This bill became law on Nov 28th, 2023.
Welfare & housing
From 1 January 2024, new eligible pensioners over age pension ageThe age a person must reach to qualify for the age pension and related Work Bonus rules on this page. and some older veterans can start with a $4,000 work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. balance, so they can earn more from work before payments are reduced.
New pensioners started with a zero work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. balance, the higher $11,800 cap was due to end after 31 December 2023, and some people moving into work lost support too quickly. The bill gives new recipients a $4,000 starting balance, keeps the higher cap, and extends and expands the nil-rate period so payments and extras can continue longer.
Before this law, new pensioners began with no saved Work BonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. credit, the higher $11,800 cap on unused credits was only temporary and due to end, and some people moving into full-time work could lose income support and linked extras too quickly. As the government tied workforce participation changes to its September 2023 employment white paper and labour shortage response, the bill locked in a $4,000 starting credit for new eligible pensioners, made the higher cap permanent, and from 2024 let more recipients keep payments, concession cards and child care support for longer while earnings rose.
The main criticism was that the bill was too modest, because it increased pensioners' work incentives but left the regular fortnightly work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. at $300 instead of lifting it further to $600. That concern came from Coalition speakers and a defeated Senate amendment request, while no party represented in the debate argued against the bill's overall purpose.
Amanda Rishworth MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 28 Nov 2023
Final passage
Passed without a counted vote
2 recorded amendment or procedural votes were found, but no counted vote on the bill itself was recorded.
Passage speed
41 days
From introduction to the latest recorded parliamentary step
Meaning
From 1 January 2024, new eligible pensioners over age pension ageThe age a person must reach to qualify for the age pension and related Work Bonus rules on this page. and some older veterans can start with a $4,000 work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. balance, so they can earn more from work before payments are reduced.
Older pensioners and some veterans can now keep building up unused work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. credits to $11,800 on an ongoing basis instead of the previous $7,800 cap.
From 1 July 2024, people on eligible income support payments can stay on the employment income nil rate periodA period when a payment is set to nil, but the person can keep some linked benefits and may have the payment restart more easily if work stops. for 24 weeks, helping them keep extras like concession cards and extra child care help while their earnings are higher.
JobSeekerThe main income support payment for people looking for work, which this bill lets some recipients keep for longer while they move into full-time work. and Youth AllowanceAn income support payment for younger people that this bill also brings into the nil rate period rules when they move into full-time work. recipients who move into full-time work can now use the employment income nil rate periodA period when a payment is set to nil, but the person can keep some linked benefits and may have the payment restart more easily if work stops., instead of having their payment cancel straight away.
This Schedule will provide $4,000 to the unused concession balance of all new eligible payment recipients on commencement. This means that each new eligible recipient will be able to have an extra $4,000 of income from work immediately disregarded from the income test, rather than having to start with a nil balance and accumulate the balance over time. Providing new recipients with a starting balance of $4,000 removes the need for them to build up their balance from $0 and ensures they are in a position to immediately engage in employment without impacting their payment. From 1 July 2024, eligible recipients will be able to receive a “top-up” payment to a maximum of $4,000 once every two years.Social Security and Other Legislation Amendment (Supporting the Transition to Work) explanatory memorandum
Further, this Schedule will permanently increase the maximum unused concession balance from $7,800 to $11,800. Section 1073AC of the Social Security Act and section 46ACA of the Veterans’ Entitlements Act have temporarily provided for this higher maximum of $11,800, but this is specified to end after 31 December 2023. These amendments will ensure that eligible recipients can continue to accrue a higher concession balance of up to $11,800 beyond 31 December 2023.Social Security and Other Legislation Amendment (Supporting the Transition to Work) explanatory memorandum
The Bill will also enable eligible working social security recipients, including recipients who take up full-time work, to benefit from an extended employment income nil rate period of 24 weeks under the Social Security Act. This will enable more recipients to continue to access supplementary benefits, such as concession cards and additional child care subsidy, where their income (including some employment income) is above the relevant income limit, for a longer period.Social Security and Other Legislation Amendment (Supporting the Transition to Work) explanatory memorandum
The measures in this bill will also extend access to the nil rate period to JobSeeker and youth allowance (other) recipients who commence in full-time work. Currently, these recipients are ineligible for the employment income nil rate period altogether, so their payment cancels as soon as they commence full-time employment.Minister's second reading speech
Context
Before this law, new pensioners began with no saved Work BonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. credit, the higher $11,800 cap on unused credits was only temporary and due to end, and some people moving into full-time work could lose income support and linked extras too quickly. As the government tied workforce participation changes to its September 2023 employment white paper and labour shortage response, the bill locked in a $4,000 starting credit for new eligible pensioners, made the higher cap permanent, and from 2024 let more recipients keep payments, concession cards and child care support for longer while earnings rose.
