Controversial Labor Proposal Sparks Outrage: Centrelink Payment Cuts Criticized as 'Power Grab

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Families reliant on welfare payments could be cut off from support under the Albanese government’s proposed new ministerial powers.

The changes to the social security bill, tabled in the lower house on Wednesday morning, could allow the Home Affairs Minister to cancel the welfare payment of someone on an outstanding warrant.

The cancellation, on advice from the Australian Federal Police (AFP) or Australian Security Intelligence Organisation (ASIO), would apply to a person on a “warrant in respect of a serious violent or sexual offence”.

The legislation could be used if a person was evading police or was a threat to the safety of a community.

Advocacy groups are raising concerns over the government’s decision to expand powers that could undermine the presumption of innocence, particularly impacting vulnerable families. These new measures would include paid parental leave and family tax benefits alongside Centrelink payments, potentially leaving many at risk.

The Green’s social services spokesperson Penny Allman-Payne labelled the move an “unacceptable power grab”.

“It’s a dangerous entanglement of social security law and policing, which we know will disproportionately harm the families and the partners of people who are reliant on social security payments to survive,” she told SBS News.

“We have rule of law in this country; everyone has the right to be treated as innocent until proven guilty, with no exceptions, and this is an infringement on people’s human rights.”

Jay Coonan, co-coordinator at the AntiPoverty Centre, said it was “very serious” and set a “dangerous precedent to allow police to make determinations for social security law”.

The Green’s social services spokesperson, Penny Allman-Payne, has strongly criticized the plan, describing it as an “unacceptable power grab” by the government. This sentiment is echoed by critics who highlight that individuals on remand merely have their payments suspended rather than outright canceled, suggesting the new powers are excessively harsh.

A woman wearing glasses looks at the camera

Under this proposal, the Home Affairs Minister, Tony Burke, would wield the authority to decide on the cancellation of such payments. However, there is an obligation to consider advice from Services Australia regarding any potential impacts on dependents, ensuring that the broader effects on families are taken into account.

Home Affairs Minister Tony Burke would have the discretion to make the ultimate call on payment cancellations.

The powers sit with the minister responsible for AFP and ASIO, departments that have been consolidated under Burke, previously sitting under the attorney-general.

In a statement to SBS News, Burke said: “the Government shouldn’t be paying people to hide from police”.

A spokesperson for Social Services Minister Tanya Plibersek said it was “not appropriate” to provide support to someone charged with a serious offence.

“It is a serious power, for the most serious of circumstances,” the spokesperson said.

“Advice from Services Australia about any impact on the dependents must also be considered.”

‘Last minute’ amendment secrecy questioned

SBS News understands that it was an unexpected amendment, with neither the Coalition or the Greens aware it was being tabled.

The original bill sought to establish a compensation scheme for people affected by unlawful income apportionment, where entitlements were miscalculated from averaging incomes, following a High Court challenge.

It had been scrutinised by both the parliamentary joint committee of human rights and a Senate committee, with both committees handing down reports last week.

Liberal senator Kerrynne Liddle said it was “disappointing” to see Labor’s “last-minute amendment” after the conclusion of the inquiries.

“An important avenue for scrutiny and a process through which the Opposition has found flaws in Government legislation in the past,” Liddle said in a statement to SBS News.

“The Coalition will continue to review these additions to the Bill.”

Allman-Payne said the amendments had been “pulled out of nowhere”, with the Greens urging the government to withdraw the addition.