MEMBERSHIP OF THE COMMITTEE
Members
Senator Sue Knowles, Chairman
|
LP, Western Australia
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Senator Meg Lees, Deputy Chair
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AD, South Australia
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Senator Kay Denman
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ALP, Tasmania
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Senator Alan Eggleston
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LP, Western Australia
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Senator Michael Forshaw
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ALP, New South Wales
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Senator Karen Synon
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LP, Victoria
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Substitute Member
Senator Natasha Stott Despoja
for Senator Lees for the
Committee’s inquiry
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AD, South Australia
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Senator Belinda Neal for
Senator Denman for 30 October 1997 for the Committee’s inquiry
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ALP, New South Wales
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Participating Members
Senator Eric Abetz
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LP, Tasmania
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Senator Bob Brown
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Greens, Tasmania
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Senator the Hon Bob Collins
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ALP, Northern Territory
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Senator Mal Colston
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Ind, Queensland
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Senator Barney Cooney
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ALP, Victoria
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Senator the Hon Rosemary
Crowley
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ALP, South Australia
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Senator Chris Evans
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ALP, Western Australia
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Senator the Hon John Faulkner
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ALP, New South Wales
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Senator Brenda Gibbs
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ALP, Queensland
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Senator Brian Harradine
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Ind, Tasmania
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Senator Sue Mackay
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ALP, Tasmania
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Senator Dee Margetts
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GWA, Western Australia
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Senator Shayne Murphy
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ALP, Tasmania
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Senator Kay Patterson
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LP, Victoria
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Senator the Hon Margaret
Reynolds
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ALP, Queensland
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Senator Sue West
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ALP, New South Wales
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Senator John Woodley
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AD, Queensland
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Report - Social security legislation amendment (Youth allowance) Bill 1997
1. THE INQUIRY
1.1 The Social
Security Legislation Amendment (Youth Allowance) Bill was introduced into the
House of Representatives on 2 October 1997. On 23 October 1997 the
Senate, on the recommendation of the Selection of Bills Committee (Report
No. 16 of 1997), referred the provisions of the Bill to the Committee for
report by 10 November 1997.
1.2 The Committee considered the Bill at a public hearing on
30 October 1997. Details of the public hearing are referred to in
Appendix 2 The Committee received 25 submissions relating to the Bill and
these are listed at Appendix 1.
2. THE BILL
2.1 The principal
objective of the Social Security Legislation Amendment (Youth Allowance) Bill
1997 is to introduce the new social security payment, Youth Allowance (YA).
Payment of the allowance will commence on 1 July 1998 and will integrate income
support payments for young people ‘regardless of whether they are in education,
training, unemployed or sick’.[1]
2.2 The rationale for the introduction of youth allowance is
stated as:
- providing a comprehensive coverage of income support,
thereby reducing the number of different rates of payment and addressing
public concerns about the current fragmentation of income support
arrangements between Commonwealth Departments;
- removing undesirable incentives for young people to
leave education or to choose unemployment over education and training;
- reinforcing the Government’s philosophy that families
should support young people until they are financially independent;
- introducing flexibility to cater for the increasing number
of young people who do not follow the traditional route from full-time
study to full-time employment; and
- providing
increased assistance to those young students who need to live away from
home, especially those from rural areas.[2]
2.3 Schedule 1
of the Bill amends the Social Security
Act 1991 to introduce the Youth Allowance. YA will replace Youth Training
Allowance, Newstart Allowance and Sickness Allowance for 16 to 20 year olds and
most 15 year olds; and, AUSTUDY for students aged between 16 and 24 years,
those aged 25 years if the course of study was commenced before turning 25
years and 15 year olds currently covered by AUSTUDY.
2.4 The
provisions of the Bill establishing the rules to apply to the YA incorporate
many of the provisions which apply to Youth Training, Newstart and Sickness
Allowance and AUSTUDY. YA recipients will be subject to an activity test and
penalties if the activity test is breached. Entitlement for the new allowance
will be on a daily basis and paid fortnightly. Rent Assistance (RA) will be
extended to students who are independent and who live away from home and
students who live away from home for study reasons.
