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2019-2020-2021
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SOCIAL SECURITY LEGISLATION AMENDMENT
(REMOTE ENGAGEMENT PROGRAM) BILL 2021
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Minister for Indigenous Australians,
the Honourable Ken Wyatt AM MP)
ABBREVIATIONS
In this explanatory memorandum:
Acts Interpretation Act means the Acts Interpretation Act 1901;
CDEP means the Community Development Employment Projects;
CDP means the Community Development Program;
participant means a person participating in a remote engagement placement under
the remote engagement program;
provider means a remote engagement program provider;
Social Security Act means the Social Security Act 1991;
Social Security (Administration) Act means the Social Security (Administration)
Act 1999; and
social security law includes the Social Security Act and the Social Security
(Administration) Act.
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SOCIAL SECURITY LEGISLATION AMENDMENT
(REMOTE ENGAGEMENT PROGRAM) BILL 2021
PURPOSE AND OBJECTIVES
1. The Social Security Legislation Amendment (Remote Engagement Program) Bill 2021
(Bill) will provide a framework for piloting new approaches to delivering employment
services in remote communities, ahead of implementing the Government's Budget
announcement that the Community Development Program (CDP) will be replaced in
2023.
2. This Bill supports collaboration with communities to develop an appropriately flexible
program that will build the skills and vocational capabilities of people in remote
communities. Many of the more detailed aspects of the approach will be set out in
legislative instruments and policy guidance, allowing flexibility to adjust as lessons are
learnt and communities' ideas change over the course of the pilots.
3. The Bill introduces a new supplementary payment (new payment) to be made to eligible
job seekers in remote engagement program pilot communities so they can engage in
activities or placements that are like having a job. The placements will build participants'
skills in roles that will deliver goods or services to benefit local communities and provide
a pathway for jobseekers to find a job.
4. The pilots will be co-designed in partnership with a number of remote communities ahead
of 2023. The new payment will be one aspect communities can trial alongside other
approaches to training, skills development and non-vocational support as they co-design
the remote engagement program.
5. Lessons learned from the pilot sites will inform the design of the new program to be
rolled out in 2023. Initially, we estimate around 200 eligible job seekers across the pilot
sites will volunteer for the payment.
6. The Government is committed to co-designing the pilots with communities, and believes
this will be critical to their success. It is important that there is capacity to trial different
approaches in different sites. To give effect to the Government's commitment to work in
partnership with Indigenous communities, the Bill sets out the basic parameters of the
payment, with other elements such as the qualification criteria and the exact rate of
payment to be set out in detail in legislative instruments and policy guidance. These
legislative instruments will be informed by the outcomes of a co-design process in the
pilot sites.
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7. The Government will take the time to work together and listen to communities in the pilot
sites about what they think could work in their community in relation to the amount of
payment to be provided, the hours of engagement to be undertaken in return and what
eligible job seekers are required to do to continue to receive the payment. This will also
better allow for adjustments during the pilots as lessons are learned. The Bill provides
that the payment will be time-limited, meaning that the legislation will need to be
revisited ahead of the national roll out of the new remote engagement program. This will
ensure continuing Parliamentary scrutiny.
8. The new payment will be paid at a fixed fortnightly rate and will be additional to certain
primary income support payments and other supplements for eligible job seekers. The
new payment will not be subject to the income test in the Social Security Act 1991.
9. The aim is for an eligible job seeker's income support plus the new payment to be
approximately equivalent to the minimum wage for the hours participating in work like
activities. Eligible job seekers will voluntarily participate in a role in government services
or a community organisation for between 15 and 18 hours per week building important
skills and experience. The placements will not be a job, but will aim to give job seekers
experience that will enable transition to paid employment. The payment will not be at a
level high enough that people avoid taking up paid employment opportunities. The pilots
provide an opportunity to test the level of incentives.
GENERAL OUTLINE
10. Parts 1 and 2 of the Bill will amend the Social Security Act and the Social Security
(Administration) Act to:
a. Establish a new payment under the remote engagement program, (i.e. the
'remote engagement program payment'), which will be set at a rate between
$100 and $190 per fortnight, for a maximum continuous period of 104 weeks.
b. Establish high-level qualifying criteria for the remote engagement program
payment.
c. Establish that participation in the remote engagement placement is voluntary
and a person can volunteer to leave the placement if they choose.
d. Enable the Minister to make legislative instruments that specify additional
qualification criteria, determine circumstance in which the remote engagement
program payment is not payable, and fix the rate of the remote engagement
program payment.
11. Parts 3 and 4 of the Bill contain amendments to repeal or omit sections of the Social
Security Act applying to past Australian Government programs that have now closed.
Specifically, the Bill repeals or omits provisions relating to the former Community
Development Employment Projects (CDEP) Scheme. Removing these obsolete
provisions will assist in modernising and streamlining the social security legislation.
