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Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures)

Current status

This bill became law on Oct 7th, 2022.

Policy area

Work & employment

What does this bill do?

Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. payments are brought under family law and child support rules so those payments are treated like other income-tested support when courts assess maintenance and child support.

Why was it introduced?

The new Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. program started on 1 July 2022, but the law did not clearly treat its payments the same way as older NEISThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment. payments across family law, child support, social security and veterans’ rules. This bill fixes that gap by extending the same treatment to the new payments and making small technical corrections to related social security law.

Broader context

Australia had long supported unemployed people to start businesses through the New Enterprise Incentive SchemeThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment., but when the Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. program began on 1 July 2022 the law did not clearly carry across the same treatment for those payments in family law, child support, social security and veterans’ rules. The bill was introduced within weeks to align the new program with the older scheme, make related technical fixes, and after Parliament passed it in September 2022 and Royal AssentThe final step that turned the bill into an Act and made its changes law. followed in October, the matching treatment was secured in law.

Key criticism

The main criticism was that this bill was too limited and technical to fix the larger problems facing people on income support and trying to move into work. That view was raised most clearly by the Greens, while broader parliamentary debate otherwise showed support for the bill and only narrow reservations such as concerns that the self-employment program was poorly promoted.

Who supported it?

Senator Katy Gallagher introduced this bill. It passed on the voices.

Introduced in Senate 27 July 2022
Passed Senate 03 Aug 2022
Passed House 26 Sept 2022
Became law 07 Oct 2022

Did it become law?

Yes

Became law 07 Oct 2022

Final passage

Passed without a counted vote

Members called out ‘aye’ or ‘no’ — no individual votes were recorded.

Passage speed

72 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

Meaning

What does this bill do?

  1. Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. payments are brought under family law and child support rules so those payments are treated like other income-tested support when courts assess maintenance and child support.

  2. People getting Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. keep having their social security and veterans’ payments worked out under the same special rules that already applied to New Enterprise Incentive SchemeThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment. payments.

  3. If the Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. program is renamed later, the Employment Secretary must publish a formal notice so the same family, social security and veterans’ rules keep applying without another Act.

  4. Most of the self-employment law changes apply to payments made on or after 1 July 2022, matching the start of the Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. program.

  5. The Act also makes small technical corrections to social security law so earlier participation-rule changes work as Parliament intended and old notes are removed.

Show source excerpts
  1. The amendments to the Family Law Regulations in Schedule 1 of the Bill will make clear that Self-Employment Assistance payments are captured by the definition of an “income tested pension, allowance or benefit” under the Family Law Act. This will promote the clear and consistent treatment of income tested support within the legislative frameworks for spousal maintenance, child maintenance and child support under the family law and child support scheme legislation.
    Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) explanatory memorandum
  2. The Bill simply makes clear that these arrangements will continue and that Self-Employment Assistance payments are to be treated in the same way as other NEIS payments. In light of the fact that Self-Employment Assistance is very similar to other NEIS assistance, it would be inappropriate to treat Self-Employment Assistance payments differently to other NEIS payments.
    Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) explanatory memorandum
  3. This means that if Self-Employment Assistance is given a different name the family, social security and veterans’ entitlements laws will continue to operate in the same way, provided that the Employment Secretary makes a notifiable instrument giving notice of the change, without the need for a future bill to make that clear.
    Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) explanatory memorandum
  4. Item 29 provides that the amendments by Schedule 1, other than made by items 1 and 2, apply in relation to payments under a self-employment program that are made on or after 1 July 2022, to clarify how the relevant laws operates in relation to Self-Employment Assistance payments from that date, which is when Self-Employment Assistance commenced.
    Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) explanatory memorandum
  5. The minor technical amendments in Schedule 2 clarify Parliament’s intention when it passed the Social Security Legislation Amendment (Streamlined Participation Requirements and Other Measures) Act 2022 and remove a small number of notes which are now redundant due to that Act.
    Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) explanatory memorandum

Context

Broader context for this bill

Australia had long supported unemployed people to start businesses through the New Enterprise Incentive SchemeThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment., but when the Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. program began on 1 July 2022 the law did not clearly carry across the same treatment for those payments in family law, child support, social security and veterans’ rules. The bill was introduced within weeks to align the new program with the older scheme, make related technical fixes, and after Parliament passed it in September 2022 and Royal AssentThe final step that turned the bill into an Act and made its changes law. followed in October, the matching treatment was secured in law.

  1. 1985

    New Enterprise Incentive SchemeThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment. begins

    Parliamentary debate described the self-employment support scheme's history as stretching back to 1985, establishing the long-running program whose payment rules this bill later mirrored.

    Hansard ↗
  2. 01 July 2022

    Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. program starts

    The new Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. program started on this date, creating a gap because its payments were not yet clearly treated the same way as NEISThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment. payments across several laws.