2.5 Schedule
2 of the Bill provides for the introduction of the new Youth Allowance Rate
Calculator to determine the rate of YA payable to a person. The YA Rate
Calculator is largely based on the structure and contents of the Youth Training
Allowance Rate Calculator and the Sickness Allowance Rate Calculator.
2.6 In
relation to the YA Rate Calculator, the Bill sets up the various
interpretational rules used by the YA Rate Calculator including when a person
is regarded as independent. The Bill provides for a person to be deemed to be
independent if they: are homeless; have supported themselves for at least 18
months out of the previous two years; satisfy the special safety net criteria
aimed at a person who is specially disadvantaged in terms of education or
employment; are, or have been married; have had a dependent child; or are an
orphan or a refugee.
2.7 The
Bill provides for a parental income test. This will measure the capacity of
parents to support their dependent children financially by looking at parents’
income, assets and actual means. The parental income test will generally apply
to recipients who are not independent. The details of the test will be provided
by regulation.
2.8 The Bill also provides for a personal and
partner assets test for partnered independent people and a personal assets test
alone for single independent people. This test will be based on the social
security allowance income test.
3. ISSUES
Structural disincentives to continue in education
3.1 The
Department of Social Security (DSS) noted that current income support
arrangements provide a strong incentive for young people to claim unemployment
payments rather than continue in full-time education or training. This is
because unemployed people aged 18-20 who choose to live away from home can
access a higher rate of payment.[3]
3.2 Several
organisations agreed that measures in the Bill will provide incentives for
young people to participate in education, especially the increased rate of
payment for students if they must live away from home and the extension of RA
to students living away from home for study reasons.[4] It was also noted that increased numbers
of students will be eligible for the independent allowance rate as a result of
the introduction of a work activity test which is fairer than that under
AUSTUDY.[5]
Complexity of the current payment structure
3.3 YA
replaces five income support payments for young people with a single payment
and reduces thirteen different rates of payment to five. DSS stated that
differences between payments such as AUSTUDY and social security payments can
lead to unintended overpayments, gaps in payment and unnecessary complexities
in transferring from one payment to the other.[6]
3.4 Evidence
to the Committee generally supported the simplification in the payment
structure for young people.[7] Some
groups claimed, however, that some complexities in the payment structure
remain.[8]
Support for young people needing to leave home for work or study
purposes
3.5 Several
organisations noted that the increased rate of YA for young people living away
from home will benefit young people who are living apart from their families
for work or study reasons.[9] Some
organisations noted that students, in particular, will benefit as many have to
live away from home for study reasons.[10]
Some groups claimed that certain groups, such as unemployed 16-17 year olds,
will lose entitlements.[11]
3.6 DSS
stated that RA will be available under YA to young people who are independent
and live away from their parents and to dependent young people who need to live
away from home to undertake approved activities. Currently, only students
receiving the student homeless rate of AUSTUDY can access RA.[12] The Department noted that giving
students access to RA ‘removes one of the central disincentives for young
people to take up, or remain in, full-time study and significantly improves
housing affordability for this group. This measure is of particular benefit to
young people from rural areas.’[13]
Assistance for 16-17 year olds
3.7 DSS
stated that under 18 year-olds who have not completed secondary school will be
expected to participate in full-time education or training to be eligible for
YA, unless they are exempt from this requirement. These exemptions include
homelessness, illness, traumatic home circumstances, substance abuse, learning
difficulties or other circumstances which make it unreasonable to expect the
young person to be in full time education or training. In these circumstances
YA would be payable to young people under the age of 18 years.[14]
3.8 DSS
emphasised that 16 and 17 year olds ‘will continue to gain support. They will
gain financial support because they will be eligible for the youth allowance.
The only way they will not be eligible for the youth allowance in terms of
financial support is if it is tested that their parents are able to support
them...I cannot think of an example of a young person who would find themselves
without financial support either from their parents or from the government.’[15]
3.9 Several
groups recognised that in principle it is not unreasonable to require young
people under the age of 18 to participate in a range of education, training and
jobseeking activities in order to qualify for YA and to improve their
employment prospects.[16]
3.10 Some
groups argued that the Government should also provide a viable set of
alternatives for those young people unlikely to benefit from schooling or
training programs and that individualised case management should be provided
for these young people.[17]
Parental means testing for 18 to 20 year olds
3.11 DSS
stated that a common means test for all young people up to the age of 21 is
critical to a ‘common’ payment structure and in removing disincentives for
young people to remain in education. Currently, students are subject to
parental means testing whereas unemployed people over the age of 18 are not.[18]
3.12 Some
groups claimed that the proposed measure by extending the period of dependency,
will require many low income families, in particular, to continue to support
their unemployed children financially for an extended period which could impose
a heavy financial burden on these families.[19]
3.13 DSS
stated, however, that two-thirds of the people in the age group 18 to 20 who
are currently unemployed will not be affected by the parental means test and
most of these are children from low income, pensioner or beneficiary families.
