Purpose of the bill
1.1
The Social Services and Other Legislation Amendment (Extension of Coronavirus Support) Bill 2020 (bill) seeks to amend the Social Security Act 1991 (Social Security Act), the Farm Household Support Act 2014, and the Veterans’ Entitlements Act, in order to extend temporary financial support, including the coronavirus supplement and other temporary eligibility and access measures, until 31 March 2021.
Background
1.2
Following the declaration of a human biosecurity emergency related to the spread of COVID-19 in Australia, the Coronavirus Economic Response Package Omnibus Act 2020 (Act) was introduced. A significant element of the Australian Government’s COVID-19 response package, this Act provided for a number of changes to the Social Security Act, including the creation of a coronavirus supplement, the listing of new qualification categories for Youth Allowance and JobSeeker Payment, and waiving of the liquid assets test waiting periods and assets tests.
1.3
As noted above, the Act amended the Social Security Act to make recipients of certain social security payments eligible for a temporary coronavirus supplement; which initially applied from 27 April 2020 to 24 September 2020. The rate of the coronavirus supplement was set at $550 per fortnight.
1.4
The Act also provided the Minister the power to make disallowable legislative instruments extending eligibility for the coronavirus supplement up to 3 months at a time, at a rate specified in a legislative instrument. The Social Security (Coronavirus Economic Response — 2020 Measures No. 14) Determination 2020, registered on 30 August 2020, extended the coronavirus supplement to 18 December 2020 at the rate of $250 per fortnight.
1.5
The Explanatory Memorandum (EM) to the bill notes that a new legislative instrument will be made under existing legislation to ensure the payment of the coronavirus supplement at a rate of $250 per fortnight for social security instalment periods that begin during the period 19 December 2020 to 31 December 2020.
1.6
In a joint media release with the Prime Minister, Senator Anne Ruston, Minister for Families and Social Services, announced on 10 November 2020 that the coronavirus supplement would continue from 31 December 2020 to 31 March 2021, at the reduced rate of $150 per fortnight.
1.7
Further to the extension of the temporary coronavirus supplement provided for in the bill, the Australian Government has announced numerous other measures as part of its COVID-19 response package. These measures include:
two further $250 economic support payments for recipients of the Age Pension, Disability Support Pension, Carer Payment and other payment recipients;
additional funding for domestic and family violence support;
$25 million over four years from 2020–21 to temporarily revise the independence test for those applying for youth allowance;
$231 million over four years from 2020–21 for the Second Women’s Economic Security Package, as part of the JobMaker Plan; and
$108 million over two years from 2020–21 to provide 10 additional psychological therapy sessions and increase access to mental health care.
Key provisions of the bill
1.8
The bill contains one schedule set out in six parts.
1.9
Part 1 allows for the extension of the coronavirus supplement from 1 January 2021 to 31 March 2021. It also ensures the payment can be made available to all persons in receipt of Youth Allowance, whether because they are a student or otherwise. Part 1 also provides that the coronavirus supplement and the temporary exemptions from the ordinary waiting period, newly arrived resident’s waiting period and seasonal work preclusion period, cannot be extended beyond 31 March 2021.
1.10
Part 2 extends the temporary COVID-19 qualification rules for JobSeeker Payment and Youth Allowance from 1 January 2021 to 31 March 2021.
1.11
Part 3 permanently ends the temporary COVID-19 exemptions from the liquid assets test waiting period and assets tests from 1 January 2021.
1.12
Part 4 allows certain specified provisions of the social security law to be temporarily modified by the Minister by disallowable legislative instrument. This power is time limited to 31 March 2021.
1.13
Part 5 introduces a discretionary power under the social security and veterans’ entitlements assets tests to extend the principal home temporary absence provisions where a person, for reasons beyond their control, cannot return to Australia within the allowable absence period.
1.14
Part 6 permits JobKeeper information provided to Services Australia on or before 28 March 2021 to continue to be used after that date.
1.15
As outlined in the second reading speech by the Hon Alan Tudge MP, Minister for Population, Cities and Urban Infrastructure, the government has already announced that through the extension of the instrument-making powers in Part 1 of the Bill, the new instrument-making provisions set out in Part 4 of the bill, and along with other existing powers, a number of new measures will be introduced, including:
extension of payment of the coronavirus supplement for an additional three months at a rate of $150 per fortnight;
extending changes to the personal income test for recipients of JobSeeker payment (excluding single principal carer recipients) and youth allowance (other) to provide a $300 income-free area and a 60c taper;
extending changes to the partner income test for JobSeeker payment recipients to taper at 27c in the dollar for income earned above the partner income-free area;
extending expanded eligibility criteria for JobSeeker payment and youth allowance (other) to allow sole traders, the self-employed and permanent employees who have been stood down by their employers, people self-isolating because they or someone they are caring for is required to continue to be eligible for payment;
extending the waiver of the ordinary waiting period, seasonal work preclusion period and newly arrived resident's waiting period;
extending until 16 April 2021 the period in which income support recipients can maintain eligibility for payment and retain their concession card while receiving a nil rate of payment due to employment income; and
extending other minor policy changes, such as pension portability arrangements, currently implemented by legislative instruments under item 40A of schedule 11 to the Coronavirus Economic Response Package Omnibus Act 2020.
Financial implications
1.16
The EM notes that, through the instrument making powers set out in Parts 1 and 4 of the bill, the new measures will be delivered at a cost of $3.2 billion to
2024–25.
Legislative scrutiny
1.17
The Senate Standing Committee for the Scrutiny of Bills and the Parliamentary Joint Committee on Human Rights had not reported on their consideration of the bill at the time this report was prepared.
1.18
The bill's statement of compatibility (SoC) with human rights noted that the bill engages the following rights:
the right of everyone to social security in Article 9, and the right of everyone to an adequate standard of living for an individual and their family, and the continuous improvement in living conditions in Article 11 of the International Covenant on Economic, Social and Cultural Rights;
the rights of the child in Article 26 of the Convention on the Rights of the Child; and
the right to privacy in Article 17 of the International Covenant on Civil and Political Rights (ICCPR).
1.19
The SoC notes that the right to privacy is limited by the bill, through the continued use of JobKeeper information obtained by Services Australia from the Australian Taxation Office (ATO), as allowed for in Part 6 of the bill. The SoC noted that this limitation of the right to privacy is 'reasonable, necessary and proportionate as a public benefit will flow from the use of this information'.
Conduct of the inquiry
1.20
The bill was introduced into the House of Representatives on 12 November 2020. Pursuant to the adoption of the Senate Standing Committee for the Selection of Bills report on 12 November 2020, the bill was referred to the Community Affairs Legislation Committee (committee) for inquiry and report by 27 November 2020.
Submissions
1.21
The committee wrote to relevant organisations inviting them to make a submission to the inquiry by 19 November 2020. Submissions continued to be accepted after this date.
1.22
The committee received 35 public submissions which are published on the committee's website. A list of submissions received is included at Appendix 1.
Witnesses
1.23
A public hearing for the inquiry was held in Canberra on 25 November 2020.
1.24
The committee heard evidence from a range of organisations, peak bodies and academics. A list of witnesses is included at Appendix 2.
Acknowledgement
1.25
The committee would like to thank those individuals and organisations that made submissions and gave evidence at the public hearing.
Note on references
1.26
References to the Committee Hansard are to the proof Hansard. Page numbers may vary between the proof and official Hansard transcripts.