Social Security and Other Legislation Amendment (2012 Budget and Other Measures) Bill 2012

Australian Greens Dissenting Report

The Australian Greens welcome the modest improvements to social security arrangements that are set out in some of the schedules to this bill.

However these gains are small in comparison to the backward steps being taken.  Schedule 2 will reduce the period for which a wide array of social security payments can be received while overseas, from 13 to six weeks. Over twenty different benefits are affected.

Schedule 3 basically reduces the age at which families can receive Family Tax Benefit Part A (FTB-A) for their children, from 21 to 18.

Tightening the portability rules

The National Welfare Rights Network indicated that the changes to portability rules were the greatest concern to their member organisations. In particular, these changes have the potential to disadvantage people who have come here as migrants or refugees, and who have family members dispersed across the globe to whom they have strong ties of responsibility:

Often people who access the portability provisions want to be able to stay with close relatives such as parents or children. The person needing to travel may be frail of have severe ill-health. This is particularly important for people who do not have family members in Australia and the restrictions in this Bill would limit their ability to spend some quality time with their parent(s) or closed member of their family.

Similarly, six weeks may not be sufficient time for those seeking cheaper or alternative medical treatment.

Taking into account Australia’s history as a nation built on immigration, the economic contribution of migration policies and the distance of Australia from other countries, the proposals to limit portability is problematic. Furthermore, considering how much it costs to go overseas, being only able to stay overseas for six weeks seems unfair.[1]

The National Welfare Rights Network noted that the government has repeatedly reduced the eligibility criteria for overseas travel, from 12 months, to 26 weeks, and then to 13 weeks.[2] Not content with this, and despite known cases of hardship drawn to the committee's intention in the Welfare Rights Network's submission, the government wants to reduce it once again, to 6 weeks.

The Greens believe this is unfair, and that the limited discretionary provisions to extend eligibility are too restrictive to address legitimate needs.

Greens Recommendation 2

It is recommended that the Senate reject Schedule 2 of the Bill.

Cutting back Family Tax Benefit Part A

There are two problems with cutting the age of children that qualifies families for receiving FTB-A.

This change has the potential to disadvantage young adults and their families. The National Welfare Rights Network stated that:

reform will create a new gap in the social security safety net. Food, clothing and shelter are not less expensive if a young person swaps a text book for newspaper advertising employment opportunities for someone looking for work.

Young people over 18 who are not economically independent will not be eligible for youth allowance. And it appears that 'the Parental Income Test (PIT) will act to disqualify many young people from any entitlement'.[3] The Greens do not believe this is compatible with a fair and sustainable social security system

Of even greater concern however is the ongoing inadequacy of Youth Allowance. The proposed reforms will increase the number of people relying on Youth Allowance. But this allowance is widely recognised as inadequate. The National Welfare Rights Network and the National Council of Single Mothers and their Children made submissions that called for it to be increased by $50 per week.[4] The Australian Council of Social Service has made a similar proposal.

 The Greens reiterate the view, put by numerous organisations, that Youth Allowance must be reformed to provide a realistic level of support for those who rely upon it. The Greens cannot support any legislative amendment that moves more people onto Youth Allowance, when we know that it is inadequate.

Greens Recommendation 2

It is recommended that the Senate reject Schedule 3 of the Bill

 

Conclusion

This government says that it wishes to protect vulnerable people from social security reforms that could hurt them. Yet it has failed to tailor its reforms to the needs of these people. It is failing to improve administration of key benefits to ensure that vulnerable young people, refugees and other social security recipients will not be harmed.

The evidence from both the National Council of Single Mothers and their Children, and from the National Welfare Rights Network is clear. When social security policy intersects with the lives of the most disadvantaged in our community, the policies are inadequate. Their implementation is defective.

The first step government must take is to respond to these concerns. It should not be to tighten eligibility rules and then worry about implementation later.

Greens Recommendation 3

It is recommended that the government review administration of existing social security benefits, including conducting detailed consultation with affected groups, before proposing eligibility changes, rather than afterwards.

 

Senator Rachel Siewert

Australian Greens

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