Submission: Social Security Act Ammendment Bill ( Benefit Sanctions)

CHILD POVERTY ACTION GROUP CALLS ON THE GOVERNMENT TO WITHDRAW THIS BILL AND WE RECOMMEND THAT IT DOES NOT PROCEED PAST THE SELECT COMMITTEE STAGE.

Changes proposed in the Social Security Act Amendment Bill currently before Parliament would result in more jobseekers and their dependents unable to buy food, pay rent and other basic bills - and at a time when unemployment is at a four year high.[1]

Child Poverty Action Group’s Executive Officer, Sarita Divis, says "This Bill will put at risk the fundamental human rights and wellbeing of people, including many of our most vulnerable. We are particularly concerned about the so-called non-financial sanctions in this Bill, which in reality would have financial consequences and are targeted towards people with children."

Sanctions proposed in the Bill include a ‘Money Management’ system where 50% of a person’s benefit is placed onto an MSD payment card that can only be used to buy certain items at approved stores. Divis says, "Many people on income support are paying more than 50% of their income in rent.[2] This sanction risks people not being able to make their rent payments and becoming homeless."

"We are also concerned about the proposed ‘Community Work Experience’ scheme", says Divis. "Official Information Act requests have revealed that people placed into this scheme - and the Money Management scheme - will not be allowed to access emergency housing, or special needs grants. Yet most benefits don’t cover living costs, and many people and their children rely on those supports for keeping food on the table and a roof over their heads."