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12. The Bill has no impact on arrangements for CDP participants outside the agreed pilot
sites.
13. The Government is reforming remote employment services in 2023, as part of its suite of
reforms to employment services programs to ensure they remain fit-for-purpose, make the
most of technological advances and support Australia's economic recovery from COVID-
19. The remote engagement program reforms will be co-designed and piloted in
partnership with a number of remote communities ahead of 2023.
14. The Bill creates a new payment for job seekers in remote engagement program pilot
communities who volunteer to participate in a placement that is like having a job. The
new payment will be one aspect that communities can trial alongside other approaches to
training, skills development and non-vocational support in their remote employment
program.
15. The aim will be to develop an approach that empowers people, many of them Indigenous
people, living in our remote communities to develop their skills and engage in economic
opportunities in a way that is both tailored to their specific needs and beneficial to their
communities. The approach will focus on better supporting the social and economic
aspirations of remote Indigenous communities by helping job seekers gain skills and find
a job.
16. The new program will contribute to the National Agreement on Closing the Gap, which
includes targets to close the gap on employment outcomes between Indigenous and non-
Indigenous Australians.
17. The new payment is one design element of the new program we would like to co-design
with communities as part of the pilots. We will also work with communities during the
pilot phase to explore:
- how to provide better support to job seekers who have the skills and experience to
work, but are having difficulty finding work
- vocational training options for job seekers that will lead to real jobs in their
communities
- how to provide the right support, at the right time, to job seekers with acute or
complex needs and
- the best ways to engage with and support job seekers to meet Mutual Obligation
Requirements.
FINANCIAL IMPACT STATEMENT
18. The costs of this measure will be absorbed within the Indigenous Advancement Strategy.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
19. The Statement of Compatibility with Human Rights is provided at the end of this
Explanatory Memorandum.
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NOTES ON CLAUSES
Clause 1 - Short title
20. This clause provides for the Act to be cited as the Social Security Legislation Amendment
(Remote Engagement Program) Act 2021.
Clause 2 - Commencement
21. Clause 2 sets out the commencement details for the Act. Specifically, the table in
subclause 2(1) provides that:
Sections 1 to 3 and anything in the Act not elsewhere covered by the table will
commence on the day after the Act receives the Royal Assent.
Part 1 of Schedule 1 will commence on a day to be fixed by proclamation.
However, if the provisions do not commence within the period of 6 months
beginning on the day after the Act receives the Royal Assent, they will commence
on the day after the end of that period.
Part 2 of Schedule 1 will commence either immediately after the commencement
of the provisions of Schedule 1, Part 1, or immediately after the commencement
of Schedule 1 to the Social Security Amendment (Streamlined Participation
Requirements and Other Measures) Act 2021, whichever is the later. However
this part will not commence at all if Schedule 1 to the Social Security Amendment
(Streamlined Participation Requirements and Other Measures) Act 2021
commences at or before that time.
Part 3 of Schedule 1 will commence on the day after the Act receives the Royal
Assent.
Part 4 of Schedule 1 will commence on the day after the Act receives the Royal
Assent. However this part will not commence at all if Schedule 1 to the Social
Security Amendment (Streamlined Participation Requirements and Other
Measures) Act 2021 commences on or before the day the Act receives Royal
Assent.
Clause 3 - Schedules
22. Clause 3 provides that legislation specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule, and, any other item in a
Schedule to this Act has effect according to its terms.
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Schedule 1--Amendments
Part 1--Main amendments relating to remote engagement program payment
Social Security Act 1991
Item 1 - Subsection 23(1)
23. Item 1 amends subsection 23(1) of the Social Security Act to insert definitions for 4 new
terms relating to the new remote engagement program payment. These are as follows:
'qualifying remote income support payment' which means a payment listed under
section 661B. This definition refers the reader to new section 661B inserted by
item 7 of the Bill.
'remote engagement placement', under a remote engagement program, is defined
as 'a part of the program (if any) determined by the Minister under paragraph
661A(2)(b)'. This definition relates to the new Part 2.13 as, to receive the remote
engagement program payment established under that part, the Secretary must be
satisfied that the person has agreed to participate, and is participating, for at least
15 hours per week in a remote engagement placement under the remote
engagement program. The remote engagement placement is one of four elements
of the remote engagement program, which will provide eligible jobseekers the
opportunity to take part in a placement in which they can gain relevant experience
to facilitate a transition to paid work.
'remote engagement program' which means 'an arrangement (if any) determined
by the Minister under new paragraph 661A(2)(a)'. This definition relates to Part
2.13, which establishes a remote engagement program payment for certain
recipients of income support payments who participate in a remote engagement
placement under the remote engagement program.
'remote engagement program provider' which means 'a person or organisation
that is a party to an agreement with the Commonwealth under which the person or
organisation receives Commonwealth funding to deliver the remote engagement
program'. The term 'person' is defined in section 2C of the Acts Interpretation
Act to include an individual or body politic or body corporate.
