Social Services Legislation Amendment (Enhancing Pensioner and Veteran Workforce Participation) Bill 2022

High-Level Summary
The bill proposes to amend social security and veterans' legislation to enhance workforce participation among pensioners and veterans by removing disincentives to paid employment. It allows for the suspension rather than cancellation of benefits, extends the qualification for concession cards, and increases the work bonus threshold.

Summary
The Social Services Legislation Amendment (Enhancing Pensioner and Veteran Workforce Participation) Bill 2022 amends the Social Security Act 1991, the Social Security Administration Act 1999, and the Veterans’ Entitlements Act 1986. It introduces measures to suspend rather than cancel age pension and certain veterans’ entitlement payments for up to two years if income exceeds limits due to employment. This suspension is also applicable to partners of those receiving disability support pensions. Additionally, the bill extends the qualification period for pensioner concession cards to two years and increases the work bonus from $300 to $600, allowing pensioners to earn more without affecting their pension eligibility. These changes aim to address labor shortages exacerbated by COVID-19 and inflationary pressures by encouraging pensioners and veterans to remain in or rejoin the workforce. From the explanatory memo:
"The new provisions will enable pensioner and relevant veteran entitlement recipients to earn up to $600 a fortnight and still receive the maximum pension payment."

Argument For
Normative Bases
  1. Utilitarian Ground Truth
  2. Pro-Democracy
  3. Egalitarianism

The bill should be supported because it addresses critical labor shortages in the Australian economy by incentivizing pensioners and veterans to participate in the workforce. By removing penalties associated with earning income, such as the cancellation of benefits, the bill promotes workforce participation without risking financial security for pensioners and veterans. This enhances their well-being and supports the economy by increasing labor supply [Judgment]. Furthermore, extending the pensioner concession card qualification ensures that pensioners maintain access to essential services, promoting equality and social welfare.


Argument Against
Normative Bases
  1. Propertarianism
  2. Value-Neutral / Epistemic Objection

The bill should be opposed because it could lead to unintended consequences, such as increased strain on public resources if more pensioners decide to utilize the extended concession benefits without significantly increasing workforce participation. Additionally, the increased work bonus might not be sufficient to incentivize significant changes in behavior, and the administrative complexity of suspending instead of canceling benefits could lead to inefficiencies [Judgment]. There is also a concern that the policy might primarily benefit those who are already in a better position to return to work, rather than those most in need of financial support.


Date:

2022-08-03

Status:

Before Senate

Sponsor:

SMITH, Sen Dean

Portfolio:

Unspecified

Categories:

Social Support / Welfare, Labour, Discrimination / Human Rights

Timeline:
03/08/2022
05/09/2022

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