Labor has secured significant improvements to the Governments Encouraging Self Sufficiency for Newly Arrived Migrants Bill 2018 to protect vulnerable new residents, families and children.
We acknowledge these changes wont fix all of the problems in the Governments Bill - but they will protect as many people as possible without leaving thefate of this Bill at the mercy of One Nation and the Senate crossbench.
The alternative would have been to risk the Governments plan for four-year waiting periods pass the Senate in their entirety.
As a result of Labors negotiations, the number of families and children impacted each year by the Governments Family Tax Benefit waiting period will be reduced by around three quarters, and the number of people impacted by other changes will be nearly halved.
The Government originally proposed an increase in the Newly Arrived Residents Waiting Periods for social security payments, Family Tax Benefit, Paid Parental Leave and Dad and Partner Pay to four years.
Labor has secured major concessions to protect vulnerable people, families and children, including:
- No waiting period for Family Tax Benefit Part B;
- No increase in the waiting period for Carer Payment;
- One year waiting period for Family Tax Benefit Part A;
- One year waiting period for Carer Allowance;
- Two year waiting period for Paid Parental Leave and Dad and Partner Pay;
- New Zealanders, orphan visa holders and remaining relative visa holders are excluded from the changes; and
- Expanded access to Special Benefit when peoples circumstances change including in the case of domestic and family violence.
Importantly, exemptions to waiting periods for people who become lone parents will also remain. And people on refugee and humanitarian visas, as well as those who become citizens are exempt from the changes.
The Governments four-year waiting periods would have caused great hardship for thousands of families and children.
By securing these amendments, Labor has ensured 49,000 families and 107,000 children will be protected from the Family Tax Benefit waiting period each year and 21,000 people will avoid the impacts of waiting periods for other payments.
Labor will support an increase to the Family Tax Benefit Part A Higher Income Free Area from $94,316 to $98,988 and a 30-cents-in-the-dollar taper rate for all families above this threshold. This will benefit up to 79,000 families, but increase the payment taper rate for some families with incomes above $98,988.
This is a significant improvement on changes that were proposed by the Government last year.
A one-year extension to the indexation pause for the upper income limits for Paid Parental Leave, Dad and Partner Pay, and Family Tax Benefit Part B Primary Income Earner Limit will also be supported.
In order to reduce the impact of the Governments proposed new resident waiting periods, Labor has agreed to support an amended version of the Bill which incorporates these changes.
These decisions have been made to protect those on the lowest incomes, families and children.
They are not easy decisions. Labor would never have proposed these extensions to resident waiting periods.
But we could not in good conscience leave decisions about support for newly arrived residents in the hands of One Nation.
