Chapter 1
Introduction
Referral of the bill
1.1
The Families, Housing, Community Services and Indigenous Affairs and
Other Legislation Amendment (Budget and Other Measures) Bill 2010 (the bill)
was introduced into the House of Representatives on 20 October 2010 by the
Minister for Families, Housing, Community Services and Indigenous Affairs,
the Hon Jenny Macklin MP.[1]
1.2
On 28 October 2010, the Senate adopted the Selection of Bills
Committee Report No. 13 of 2010 and referred the provisions of schedules 2 and
3 of the bill to the Community Affairs Legislation Committee (the committee)
for inquiry and report by 22 November 2010.[2]
1.3
After examination of the bill, the committee determined that the focus
of the inquiry should be on schedule 2, particularly because of the time
critical nature of these provisions.
Conduct of the inquiry
1.4
In accordance with usual practice, the committee advertised the inquiry
in The Australian and on the internet. In addition, the committee
contacted a number of organisations in writing alerting them to the inquiry and
inviting them to make a submission. The committee received 10 submissions,
listed at Appendix 1.
1.5
The committee held a public hearing in Canberra on 15 November 2010. A
list of witnesses who attended the hearing can be found at Appendix 2.
1.6
The committee notes the short period of time between referral of the
inquiry, lodgement of the submissions and the public hearing. The committee
appreciates the effort required to meet this timeframe, and thanks those
organisations and individuals that made contributions to the committee's
inquiry.
1.7
The committee would also like to thank the Department of Families,
Housing, Community Services and Indigenous Affairs (FaHCSIA) for their assistance
and prompt response to questions on notice arising from the public hearing on 15 November
2010.
Overview of the bill
1.8
The purpose of schedule 2 of the bill is to amend the Social Security
Act 1991 (the Act) to introduce a requirement for ongoing residence in
Australia to qualify for the disability support pension (DSP), bringing the DSP
into line with other workforce age payments.[3]
The main purpose of the DSP is to assist recipients with the cost of living in
Australia, and to support their engagement in workforce age activities that
lead to greater levels of social and economic participation.[4]
The amendments are intended to prevent payment of the DSP to people who live
permanently overseas but return to Australia every thirteen weeks in order to
retain their pension.[5]
The bill is scheduled to commence on 1 January 2011.[6]
Main provisions of the bill
Residency requirement
1.9
The Act states that in order to qualify for the DSP, a person must be a resident
at the time they apply for the DSP.[7]
1.10
Sections 1 to 4 of schedule 2 of the bill propose to amend the Act so
that instead, the person is required to be an "Australian resident",
or show ongoing residency, to continue to qualify for the DSP.
1.11
Subsection 7(2) of the Act defines an Australian resident as a person
who:
(a)
resides in Australia; and
(b)
is one of the following:
(i)
an Australian citizen;
(ii)
the holder of a permanent visa;
(iii)
a special category visa holder who is a protected [special category
visa] holder.[8]
1.12
Subsection 7(3) of the Act requires certain factors to be considered
when determining whether or not a person resides in Australia. These include
elements of a person's lifestyle in Australia such as the type of accommodation
used; the nature of family relationships; the extent of employment, financial
ties and assets; and the frequency and duration of a person's travel outside of
Australia.[9]
1.13
The proposed ongoing residency requirement will not apply to recipients
whose DSP is portable under an international social security agreement; nor
will the new requirement apply to disability support pensioners who were
grandfathered from certain portability changes made in 2000 and 2004.[10]
1.14
FaHCSIA informed the committee that there are 19 countries with which
Australia has international social security agreements that include the DSP.[11]
A list of these agreements can be found at Appendix 3.
Terminally ill overseas disability
support pensioner
1.15
Sections 5 and 6 of schedule 2 of the bill define an "Australian
resident disability support pensioner" and a "terminally ill overseas
disability support pensioner". The bill proposes different portability
status for these two categories of the DSP as follows:
- Australian resident disability support pensioner – 13 weeks; or
-
terminally ill overseas disability support pensioner – unlimited
period.[12]
1.16
To qualify as a "terminally ill overseas disability support
pensioner" a person must meet the requirements of section 1218AA of the
Act, which requires all of the following:
(a)
the person is severely disabled;[13]
and
(b)
the person is receiving DSP; and
(c)
the person is terminally ill; and
(d)
the person's absence from Australia is or will be permanent; and
(e)
the purpose of the person's absence is:
(i)
to be with or near a family member of the person; or
(ii)
to return to the person's country of origin.[14]
1.17
The DSP may also be paid for the duration of overseas study, so long as
the study can be credited towards the recipient's full time Australian course.[15]
"Grandfather" exemptions
1.18
Several past amendments to the Act, in 2000 and 2004,[16]
included "grandfather" provisions to exempt existing recipients of
the DSP from the effects the amendments would otherwise have had on their portability.
