Social Security Amendment Bill (No 3)

I move, That the Social Security Amendment Bill (No 3) be now read a second time. This bill amends the Social Security Act 1964 so that the benefit system treats people in similar circumstances consistently, because if it is not consistent, it is not fair. We need these changes because at the moment the Act allows some people receiving weekly compensation to be treated differently depending on who pays that compensation, and it also allows some students to access a higher rate of accommodation assistance than others.

I thank the Social Services Committee for its thorough and careful attention to this bill. Two submissions were made to the committee; however, both urged the Government to increase the amount of accommodation assistance available to students, and the committee rightly ruled that as being outside the scope of this bill.

One submission expressed concern about the possibility of students who are part-way through their studies having their accommodation assistance reduced immediately as a result of this bill being passed. Any adjustment for students affected by changes in the bill will be made when their assistance is next reviewed; it will not be triggered immediately by the change in the law. So for students whose circumstances do not change, the adjustment will most likely be made when they make their next application covering a further period of study.

The changes set out in this bill do affect some students—they are students who have spotted a loophole in the Social Security Act. Using this loophole, they apply for the accommodation supplement rather than applying for the assistance they should receive under the student allowance scheme. The design of assistance for students—student allowance, student loans, and the accommodation benefit—recognises that the students’ future earnings prospects are improved by their investment in study, and it is only right for them and their families to meet some of the costs involved. The accommodation supplement is designed for a more diverse group of people, including full-time workers, beneficiaries, and superannuitants, and we cannot assume that all of the people who get it are doing something that will improve their future earnings prospects. The design of the accommodation supplement simply takes into account their current situation, their income and assets, accommodation costs, the residential location, and the family’s accommodation needs.

Students should receive the assistance designed for them. Students who are eligible for student allowances should not be able to take advantage of the system and request an accommodation supplement. So the current wording in the Social Security Act is not clear enough, and it leaves open the loophole that allows people to claim the accommodation supplement if they give up the student allowance and accommodation benefit, or simply do not apply for a student allowance. This bill closes that loophole. It provides clear wording to exclude students who have access to the student allowance scheme from being granted the accommodation supplement.

The second matter dealt with in this bill is weekly compensation. Some employers have an agreement with ACC to pay entitlements under the Accident Compensation Act. In return, these accredited employers pay lower levies. This scheme encourages employers to manage health and safety issues in the workplace. If there is an accident in an accredited employer’s workplace, the employer pays the entitlements, the medical costs, and any weekly compensation arising from the accident. The employer continues to meet payments for the period they have agreed with ACC, which can be up to 5 years following the accident. If payments are still needed after that, ACC steps in and picks up the responsibility.

People who work for an accredited employer continue to pay the same ACC levies and have the same entitlements as before. Their position is just the same as if they worked for an employer who was not accredited. It would be unfair for the social security system to treat people paid weekly compensation by an accredited employer in a different way from people paid weekly compensation by ACC. This bill amends the Social Security Act to make sure that people who are paid weekly compensation by an accredited employer are treated the same way as people who are in the same circumstances but are paid by ACC. This means that weekly compensation, regardless of who pays it, will always be deducted from the person’s benefit payment, rather than one group of people having weekly compensation payments deducted dollar for dollar and another group having weekly compensation payments treated as income.

Debate interrupted.

The House adjourned at 10 p.m.