    Why introduced ↗
  3. 27 July 2022

    Government introduces the bill to align the new program

    The second reading speech said the bill would make clear that the law operated the same way for Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. participants as it had for people using NEISThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment..

    Hansard ↗
  4. 26 Sept 2022

    Parliament passes the bill

    Both houses passed the bill in the same form, completing Parliament's response to the mismatch created when the new program replaced the older name.

    Parliamentary timeline ↗
  5. 07 Oct 2022

    Royal AssentThe final step that turned the bill into an Act and made its changes law. makes the changes law

    Royal AssentThe final step that turned the bill into an Act and made its changes law. turned the bill into an Act, locking in the equivalent treatment of Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. payments and the related technical corrections.

    Parliamentary timeline ↗

Legislative route

How did it move through Parliament?

House Senate
Introduced 27 July 2022

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 27 July 2022

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 02 Aug 2022

The bill reached this recorded parliamentary step.

Second reading debate 03 Aug 2022

The bill reached this recorded parliamentary step.

Senate second reading agreed 03 Aug 2022

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

Senate third reading agreed 03 Aug 2022

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 04 Aug 2022

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 26 Sept 2022

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 26 Sept 2022

The bill reached this recorded parliamentary step.

House second reading agreed 26 Sept 2022

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

House third reading agreed 26 Sept 2022

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 26 Sept 2022

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 07 Oct 2022

The Governor-General gave Royal AssentThe final step that turned the bill into an Act and made its changes law., turning the bill into an Act.

Key criticism

The main case against this bill

The main criticism was that this bill was too limited and technical to fix the larger problems facing people on income support and trying to move into work. That view was raised most clearly by the Greens, while broader parliamentary debate otherwise showed support for the bill and only narrow reservations such as concerns that the self-employment program was poorly promoted.

No party represented in the debate opposed the bill, and criticism stayed limited and mostly conditional.

Too narrow to fix deeper welfare problems

Critics argued the bill mainly updates names and payment rules without tackling bigger barriers in the social security and employment system, such as low income support and punitive mutual obligationsThe work-related requirements people on income support may have to meet; critics in the debate said those rules were still too harsh even after this bill.. The concern was that people would still struggle to start work or self-employment unless those wider settings changed.

Raised by Greens senator Janet Rice Source ↗

Program may still miss people if poorly promoted

A narrower concern was that the self-employment assistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. program was not being marketed well enough, especially in regional areas. If awareness stayed low, eligible people might miss out even if the legal framework was updated.

Raised by Centre Alliance Mp Rebekha Sharkie Source ↗

Further sources

parlinfo.aph.gov.au ↗ parlinfo.aph.gov.au ↗

Votes

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.

Passed

Senate passed the bill

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.

03 Aug 2022

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.

Passed

House passed the bill

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.

26 Sept 2022

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.

Parliamentary debate

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Katy Gallagher

Australian Labor Party • Senator 27 July 2022

Gallagher supports the bill, saying it will update the law so Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. payments are treated the same as NEISThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment. payments and give participants more clarity and support while they establish a small business.

Read in Hansard ↗
Lead supporting voice Supports

Russell Broadbent

Liberal Party • MP 26 Sept 2022

Broadbent supports the bill and says it will help people on the margins move into work through Workforce Australia and related self-employment support.

Read in Hansard ↗
Lead non-major voice Supports

Rebekha Sharkie

Centre Alliance • MP 26 Sept 2022

Sharkie supports the bill and the self-employment scheme, saying it helps people move off welfare into their own businesses.

Read in Hansard ↗
Lead voice Supports

Sam Birrell

National Party • MP 26 Sept 2022

Sam Birrell supports the bill because he says it will help Australians start and sustain their own businesses and move toward financial independence.

Read in Hansard ↗

All speeches by bloc

Labor

3 speakers · 4 contributions · 3 support

  1. Katy Gallagher ★ Gallagher supports the bill, saying it will update the law so Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. payments are treated the same as NEISThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment. payments and give participants more clarity and support while they establish a small business.
    “This Bill will update the social security, veterans' and family laws to make clear that Self-Employment Assistance payments will be treated in the same way by the law as other NEIS payments. The same will apply if the Employment Secretary notifies a different name for Self-Employment Assistance. The Bill will therefore provide increased clarity for participants as they support themselves while establishing their businesses.”

    Australian Labor Party • Senator • 27 July 2022

    Read the full speech in Hansard ↗
  2. Tony Burke 2 contributions Burke supports the bill, saying it will update the law so Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. payments are treated like NEISThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment. payments and give participants clearer, more flexible support as they start businesses.

    Hansard records 2 separate contributions by Tony Burke on this bill. They are grouped here so the speaker is listed once.