Pensioners who had made lifestyle or travel decisions based on previous
legislation were thereby not affected by those amendments. Section 8 of schedule
2 of the bill proposes that these exemptions be maintained.
Issues raised regarding the bill
1.19
A number of submitters expressed various concerns about the impact the
proposed ongoing residency requirements would have on DSP recipients. These
concerns particularly focussed on:
- disability support pensioners who have already established a life
overseas, including those with family ties and children also living overseas;[17]
and
- disability support pensioners with no independent living capacity
whose carers are required to work overseas for extended periods of time,
including the impact of the proposed changes on the carer(s).[18]
DSP recipients already residing
overseas
1.20
Under the proposed amendments, there will be a requirement for ongoing
residency in Australia to receive the DSP, unless a DSP recipient is exempted
from this requirement.
1.21
FaHCSIA advised the committee:
Centrelink data indicate that there are approximately 1,000
DSP recipients who take 3 or more return trips overseas each year. DSP
recipients in this cohort will be affected by this measure if they are found
not to be residing in Australia.[19]
1.22
It was suggested by some submitters that some DSP recipients may have
chosen to live overseas as it was easier, and less expensive, than attempting
to contend with the cost of living in Australia on a pension.[20]
In other cases, the committee heard that returning to Australia may have major
mental health impacts for some DSP recipients.[21]
1.23
Some submitters called for a greater level of discretion in the bill to
cater for individual circumstances.[22]
A number of possible exemptions were suggested such as a
"grandfather" exemption for those living overseas before the proposed
commencement of the bill on 1 January 2011.[23]
Pensioners who may have made lifestyle or travel decisions based on previous
legislation would thereby not be affected by the amendments.
1.24
The National Welfare Rights Network (NWRN) called for a greater level of
discretion for DSP recipients requiring an extended portability period:
In the past when such significant changes have been
introduced in relation to portability there have been grandfathering provisions
provided to protect those who have made decisions prior to a legislative
change. There continue to be protections for those on disability support
pension who are deemed severely disabled and were overseas on a permanent basis
prior to the changes on 1 July 2004. It is unfair that the group impacted by
these impending changes will have fewer protections.[24]
1.25
FaHCSIA informed the committee that the DSP is intended to support
people with the cost of living in Australia, in line with other workforce age
pensions.[25]
FaHCSIA provided information to the committee which shows other workforce age
pensions include portability of up to 13 weeks.[26]
Payments made to DSP recipients living overseas do not therefore fulfil the
intended purpose of the pension,[27]
consistent with the government's agenda to encourage participation
rehabilitation for people with a disability:
As to government priorities for disabilities, the government
has a strong agenda in the disabilities area to support people with a
disability to address barriers and to encourage participation rehabilitation
which would have physical and economic benefits for the individual and the
taxpayer as well as social benefits and positive life outcomes. Increasing
participation rates across areas has been identified in both the
intergenerational report and the tax review as crucial for economic development
and sustainability.[28]
DSP recipients where carer spends
extended periods overseas
1.26
The committee also explored the challenges for DSP recipients dependent
on a carer where the carer is required, in the course of their employment, to spend
extended periods of time overseas. Under the proposed amendments in schedule 2,
the DSP recipient travelling with a carer would lose entitlement to the DSP if
the DSP recipient was deemed to be no longer resident in Australia. One
submitter outlined that this would also be detrimental to carers by restricting
the ability of carers to travel overseas.[29]
1.27
Mr Hugh Borrowman and Ms Suzanne Marley described their situation to the
committee. They are legal guardians of their 27 year old son who is classified
as "severely disabled" under the Act.[30]
As part of his career, Mr Borrowman is required to periodically live overseas.
As Mr Borrowman's son has no independent living capacity, he necessarily
accompanies Mr Borrowman and Ms Marley on these trips.[31]
Mr Borrowman explained how the proposed amendments could impact him, and his
family:
I would like to invite you to consider what the alternatives
are for people in our situation. Is it to give up our son’s care to the state?
