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senate vote 2022-11-22#10
Edited by
mackay staff
on
2022-12-31 11:30:19
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Title
Bills — Social Services and Other Legislation Amendment (Workforce Incentive) Bill 2022; in Committee- Social Services and Other Legislation Amendment (Workforce Incentive) Bill 2022 - in Committee - Extend work bonus to other income support recipients
Description
<p class="speaker">Janet Rice</p><p>I move Greens amendment (2) on sheet 1698:</p>-
- The majority voted against an [amendment](https://www.openaustralia.org.au/senate/?gid=2022-11-22.158.2) introduced by Victorian Senator [Janet Rice](https://theyvoteforyou.org.au/people/senate/victoria/janet_rice) (Greens), which means it failed.
- ### What did this amendment do?
- Senator Rice [explained that](https://www.openaustralia.org.au/senate/?gid=2022-11-22.158.2):
- > *The amendment will extend the work bonus to other income support recipients. This bill, as we know, creates a work bonus so that age pensioners are able to earn significantly more before their pension gets reduced, which is a good thing; we're supporting this bill. But it really points attention to the fact that you have got people on other income support benefits who aren't getting the same benefit. In fact, they're even more deserving of being able to earn more because their income support is considerably less. Age pensioners get $73 a day, but people on JobSeeker only get $48. This bill will allow age pensioners to earn up to an extra $11,800 in work bonus over a year, but JobSeeker can only earn a work credit of $1,000 before their benefits get slashed. In fact, they face an effective marginal tax rate of somewhere between $60 and $80 for every extra dollar that they earn when they take a few extra available shifts, when they take the opportunity to do the work that's there so they can pay a few bills, so they can get the lawnmower fixed or so they can pay off a loan that somebody has very generously given them.*
<p class="italic">(2) Schedule 3, page 36 (before line 5), before item 1, insert:</p><p class="italic">1A Point 1066A-F1 (note 2)</p><p class="italic">Repeal the note, substitute:</p><p class="italic">Note 2: The application of the ordinary income test is affected by provisions concerning:</p><p class="italic">(a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);</p><p class="italic">(b) the work bonus (section 1073AA);</p><p class="italic">(c) business income (sections 1074 and 1075);</p><p class="italic">(d) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);</p><p class="italic">(e) income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);</p><p class="italic">(f) disposal of income (sections 1106 to 1111).</p><p class="italic">1B Point 1068-G1 (note 3)</p><p class="italic">Repeal the note, substitute:</p><p class="italic">Note 3: The application of the ordinary income test is affected by provisions concerning:</p><p class="italic">(a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);</p><p class="italic">(b) the work bonus (section 1073AA);</p><p class="italic">(c) business income (sections 1074 and 1075);</p><p class="italic">(d) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);</p><p class="italic">(e) income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);</p><p class="italic">(f) disposal of income (sections 1106 to 1111).</p><p class="italic">1C Subsection 1073AA(1) (including the note)</p><p class="italic">Repeal the subsection, substitute:</p><p class="italic">(1) The section applies to a person if the person's rate of social security payment is calculated in accordance with:</p><p class="italic">(a) Pension Rate Calculator A at the end of section 1064; or</p><p class="italic">(b) Pension Rate Calculator D at the end of section 1066A; or</p><p class="italic">(c) Benefit Rate Calculator B at the end of section 1068.</p><p class="italic">1D Subsection 1073AA(2)</p><p class="italic">Omit "Module E of that Rate Calculator", substitute "the income test module".</p><p class="italic">1E Subsection 1073AA(2) (examples 1 and 2)</p><p class="italic">Omit "pension", substitute "payment".</p><p class="italic">1F Paragraphs 1073AA(3)(a), (4)(a) and (4A)(a)</p><p class="italic">Omit "Module E of that Rate Calculator", substitute "the income test module".</p><p class="italic">1G Paragraphs 1073AA(3)(b) and (4)(b)</p><p class="italic">Omit "pension", substitute "payment".</p><p class="italic">1H Subsection 1073AA(4) (example)</p><p class="italic">Omit "pension", substitute "payment".</p><p class="italic">1J Paragraph 1073AA(4A)(b)</p><p class="italic">Omit "pension", substitute "payment".</p><p class="italic">1K Subsection 1073AA(4A) (example)</p><p class="italic">Omit "pension", substitute "payment".</p><p class="italic">1L Paragraph 1073AA(4B)(b)</p><p class="italic">Omit "pension", substitute "payment".</p><p class="italic">1M After subsection 1073AA (4C)</p><p class="italic">Insert:</p><p class="italic">(4D) For the purposes of this section, the <i>income test module</i> in respect of a person is:</p><p class="italic">(a) if the person's rate of social security payment is calculated in accordance with Pension Rate Calculator A at the end of section 1064—Module E of that Rate Calculator; or</p><p class="italic">(b) if the person's rate of social security payment is calculated in accordance with Pension Rate Calculator D at the end of section 1066A—Module F of that Rate Calculator; or</p><p class="italic">(c) if the person's rate of social security payment is calculated in accordance with Benefit Rate Calculator B at the end of section 1068—Module G of that Rate Calculator.</p><p>The amendment will extend the work bonus to other income support recipients. This bill, as we know, creates a work bonus so that age pensioners are able to earn significantly more before their pension gets reduced, which is a good thing; we're supporting this bill. But it really points attention to the fact that you have got people on other income support benefits who aren't getting the same benefit. In fact, they're even more deserving of being able to earn more because their income support is considerably less. Age pensioners get $73 a day, but people on JobSeeker only get $48. This bill will allow age pensioners to earn up to an extra $11,800 in work bonus over a year, but JobSeeker can only earn a work credit of $1,000 before their benefits get slashed. In fact, they face an effective marginal tax rate of somewhere between $60 and $80 for every extra dollar that they earn when they take a few extra available shifts, when they take the opportunity to do the work that's there so they can pay a few bills, so they can get the lawnmower fixed or so they can pay off a loan that somebody has very generously given them.</p><p>What this amendment would do is to extend that work bonus that we are now going to put into legislation for age pensioners to other income support recipients to allow them also to get the benefits, to allow people on JobSeeker, people on the disability support pension and people on youth allowance to earn more so that they too don't have to suffer the huge increase in the cost of living. It would mean that they might actually, at least in some weeks, be able to scrape by and afford to put food on the table as well as pay the rent and pay for their medical costs.</p> <p class="speaker">Tim Ayres</p><p>I indicate that the government will not support this amendment. The purpose of the bill is to provide the relief and the incentive that have been set out at the Jobs and Skills Summit by the proponents of the bill more broadly in the community and by the government to extend that support to age pensioners and categories of people on veterans payments. The effect of adopting the amendment proposed by the Greens party would be a very significant change to the bill. Indeed, it would take it away from its primary purpose and, in our view, would have unintended consequences. I understand that that is not material for the proposes of the amendment because they want to make a political point about the system more broadly. I understand that, and I do appreciate that some of those points have been made and the manner in which they have been made over the course of yesterday. I expect more courtesy today, but the government won't be supporting this amendment. I urge the Senate not to support it either.</p> <p class="speaker">Jonathon Duniam</p><p>I briefly indicate the opposition won't be supporting this amendment.</p><p class="italic">The CHAIR: The question before the committee is that the request for an amendment be agreed to. The request is request (2) on sheet 1698, as moved by Senator Rice.</p><p></p> -
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