These people will continue to receive the maximum rate of YA. DSS noted that
under the YA arrangements, the total financial assistance to a family may
increase (depending on family circumstances), even though the payment to the
young unemployed person in the family has been reduced.[20]
Independence criteria
3.14 DSS
stated that YA ensures that where family support is not available, or young
people have clearly established their financial independence from their
parents, they will be regarded as ‘independent’ and thus not subject to the parental
means test.[21]
3.15 Some
groups claimed that the provisions for independence should be eased, both to
align the definition of ‘marriage-like relationship’ to that elsewhere in the
social security system and to shorten the period through which young people
demonstrate a commitment to self support.[22]
Some groups also argued that the definition of full and part-time work in the
Bill needed to be reviewed.[23]
3.16 DSS
stated that YA arrangements represent a ‘reasonable compromise’ between the
different provisions currently applying to those in married or de facto
relationships.[24] DSS also noted that
the YA work history criteria are considerably more relaxed than those currently
applying to students but tighter for unemployed people. This compromise is
aimed at deterring intending students from deferring studies in order to avoid
the parental means test when they commence studies.[25]
4. recommendation
4.1 The
Committee reports to the Senate that it has considered the Social Security
Legislation Amendment (Youth Allowance) Bill 1997 and recommends that the Bill proceed.
Senator Sue Knowles
Chairman
November 1997
MINORITY REPORT BY THE AUSTRALIAN LABOR PARTY AND AUSTRALIAN DEMOCRATS
Social Security Legislation
Amendment (Youth Allowance) Bill 1997
Senator Kay Denman
Senator Mike Forshaw
Senator Belinda Neal
Senator Natasha Stott Despoja
Senator Meg Lees
1 Introduction
This bill makes far-reaching changes
to the system of income support for young Australians.
Labor and the Australian Democrats
accept that the current array of income support for young people is complex and
in need of reform, and welcome some aspects of the bill, namely:
- the
increases in rates of payment for some young people;
- improved
flexibility which allows young people to combine part-time study with job
search and other activities;
- the
extension of rent assistance to full-time students who are required to
live away from home for study related reasons;
- payment
of the higher 'independent' rate for full-time students in defacto
relationships of more than two years standing.
But these improvements come at a price, to be paid by 16 and
17 year old Australians who have not finished year 12 and who are looking for
work, and by 18 to 20 year old Australians who are unable to find a job, and
their families.
In our view this price is unacceptable. The young Australians to whom this bill
denies help are precisely the young Australians who most need our help. These are young Australians who face the most
severe barriers to their future participation in education, training and
employment. They are looking for work in
a labour market which already works against them.
The government hopes that the introduction of Youth
Allowance will simplify the system of payments for young people, remove
disincentives to continue education and inconsistencies between payments for
young people and other social security payments. In our view the bill fails to reduce
complexity and indeed introduces additional complexities in some cases. It also introduces arrangements which, in
many cases, exacerbate disincentives to continue education and which are
inconsistent with other provisions of the Social Security Act.
2 Withdrawing
income support 16 and 17 year olds who leave education without completing year
12
Under proposed subsection 543A of the Bill, 16 and 17 year
olds who are not in education and who have left school without finishing year
12, or who have not been exempted from this requirement by the Secretary, will
not qualify for an income support payment.
As a consequence, they will not qualify for any of the education, labour
market assistance or other programs which might assist their transition from
school to the workforce.
Under proposed subsection 543A(2), these young people may
qualify for a Youth Allowance in some circumstances. The Department's submission[26] provides some indication of what these
circumstances might be - homelessness, family violence or abuse, no education
place available - although during evidence the Department stated[27] that the guidelines were 'only a
little more advanced than you see them in [the Department's submission]'.
