Today I am announcing the next steps in the Government's welfare reform program. The Government will implement two new welfare measures nationally to help address child neglect and encourage school attendance.
The Australian Government believes that all Australian children deserve to be well cared for and to fulfil their potential. Significant income support is provided to families to assist them to meet their basic responsibilities and care for their children. The vast majority of parents do the right thing and spend these payments on the needs of their children, however a small number do not.
Consistent with the principle of mutual obligation, I am announcing two new measures which will apply nationally to families receiving income support who are not meeting their responsibilities to their children.
The central feature of these reforms is to introduce a more targeted form of income management for these families. This will involve Centrelink or an approved non government service provider directing the income support and family payments of some parents to meet essential expenses such as food, clothing and shelter.
Parents who will have their government payments managed will not lose any money. The proportion of government payments that will be managed on their behalf to pay for essential expenses will be tailored on a family basis to ensure that the needs of children are being met. There will be no overall loss or reduction of payments as a result of these measures.
Helping Children at Risk of Neglect (Refer to Fact Sheet One)
From 1 July 2008, the Australian Government will provide state and territory governments with the option of asking the Australian Government to manage government payments for parents where they consider the child to be at risk of neglect.
Initial data analysis suggests that the measure could be applied to a few thousand families per year.
The Australian Government will hold discussions with the states and territories on how best to provide this tool within the context of their individual child protection arrangements.
Enhancing Parental Responsibility for School Attendance (Refer to Fact Sheet Two)
The Australian Government will require parents on income support to ensure their children are enrolled at and regularly attending school.
This measure will be implemented in stages. Shortly the government will provide parents in receipt of income support with information about this measure and inform them of the importance of school attendance for children.
At the same time, as its first priority the government will commence working with states and territories and non-government schools to collect sufficient data to allow all students not enrolled to be identified and followed up by state and territory governments.
From the start of the 2008 school year, Centrelink will then begin random checks requiring parents of primary school aged children to provide evidence of enrolment and regular attendance at school.
In the six months from 1 July 2008, Centrelink and state or territory officials will talk to parents on income support who are identified as having children who are not enrolled or regularly attending primary school. Referral to income management arrangements would not occur during this stage.
From the start of the 2009 school year, parents on income support who have children of primary school age who are not regularly attending school will be referred for assistance to manage their government payments.
From the start of the 2010 school year, this will be expanded to those who have children of compulsory secondary school age who are not regularly attending school.
It is my expectation that only a small number of the several hundred thousand parents who receive Australian Government income support payments will be affected by income management as a result of these school enrolment and attendance requirements.
The Australian Government will work with the states and territories and the non-government school sector on how best to identify children who are not enrolled at or regularly attending school.
Income management will only be imposed after parents have been warned about unexplained absences and given an opportunity to address these within the family environment.
Through these arrangements the Commonwealth is offering complementary measures to bolster the actions of the states and territories which are primarily responsible for addressing child neglect and poor school attendance. This is an opportunity for the Commonwealth and the states and territories to work together to improve the lives of children who are not receiving the care and support they need.
Like previous reforms to the welfare system, these are big reforms that will take time to implement. The government will work with states and territories on how these measures can be implemented to maximum effect. Parents who receive income support will be given notice ahead of the new requirements coming in.
The government's hope is that awareness of these obligations will minimise the number of people subject to these arrangements. These measures are not designed to extend the reach of government, but to encourage people to accept their basic responsibilities.
The Cape York Institute Welfare Reform proposal
The Government has also considered the design recommendations for the Cape York Institute Welfare Reform Project and the Minister for Families, Community Services and Indigenous Affairs, the Hon Mal Brough MP will be announcing the government's contribution to this project in the near future.
14 July 2007
Fact Sheet One
Welfare Payments Reform - Helping Children at Risk of Neglect
What will this initiative do?
This initiative will provide state and territory governments with the option of asking the Australian Government to income manage payments where they consider it to be in the interest of children at risk of neglect.