    Second reading speech Australian Labor Party • MP • 26 Sept 2022

    Burke supports the bill, saying it will update the law so Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. payments are treated like NEISThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment. payments and give participants clearer, more flexible support as they start businesses. He presents it as a practical measure to help people move off income support and build small businesses.

    “This bill will update the social security, veterans' and family laws to make clear that Self-Employment Assistance payments will be treated in the same way by the law as other NEIS payments. The same will apply if the employment secretary notifies a different name for Self-Employment Assistance. The bill will therefore provide increased clarity for participants as they support themselves while establishing their businesses.”
    Read this contribution in Hansard ↗

    Second reading speech Australian Labor Party • MP • 26 Sept 2022

    Burke supports the bill and recommends it to the House, saying it will correct outdated references to the renamed self-employment assistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. program in other legislation.

    “For the Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) Bill 2022, as I said when I introduced it, the programs have already had their names changed from New Enterprise Incentive Scheme to the Self-Employment Assistance program. That hadn't been corrected in a number of bills, and this legislation will correct that in those other bills. I commend it to the House.”
    Read this contribution in Hansard ↗
  3. Anthony Chisholm Chisholm supports the bill and says it simply clarifies that NEISThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment. and self-employment assistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. payments are treated the same way, which matches the policy intent.
    “The bill makes clear that the provisions for NEIS payments also apply equally to self-employment assistance payments, as has been the policy intent.”

    Australian Labor Party • Senator • 03 Aug 2022

    Read the full speech in Hansard ↗

Coalition

10 speakers · 10 support

  1. Russell Broadbent ★ Broadbent supports the bill and says it will help people on the margins move into work through Workforce Australia and related self-employment support.
    “This is all about people who are actually in this country today and the opportunities we want to give them. All of the legislation, all the way through, is focused straight out on the people who haven't got a job today, who may need some training and skills. There are a number of opportunities within this legislation to give effect to Workforce Australia. Workforce Australia, as I said before, has been born out of people considering, 'How can we as a nation do something better?' That's why we're supporting this bill. How can we do something better? How can we get that one person who is missing out on the opportunities of life because they are not participating within the workforce? That participation is crucial to the health and wellbeing of them, their families and their communities.”

    Liberal Party • MP • 26 Sept 2022

    Read the full speech in Hansard ↗
  2. Sam Birrell ★ Sam Birrell supports the bill because he says it will help Australians start and sustain their own businesses and move toward financial independence.
    “I am really pleased to support this legislation and the opportunity it gives Australians to create secure work for themselves and financial independence by starting their own business.”

    National Party • MP • 26 Sept 2022

    Read the full speech in Hansard ↗
  3. James Stevens James Stevens says the coalition will support the bill because it helps continue the New Enterprise Incentive SchemeThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment. and backs people who want to start businesses and create jobs.
    “This bill to facilitate transitions into the future for the New Enterprise Incentive Scheme is one that I'm very pleased to support, as the coalition are pleased to support it. It is part of a framework that we left behind to this new government of strong, robust systems to help people start businesses and, by starting those businesses, grow our economy to the benefit of all Australians. I commend the bill to the House.”

    Liberal Party • MP • 26 Sept 2022

    Read the full speech in Hansard ↗
  4. Tony Pasin Pasin supports the bill because he says it continues long-running efforts to move Australians into work and self-employment, which he sees as the best path to better lives and stronger communities.
    “That's why I rise in support of this bill. It's a bill that continues, if you like, the continuum of work, which is a bill that was conceived by those of us in this place and effectively adopted by those opposite. It continues that long journey, one that has been navigated by various governments in various parliaments, towards getting as many Australians as practicable into employment.”

    Liberal Party • MP • 26 Sept 2022

    Read the full speech in Hansard ↗
  5. Aaron Violi Violi supports the bill and says it is a technical change that streamlines the law and keeps self-employment assistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. payments flowing properly.
    “I rise to speak in support of the Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) Bill 2022. The former coalition government was transformative in respect to the way employment services were being delivered Australia-wide, most notably with the introduction of Workforce Australia. From July of this year, Workforce Australia has brought together the Department of Education, Skills and Employment's workforce employment skills initiatives under one single identity, replacing jobactive and the current employment services network. Workforce Australia is now in place, providing more personalised services to better target jobseeker needs, investing in those jobseekers who need it and making greater use of digital technology. This bill is a result of that change. Changing the name of the New Enterprise Incentive Scheme to the Self-Employment Assistance program serves an important purpose in ensuring that payments made under it are treated in the same way as other NEIS payments.”

    Liberal Party • MP • 26 Sept 2022

    Read the full speech in Hansard ↗
  6. Garth Hamilton Hamilton supports the bill because he sees its self-employment and employment programs as a practical way to help people off welfare and into work.
    “In all these ways, this bill speaks very much to the heart of these coalition values that we hold so dear, that the best form of welfare is a job. The best thing we can do for someone is to teach them how to fish and to give them the understanding of their value as a person.”

