Senate debates

Tuesday, 20 November 2012

Questions without Notice

Pensions and Benefits

2:45 pm

Photo of Rachel SiewertRachel Siewert (WA, Australian Greens) Share this | | Hansard source

My question is to the Minister for Human Services, Senator Kim Carr. Last week the minister gave media interviews in which he said the government currently believes that 10,000 single parents will be ineligible for any form of support once they are moved on to Newstart just after Christmas. Has the government modelled how the loss of all access to the parenting payment, including the concession card and rent assistance, will impact up to 10,000 single-parent families who are currently trying to balance part-time work and caring? If so, what is it? Has the government considered that this policy may have the reverse effect of the supposed intent of the policy—that is, single parents will reduce the number of hours they work so as to retain access to support in order to ensure that their income does not drop?

2:46 pm

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | | Hansard source

I thank Senator Siewert for her question. I am not aware of any modelling that the government has undertaken and nor, I would expect, should I be. The policy intent, as I explained in the interviews undertaken last week, is clearly designed to encourage people to participate more in the workforce, which is the major impact for people in lifting their living standards. The question I was addressing in those discussions was the fact that the Department of Human Services is seeking to contact 84,000 people who are affected by the budget decision. We are seeking to contact them on a personal basis, because I was very concerned to ensure that each and every person who was so affected was able to get personal advice on their entitlements and what opportunities there were in terms of the current range of benefits.

To date, I can indicate to you, 74,000 parents have been contacted and 49,000 of those people have had interviews. The vast majority of those 49,000 have moved to Newstart. In the process of that there are opportunities for people to move to other benefits. While there may well be up to 10,000 people who, on current advice, have an income above the threshold for the Newstart allowance, about 5,000 of those are still eligible for various part payments. My concern was to ensure that every single person who was affected by this decision got the best access to the best advice we were able to provide, and that is the process being undertaken right now—no matter where they live or how remote they are, those people have access to the very best services. (Time expired)

2:48 pm

Photo of Rachel SiewertRachel Siewert (WA, Australian Greens) Share this | | Hansard source

I take it that the answer is no, they are not aware of any impact. Mr President, I have a supplementary question. In the same statement, the minister said that up to 3,000 single parents who would be moved on to Newstart have been identified as eligible for the disability or carers payments. On what basis was this calculation made? Why was this entitlement to a more appropriate payment not identified earlier? Has the government done any work to identify how many other people on the single-parent payment or Newstart payment are unaware that they are on an incorrect payment?

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | | Hansard source

The advice that I received from the department is that there would be up to 3,000 people eligible for the benefits that Senator Siewert referred to. The fact remains that when people get individualised treatment and support they may find that they are eligible for other entitlements. That is exactly the point. We want to ensure that people take the phone call from Centrelink and the interviews, and so are able to have the support provided about the range of other benefits available, whether they be through job skills, childcare support or other measures that the government has on offer. It is a question of providing personalised support.

I was somewhat surprised that Senator Siewert suggested in an article that I was disingenuous in this effort. All I can say to you is that the government is— (Time expired)

2:49 pm

Photo of Rachel SiewertRachel Siewert (WA, Australian Greens) Share this | | Hansard source

Mr President, I have a further supplementary question. Why aren't these people getting individualised treatment in the first place? Previously the government has made reference to the availability of crisis support payments when single parents are being transitioned. How many crisis support payments has the government budgeted for in the first three months of 2013 in light of the policy moves about to be initiated?

2:50 pm

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | | Hansard source

I do not have that particular figure in front of me. What I can say to you is that we are in the business of ensuring that people get the maximum support available to encourage a more full participation in the economy. The critical issue in relieving poverty in this country is to ensure that people are able to participate in the economy. It is about getting people into work—that is the most important activity we can undertake to ensure that people are able to lift their living standards. However, in that process there are a series of other benefits available, including family tax benefit A. People can earn up to $47,800 and still receive maximum family tax benefit A, rent assistance, childcare support and healthcare support. We are in the business of making sure that we break the cycle of poverty in this country. I would have thought you would commend the government for that action, rather than suggesting that people are disingenuous.