Item 2 - After paragraph 23(4AA)(ad)
24. Item 2 inserts new paragraph 23(4AA)(ae) to provide that new Part 2.13 (which
establishes the remote engagement program payment) is a specified provision for the
purposes of subsection 23(4A) of the Social Security Act. In specified circumstances,
subsection 23(4A) extends the period in which the person may be taken to be 'receiving a
social security payment' for the purposes of the Social Security Act. The purpose of this
amendment is to ensure that the person's entitlement to the remote engagement program
payment is not affected by changes in the employment income the person or their partner,
for a period of up to 12 weeks from when the change occurred. The effect of item 2 is to
allow a participant's remote engagement program payment to continue to be payable in
circumstances where either their employment income or their partner's employment
income, has reduced the rate of the person's qualifying remote income support payment
to nil.
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Items 3 to 6 - At the end of subsections 94(1) and 500(1), section 540 and subsection 593(1)
25. Items 3 to 6 insert new notes at the end of subsections 94(1) and 500(1), section 540 and
subsection 593(1) that alert the reader to the fact that a person who is receiving a
disability support pension, parenting payment, youth allowance or jobseeker payment
(as applicable) and who is also receiving employment services from a remote engagement
program provider, may also qualify for a remote engagement program payment under
Part 2.13 of the Social Security Act.
Item 7 - After Part 2.12
26. Item 7 inserts new Part 2.13 into Chapter 2 of the Social Security Act to create the new
remote engagement program payment. Part 2.13 is divided into 3 new divisions relating
to: qualification for, and payability of, the remote engagement program payment
(Division 1); the rate of payment (Division 2); and miscellaneous matters (Division 3).
Division 1 - Qualification for and payability of remote engagement program payment
Subdivision A - Qualification
27. In new Subdivision A of Division 1, the new section 661A sets out the qualification
criteria for a remote engagement program payment for a period.
28. Subsection 661A(1) provides that a person will qualify for a remote engagement program
payment for a period if, throughout the period:
(a) the person is receiving a qualifying remote income support payment; and
(b) the person is receiving employment services from a remote engagement program
provider; and
(c) the Secretary is satisfied that the person has agreed to participate, and is
participating, in an remote engagement placement for at least 15 hours per week
under the remote engagement program; and
(d) the person satisfies the qualification requirements (if any) determined by the
Minister under paragraph (2)(c).
29. The above qualification criteria in subsection 661A(1) are cumulative. Each must be
satisfied in order for the person to qualify for the new remote engagement program
payment. Due to the discretionary nature of the decisions being made by the Secretary or
Minister under this provision, these decisions will not be made using automated decision-
making.
30. Under new paragraph 661(1)(a), qualification for the remote engagement program
payment is limited to jobseekers who are receiving a qualifying remote income support
payment as defined in new section 661B'.. This paragraph provides that eligible persons
will receive the new remote engagement program payment in addition to their qualifying
remote income support payment. This provision operates subject to the operation of new
paragraph 24(4AA)(ae)--described at item 2 above.
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31. New paragraph 661A(1)(b) makes it a precondition to payment that a jobseeker must also
be engaging with relevant employment services through a remote engagement program
provider. This will help ensure that the remote engagement program payment is available
for jobseekers experiencing long-term unemployment, who are also already engaging
with employment support services. Having an existing relationship with a jobseeker will
enable remote engagement program providers to understand the jobseeker's background
and the particular barriers they face in obtaining and maintaining paid employment. The
information will assist providers to tailor their services and support for jobseekers
participating in a remote engagement placement.
32. Under proposed paragraph 661A(1)(c) the Secretary must be satisfied that the person has
agreed to participate, and is participating, in a remote engagement placement for at least
15 hours per week under the remote engagement program. Remote engagement
placements will require jobseekers to participate in activities for at least 15 hours per
week. These activities will be determined throughout the pilot phase of the remote
engagement program, developed in co-design with relevant stakeholders and communities
in remote engagement program pilot sites.
33. New paragraph 661A(1)(d) additionally makes it a qualification criterion that the person
satisfy further qualification requirements (if any), as determined by the Minister under
paragraph 661A(2)(c). Paragraph 661A(1)(d) will allow the Minister to add further
qualification criteria that must be met in order to qualify for the remote engagement
program payment. The purpose of this is to provide flexibility and enable further
specificity in relation to the qualification criteria if required following the co-design
process. Any additional criteria must be made by legislative instrument and will therefore
be subject to the scrutiny of, and disallowance by, the Parliament.
34. A decision made by the Secretary under subsections 661A(1)(d) is reviewable or
appealable under the Social Security (Administration) Act.