    Liberal National Party • MP • 26 Sept 2022

    Read the full speech in Hansard ↗
  7. Paul Fletcher Paul Fletcher supports the bill and says it is a technical change needed to rename NEISThe older self-employment program that this bill uses as the comparison point, because the law already gave its payments special treatment. to Self-Employment AssistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. and keep related family, social security and veterans rules working consistently.
    “I rise to speak in support of the Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) Bill 2022. The former coalition government transformed the way employment services are being delivered with the introduction of Workforce Australia. From 4 July 2022, Workforce Australia has brought together all of the Department of Education, Skills and Employment's workforce, employment and skills initiatives under one single identity. Workforce Australia replaced jobactive and the current employment services network. The New Employment Services Model, also known as Workforce Australia, is now in place and is providing more personalised services to better target jobseeker needs, invest in those jobseekers who need it and make greater use of digital technology. This bill is a result of that change. It is a technical bill that effects changes in the name of the New Enterprise Incentive Scheme, NEIS—as a result of the change to Workforce Australia—to the Self-Employment Assistance program, to ensure that payments made under it are treated in the same way as for other NEIS payments.”

    Liberal Party • MP • 26 Sept 2022

    Read the full speech in Hansard ↗
  8. Bert Van Manen Van Manen supports the bill because it keeps the self-employment program in place and preserves the framework he says helps unemployed Australians move into work or start a business.
    “To return to the bill: the bill makes some consequential amendments, but, importantly, it keeps the program in place and ensures that it's consistent across the board. But I'll go back to my earlier comments: it is the former coalition government that set up the systems and the processes that we now have in place that underpin our record low rates of unemployment. I would like to see those rates continue to fall as we continue to see people trained and encouraged to enter into the workforce and fill the jobs and skills gaps that we presently have—because we still have some 1.3 million Australians that are unemployed or underemployed. You can't tell me there are not the skills and the capabilities in many of those people to fill the many jobs we have on offer in this country.”

    Liberal Party • MP • 26 Sept 2022

    Read the full speech in Hansard ↗
  9. Melissa Price Melissa Price supports the bill because it updates the law to reflect the new Workforce Australia and self-employment assistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. arrangements, and she presents it as part of the coalition's broader job-creation and welfare-to-work agenda.
    “This bill is a result of that change and will ensure the intentions of making Workforce Australia a one-stop shop for Australians and Australian businesses to find work, retain work and find access to other government initiatives in employment and skills.”

    Liberal Party • MP • 26 Sept 2022

    Read the full speech in Hansard ↗
  10. James McGrath McGrath supports the bill because it updates the law to match the new self-employment assistanceThe newer government program that replaced NEIS for most participants and whose payments this bill makes easier to treat consistently across other laws. program and preserve the existing treatment of payments without needing future bills.
    “I rise to speak in support of the Social Security and Other Legislation Amendment (Self-Employment Programs and Other Measures) Bill 2022. The new employment services model Workforce Australia was developed by the previous coalition government over a number of years and commenced on 4 July 2022. The new model seeks to build on the success of jobactive and give jobseekers the best opportunity to find opportunity through a tailor-made approach. The former coalition government spent a number of years working with jobseekers, providers, peak bodies and employers on developing a model that works for all and supports a pathway for Australians off welfare and into work. It will eventually become a one-stop shop for Australians and Australian businesses to find work, retrain and find access to other government initiatives in employment and skills. This bill will continue to realise that and will ensure the good intentions continue.”

    Liberal National Party • Senator • 02 Aug 2022

    Read the full speech in Hansard ↗

Greens

1 speaker · 1 support

  1. Janet Rice Rice says the Greens will support the bill, but argues it is only a small step that does not address the deeper problems in the social security and employment system.
    “Yes, we'll support this bill today, but we are calling on this government to do more: to abolish the mutual obligations, to lift income support to above the poverty line and to raise all payments to at least $88 per day, which is what is needed to keep your head above water. By doing so we would be giving every Australian the opportunity to get into employment and live a full and flourishing life.”

    Australian Greens • Senator • 02 Aug 2022

    Read the full speech in Hansard ↗

Minor parties and independents

1 speaker · 1 support

  1. Rebekha Sharkie ★ Sharkie supports the bill and the self-employment scheme, saying it helps people move off welfare into their own businesses.
    “In closing, I extend my support for this bill and for the scheme. But I urge government to find a way for us to really amplify this scheme and to encourage more Australians to be like Mostafa and Simone and pursue their own economic independence, particularly in our regions.”

    Centre Alliance • MP • 26 Sept 2022

    Read the full speech in Hansard ↗

Record

Full record

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