There is no provision in the bill for the making of
guidelines to inform the Secretary's decision about this exemption. On the basis of evidence presented to us, we
are not confident that the exemptions will be sufficiently flexible to allow
for payment in the full range and diversity of circumstances which might lead a
young person to leave education without finishing year 12.
We agree with witnesses that that 'there needs to be a
greater recognition of the diversity of situations which need to be
accommodated for those who are under 18 years of age'[28].
The Committee canvassed the reasons why some young people
choose to leave school without finishing year 12 and the effect the withdrawal
of income support might have on these young people and their families. The views expressed to the committee were
very much in keeping with current research about the causes of early school
leaving, and our attention was drawn to a number of contributing factors,
including young people's family and emotional problems, violence and sexual
abuse, alcohol and other drugs, alienation and depression, inappropriate
curriculum and pedagogy and unsuitable learning environments:
'It is home circumstances, their own
personal literacy and numeracy, education issues, that keep them from being at
school. Family issues come up a lot'[29].
'They flee the school system because
for them school has for some years been an experience with which they are not
coping. More young people flee the
school system because... they feel they do not belong there and because they
feel they are not wanted there than they flee the school system seeking income
support'[30].
Submissions and witnesses consistently cited increased
family tension and family breakdown, increased reliance on emergency relief and
increased crime as possible consequences of the withdrawal of income support
for these young people.
We note that the government is proposing to abolish income
support for these young people at the same time as it has made substantial cuts
to education and labour market programs, and at a time when entry level jobs
continue to disappear. The introduction
of the Youth Allowance is not accompanied by other measures which support early
intervention to address the reasons why young people leave education before
finishing year 12, which improve the access or affordability of post-school
education, or which create entry level jobs for unemployed young people. The introduction of Youth Allowance is not
augmented by the provision of additional resources to schools to cope with the
more than 20,000 young people expected to remain in, or return to school,
despite Departmental advice that up to an additional $140 million would be
required to deal with this influx of students.
We agree that 'forcing young people to stay at school in
order to get an income... is a dubious, incomplete and probably
counterproductive approach to the problems of youth unemployment and early
school leaving'[31].
In our view, these young Australians are precisely the group
who would benefit most from the intensive intervention that case management has
to offer. They are precisely the group
who will find it most difficult to find a job which provides decent wages and a
rewarding career, and who would benefit most from the assistance which can be
provided under case management arrangements.
As the Australian Youth Policy and Action Coalition[32] recommends:
'what we would like to see is that
there be another option for those young people that would allow then to enter
into a youth allowance activity agreement and, as part of that, they would have
immediate access to case management'.
In our view, the requirement that a young person aged under
18 must be in education or have finished year 12 to qualify for Youth Allowance
should be omitted from the bill. Young
people aged under 18 who are not in education and who have not finished year 12
should be able to enter into a Youth Allowance Activity Agreement and that
agreement should allow for a case manager to be appointed for that person.
3 When is a young person independent?
Many of the submissions and witnesses drew attention to the
assumptions about independence which underlie the Youth Allowance eligibility
provisions. In the government's view[33] the proposed Youth Allowance
arrangements 'reinforce the government's philosophy that families should
support young people until they are independent'.
In practice, this is achieved through the imposition of
parental income, assets and actual means tests for young unemployed people aged
under 21, which would see government support for families with young people
begin to be reduced once family income exceeds $23,400 a year.
This is clearly at odds with both the current body of law,
and with community expectations. As
Welfare Rights points out:
'Young people start to become
civilly and criminally responsible from 16 and most definitely from 18 years of
age.
In most cases, the legal obligation to pay child support
ceases once a child turns 18;
eligibility for the family tax initiative ceases once a child turns
18. As the Australian Youth Policy and
Action Coalition[34] points out, if
parents fail to, or cannot, support their under 18 year olds:
'there will be somebody who is going
to pick up the care and protection for that young person because there is a
responsibility. Basically, the buck
stops somewhere, but what happens in a situation when you are over 18? Those laws do not exist.
In its evidence the Department was unable to provide any substantive
justification for selecting 21 as the age at which a young person who is not a
full-time student should be considered to be independent and so not subject to
the parental income, assets and actual means tests, saying only that 'it is a
judgement about what is a reasonable age'[35].
