Submission To The Inquiry Into Social Services And Other Legislation Amendment (Strengthening the Safety Net) Bill 2023

Dear Committee Secretary,

The purpose of this letter is to share research and analysis conducted by the Institute of Public Affairs (“the IPA”) with the Community Affairs Legislation Committee (“the committee”) as it conducts its inquiry into the Social Services and Other Legislation Amendment (Strengthening the Safety Net) Bill 2023 (“the bill”).

The bill aims to make minor amendments to the Social Security Act 1991 to help ease cost-of-living pressures for Australians. The bill is unlikely to succeed because it will disincentivise social security recipients from seeking the best form of welfare – a job – while compounding the inflation-inducing economy-wide worker shortage challenge.

The findings contained in this submission are based on wide-ranging analysis published by the IPA regarding issues that are relevant to the bill, including the cost-of-living and Australia’s worker shortage challenges. The relevant research is enclosed with this submission.

Rather than simply tinkering with the edges of social service programs, IPA research reinforces the need to enact wholesale reform of the social security system at large, with a particular focus on the ‘work bonus’. If the federal government allowed students on the youth allowance, age pensioners, and veterans to work without their benefits being reduced, vulnerable Australians would be able to work more without being penalised, while addressing unprecedented worker shortages.