Clearly, that is not a possibility...Is it not to follow the career option that
I have chosen? I do not know how that squares with modern sentiments about
carers in our community, as exemplified in my submission and in the Carer
Recognition Bill 2010, which includes ‘the fundamental principle that all
carers should have the same rights, choices and opportunities as other
Australians’. Should DFAT, the defence forces, BHP, anybody operating in an
international environment add a rider to their job ad saying, ‘Carers need not
apply’?[32]
1.28
Mr Borrowman went on to suggest the use of a legal guardianship order to
qualify for an exemption to the ongoing residency requirement as a possible
solution to the issue facing his family.
1.29
Mr Borrowman and Ms Marley proposed that the bill allow for severely
disabled DSP recipients with a legal guardian to be exempt from the residency
requirement. They outlined that guardianship orders are determined
independently by Australian courts, and it would only be necessary for DSP
recipients with no independent living capacity intending to spend extended
periods of time overseas with a carer to apply for a guardianship order.[33]
Mr Borrowman and Ms Marley outlined that the exemption would only apply
for the intended period of travel overseas:
It would be a simple matter to insert an additional exemption
to cover persons subject to a guardianship order issued by a competent judicial
authority...There would be no additional cost to the Commonwealth through such
an exemption: by definition, affected persons would already be receiving DSP -
it does not create a new category of recipient. And on this model, because the
assessment of guardianship is carried out independently by the courts, there is
an existing compliance mechanism in place.[34]
1.30
FaHCSIA argued that many DSP recipients have a non-formal care
arrangement and applying for a guardianship order may place an undue burden on
carers to formalise what, in many cases, may be a fragile care arrangement.[35]
FaHCSIA further argued that using guardianship orders in this manner may be
contrary to the principles of state and territory guardianship tribunals, as
tribunals seek to encourage the use of non-formal arrangements to provide the
least restrictive outcome for the person with a disability.[36]
1.31
FaHCSIA went on to state that using guardianship orders would create
administrative complexities for Centrelink and as a result would not be an effective
compliance mechanism.[37]
As guardianship orders are a state and territory-based responsibility, there
are different types of orders across jurisdictions; therefore it would be
difficult for Centrelink to make consistent and equitable assessments at a
national level.[38]
Furthermore, guardianship orders are granted for a limited time which would
require Centrelink to track variations to guardianship orders of DSP recipients
living overseas.[39]
1.32
The committee was concerned by the issues raised by Mr Borrowman. The
committee is of the view that FaHCSIA and the Minister continue to examine ways
in which to address this situation.
Human rights
1.33
The National Ethnic Disability Alliance (NEDA) expressed concern that
the proposed amendments are contrary to the United Nations (UN) Convention on the
Rights of Persons with Disabilities ratified by the Australian Government in
2008, and the freedom of movement guaranteed to all Australians:
On the Department of Immigration and Citizenship website, one
comes across the five freedoms guaranteed to all Australians. This includes the
freedom of movement, including the quote: ‘We can leave and return to Australia
at any time.’ While it may not be intentional, the amendments as proposed
restrict this freedom in a negative way. Human rights are firm on the basis of
the UN Convention on the Rights of Persons with Disabilities—and I would like
to raise the question at this point as to whether the amendments conform with
the rights as embedded in the convention.[40]
...