Why is this being introduced?
The Australian Government believes that payments provided for the benefit of children should be used for this purpose. While the vast majority of parents do the right thing and spend these payments on the needs of their children, there are a small number of parents who do not.
The measure provides an additional tool that can be applied, where considered necessary, by state and territory child welfare authorities, to income manage payments to ensure that parents provide basic necessities such as food, clothing and shelter for their children.
When will it be introduced?
Implementation will commence from 1 July 2008. The first steps will involve discussions with the states and territories on how best to provide this tool within the context of their individual child protection arrangements.
What is Income Management?
Income Management involves Centrelink or other approved non government service providers directing government payments to meet essential expenses such as food, clothing and shelter.
Income management will be tailored on a case by case basis to ensure that the needs of children and their families are met.
Parents will not lose any government payments as a result of these measures.
Who will this affect?
Income management will affect parents receiving Australian Government income support payments where a state or territory child welfare authority notifies the Australian Government that income management should be enforced. This includes parents in receipt of one of the following payments:
* Age Pension
* ABSTUDY
* Austudy
* Bereavement Allowance
* Carer Payment
* Disability Support Pension
* Department of Veterans Affairs Pensions
* Mature Age Allowance
* Parenting Payment (single and partnered)
* Partner Allowance
* Newstart Allowance
* Sickness Allowance
* Special Benefit
* Youth Allowance
* Widow Allowance
* Widow B Pension
* Wife Pension.
How many people will this affect?
The number of families affected will depend on state and territory child protection case management decisions.
Will my payments be reduced?
No. While all payments will be subject to income management and may be directed to pay for essential expenses on behalf of the parent, there will be no overall loss or reduction of payments.
How much money will be income managed?
All Australian Government income support and family payments received by parents will be considered under income management arrangements.
Private income, such as wages, superannuation or child support, will not be subject to income management.
Who will make the decision?
State and territory child welfare authorities, which are responsible for child protection, will identify parents with children at risk of neglect whose children may benefit from income management and advise Centrelink to apply income management.
Can a parent appeal against a decision?
Appropriate appeal arrangements will be established.
Can a parent receive vouchers or food stamps instead?
An electronic card, loaded with the relevant amount of money, may be provided for the purchase of food and groceries.
For how long will income management be applied?
As part of the notification process, state and territory child welfare authorities will specify the time period for income management to apply.
What help will be provided to parents?
In addition to the services currently offered by state and territory governments, parents will have access to Centrelink social workers and money management education.
Do the states and territories agree with the initiative?
This is an opportunity for the Commonwealth and the states and territories to work together to improve the lives of children who are not receiving the care and support they need.
The initiative provides an additional tool that can assist states in meeting their responsibilities to ensure that the interests of children are protected.
The government will work with states and territories on how these measures can be implemented to maximum effect.
How does this measure fit with the emergency measures in the Northern Territory?
A transition strategy will be developed for moving people from the emergency measures to these Australia-wide arrangements once the situation in communities has been appropriately stabilised.
Fact Sheet Two
Welfare Payments Reform - Enhancing Parental Responsibility for School Attendance
What will this initiative do?
The Australian Government will require parents on income support to ensure their children are enrolled at and regularly attend school.
The Australian Government will work with the states and territories and the non-government school sector on how best to identify children who are not enrolled at or regularly attending school.
Income management will only be imposed after parents have been warned about unexplained absences and given an opportunity to address these within the family environment.
Why is this being introduced?
The Australian Government believes that every Australian child has the right to receive an education and fulfil their potential. This is a fundamental responsibility of parents and action must be taken where parents fail to meet that responsibility to their children.
There is a strong relationship between school achievement and the number of people who become long-term unemployed and welfare dependent. It is therefore vital that the educational outcomes of children are improved to reduce intergenerational welfare dependency.
When will it be introduced?