In general terms, under the proposed arrangements young
unemployed people will find it more difficult to qualify for an 'independent'
rate of payment. Young unemployed people
are less likely to be able to demonstrate that they have been
'self-supporting'; they are less likely
to be able to demonstrate that they are a 'member of a couple'; and, their
decision to live away from home will have to be approved by the Secretary as
being for study-or work-related reasons before independent status can be
attained.
For example, the Australian Youth Policy and Action
Coalition[36] drew our attention to an
inconsistency between the definition of full time employment to be used in
relation to the definition of independence and that 'currently being used with
employment placements in the new employment assistance scheme, which is 15
hours rather that 30 hours for full time'.
Similar views were expressed by the National Youth Coalition for Housing[37]:
'forcing people to move back home
who have worked for six months or a year and then lose their job... the bill
says that that person would not have been working long enough to be assumed
independent.'
Unless they can demonstrate independence, young people's
(aged up to 21 if unemployed or up to 25 if a student) eligibility for payment
will be determined on the basis of their parents' income, assets and actual
means. In our view this is inconsistent
with community expectations, and in effect reduces the level of assistance
available for young unemployed people in low income families, families which
are already struggling to make ends meet in the wake of the Howard government's
first two budgets.
In our view, the existing arrangements (that is, personal
income and assets tests only) for young people who are not full-time students
should be retained.
In our view young unemployed people who have reached the age
of 18 should be regarded as independent and the parental income, assets and
actual means should not apply. The bill
should be amended to restore the current definition of 'self-supporting' for
young unemployed people.
We also reject the notion that structural disincentives to
continue in education can, or should, be ameliorated by diminishing access to
income support for unemployed young people.
Any consideration of this issue would be incomplete without
reference to the recent regressive changes made to the AUSTUDY scheme. Prior to these changes the age of
independence for AUSTUDY was being reduced, and would have been 21 years in
1997. We note that the incremental
change to a lower age of independence was always perceived to be a vital part
of the incentives to study facilitated by AUSTUDY.
An estimated 125,000 students who would otherwise have
access to greater financial support to pursue education were adversely affected
by the Federal government's changes to the AUSTUDY eligibility criteria in
1997, where the age of independence was raised to 25 years.
Young people currently leave their studies because AUSTUDY
is inadequate, not because unemployment is a more attractive alternative. The disincentives currently lie with the
lower level of AUSTUDY payments, the stricter eligibility criteria, the heavy
reliance on parental means testing and the lack of access to rent assistance,
some of which have been addressed the low income families in the Youth
Allowance proposal.
4 Exemption from liquid assets waiting
period
We note that the Social Security Legislation Amendment
(Parenting and Other Measures) Bill currently before the Parliament gives
effect to a 1997 budget measure to 'apply consistent hardship rules to waiting
periods for Newstart Allowance and other related payments'. The provisions of proposed section 549A(3) do
not appear to be consistent with the arrangements to be put in place by the
amending legislation.
In our view the exemption from the liquid assets waiting
period should reflect the government's proposed definition of 'severe financial
hardship' (noting that Labor and the Australian Democrats do not support the
government's proposed additional requirement that the severe financial hardship
must have arisen because the person has incurred unavoidable and essential
expenditure).
5 Newly arrived resident's waiting
period
We note that a two year newly arrived resident's waiting
period is to apply to young people claiming Youth Allowance who enter Australia
after 1 January 1993. This is
inconsistent with the newly arrived resident's waiting period applying to most
other social security payments.
In our view the retrospective application of the waiting
period to young people who entered the country nearly 5 years ago is untenable.
Youth Allowance will replace Family Payment for 16 and 17
year old secondary students who do not otherwise qualify for AUSTUDY. Following substantial debate in the Senate in
late 1996, amendments which would have applied the two year waiting period to
Family Payment were withdrawn. The
effect of this bill is to apply a two year newly arrived resident's waiting
period to payments for young people who would otherwise have qualified for
Family Payment, and we note that this is clearly inconsistent with the majority
view of the Senate.