I do not think that people with disabilities who are
recipients of the DSP are necessarily in a position to make the same choices
that other people have in their lives. So in that respect I do not think people
on disability support pension should have an additional restriction on their
rights and freedoms. In that sense I do believe that there is a difference when
it comes to the residency requirements, especially if living overseas would
mean a substantive improvement in quality of life for that person. Given that
difference in terms of the limitations on options, I do think that is a
justifiable distinction.[41]
1.34
FaHCSIA stated that matters relating to breaches of human rights law on
the rights of people with a disability had not been raised with them in the
course of discussions relating to the bill.[42]
1.35
The committee notes that the Australian social security system is a non-contributory
system, unlike most other countries, where payments are tied to the contributions
a person makes during their working life.[43]
Further:
A person does not have to have paid taxes to be eligible but
at the same time paying taxes does not create an entitlement. Our system is
also a residence based system; that is, the person needs to be a permanent
resident and residing in Australia for most benefits.[44]
Equity with the age pension
1.36
NEDA suggested that the proposed amendments limiting the portability of the
DSP was not consistent with other pension categories, namely the age pension:
The amendments are inconsistent with other approaches the
Australian government takes for other population groups. For instance, they do
not apply to aged pensioners. In no way is NEDA proposing that the amendments
should therefore be applied to aged pensioners. Quite to the contrary, the view
that is put forward here is that the approach taken should be one to support
human rights and quality of life, especially for those whose quality of life is
already compromised due to disability, ill health or age related restrictions.[45]
1.37
Mr Borrowman explained how the inability of a DSP recipient with a
congenital intellectual disability to participate in the workforce is comparable
to an age pensioner:
People of the sort I am talking about have reached a
threshold condition of a congenital intellectual disability, like an age
threshold of the age pension. That is never going to change. It cannot go
backwards. They are not going to get better. That is why I say that that
category of people is more analogous to people who are on an age pension. They
are not going to be reintegrated into the workforce. They are not going to get
better.[46]
1.38
FaHCSIA outlined that the term "severely disabled" is used in
relation to assessment for social security agreements and it is for people who
will not be able to work for more than 8 hours per week in the coming two
years.[47]
1.39
The committee was advised that:
FaHCSIA does not know the number of the people who are
severely disabled who have the potential to get into jobs and be rehabilitated
to join the workforce. However, there are currently around 90,000 people with
an intellectual disability receiving the DSP who would generally be assessed as
being severely disabled. This group of DSP recipients have permanent life long
impairments that will not improve.[48]
1.40
Prior to the amendments made by the Family and Community Services and
Veterans' Affairs Legislation Amendment (2003 Budget and Other measures) Act
2003, severely disabled DSP recipients were granted an unlimited
portability period, while DSP recipients without a severe disability were given
a 26 week portability period.[49]
DSP recipients with a severe disability were acknowledged as a separate
category for portability entitlements.
1.41
FaHCSIA defined the DSP as a 'workforce age payment' and informed the
committee that the DSP had been so defined by the Hon Senator Kay Patterson,
then Minister for Family and Community Services, in 2003[50]
when she described the DSP as being:
...in line with the government's overall welfare reform strategy
which aims to engage people of work force age in activities in Australia that
will lead to greater levels of economic and social participation.[51]
1.42
FaHCSIA argued that whilst the participation prospects of certain DSP
recipients are generally constrained, 'the main purpose of the DSP is to assist
people with the cost of living in Australia and to support their social and
economic participation'.[52]
FaHCSIA outlined that in addition to the increased payment levels for DSP
recipients, these principles are supported through Australian Disability
Enterprises; the Supported Wage Scheme; Disability Employment Services; and the
National Disability Agreement.[53]
1.43
FaHCSIA further outlined that there were risks involved in offering
portability to a category as broad as those defined as "severely
disabled" under the Act:
People who may be severely disabled may be severely disabled
for a short period of time and may have some capacity for participation and
can, therefore, be assisted and perhaps have some access to work. The issue is,
of course, if you grant unlimited portability to a group of people that may
include a very broad category of people, it may be difficult for us to continue
to monitor their improvement or whether or not they are still eligible for
disability payments and/or for extended portability. One of the reasons for the
2004 changes was that there was a growing number of people who were perhaps
coming into those categories and the government was looking to assist them into
work at that stage.[54]
1.44
The committee acknowledges that the "severely disabled"
category covers a broad range of people; some of whom are in that category
temporarily while undertaking rehabilitation, and others who will remain
severely disabled for the rest of their lives. The committee considers there is
a need for further work to be undertaken on the definition of "severely
disabled" to recognise this distinction. The committee is of the view that
FaHCSIA should examine the feasibility of distinguishing between those who have
the potential to be rehabilitated to work in the future; and those who due to
the nature of their disability will never be able to participate in work.
Retrospectivity
1.45
The amendments in schedule 2 of the bill are scheduled to commence on
1 January 2011.[55]
The Senate Scrutiny of Bills Committee noted if the bill passes after 1 January
2011 then the provisions in schedule 2 will commence retrospectively and 'the
provisions of the bill are designed to be detrimental to some people and their
possible retrospective commencement therefore attracts the Committee's
attention'.[56]
1.46
The committee notes that the Minister for Families, Housing, Community
Services and Indigenous Affairs has advised the Scrutiny of Bills Committee:
If passage in 2010 does not happen, the commencement would
not be retrospective.
Despite the public announcement of the measure...I would not
intend the measure to apply retrospectively (with adverse effect) should
passage be delayed. In that event, I would intend to move an amendment delaying
commencement of the measure to the day after Royal Assent.[57]
1.47
The Scrutiny of Bills Committee noted, therefore, 'that there is no
intention for the provision to apply retrospectively with adverse effect, which
addresses its concerns'.[58]
Other issues raised during the inquiry
1.48
In addition to the concerns raised specifically regarding the impact of
the changes proposed in the bill, issues were also raised regarding the
government's savings estimates, as well as consultation on and communication of
the changes proposed in schedule 2.