Government links welfare work incentives to the employment white paper
With skills and labour shortages in focus, the government said it would lock in changes so pensioners and other income support recipients could earn more before losing benefits.
Australian Financial Review ↗Bill introduced to make the temporary and planned changes law
The second reading speech said the bill would permanently enhance the pension Work BonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. and extend the employment income nil rate periodA period when a payment is set to nil, but the person can keep some linked benefits and may have the payment restart more easily if work stops. as an immediate action flowing from the white paper.
Hansard ↗Bill becomes law
Royal AssentThe final step that turns a bill into law after Parliament passes it. completed the measure that kept the higher Work BonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. cap and expanded the employment income nil rate periodA period when a payment is set to nil, but the person can keep some linked benefits and may have the payment restart more easily if work stops. for people moving into work.
Parliamentary timeline ↗Temporary higher Work BonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. cap was due to end
Without legislative change, the temporary increase in the maximum unused concession balanceThe amount of Work Bonus credit a person has saved up and can still use later. from $7,800 to $11,800 would have stopped after this date.
Social Security and Other Legislation Amendment (Supporting the Transition to Work) explanatory memorandum ↗New pensioners gain a $4,000 starting Work BonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. balance
From this date, new eligible pensioners over age pension ageThe age a person must reach to qualify for the age pension and related Work Bonus rules on this page. and some older veterans could begin with a $4,000 balance and keep accruing unused credits up to $11,800 on an ongoing basis.
User-supplied bill summary ↗Longer nil-rate period starts for people moving into work
Eligible income support recipients, including JobSeekerThe main income support payment for people looking for work, which this bill lets some recipients keep for longer while they move into full-time work. and Youth AllowanceAn income support payment for younger people that this bill also brings into the nil rate period rules when they move into full-time work. recipients entering full-time work, could stay on the employment income nil rate periodA period when a payment is set to nil, but the person can keep some linked benefits and may have the payment restart more easily if work stops. for 24 weeks and keep linked extras for longer.
User-supplied bill summary ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
Second reading debate
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns a bill into law after Parliament passes it., turning the bill into an Act.
Key criticism
The main criticism was that the bill was too modest, because it increased pensioners' work incentives but left the regular fortnightly work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. at $300 instead of lifting it further to $600. That concern came from Coalition speakers and a defeated Senate amendment request, while no party represented in the debate argued against the bill's overall purpose.
Criticism was limited and focused on the bill not going further, not on rejecting the policy.
Work bonus increase seen as too small
Coalition speakers argued the bill helped but did not go far enough, saying pensioners still faced cost-of-living pressure and the ordinary fortnightly work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. should have been doubled from $300 to $600.
Further sources
Votes
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.
House
Defeated 61 to 79. Support came from Liberal Party, Nationals, Centre Alliance, and minor parties and independents. Opposition came from Labor, Greens, and Katter's Australian Party. Minor-party and independent votes were split.
The House defeated the amendment and then agreed to the second reading, so the bill could proceed unchanged.
Senate
Defeated 11 to 35. Support came from Greens. Opposition came from Labor, Liberal Party, Nationals, One Nation, and minor parties and independents.
The Senate agreed to the second reading, advancing the bill through the chamber at the committee stage vote recorded here.
Senator Ruston’s proposal, decided on voices, would have lifted the pensioner work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. from $300 to $600 a fortnight and updated the related examples and commencement date.
Defeated on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.
Parliamentary debate
Start here — lead voices
Amanda Rishworth supports the bill and says it will help older Australians and income support recipients take up work without losing support too quickly.
Read in Hansard ↗James Stevens says the Coalition will support the bill because it lets more senior Australians earn money without reducing their pension, but he argues it should go further by lifting the work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. from $300 to $600 a fortnight in response to cost-of-living pressure.
Read in Hansard ↗Phillips supports the bill because it permanently extends the pension work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. and removes barriers that discourage older Australians from working.
Read in Hansard ↗Michael Sukkar says the coalition will support the bill because it helps pensioners work more without losing benefits, but argues it does not go far enough and should be amended to lift the work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. from $300 to $600 a fortnight.