35. Under new subsection 661A(2), the Minister will have the authority to determine,
by legislative instrument, any one or more of the following:
a. an arrangement to be the remote engagement program;
b. a part of the remote engagement program to be a remote engagement placement
under the program; and
c. a qualification requirement for the purposes of paragraph 661A(1)(d).
36. New section 661B defines the term 'qualifying remote income support payment' by
setting out--in tabular form-- the circumstances in which a person must qualify for the
underlying income support payment in order for their payment to meet the definition of a
'qualifying remote income support payment' Under new section 661B, participation in
the remote engagement placement is limited to those individuals that have the capacity to
work, are not undertaking full-time study and have entered into an employment pathway
plan with their remote engagement program provider.
37. Subsection 661B(1) provides that a qualifying remote income support payment is a
payment specified, and for which the person qualifies in the circumstances set out, in the
table.
38. Relevantly, the qualification criteria that corresponds to each payment are as follows:
a. for disability support pension-- the person qualifies in subsection 94(1) of the
Social Security Act and is either:
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(a) required to meet participation requirements under section 94A of the
Social Security Act (because they are within paragraph 94(1)(da) of that
Act); or
(b) covered by a participation exemption under sections 94C, 94D, 94E or
94F of the Social Security Act.
b. for parenting payment--the person qualifies under subsection 500(1) of the
Social Security Act and is either:
(a) required to meet participation requirements under section 500A of the
Social Security Act (because they fall within paragraphs 500(1)(c) or (ca)
of the Social Security Act);or
(b) covered by a participation exemption under Division 3A of Part 2.10 of
Social Security Act.
c. for the youth allowance payment--the person qualifies under section 540 of the
Social Security Act and is either:
(a) required to meet the activity test under Subdivision B, Division 1 of
Part 2.11 of the Social Security Act (because they fall within
subparagraph 540(a)(i) of the Social Security Act); or
(b) covered by an exemption from the activity test under Subdivision C,
Division 1 of Part 2.11 of the Social Security Act. However, if the person
is undertaking full time study (in satisfaction of the activity test under
paragraph 541(1)(a) of the Social Security Act), their payment will not be
a qualifying remote income support payment.
d. for the jobseeker payment--the person meets qualifies under subsection 593(1) or
(4) of the Social Security Act and is either:
(a) required to meet the activity test under Subdivision B, Division 1 of Part
2.11 of the Social Security Act (because they fall within subparagraph
593(1)(b)(i) of the Social Security Act); or
(b) covered by an exemption from the activity test under Subdivision B or
Subdivision BA, Division 1 of Part 2.11 of the Social Security Act.
e. for any other income support payment--the person is in a class of persons
determined by the Minister under subsection 661B(2).
39. New subsection 661B(2) gives the Minister the power to determine, by legislative
instrument, any other class of persons who is receiving any other income support payment
to be receiving a qualifying remote income support payment. The term 'income support
payment' is defined in subsection 23(1) of the Social Security Act and encompasses other
payment types such as special benefit and a service pension under the Veterans'
Entitlements Act 1986.
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Subdivision B--Payability
40. Subdivision B of new Division 1 provides that the remote engagement program payment
will be payable except where it is not payable. That is, new subdivision B creates
exceptions to payability of the remote engagement program payment.
41. New subsection 661C(1) states that the remote engagement program payment is not
payable in the circumstances (if any) that are specified by a legislative instrument made
under subsection 661C(2). New subsection 661C(2) gives the Minister the power to make
a legislative instrument setting out the circumstances in which a remote engagement
program payment is not payable to the person. The purpose of this section is to afford
sufficient flexibility in the design of the remote engagement placement, to accommodate:
the outcomes of the co-design process with community; and
improvements in the design of the remote engagement placement, identified
through feedback from participants and remote engagement program providers.
42. New section 661D establishes time limits on the payability of the remote engagement
program payment. Subsection 661D(1) provides that the remote engagement program
payment is not payable to the person who has received the remote engagement program
payment for a continuous period of 104 weeks starting at the time they first received the
payment. This limit is applied because the remote engagement placement is not intended
to be a long-term arrangement, but has been developed to improve jobseeker skills and
job readiness as well as to assist the transition to paid work.
43. New subsection 661D(2) provides that a remote engagement program payment is not
payable to the person in respect of any period starting on or after 1 July 2024. This
provision limits the payability of the remote engagement program payment beyond the
end of the pilot phase of the remote engagement program in 2023. A grace period has
been added, which will allow payment up to one year after the end of the pilot phase of
the remote engagement program. This will accommodate any delay to the start of the
remote engagement program and thereby ensure that jobseekers receive the payment,
provided they meet the qualification and payability criteria.
Division 2 - Rate of remote engagement program payment
44. New section 661E allows the Minister to determine the rate of the remote engagement
program payment by legislative instrument, subject to specified maximum and minimum
limits. The Minister's power to make a legislative instrument under proposed subsection
661E(2) is discretionary. Subsection 661E(3) specifies that the Minister may determine a
maximum fortnightly rate of not more than $190 and a minimum fortnightly rate of not
less than $100. This will allow flexibility in determining the rate of the remote
engagement program payment to incorporate feedback from co-design process.