Estimated savings to government
1.49
The changes proposed in the bill have been estimated to result in
savings to government of $3 million.[59]
1.50
FaHCSIA informed the committee that the figure of $3 million only
included savings which were within the FaHCSIA portfolio: '...in the current
costing model we do not include any government programs or the add-on costs or
the other costs that are outside our portfolio'.[60]
1.51
Ms Sibylle Kaczorek, Executive Officer of NEDA, raised concern about
FaHCSIA's calculation of the savings, and particularly whether the department
had included additional costs which might be incurred if recipients of the DSP
currently residing outside Australia decided to return to Australia
permanently:
Now I would like to address the question of false accounting.
NEDA would be interested to hear how the projected figure of $3 million in
savings is calculated, as we do not believe that the figure is correct. In
fact, we believe that the changes, if accepted, would create an additional cost
to taxpayers. We believe that what has been forgotten in the costing is the
additional expenses for people on the DSP who are residing in Australia. This
may include a combination of things, which I will list—and I might warn you
that this list is rather long. We question whether the costing includes
consideration for carer allowance; carer payment; utility allowance; rail
concessions; national partnership agreement concessions such as the reciprocal
transport concessions or compensation through Treasury for concessions on
services such as municipal and water rates, utilities, motor vehicle registration
and public transport; the National Mental Health and Disability Employment
Strategy; Australian Disability Enterprises; Disability Employment Network;
postal concessions for the blind; print disability services; disability parking
permit scheme; National Companion Card; rent assistance and public housing; and
home and community care services. This list could probably be extended even
further.[61]
1.52
The NRWN also flagged potential costs as a result of the changes:
There are additional costs if someone returns to Australia
because the rate payable would be higher than the rate which is payable when
they are overseas. There are also costs associated with them accessing health
services. Similarly, there are pharmaceuticals and those sorts of things and even
concessions that, in a way, they do not have access to because they are
overseas.
...
A lot of the clients that we see who are going backwards and
forwards between other countries and Australia have got new families and often
dependants and there are the issues that will raise if all of a sudden there is
no payment of disability support pension to the primary person who is an
Australian citizen; there will be more applications for residency for spousal
visas and also visas for children to come to Australia and the associated
support that will go hand in hand with that, because these people are
disability support pensioners, so there is the issue of whether or not there
will be that capacity for a spouse to actually earn money and those types of
things. We see that there will be longer-term costs that have not necessarily
been factored in.[62]
1.53
Ms Kate Beaumont, Vice-President of the NRWN, raised further concern
about the potential for other costs to government as a result of:
...a high number of appeals in this area because we only have
to look at the Administrative Appeals Tribunal cases related to portability,
residence and returning residence, which causes quite a headache for Centrelink
and also people challenging decisions that are made because they regard that,
as they are an Australian citizen or they have Australian residency, they
should be eligible for all of the payments and things like that. We can see
that there will be those sorts of costs.[63]
1.54
FaHCSIA acknowledged that 'there are certainly potential savings'[64]
to government elsewhere, for example medical and pharmaceutical expenditure,
which might arise if some current recipients of the DSP choose to permanently
reside outside Australia as a result of the change to the residency
requirements proposed in the bill.[65]
The department went on:
...it is a common perception that if a person [is] living
overseas on a disability they save the Australian taxpayer money in terms of
medical costs. We found that if a DSP recipient were given unlimited
portability their access to Australian pharmaceutical benefits, the PBS and the
MBS, was substantially reduced. However, if they were only leaving Australia
under portability provisions—that is the 13-week arrangement—there was no real
change in their usage patterns.[66]
1.55
In response to questions on notice, FaHCSIA advised:
The measure is expected to save the Government $8.4 million
over the forward estimates period. The assumptions used are based on 2007/08
Centrelink data, which shows that approximately 1,000 DSP recipients made more
than 3 trips outside Australia in that financial year. Out of this group, 154
spent less than 8 weeks in Australia.
FaHCSIA administered savings are based on the assumption that
150 DSP recipients (or 15 % of the DSP population who travel overseas regularly
each year) will chose [sic] to remain overseas and will have their payment
cancelled. It is assumed that once this provision is enacted the number of
people choosing to remain overseas and cancelled from payment will reduce to 15
people each year over the out years.