Read in Hansard ↗All speeches by bloc
7 speakers · 9 contributions · 7 support
“This bill makes those temporary measures permanent. It implements the changes which were announced in our employment white paper in September. To put it simply, we are giving older Australians more choice and flexibility to participate in the workforce by permanently enhancing the pension work bonus.”Read the full speech in Hansard ↗
“In conclusion, the Albanese government is committed to giving many Australians more choice and flexibility to participate in the workforce, particularly older Australians with the work bonus. These changes deliver on our commitment of building on a really strong social security safety net that protects our vulnerable Australians and doesn't stigmatise people for needing help. We are very proud of our history of doing that. Our suite of safety net measures includes additional support for working age and student payment recipients. We would have seen, too, our increases to the Commonwealth rent assistance and expansion of the parenting payment, as well, providing that targeted support when it is required. The importance of this bill is that it really does work to overcome barriers to employment and broaden opportunity by reducing disincentives in the social security system and supporting more people to take up work. The measures in this bill will provide a broad range of support to many more Australians, and I commend the bill to the House.”Read the full speech in Hansard ↗
“I commend the bill to the house, and I'm very proud of these very sensible measures, which we hope will improve employment opportunities for everyone.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Amanda Rishworth on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
Amanda Rishworth supports the bill and says it will help older Australians and income support recipients take up work without losing support too quickly. She argues the changes to the work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. and nil rate periodA period when a payment is set to nil, but the person can keep some linked benefits and may have the payment restart more easily if work stops. will remove barriers to employment and give people more flexibility.
“I commend the bill to the House.”Read this contribution in Hansard ↗
Second reading speech
Rishworth supports the bill and says it will help remove barriers to work by permanently boosting the pensioner work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. and extending the income nil rate periodA period when a payment is set to nil, but the person can keep some linked benefits and may have the payment restart more easily if work stops. for people on income support. She says these changes will give pensioners and other recipients more flexibility and a smoother transition into employment.
“With the measures in this bill, the government is doing more to help Australians of all ages get into work, consistent with our objectives to remove the barriers to employment and broaden opportunities for all Australians. I commend the bill to the House.”Read this contribution in Hansard ↗
“On behalf of the people in my community of Dobell, in the northern part of the Central Coast of New South Wales, I'm pleased to speak in support of this bill, the Social Security and Other Legislation Amendment (Supporting the Transition to Work) Bill 2023. It has broad support across the parliament and broad support across my electorate. This is because, as the member for Macquarie has just said, this is a commonsense amendment with practical benefits which will flow not just to individuals but also to local communities and regional economies, like mine, on the Central Coast of New South Wales, and Susan's, in the Blue Mountains.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Shayne Neumann on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Neumann supports the bill, saying it gives older Australians and eligible veterans more choice and flexibility to work while keeping income support in place. He says the changes remove barriers and help people transition into employment without being financially disadvantaged.
“This bill gives effect to that vision and aims to provide more choice and flexibility for older Australians and eligible veterans, through an enhanced pension work bonus. It smooths the transition to work for income support recipients by doubling the employment income nil rate period and extends access to the nil rate period for recipients who enter full-time work.”Read this contribution in Hansard ↗
Second reading speech
Shayne Neumann supports the bill and says it will help older Australians and veterans stay connected to work by lifting the work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. and giving new pensioners a stronger starting income bankThe amount of Work Bonus credit a person has saved up and can still use later.. He argues the changes are practical, targeted, and useful for easing labour shortages while giving pensioners more flexibility and support.
“The bill before the House today has permanently extended these changes from 1 January 2024 to all eligible new recipients over pension age. As a result, more than 195,000 senior Australians who start on a pension every year will be given an added incentive to maintain a connection to the workforce and continue to contribute their skills, talents, knowledge and experience to the labour market. We will be better for that. There is no doubt about that.”Read this contribution in Hansard ↗
“I'm pleased to speak in support of the Social Security and Other Legislation Amendment (Supporting the Transition to Work) Bill 2023. This bill implements social security measures announced in the government's employment white paper released on 25 September this year.”Read the full speech in Hansard ↗
2 speakers · 2 support
“We'd like to see the bill go further, but we nonetheless support it. We urge others to support this amendment on the second reading because it's important to acknowledge the significant cost-of-living burdens on all Australians, particularly the Australians that will be impacted by the bill that we are passing.”Read the full speech in Hansard ↗
“The coalition will support this bill but moves a second reading amendment calling on the government, as I have just done, to increase the work bonus from $300 to $600 a fortnight. Whilst we agree with the basic proposition of this bill, which is, ultimately, to incentivise pensioners to work more hours without penalty, this does not go as far as what the coalition first put forward quite some time ago.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Returned to House for further consideration
Returned to House for further consideration
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns a bill into law after Parliament passes it., turning the bill into an Act.