This measure will be implemented in stages. Shortly the government will provide parents in receipt of income support with information about this measure and inform them of the importance of school attendance for children.
At the same time, as its first priority the government will commence working with states and territories and non-government schools to collect sufficient data to allow all students not enrolled to be identified and followed up by state and territory governments.
From the start of the 2008 school year, Centrelink will then begin random checks requiring parents of primary school aged children to provide evidence of enrolment and regular attendance at school.
In the six months from 1 July 2008, Centrelink and state or territory officials will talk to parents on income support who are identified as having children who are not enrolled or regularly attending primary school. Referral to income management arrangements would not occur during this stage.
From the start of the 2009 school year, parents on income support who have children of primary school age who are not regularly attending school will be referred for assistance to manage their government payments.
From the start of the 2010 school year, this will be expanded to those who have children of compulsory secondary school age who are not regularly attending school.
What is Income Management?
Income Management involves Centrelink or other approved non government service providers directing government payments to meet essential expenses such as food, clothing and shelter.
Income management will be tailored on a case by case basis to ensure that the needs of children and the family are met.
Parents will not lose any government payments as a result of these measures.
Who will this affect?
The new measure will apply nationally to parents receiving income support whose children are not enrolled at or regularly attending school. This includes parents in receipt of one of the following payments:
* Age Pension
* ABSTUDY
* Austudy
* Bereavement Allowance
* Carer Payment
* Disability Support Pension
* Department of Veterans Affairs Pensions
* Mature Age Allowance
* Parenting Payment (single and partnered)
* Partner Allowance
* Newstart Allowance
* Sickness Allowance
* Special Benefit
* Youth Allowance
* Widow Allowance
* Widow B Pension
* Wife Pension.
How many people will this affect?
This measure will affect parents receiving income support with a child of compulsory school age. Only a small number of the several hundred thousand parents who receive Australian Government income support payments are expected to be affected by income management as a result of these school enrolment and attendance requirements.
We hope that clear information from government about these measures will help parents to be aware of their obligation to ensure that their children attend school and therefore minimise the number of people subject to these arrangements.
Will my payments be reduced?
No. While all payments will be subject to income management and may be directed to pay for essential expenses on behalf of parents, there will be no overall loss or reduction of payments.
How much money will be income managed?
All Australian Government income support and family payments received by parents will be considered in income management arrangements where it has been identified that children are not enrolled at or regularly attending school.
Private income, such as wages, superannuation or child support, will not be subject to income management.
Can a parent appeal against a decision?
Appropriate appeal arrangements will be established.
Can a parent receive vouchers or food stamps instead?
An electronic card, loaded with the relevant amount of money, may be provided for the purchase of food and groceries.
For how long will income management be applied?
Income management will be applied for set periods, with exit dependent on parents ensuring their children are enrolled at and regularly attending school.
Do the states and territories agree with the initiative?
This is an opportunity for the Commonwealth and the states and territories to work together to improve the lives of children who are not receiving the care and support they need.
The initiative provides an additional tool that can assist states in meeting their responsibilities to ensure all children attend school.
The government will work with states and territories on how these measures can be implemented to maximum effect.
What help will be provided to parents who have trouble getting their children to school?
In addition to the services provided by states and territories, Centrelink social workers will be available to assist parents. Where appropriate, social workers may also liaise with the child's school to raise issues affecting the parent's ability to ensure their children's attendance, such as bullying or the adequacy of in-school supports.
Why is this initiative applying to income support recipients and not people who receive Family Tax Benefit only?
This initiative is building on the Australian Government's ongoing reform of income support, such as Welfare to Work.
Will this initiative apply to enrolments and attendance at both public and non-government schools?
Yes, this initiative applies to all children of compulsory school age including students receiving approved home schooling and distance education.
How does this measure fit with the emergency measures in the Northern Territory?
A transition strategy will be developed for moving people from the emergency measures to these Australia-wide arrangements once the situation in communities has been appropriately stabilised.