Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Assistant Minister for Social Services, Senator Fifield. Will the minister update the Senate—

Senator Cameron interjecting—

You are a disgrace. You bring dishonour to the role you are elected to.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Edwards, just ask your question.

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Will the minister update the Senate on progress in implementing the Business Services Wage Assessment Tool Payment Scheme?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

Thank you, Senator Edwards, for your question. I think most colleagues would be aware of the great work done by Australian Disability Enterprises around the country, giving employment and the dignity of work to around 20,000 Australians. I think colleagues would also be aware that employees of Disability Enterprises are paid pro-rata wages, determined by wage assessment tools which are registered with Fair Work Australia.

When we came into office, we inherited a situation where there was some uncertainty around the Business Services Wage Assessment Tool, which is used in about half of Disability Enterprises. So what we sought to do was something to deal with the present, the past and the future. To deal with the present, we sought a temporary exemption from the application of the Disability Discrimination Act to the Business Services Wage Assessment Tool to try and provide a certain environment for enterprises. We also put in place $173 million to help the development of a new wage assessment tool for enterprises and also to help those enterprises supplement what would likely be higher wages. The other very important thing we did to try and address the past was to put in place the Business Services Wage Assessment Tool Payment Scheme, which would seek to give a one-off payment to eligible supported employees of Disability Enterprises who had been paid a pro-rata wage assessed by the BSWAT. I am very pleased to advise that that payment scheme is now open for registration. Applications can be received and the government will be communicating with employees who are potentially eligible for the scheme in the coming weeks, but it is important that people who have been employed in ADEs are aware of this.

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister inform the Senate how employees with disabilities will benefit from the introduction of this scheme?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

The payment scheme will guarantee a payment to all eligible supported employees and will be an alternative to the legal proceedings which are currently underway in the courts in relation to previous payments under the Business Services Wage Assessment Tool. We wanted to provide a straightforward process for people with disabilities. The payments will be calculated on what individuals were actually paid plus indexation for each year in the period. Importantly, payments will not affect the social security payments of individuals or those of carers. There will also be favourable tax treatment. If participants have to pay additional tax on the payment, an extra amount will be provided to minimise that liability. Also, the lump sum in arrears tax offsets will be applied to payments under the scheme.

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. What protections are there for people with disability in determining if they should participate in this arrangement?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

As I said, social security payments will not be affected, an individual's tax situation will not be adversely affected and no-one's rights will be affected. They will have the choice between this scheme and their rights at law, but importantly the government does require that individuals will have sought independent legal and financial advice before being eligible to take part in the payments scheme. Also, importantly, the Commonwealth will pay for that legal advice and financial advice—it is important that people know what is in their best interests.

I thank my coalition colleagues for supporting the legislation, but I also convey my thanks to Senators Madigan, Day, Xenophon, Wang, Muir and Leyonhjelm. I know that there are many people with disabilities and their families who are deeply appreciative of the support from those crossbench senators.