Social Services Legislation Amendment (Family Payments Structural Reform
and Participation Measures) Bill 2016
Introduction
1.1
The Australian Greens do not support the recommendation of the majority
report that the Social Services Legislation Amendment (Family Payments
Structural Reform and Participation Measures) Bill 2016 (the Bill) be passed.
1.2
The Bill contains measures that the Australian Greens oppose including
cuts to FTB-B for single parents with children aged 13 or over (with some
exemptions for specific categories), and the removal of the FTB-A and FTB-B
supplements.
1.3
The Australian Greens briefly outlined our concerns regarding the
measures contained in the Bill in our dissenting report to the Social Services
Legislation Amendment (Family Payment Structural Reform and Participation
Measures) Bill (No. 2) 2015. We expressed our fundamental concerns in our
dissenting report on the previous bill, Social Services Legislation Amendment
(Family Payment Structural Reform and Participation Measures) Bill 2015. The
concerns we outlined in those dissenting reports still stand.
1.4
The Government's stated purpose for the measures in this Bill are to
make provision for the additional $3 billion needed for the measures contained
in the Jobs for Families Child Care Package.[1]
As the Australian Council of Social Service (ACOSS) stated in its submission:
We reject the linking of family payment cuts to increased
investment in child care and are most concerned that the Committee is
considering these bills in conjunction. Any additional investment in early
childhood education and care should be drawn from general revenue, not from low
income families.[2]
1.5
The Australian Greens agree that the Government should not be targeting
low income families to fund the Jobs for Families Child Care Package. This is
particularly the case as the measures in the Jobs for Families Package will
adversely impact on many low income families. The Government's continued harsh
approach towards income support recipients is unfair and unnecessary.
Cuts to FTB-B
1.6
The Bill removes FTB-B for single parents (under the age of 60) from the
start of the year their youngest child turns 17. It also significantly reduces
FTB-B for single parents (under the age of 60) with a youngest child aged 13-16
to $1000.10 annually. As Anglicare Australia stated in its submission:
We are particularly concerned about the detrimental impact of
the cut of Family Tax Benefit part B (FTB B) on single low-income families with
children over 13. The measure is said to encourage the parent back into the job
market as their child enters secondary school, in order to increase family
income, and so boost workforce participation levels and the national economy.
Anglicare Australia understands this intention, but contends the reduction of
payments from families with teenagers, together with the higher costs
associated with raising older children, is likely make low income families even
more financially vulnerable rather than less. When this 'encouragement' to find
extra work fails, affected families will find it harder to fund important
opportunities for their children's education and development, with flow on
impacts on their life choices, and the risk of further perpetuating the cycle
of poverty and disadvantage.[3]
1.7
The cuts to FTB-B in the Bill will hit single parents of teenagers
particularly hard. The Australian Greens do not support this measure.
Removal of the FTB-A and FTB-B supplements
1.8
One of the harshest cuts in the Bill is the removing of the end of year
supplements for FTB-A and FTB-B. The Government's rationale that updated
computer systems will enable end of year supplements to be phased out is
flawed.[4]
As the National Welfare Rights Network stated in its submission:
... simply abolishing the supplements, without a corresponding
and equivalent increase in base rates of payment, is no more than a reduction
in payments in a system where levels of support for many families are
inadequate (especially following the transition of single parents with children
from Parenting Payment Single to Newstart Allowance).[5]
1.9
The Australian Greens do not support this unfair measure.
Other Measures
1.10
There are a number of other measures contained in the Bill, namely an
increase to FTB-A of $10.08 per fortnight for each child and an increase to
Youth Allowance (and a number of additional income support payments) where the
recipients are under 18 and are living at home of $7.48 per fortnight, and an
increase to FTB-B of $1000.10 per annum for families with a child under one.
1.11
In relation to the increase to FTB-A, ACOSS stated in its submission:
The expenditure component of the package, the boost to Part A
by $5 a week, does not take effect until 1 July 2018. It is far too little to
compensate families for the losses imposed by other changes (amounting to an
estimated $48 per week for a single parent (under 60) with one child over 13
years) and it takes effect after the payment cuts.[6]
1.12
The Australians Greens do not support this measure, as it does not
adequately compensate recipients for other cuts to the payment.
Recommendation 1
1.13
The Australian Greens recommend that the Bill not be passed.
Senator Rachel
Siewert
Australian Greens
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