Division 3 - Miscellaneous matters
45. New section 661F provides that if the person undertakes an activity in accordance with a
remote engagement placement under the remote engagement program, then the person is
not to be taken--merely because of that participation--to be an employee or worker
doing work for the Commonwealth for the purposes of the Work Health and Safety Act
2011, or an employee for the purposes of the:
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Safety, Rehabilitation and Compensation Act 1988;
Superannuation Guarantee (Administration) Act 1992; or
Fair Work Act 2009.
46. This is consistent with existing provisions in the social security law applying to
participants in the remote engagement program that are not in an remote engagement
placement. If the person participates in an activity in a remote engagement placement,
then this provision will apply in connection with that participation, regardless of whether
or not the participation is required in accordance with a term of an employment pathway
plan.
47. This section reflects a longstanding view that jobseeker participation in activities under a
Commonwealth employment program whilst in receipt of income support payments does
not constitute an employment relationship. It is also based on a commonly held view that
Australian governments may, where reasonable, require certain social security recipients
to participate in activities that promote their well-being and enhance their employment
prospects.
Social Security (Administration) Act 1999
Item 8 - After section 12AF
48. This item inserts a new section 12AG after existing section 12AF of the Social Security
(Administration) Act. The new section provides that a participant in the remote
engagement placement is not required to make a claim for their remote engagement
program payment. Instead, the payment will be made as an add-on to the person's
existing income support payment (provided they otherwise meet the qualification and
payability criteria for the remote engagement program payment set out in Part 2.13 of the
Social Security Act).
Part 2--Contingent amendments relating to the remote engagement program payment
Item 9 - Subsection 661B(1) (table)
49. Item 9 is a contingent amendment to the Social Security Act to give effect to the proposed
amendments in item 7 of this Bill which inserts new subsection 661B(1).In the event that
the Social Security Legislation Amendment (Streamlined Participation Requirements and
Other Measures) Act 2021 commences before the commencement of this Bill, item 9 will
repeal and substitute subsection 661B(1) under item 7.
50. Schedule 1 to the Social Security Legislation Amendment (Streamlined Participation
Requirements and Other Measures) Act 2021 amends the Social Security Act to
streamline participation requirements relating to income support payments, such as:
disability support pension;
parenting payment;
youth allowance; and
jobseeker payment.
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51. This item reflects the kinds of payments that are qualifying remote income support
payments and the relevant qualification requirements for each payment, as amended by
the Social Security Legislation Amendment (Streamlined Participation Requirements and
Other Measures) Act 2021.
52. However, if that Act commences after the commencement of this Bill, this amendment
will fail due to the provisions relating to participation requirements of the relevant
qualifying remote income support payments in that Act not commencing. This item will
only commence if Schedule 1 to the Social Security Legislation Amendment (Streamlined
Participation Requirements and Other Measures) Act 2021 commences before this Bill.
Part 3--Main amendments relating to the end of the CDEP Scheme
53. Part 3 of Schedule 1 will repeal certain provisions in the social security law that establish
or refer to the Community Development Employment Project (CDEP) Scheme and the
Northern Territory CDEP transition payment. The provisions are spent and should be
removed from the statute books to avoid confusion over their status. The Age
Discrimination Act 2004 (the Age Discrimination Act) also requires consequential
amendments to repeal a provision that will become redundant as a result of the
amendments made by this Part.
Age Discrimination Act 2004
Item 10 - Subsection 41(3)
54. Item 10 repeals subsection 41(3) of the Age Discrimination Act. This amendment is
consequential to the removal of the CDEP Scheme from the social security law. There
will no longer be any need for the Age Discrimination Act to clarify that Part 4 of that
Act does not make unlawful anything done by a person in direct compliance with the
CDEP Scheme (within the meaning of the Social Security Act).
Social Security Act 1991
Items 11 to 17 - Sections 17 and 19 and subsection 23(1)
55. Items 11 to 17 will repeal or amend the definition of terms in sections 17, 19 and 23 of
the Act that refer, or otherwise relate, to the CDEP Scheme or CDEP Scheme payments
or the Northern Territory CDEP transition payment.
Item 18 - Sections 408CG and 408GI
56. This item will repeal sections 408CG and 408GI which provide that widow allowance
must take account of CDEP Scheme payments (These provisions are currently redundant
in social security law as the widow allowance ceased to be available to new recipients
after March 2020).
Item 19 - Paragraph 500E(1)(c)
57. This item will amend paragraph 500E(1)(c), which relates to qualification for parenting
payment, to remove the reference to a person who is a CDEP Scheme participant as this is
no longer required due the amendments made by this Part.