In Labor's view the two year waiting period for newly
arrived residents should only apply to young people who enter Australia after 4
March 1997 (the commencement of the Social
Security Legislation Amendment (Newly Arrived Resident's Waiting Periods) Act
1997).
The Australian Democrats have consistently opposed the
imposition of a two year waiting period on social security payments and are of
the view that this provision should be omitted from the bill.
6 Seasonal workers
In the 1997 budget the government announced that it would be
introducing, from 1 July 1998, preclusion periods for high income seasonal or
intermittent workers. Under the
measures, persons earning more than 'average weekly earnings' during a season
or under a contract would have to wait for some unspecified period before being
able to access social security payments.
Proposed section 553C introduces these arrangements for
Youth Allowance. However the bill makes
no provision for definitions of the term 'seasonal or intermittent
worker'; nor does it specify under what
circumstances the Secretary might determine that a person is not eligible for a
payment because the person's income is 'enough' to maintain themselves and
their families.
The substantive legislation giving effect to this measure
has not yet been introduced in the Parliament.
In our view the measure as it applies to Youth Allowance is properly
debated in the context of the substantive legislation.
7 'Member of a couple' and 'member of a
YA couple'
We welcome the extension of the criteria for independence to
include young full-time students in defacto relationships of at least two years
standing, but note that young people will find it difficult to demonstrate
this.
We note also that this represents a diminution of current
arrangements for young unemployed people.
Currently the rates of most primary income support payments vary with
whether or not a person is a 'member of a couple' - with members of couples
generally being paid a lower rate than single people. The definition is also relevant to
establishing a person's eligibility for sole parent pension (or, in future, the
rate of parenting payment) - a person who is a member of a couple is clearly
not eligible.
For young people under 21 however, the 'member of a couple'
rate of payment is significantly higher than the rate paid to single young
people. Young unemployed people, who
under current arrangements would qualify for this higher rate, will now have to
establish that they have been a member of a couple for at least two years
before receiving the higher rate, an arrangement which is inconsistent with the
provisions applying for other social security payments.
The bill contains a number of additional and complex
provisions to deal with situations where a person is a member of a Youth
Allowance couple, including providing for the person's partner's income and
assets to be disregarded, and the person's parents' means to be included.
In our view the bill should be amended to ensure that a
young person who is not undertaking full time study can be regarded as
independent if they are 'a member of a couple' as defined by the Social
Security Act 1991.
8 Indexation arrangements
The indexation arrangements for the various rates of Youth
Allowance set out in Module B of the Youth Allowance Rate Calculator provide
for annual indexation. We note that, for
unemployed people aged 18 to 21, this represents a change from six monthly to
annual indexation, and that the annual indexation arrangements for Youth
Allowance are inconsistent with the six monthly indexation arrangements for
other primary income support payments made under the Social Security Act.
In our view the bill should be amended to provide that all
rates of Youth Allowance be indexed every six months, in April and September
each year, in line with the indexation arrangements for pensions and other
allowances.
9 'Student income bank'
We welcome the 'student income bank' arrangements which
allow full-time students relatively more generous income testing arrangements
to encourage them to supplement their income during semester breaks. We note however that the definition of income
to apply under the 'income bank' arrangements in effect reduces the amount
students can earn before their payment is affected. In our view the current income 'free area'
for students strikes the right balance between self-support and government assistance,
and we recommend that the 'income free area' be increased to the gross income
equivalent of the existing 'free area'.
We note too that these arrangements are not extended to
young people who are not full-time students.
The government’s abolition of the earnings credit scheme (the equivalent
of the 'student income bank' for young unemployed people) in the l996 budget
removed a significant incentive for young unemployed people to take up whatever
part-time or casual work was available, thus maintaining some minimal
connection with the labour force. In our
view this incentive should be restored.
10 Transitional and
consequential provisions
We note that the bill does not contain any transitional
provisions. There is, for example,
nothing in the bill to give effect to the Minister's announcement[38] on 17 June 1997 that 'unemployed
people age 18 - 20 receiving benefits at the time of the announcement will be
grandfathered'.
Evidence from the Department of Social Security[39] during the hearing on the bill
indicated some of the critical decisions on the implementation of the Youth
Allowance are yet to be taken:
'Other decisions have either been
taken or we expect them to be taken concerning the arrangements for students
who are over 25 years of age, and the pensioner education supplement [or] the loan
scheme which currently operates in relation to AUSTUDY.
