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The 2002 Disability Reform Bill ACOSS (February 2005)

The 2002 Disability Reform Bill ACOSS (February 2005). 2002 disability reform bill. History of the Bill and Welfare Reform What payments do PWD get? What’s in the Bill? Who would be affected? How would they be affected? How does it fit into broader welfare reform?. History of the Bill.

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The 2002 Disability Reform Bill ACOSS (February 2005)

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  1. The 2002 Disability Reform Bill ACOSS (February 2005)

  2. 2002 disability reform bill • History of the Bill and Welfare Reform • What payments do PWD get? • What’s in the Bill? • Who would be affected? • How would they be affected? • How does it fit into broader welfare reform?

  3. History of the Bill • Announced in 2002 Budget, no consultation • Went to Senate Estimates hearings • Rejected by Senate • Introduced and rejected again in 2003 • Changes to DSP flagged after 2004 federal election • But no indication if Bill will be introduced again

  4. What income support payments do PWD get? • Pensions (higher rate, less activity required):- 673,000 on Disability Support Pension- many on Parenting Payment, Age Pension, Carer Payment • Allowances (lower rate, more activity required):- at least 50,000 on Newstart Allowance

  5. Who gets DSP now? • Over 16 and under age pension age, • Have a low or modest income, • Have a serious physical, intellectual or psychiatric disability: - That prevents them from working for award wages for 30 hours or more a week, - For at least the next 2 years, - And still not be able to work within 2 years after vocational training or rehabilitation. • Or be permanently blind.

  6. What’s in the Bill (1): DSP changes You won’t get DSP if: • you’re able to work part time (at least 15 hours a week instead of 30 hours), • you could get work after getting help with job search or general training such as computer skills, • you’re over 55 and there are suitable jobs anywhere in Australia (not just in your local area)

  7. What’s in the Bill (2):Employment assistance 2. Employment and rehabilitation services would be expanded. • 68,000 new places over 3 years: - 37,600 in Job Network - 17,200 in disability employment assistance - 14,700 in rehabilitation

  8. Who would be affected? 1. New applicants:- 60% of claims rejected (40% now) • Over next 3 years:- 80,000 would miss out on DSP- of these, 60,000 would go onto Allowances instead of Pensions 2. Existing recipients:- current rules apply unless you go off the pension- but idea of DSP as a ‘dead end’ is reinforced

  9. How much worse off would people be on Allowances?

  10. Other differences between Allowances and pensions If you’re on an Allowance: • No pensioner concessions (e.g. costs more to use public transport) • Tougher income test (lose 70 cents per dollar earned instead of 40 cents) • Work and activity tests apply

  11. DSP Bill: Diverts PWD from higher payments (pensions) to lower ones (allowances) Pensions confined to those ‘unable to work’ More employment assistance Welfare reform: Pensions and allowances replaced by new simpler payment(s) All encouraged to work if able to More employment assistance and help with costs of disability How does it fit with welfare reform?

  12. DSP Bill Announced in 2002 Budget Went to Senate Estimates hearings Rejected by Senate Introduced and rejected again in 2003 Changes to DSP flagged after 2004 federal election But no indication if Bill will be introduced again Welfare reform ‘McClure Report’ released in 2000 ‘Australians Working Together’ (AWT) proposals announced in 2001 ‘AWT’ implemented in 2002 and 2003 ‘Building a Better System’ discussion paper released in early 2003 Note: History of the DSP Bill and welfare reform

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