Speakers: Simon Duggan, Senator Marielle Smith

Transcript

Senator Marielle Smith

I declare open this hearing of the Education and Employment Legislation Committee into the twenty twenty-six-27 supplementary budget estimates. I begin by acknowledging the traditional custodians of the land on which we meet today and pay my respect to elders past and present, and extend that respect to any Aboriginal or Torres Strait Islander people joining us here today. Witnesses are reminded of the Senate order specifying the process by which a claim of public interest immunity should be raised.

Simon Duggan

Tanya Rishnu leads employment services reform through to the May budget. There have been no other changes at the Deputy Secretary level since the last estimates. Moving now to the target compliance framework or TCF, on 19 October, I issued a public statement detailing progress on returning elements of the TCF to lawful administration, providing compensation to those adversely affected by unlawful administration in the past, and developing a digital protections framework. In that statement, I indicated that on 26 October, decision making would resume under two of the six paused elements of the TCF. The first element that resumed on that date is decisions made under Section 42 AG of the Social Security Administration Act, which allows a person's social security participation payment to be suspended for a work refusal failure. The second element is decisions made under Section 42AM, which allows a person's participation payment to be cancelled if they do not meet a reconnection requirement within four weeks. Before recommencing these provisions, the Department worked with Services Australia to complete comprehensive assurance activities and system testing, make necessary ICT changes and improved our guidance and training for decision makers. This included requiring all relevant provider staff to complete updated training. On the days leading up to 26 October, we also removed all existing mutual obligation failures in the system and lifted active payment suspensions for participants in workforce Australia. Inclusive employment Australia and transition to work. This means that participants received the full benefit of the applicable resolution period and four week reconnection period before a payment cancellation may occur. We're actively monitoring the resumed provisions in partnership with colleagues at Services Australia and the Department of Social Services to ensure that the system operates as intended. This active monitoring of system performance and work refusal decisions will continue beyond when the first payment cancellations may start to occur in early December. The remaining four paused elements, the TCF, all of which relate to ensuring that legally required human discretion is supported in decision making, will remain paused until further safeguards and assurance arrangements are in place. At this stage, those elements are expected to resume in the first quarter of 2027, subject to completion of comprehensive system decision making and assurance work. In my statement on 19 October, I also indicated the Department has commenced the compensation process for people who may be eligible because of unlawful payment cancellation decisions made under sections 42 AM, 42 AG and 42 AH. We are taking a proactive invitation to claim approach using data held in DUA and Services Australia systems to identify people most likely to be eligible for compensation under the compensation for detriment caused by defective administration scheme. At the same time, we have made it clear in all of our communication that anyone who believes they may have suffered detriment can apply for compensation under this scheme at any time. The first stage of this process focuses on those affected by cancellation decisions under 42 AM. The Department will be proactively inviting 50,065 people to apply for compensation who have been identified through data analysis as most likely to be eligible for compensation under the requirements of the CDDA scheme. This process commenced on Monday 19 October, and by the end of yesterday, we had sent 1,043 invitations. Receipt of an invitation or making a claim does not determine eligibility. Each claim will be assessed individually, having regard to the person's circumstances and any detriment experienced. Clear information and support are available online through providers via Economic Justice Australia, the community legal sector, and from Services Australia. Our focus is on ensuring affected people understand their options, are supported to make a claim and can seek a review where appropriate. The Department has also completed public consultation on the draft digital protections framework and the associated Section 40Y guidelines. We are considering the feedback and expect to finalise the framework soon. Compensation, the resumption of compliance decisions and finalisation of the digital protections framework are separate processes. The Department will continue progressing compensation while continuing to bring the targeted compliance framework into lawful administration and ensuring appropriate safeguards remain in place. Chair, the officials working on these matters will be here to provide evidence under Outcome 1 schedule for this afternoon.