Item 20 - Section 500W
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58. This item will repeal section 500W of the Social Security Act, which provides that the
maximum basic rate of the parenting payment and remote area allowance is not payable
to a person who is a CDEP Scheme participant (as this provision is redundant).
Items 21 and 22 - Subdivision C of Division 4 of Part 2.10 and Subdivision D of Division 9
of Part 2.10
59. Items 21 and 22 will repeal Subdivision C of Division 4 and Subdivision D of Division 9
of Part 2.10 of the Social Security Act. These existing subdivisions relate to the
accumulation of the parenting payment by, and bereavement payments that may have
become payable in respect of, a CDEP Scheme participant. Given that this Part removes
references to 'CDEP Scheme', these existing subdivisions are no longer required.
Relevantly, references to bereavement payments are currently redundant in social security
law as this allowance ceased to be available to new recipients after March 2020.
Items 23 to 24 - Paragraphs 540(a) and 546(1)(c) and sections 552C, 559J and 567F
60. Items 23 to 24 will consequentially amend the youth allowance provisions in Part 2.11 of
the Social Security Act reflecting that there are no CDEP Scheme participants and so the
Act does not need to specify these persons as qualifying for the payment or subject to
particular rules.
Item 25 - Subsection 578(3)
61. Item 25 will repeal subsection 578(3) relating to the austudy payment in Part 2.11A of the
Social Security Act so that the multiple exclusion entitlement provision no longer refers
to CDEP Scheme participants.
Items 26 - 29 - Paragraph 593(1)(a), section 598, paragraph 600(1)(c), sections 614A, 653A,
660LG, 771HK and 771KN
62. Items 26 to 29 will remove redundant references to CDEP Scheme participants with
respect to the jobseeker payment in Part 2.12 of the Act.
63. Item 26 amends the jobseeker payment qualification criteria.
64. Item 27 makes a consequential amendment to section 598, which deals with liquid assets
waiting periods for qualified persons.
65. Item 28 makes a consequential amendment to paragraph 600(1)(c) which deals with
qualification for jobseeker payment.
66. Item 29 repeals sections 614A, 653A and 660LG which, respectively, relate to the
non-payability of the maximum basic rate and remote area allowance, the accumulation
of payments and bereavement payments for jobseeker payment recipients.
67. Item 29 will also repeal section 771HK and 771KN of the Act, which relate to Partner
Allowance under Part 2.15A of the Act. These provisions relate to the non-payability of
the maximum basic rate and remote area allowance to, and the accumulation of those
payments for, CDEP Scheme participants.
Item 30 - Subdivision D of Division 9 of Part 2.15A
68. Item 30 repeals Subdivision D of Division 9 of Part 2.15A of the Act which deals with the
calculation of bereavement payments to partner allowance recipients in respect of a
CDEP Scheme Participant, and is no longer needed.
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Items 31 to 36 - Subsection 1049(2), Paragraph 1061EM(2)(b), Subsections 1061EN(1),
1061EN(2), 1061EX(7), 1061JU(1), (2) and (3)
69. Items 31 to 36 repeal or amend the following provisions to remove references to
CDEP Scheme participation with respect to:
subsection 1049(2) dealing with language, literacy and numeracy supplement
which was not payable to persons for whom a CDEP Scheme Participant
Supplement was payable for the fortnight;
sections 1061EM, 1061EN and 1061EX, which relate to special employment
advance payments for persons receiving qualifying payments; and
section 1061JU, which relates to crisis payment.
Item 37 - Part 2.27
70. Item 37 will repeal Part 2.27 of the Act, which provides that the Northern Territory CDEP
transition payment is now spent.
Items 38 to 46 - Points 1067G-A1, 1067G-B1, 1068-A1, 1068-B1, Points 1068B-A2 and
1068B-A3, 1068B-C2 and 1068B-C3
71. Items 38 to 46 will remove redundant references to CDEP Scheme participants in the
Youth Allowance Rate Calculator in section 1067G (which is applied to determine the
rate of youth allowance) and Benefit Rate Calculator B in section 1068B (which is
applied to determine rates of widow allowance, jobseeker payment (over 18 years),
partner allowance and mature age allowance under Part 2.12B).
Items 47 and 48 - Subsection 1161(6A) and Paragraph 1161A(1)(a)
72. Item 47 and 48 will amend subsection 1161(6A) and paragraph 1161(1)(a) to omit
references to CDEP in the compensation recovery provisions in Part 3.14 of the Act. This
reflects the removal of a reference to CDEP Scheme Participant Supplement from the
definition of 'compensation affected payment' in subsection 17(1) of the Act.
Item 49 - Part 3.15A
73. This item will repeal Part 3.15A of the Act, which provided the statutory basis for the
CDEP Scheme and payment of the CDEP Participant Supplement.
