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

On behalf of the Minister for Families, Housing, Community Services and Indigenous Affairs, Ms Macklin, I table a ministerial statement on the second anniversary of pension reforms.

Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

by leave—I move:

That the Senate take note of the document.

The Greens join the government and I hope all Australians in acknowledging the second anniversary of pension reforms and the increase in the age pension. I am sure many people in this place remember all the times that Senator Brown and I and a number of other senators spoke about the need for increases in the pension rate in this country, and we campaigned very strongly for that. Of course we welcome, and we always have welcomed, the increase in the age pension. I acknowledge that this is the second anniversary. However, I draw attention to the conclusion of the statement where it says:

This government, like Labor governments before us, is driven by our belief in a fair society that rewards a lifetime of work.

It goes on to say:

We are driven by our sense of responsibility to ensure that no Australian is left behind.

The unfortunate situation in this country now is that we have such a differential in the series of payments for people on income support and social security. The safety net that we supposedly have built into our society with social security payments unfortunately has some massive holes in it, and they have been perpetuated by the increase in the age pension. As I said, we totally support the increase in the age pension. We always did; we campaigned very strongly for it. But we have seen a growing disparity between those on the pension and those on allowances.

For example, we now have a gap of $128 a week between Newstart and pension rates. That is a very significant amount of money. We also have a government now that is taking its 'tough love' approach to those seeking income support, for example those living with a disability and who seek support from the disability support pension. The same government that wants to see no Australian is left behind is making it even harder for people with a disability to get the disability support pension. The government is making them prove that they have tried to find a job over 18 months or to keep sustained employment over 18 months. During that period they are supposed to exist on a Newstart payment that is $128 a week less than if they received the disability support pension or the age pension. These are people living with a disability, who we are supposed to give a leg up to find a job.

In the Senate Community Affairs Legislation Committee's report on impairment tables—we will be debating it probably the next time we sit—it was clearly highlighted by witnesses to the committee how difficult it was to survive on Newstart at $128 a week less than the age pension or the disability support pension. They also highlighted how much harder it is to live with a disability and try to find work. These are people to whom we say, 'If you can work 15 hours a week, you have to continue trying to find a job for 18 months and survive on Newstart.' If you have a significant disability, it costs you a lot more money to try to find work. It is a lot more difficult to sustain work. We have seen evidence that, of the people with a disability in this cycle of trying to find work, only 16 per cent are managing to find what was termed 'sustainable' work—in other words, work beyond 26 weeks. So people are cycling in and out of part-time work, which of course is not a full-time wage, and trying to sustain themselves from that and Newstart.

It is a great shame that we think it is okay to treat people that way, and it is a great shame that when this much-appreciated increase in the age pension went through we did not flow through those payments to those living on youth allowance, for example, and those living and trying to find a job on Newstart. While we are doing that, as I said, the government says it is trying to encourage people into work. We do not think that the process the government has set up will do that. By doing that, it is demonising people. It ensures that people are forced even further into poverty and we know that once people are in a poverty trap and have been unemployed long term, it is much harder to get out of that poverty trap.

The point I make to the government is that it is all very well to pat yourselves on the back saying, 'Look what jolly good fellows we are, responding finally to community concern about the age pension,' but what are you doing about those living with a disability? What is the government doing to make sure that those on Newstart are genuinely supported and are not living in poverty? People on Newstart now have to live in poverty. You only had to listen to the radio this morning when payday lenders were discussed. The reason that people have to go to payday lenders is that they cannot afford to live. They live from week to week and have to make their social security payments stretch. They cannot, so they are forced to go to payday lenders. That is why they are being abused in that process.

We are not ensuring that there is a minimum living payment for someone to live on. We do not recognise that people need a minimum standard on which to survive. The value of the Newstart payment is going further and further down and not only are people struggling on Newstart but also we saw during the budget process that family benefit payments were frozen. I know people think that is only a small amount of money but when you exist on only a small amount of money every dollar counts.

Every budget decision and every payment decision this government has made has essentially further slashed payments to those most disadvantaged in our community. I urge the government to take a proper look at the tax and transfer process during the tax forum—or summit; whatever it is called this week—so that people are guaranteed a minimum living wage payment. It is essential that we treat people in our community with respect and ensure that which the government says it is committed to—that no Australian is left behind and that we do have a fair society. If we do not address this issue now, our society will not be a fair one and will become more and more unfair. More and more Australians will be left behind. Question agreed to.