In the absence of firm transitional provisions it is likely
that the implementation of the Youth Allowance, scheduled for 1 July 1998, will
not go smoothly.
Students will transfer from Family Payment or AUSTUDY to the
Youth Allowance in the middle of the academic year, losing as well as gaining
entitlements at the switch over point.
Changes in the income testing and 'student income bank' arrangements in
particular could disrupt post-school students' financial arrangements.
Young unemployed people granted Youth Training Allowance
after 17 June 1997 and who have not found a job before the switch over point
may find that their payments are reduced because they are no longer considered
to be independent; those currently on
Newstart may have their payments reduced or cancelled because of the imposition
of parental income, assets and actual means tests from that date.
The Department[40]
'hopes that many of these young people who are now on Youth Training Allowance
will return to school at the start of next year [1998], rather than the middle
of the year'. 'Hoping' that young people
do what is in their best interests in the absence of firm legislative
arrangements, and when transitional and consequential arrangements are unknown
is not good enough. We strongly urge the
government to delay consideration of the bill until such time as the
transitional and consequential provisions have been introduced into the
Parliament.
Senator
Kay Denman
(ALP, Tasmania)
|
Senator
Mike Forshaw
(ALP, New South
Wales)
|
Senator
Belinda Neal
(ALP, New South
Wales)
|
|
Senator
Natasha Stott Despoja
(AD, South
Australia)
|
Senator
Meg Lees
(AD, South
Australia)
|
APPENDIX 1 - SUBMISSIONS RECEIVED BY THE COMMITTEE
1
|
Youth Network of Tasmania
|
2
|
Darwin Community Legal
Service
|
3
|
Northern Territory Council
of Social Service
|
4
|
Northern Territory
University Students Union
|
5
|
Australian Rural Youth
|
6
|
Alice Springs Youth
Accommodation and Support Services Inc
|
7
|
Housing Assistance Service
Inc
|
8
|
Anglicare NT
|
9
|
Department of Social
Security
|
10
|
Youth Coalition of the ACT
|
11
|
Welfare Rights Centre
|
12
|
Australian Youth Policy
& Action Coalition Inc
|
13
|
Darwin and Rural Workers
with Youth Network
|
14
|
Brotherhood of St Laurence
|
15
|
National Youth Coalition
for Housing
|
16
|
National Union of Students
|
17
|
Australian Council of
Social Service
|
18
|
Anglicare Australia
|
19
|
Wollongong Youth
Accommodation & Support Association Inc
|
20
|
The University of New
England Postgraduate Association
|
21
|
Students’ Representative
Council - University of Sydney
|
22
|
Flinders University Union
Incorporated
|
23
|
Youth Outreach - NT
|
24
|
NSW Farmers Association
|
25
|
Belconnen Unemployed Youth
Taskforce
|
APPENDIX 2 - PUBLIC HEARING
A public hearing was held
on the Bill on 30 October 1997 in Senate Committee Room 2S1.
Committee Members in attendance
Senator Sue Knowles
(Chairman)
Senator Alan Eggleston
Senator Michael Forshaw
Senator Brenda Gibbs
Senator Dee Margetts
Senator Belinda Neal
Senator Karen Synon
Witnesses
Australian Youth Policy & Action Coalition Inc. (AYPAC)
Ms Carol Croce, Policy Officer
National Youth Coalition for Housing
Ms Sally Watson, Co-ordinator
National Union of Students
Mr John Carey, President
Ms Carmen Jauregui, Welfare
Officer
Brotherhood of St Laurence
Ms Helen MacDonald, Research
& Policy Officer
The Salvation Army
Captain David Eldridge,
Territorial Consultant for Community Development
Welfare Rights Centre
Ms Carla Mullins, Policy Projects Coordinator
Mr Stephen Langman, Solicitor, National Welfare Rights
Network
Ms Bronwyn Richards, Welfare
Rights Advocate, National Welfare Rights Network
Department of Social Security
Mr Jeff Whalan, First Assistant Secretary
Ms Peta Winzar, Assistant Secretary, Youth Allowance
Implementation Branch
Mr Rod Berrill, Director, Youth
Allowance Policy Section