Social Security (Administration) Act 1999
Items 50 and 51- Paragraphs 52(1)(k) and 52(1)(l)
74. Items 50 and 51 remove 'Northern Territory CDEP transition payment' from subsection
52(1) of the Act, which relates to the timing of payment instalments to persons who are
overseas when receiving specified payments.
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Item 52 - Paragraph (r) of the definition of category I welfare payment
75. Item 52 repeals paragraph (r) of the definition of 'category I welfare payments', which
specifies the transition payment as a trigger payment for the purposes of certain Income
Management provisions in the Social Security (Administration) Act.
Item 53 - Paragraph 144(daa)
76. Item 53 repeals paragraph 144(daa), which provides that certain decisions relating to the
transition payment are not-reviewable by the Administrative Appeals Tribunal.
Item 54 - Subclause 1(1) of Schedule 1 (paragraph (j) of the definition of social security
periodic payment)
77. Item 54 removes the transition payment from paragraph (j) of the definition of 'social
security periodic payment'.
Part 4--Contingent amendments relating to the end of the CDEP Scheme
78. Part 4 contains contingent amendments to the Social Security Act. The amendments are
contingent in the sense that the items will only commence if Part 3 of this Bill is enacted
and commences before Schedule 1 to the Social Security Legislation Amendment
(Streamlined Participation Requirements and Other Measures) Act 2021 comes into force
(which is aimed at streamlining participation requirements for certain income support
payments). If this occurs, the measures explained below will commence at the same time
as Part 3 of this Bill.
Item 55 - Paragraph 540(a)
79. This item would repeal paragraph 540(a) of the Social Security Act, which relates to the
general qualification rule for youth allowance, and substitutes it with a new paragraph (a)
which removes the reference to the person being a CDEP Scheme participant in respect of
the applicable qualifying period.
Item 56 - Paragraph 593(1)(b)
80. This item would consequentially amend the general qualification criteria for jobseeker
payment in subsection 593(1)(b) of the Social Security Act to reflect the change to
paragraph 593(1)(a) made by item 26 of Part 3 of the Bill.
Item 57 - Paragraph 602D(a)
81. This item makes a consequential change to paragraph 602D(a) of the Social Security Act
to reflect the revision to paragraph 593(1)(b) made above.
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STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
SOCIAL SECURITY LEGISLATION AMENDMENT (REMOTE ENGAGEMENT
PROGRAM) BILL 2021
1. This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
PURPOSE AND OBJECTIVES
2. The Social Security Legislation Amendment (Remote Engagement Program) Bill 2021
(Bill) will provide a framework for piloting new approaches to delivering employment
services in remote communities, ahead of implementing the Government's Budget
announcement that the Community Development Program (CDP) will be replaced in
2023.
3. This Bill supports collaboration with communities to develop an appropriately flexible
program that will build the skills and vocational capabilities of people in remote
communities. Many of the more detailed aspects of the approach will be set out in
legislative instruments and policy guidance, allowing flexibility to adjust as lessons are
learnt and communities' ideas change over the course of the pilots.
4. The Bill introduces a new supplementary payment (new payment) to be made to eligible
job seekers in remote engagement program pilot communities so they can engage in
activities or placements that are like having a job. The placements will build participants'
skills in roles that will deliver goods or services to benefit local communities and provide
a pathway for jobseekers to find a job.
5. The pilots will be co-designed in partnership with a number of remote communities ahead
of 2023. The new payment will be one aspect communities can trial alongside other
approaches to training, skills development and non-vocational support as they co-design
the remote engagement program.
6. Lessons learned from the pilot sites will inform the design of the new program to be rolled
out in 2023. Initially, we estimate around 200 eligible job seekers in the pilot sites will
volunteer for the payment.
7. The Government is committed to co-designing the pilots with communities, and believes
this will be critical to their success. It is important that there is capacity to trial different
approaches in different sites. To give effect to the Government's commitment to work in
partnership with Indigenous communities, the Bill sets out the basic parameters of the
payment, with other elements such as the qualification criteria and the exact rate of
payment to be set out in detail in subordinate legal instruments and policy guidance. These
legislative instruments will be informed by the outcomes of a co-design process in the
pilot sites.
8. The Government will take the time to work together and listen to communities in the pilot
sites about what they think could work in their community in relation to the amount of
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payment to be provided, the hours of engagement to be undertaken in return and what
eligible job seekers are required to do to continue to receive the payment. This will also
better allow for adjustments during the pilots as lessons are learned. The Bill provides that
the payment will be time-limited, meaning that the legislation will need to be revisited
ahead of the national roll out of the new remote engagement program. This will ensure
continuing Parliamentary scrutiny.
9. The new payment will be paid at a fixed fortnightly rate and will be additional to certain
primary income support payments and other supplements for eligible job seekers. The new
payment will not be subject to the income test in the Social Security Act 1991.