The costing assumptions and estimates were agreed with the
Department of Finance and Deregulation.[67]
Recommendation 1
1.56
The Department of Families, Housing, Community Services and Indigenous
Affairs establish a mechanism to monitor the ongoing cost impact of the changes
contained in this bill.
Consultation and communication
1.57
During the course of the inquiry, some submitters expressed concern
about the way in which the changes to the DSP proposed in the bill were
communicated to those likely to be affected.[68]
One submitter was particularly concerned that:
...there are DSP recipients that are completely unaware of
this proposed change. There were a couple of media releases in March. If they
were overseas at the time, they possibly may not have read an Australian paper
that day. Sure enough it was in the budget, if you knew where to go looking for
it.[69]
1.58
The NRWN was similarly concerned:
I do not think that very many people affected by these rules
would be aware of them. We have made some efforts to contact one of our clients
who is a blind pensioner who lives in Indonesia to inform him through his
brother about these impending changes. That is just one out of essentially
1,000 or so people that, according to FaHCSIA, would be affected by these
changes. I do not think there is a great deal of awareness. Whilst there were
the media statements from the minister and a media story in March which got a
little bit of publicity, most people would not be aware of the implications of
these changes or when they are due to start.[70]
1.59
FaHCSIA informed the committee that there had 'not been any formal
consultation on the initiative' but that information on the proposed changes
had been made public by way of two media releases:
There was a much earlier media release–in March of this
year–by the minister for FaHCSIA...So, there have been two media releases–one
in March and one in October...[71]
1.60
FaHCSIA went on to state that the department had not received any
requests for consultation.[72]
1.61
The committee notes that the Minister's media release on 20 October
2010 advised that:
From January 2011 only DSP recipients permanently residing in
Australia will be able to continue to receive the DSP except under limited and
specific circumstances. This change will bring DSP into line with other
workforce age payments.[73]
1.62
The media release also stated that the 13 week temporary absence rule
would remain 'to allow DSP recipients to legitimately travel overseas for short
periods' and that:
The legislation will not affect any disability support
pensioner who has portability under an international social security agreement,
is grandfathered from changes introduced in 2001 or 2004, or is entitled to
portability because they are severely disabled and terminally ill and overseas
to be cared for by a family member.[74]
1.63
In response to a question on notice, the department informed the
committee that DSP recipients currently residing outside Australia would be
advised of the new residency requirement:
The proposed residency changes will affect approximately
1,000 DSP recipients who have been identified as having a high likelihood of
residing overseas. The identification of this group is based on a “presence
test”, which measures length of time spent overseas.
All DSP recipients identified in this process will be sent a
letter by Centrelink informing them of the changes to the residency rules for
DSP. The letter will invite the recipient to contact Centrelink if they want
more information about the changes. Centrelink also plans to contact all
customers identified in this process by telephone. Centrelink has a range of
publications and communication products which will be used to inform DSP recipients
about the changes to the legislation.
Any recipient who is formally reviewed will be invited to
discuss their personal situation and reasons for their long overseas absences
with a specialist Centrelink review officer prior to any review outcomes being implemented.
A customer who is overseas when Centrelink contacts them will be given time to
discuss their personal situation directly with Centrelink in Australia at the
end of their 13 week portability period.
DSP recipients found to be not residing in Australia and who
have their payment cancelled by Centrelink will be entitled to the normal
customer appeal mechanisms, including having the decision reviewed by a
Centrelink Authorised Review Officer (ARO) in the first instance and then by
the Social Security Appeals Tribunal (SSAT) and Administrative Appeals Tribunal
(AAT).[75]
1.64
The committee was concerned by the evidence it received regarding
consultation on the changes proposed in the bill. Consultation by the
department was not effective, and did not involve those affected by or with an
interest in the change to the residency requirement.
1.65
The committee suggests that FaHCSIA develop effective consultation
processes, subject to budget constraints, to ensure in the future that relevant
stakeholders are appropriately engaged.
Conclusion
1.66
The committee notes that the changes proposed in schedule 2 of the bill
are consistent with the purpose of disability support pension, which is to
assist people with the cost of living in Australia, and is designed to engage
people of workforce age in activities in Australia that will lead to greater
levels of economic and social participation.
1.67
As discussed earlier, the committee was concerned by the issues described
by Mr Borrowman. The committee suggests that FaHCSIA and the Minister look for
ways to resolve this situation.
Recommendation 2
1.68
The committee recommends that the bill be passed.
Senator
Claire Moore
Chair
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