House of Representatives

Second Reading Speech

Mr McGAURAN (Minister for the Arts and the Centenary of Federation)

I move:

That the bill be now read a second time.

Again I am presenting this bill on behalf of the Minister for Community Services. This bill gives effect to a number of measures announced in the government's 1998-99 budget, and a number of non-budget measures that will assist in more effective and efficient social security administration.

First, the bill provides for fairer treatment for more than 26,000 workers currently employed in Community Development Employment Projects (CDEP), as well as providing increased incentives for those workers. These measures will provide for a CDEP participant supplement of $20 per fortnight, (similar to the $20 Work for the Dole supplement), and will provide access for CDEP workers rent assistance, bereavement payments, telephone allowance and pharmaceutical allowance. Also, in the interests of equity, adjustments are made to the income level provisions which apply to CDEP participants who are pensioners, treating CDEP income in the hands of those pensioners as directly deductible on a dollar-for-dollar basis, up to the equivalent of the maximum basic rate of allowance. These provisions will commence on 20 September 1999, with the $20 supplement granted retrospectively to 20 March 1999.

The government announced in its 1998 budget that it would provide a special employment advance of $500, to assist an estimated 30,000 customers with the `start-up' costs of taking up employment. This measure will also be available to assist an estimated 4,500 people in financial hardship as they move from social security payments into work, where those people have earned money but have not yet been paid. The bill provides for the measure to commence on 20 September 1999.

In a further budget measure, some 11,000 victims of domestic violence will be among those to benefit from the government's initiative to introduce a new one-off crisis payment from 1 July 1999. This crisis payment will assist new and existing customers in financial hardship when they are forced to leave their home and establish a new one due to a limited number of circumstances, such as fleeing domestic violence or in the event of a house fire. The crisis payment will also replace the current prisoner release payment.

In addition to the above, other budget measures included in the bill will:

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expand the definition of `suitable work' to ensure that persons who seek, and are offered, work outside of their local area will be required to accept that work, or be subject to an activity test breach;

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tighten arrangements for unemployed persons who move to an area of lower employment prospects;

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amend the liquid assets test that applies to education leavers, to rationalise inconsistencies in the application of that test as between those education leavers who claim Newstart allowance, sickness allowance and youth allowance;

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introduce a two-tiered payment structure for the Austudy pensioner education supplement, geared to the study load undertaken by the student. Under this measure, students who undertake a study load of between 25 per cent and 50 per cent will receive half the current rate (that is, $30 instead of $60). Disability support pensioners, and Department of Veterans' Affairs disability pensioners, will be exempt from this measure; and

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promote consistency in the application of the newly arrived residents waiting period to migrants from all countries.

Lastly, the bill contains various minor amendments rationalising the provisions in the act that relate to periods of overseas residence and travel.

A further 1998 budget measure, dealing with the receipt of lump sums received in respect of non-economic loss, will be dealt with in another bill to be introduced later in these sittings. I commend the bill to the House and present the explanatory memorandum.

Debate (on motion by Mr Horne) adjourned.