10. The aim is for an eligible job seeker's income support plus the new payment to be
approximately equivalent to the minimum wage for the hours participating in work like
activities. Eligible job seekers will voluntarily participate in a role in government services
or a community organisation for between 15 and 18 hours per week building important
skills and experience. The placements will not be a job, but will aim to give job seekers
experience that will enable transition to paid employment. The payment will not be at a
level high enough that people avoid taking up paid employment opportunities. The pilots
provide an opportunity to test the level of incentives.
Human rights implications
11. This Bill engages the following human rights:
Right to work: Article 6 of the International Covenant on Economic, Social and
Cultural Rights (ICESCR)
Right to social security: Article 9 of the ICESCR.
Right to an adequate standard of living: Article 11 of the ICESCR.
Right of equality and non-discrimination: Article 2 of the ICESCR, Articles 2, 16 and
26 of the International Covenant on Civil and Political Rights (ICCPR), Article 5 of
the International Convention on the Elimination of All Forms of Racial
Discrimination (CERD) and Article 5 of the Convention on the Rights of Persons with
Disabilities (CRPD).
Right of persons with disabilities to work on an equal basis with others: Article 27 of
the CRPD.
Right to work
12. Article 6(1) of the ICESCR recognises the right of everyone to work, including the
opportunity to gain their living by work which they freely choose or accept. Article 6(2) of
the ICESCR further provides that the progressive realisation of this right by States
includes implementing technical and vocational guidance and training program, and
policies which facilitate full and productive employment.
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13. The measures included in this Bill will strengthen existing incentives for remote
jobseekers to actively engage with Commonwealth employment programs, which in turn
will improve their skills and assist jobseekers to transition to, and remain in, paid work in
the open labour market. The measures in this Bill will in particular provide these
opportunities to jobseekers in remote communities that face complex employment
challenges. The Bill therefore advances the right to work.
Right to social security and right to adequate standard of living
14. Article 9 of the ICESCR recognises the right of everyone to social security, including
social insurance. Article 11(1) of the ICESCR recognises the right of everyone to have an
adequate standard of living for themselves.
15. The United Nations Committee on Economic, Social and Cultural Rights (the ESCR
Committee) has stated that the right to social security is of 'central importance in
guaranteeing human dignity for all persons when they are faced with circumstances that
deprive them of their capacity to fully realise their Covenant rights'.1 The ESCR
Committee further noted that the right to social security encompasses the right to access
and maintain benefits, and must be sufficient to afford an adequate standard of living.2
16. The Bill advances the right to social security by ensuring that the changes to legislation
do not affect a person's other entitlements under social security law. For remote
engagement program payment recipients, the changes proposed by the Bill will allow
individuals to continue receiving their usual income support payments, as well as any
supplementary payments or allowances payable to them. By establishing the remote
engagement program payment, the Bill further increases the social security benefits to
participants in the remote engagement placement. This allows those individuals to
improve their standard of living while encouraging them to accept paid work. The Bill
therefore advances the rights to social security and an adequate standard of living.
Rights of equality and non-discrimination
17. The rights of equality and non-discrimination are contained in Articles 2, 3, 16 and 26 of
the ICCPR, Article 2 of the ICESCR, Article 5 of the CERD and Article 5 of the CRPD.
These rights recognise that all human beings have the right to be treated equally and not
to be discriminated against.
1
UN Committee on Economic, Social and Cultural Rights (CESCR), General Comment No. 19: The right to
social security (Art. 9 of the Covenant), 4 February 2008, E/C.12/GC/19 at [1].
2
Ibid, at [2], [22].
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18. The Bill advances the rights of equality and non-discrimination by ensuring that
jobseekers living in remote regions and who are eligible to receive the remote
engagement program payment have opportunities to enhance their employment prospects
through hosted placements and training, which in turn build their skills and employability.
19. The application of these measures in remote Australia is designed to overcome the
inherent imbalance in employment opportunities and consequential disadvantage
experienced in parts of remote Australia. The Bill is therefore necessary to promote
equality through elevating the situation of persons in remote Australia to a standard
comparable with their counterparts living in non-remote regions.
Right of persons with disabilities to work on an equal basis with others
20. Article 27 of the CRPD recognises the right of persons with disabilities to work, on an
equal basis with others. This includes the right to the opportunity to gain a living by work
freely chosen or accepted in a labour market and environment that is open, inclusive and
accessible to person with disabilities.
21. The Bill advances the right of persons with disabilities to work on an equal basis with
others by enabling qualifying jobseekers to engage in activities or placements that
enhance their prospects of securing a job. Persons who are receiving a disability support
pension as their underlying income support payment, and who receive employment
support services from a remote engagement program provider, can also qualify for a
remote engagement program payment.
Conclusion
22. The amendments are compatible with human rights because they promote rights to social
security, an adequate standard of living, to work and are consistent with the right to
equality and non-discrimination. To the extent (if any) that they may limit human rights,
those limitations are reasonable, necessary and proportionate.
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