Senate debates

Thursday, 26 March 2026

Bills

Social Security and Other Legislation Amendment (Technical Changes No. 1) Bill 2026; Second Reading

11:08 am

Photo of Anne RustonAnne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) Share this | | Hansard source

I rise today to speak to the Social Security and Other Legislation Amendment (Technical Changes No. 1) Bill 2026. The opposition will not oppose the bill. However, we do hold concerns on some aspects of the bill which is before us today. The coalition has always taken the view that Australia must maintain a strong, fair and sustainable social security system as a safety net for all Australians. Few countries in the world provide the same level of support as Australia for people who are out of work, facing hardship or experiencing family breakdown, and that's something Australians, I think, should all be extremely proud of. However, we must also never lose sight of the fundamental truth that our social security system is a safety net; it is not a bottomless resource. It's built on the sacrifice of millions of hardworking Australian taxpayers. It exists because Australians go to work, run small businesses, invest, take risks and contribute to the national economy. We therefore have a responsibility to manage this system carefully, responsibly and through responsible and disciplined economic management. We have a responsibility, as well, to future generations, who will be left to shoulder the long-term fiscal consequences of the decisions that we make in this place today.

At its core, a well-designed income support system must provide a robust and sustainable safety net. It must protect the most vulnerable, it must support people through genuine periods of hardship and it must enable pathways to independence and self-reliance. Our focus should always be on helping more Australians move into work and contribute to the strengthening of our economy, not on keeping people permanently connected to our welfare system. Our welfare system must be fit for purpose today and properly equipped to meet the challenges of tomorrow.

While in government, the coalition demonstrated that it is possible to strengthen the safety net while managing the public finances responsibly. Through disciplined economic management, the coalition delivered the largest permanent increase to JobSeeker income support payments at that time. In April 2021, the coalition increased working-age payment rates, including the JobSeeker payment, by $50 a fortnight and permanently increased the income-free area to $150 per fortnight. These changes were specifically designed to support jobseekers as they secured employment and re-entered the workforce. During the height of the COVID-19 pandemic, the coalition government also provided $32 billion in emergency support payments to protect Australians through an unprecedented economic shock. That support was delivered quickly, responsibly and at scale, while maintaining a clear focus on recovery and economic participation and being temporary.

The coalition also recognises the integral role that the Child Support Scheme plays when families have a breakdown. Child support exists for one reason: to ensure that, no matter where they live or with whom they live, children affected by family breakdowns remain financially secure. The coalition makes no apology for supporting strong and, where necessary, tough measures to ensure that child support is paid. When parents shirk their responsibilities, they are not just hurting the system; they are depriving their own children of financial support that helps them live a better life. At the same time, we recognise that most parents do the right thing and meet their obligations. Since the scheme was introduced in 1998, more than $33 billion in child support payments has been transferred through the government scheme. When parents do not pay their child support on time, the impact is real and immediate. It affects the financial security of single parents and their children. For that reason, the coalition will always support practical measures that improve the administration of the Child Support Scheme and strengthen its compliance.

Turning to the bill before the chamber at the moment, this legislation is technical in nature and consists of three schedules. Schedule 1 amends the Child Support (Assessment) Act 1989 to clarify and validate child support assessment arrangements. Part 1 of schedule 1 adjusts when new child support periods start after updated tax information becomes available. In some circumstances, commencement will be delayed by an additional month. This is intended to help parents manage financial challenges that arise from updated income information.

Part 2 of schedule 1 confirms that individuals who have less than 35 per cent care of a child, whether they are a parent or a non-parent career, are not entitled to receive child support. Importantly, this applies retrospectively from 1 July 2008 while validating past decisions and leaving historic assessments unchanged. This schedule is designed to clarify technical legal aspects of the current operation of the Child Support Scheme.

The coalition recognises that schedule 1 also addresses unintended consequences arising from previous legislative amendments made under both Labor and coalition governments. It restores the original policy intent of the child support framework. In particular, it clarifies that a parent who provides less than 35 per cent of care of a child is not entitled to receive child support, and this ensures that eligibility settings accurately reflect actual levels of care and responsibility.

Schedule 2 of the bill amends the Social Security Act and the Social Security (Administration) Act to provide clear legal authority for urgent payments to eligible recipients outside of the normal fortnightly payment cycle. This schedule establishes a legislative framework for administering urgent payments. It abolishes the current limit of two urgent payments per year and introduces safeguards designed to ensure that welfare recipients have sufficient funds to enable them to cover regular expenses on their usual payment day.

It is important to note that urgent payments are not additional assistance. Urgent payments allow eligible recipients to access a portion of their regular fortnightly entitlement in advance, in circumstances of exceptional and unforeseen financial hardship. The coalition accepts that there must be a lawful and transparent framework for these payments. How—

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Thank you, Senator Ruston. You'll be in continuation. It being 11.15, we'll move to other business.