms to the pension system in its 100-year history. Since September 2009, these reforms have delivered increases for maximum rate pensioners of $128 a fortnight for singles and $116 a fortnight for couples combined.

Photo of Mathias CormannMathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | | Hansard source

We shamed you into it and the Prime Minister was opposed to it!

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

You had 11 years and you did nothing!

Photo of Mark ArbibMark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | | Hansard source

We are making significant investments to encourage and support senior Australians who want to work.

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! When there is silence, we will proceed.

Photo of Mark ArbibMark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | | Hansard source

From 1 July, the new work bonus will help pensioners keep more of their pension when they take on some part-time work. Eligible pensioners can now earn up to $250 a fortnight without it being taken into account as income. Over a year this can be worth up to $6½ thousand. We have also invested $30 million towards skills— (Time expired)