Latest news with #DepartmentofSocialServices
Perth Now
6 days ago
- Business
- Perth Now
Labor's debt bombshell after court ruling
Debt recovery for overpaid welfare checks is set to resume following a landmark Federal Court ruling, but Labor is reportedly considering a bombshell debt forgiveness measure that would stop the collection. The Federal Court handed down its decision on Tuesday that the method the government had been using since 2020 to calculate and collect debt was valid. The Department of Social Services (DSS) had paused debt repatriation for social security employment checks received before 2020 as it awaited the key court judgment, but the department secretary Michael Lye said the court decision affirmed his 'legal position' and assessment activities would resume. 'Now there is certainty to the legal position, assessment activities will recommence in line with the court's decision and my obligations as secretary,' Mr Lye said. The department could now reassess the debt of up to 160,000 people as far back as 1979, reportedly worth $1.1bn. But the Australian Financial Review reported that government officials were aware that Social Services Minister Tanya Plibersek was considering options on the overpayments, going as far as to forgive the debts. Tanya Plibersek is reportedly considering forgiving decades-old welfare debts. NewsWire / Martin Ollman Credit: News Corp Australia Greens questioning in senate estimates earlier this year revealed that Services Australia was chasing billions of dollars in decades-old debt. Data showed that up to $4.9bn in unpaid debts were being pursued from more than 829,000 customers. Ms Plibersek did not comment beyond a joint statement released with Katy Gallagher on Tuesday. 'The Albanese Labor government acknowledges the decision of the Full Court of the Federal Court in Matthew Chaplin v Secretary, Department of Social Services,' the statement read. 'Income apportionment is a historical practice which ran from the early 1990s to 2020. It is not used today. It has never been used by the Albanese Labor government. 'Income apportionment was a method used by Centrelink to calculate debts in circumstances where they did not have detailed information about days and hours worked. 'This methodology reduced unreasonable reporting burdens and paperwork on welfare recipients and was a genuine misinterpretation of the law. 'The Chaplin decision has reconfirmed that the process of income apportionment was not lawful. It also confirmed that the process used to calculate debt since 2020 is valid. 'The government will now evaluate its impact and develop a suitable response.' Greens senator Penny Allman-Payne criticised the government for 'aggressively targeting' welfare recipients. NewsWire / Sarah Marshall Credit: News Corp Australia Greens social services spokeswoman Penny Allman-Payne criticised the government for 'aggressively targeting income support recipients with cruel and ridiculous debt notices based on dubious data matching methods'. 'Income support payments are already below the poverty line, meaning thousands of income support recipients are making tough choices between skipping meals or paying the rent,' she said. 'The last thing they need is the government hounding them to disprove a dodgy debt notice, sometimes from decades ago. 'The Greens will be urging Labor to act to protect welfare recipients and finally put the Robodebt era behind us.'
AU Financial Review
7 days ago
- Business
- AU Financial Review
Labor may forgive $1.1b in welfare debt after landmark ruling
The Albanese government is considering forgiving up to a billion dollars worth of welfare debts instead of letting the Department of Social Services pursue the overpayments, despite a court ruling the debts could be recalculated and recouped. After the Full Federal Court clarified the correct method for the government to recalculate debts owed, Department of Social Security secretary Michael Lye said the department would now start reassessing up to 160,000 welfare payments going back decades.
The Guardian
15-07-2025
- Business
- The Guardian
Social services department warned Tanya Plibersek she faces uphill battle amid ‘political polarisation'
Tanya Plibersek has an uphill battle to justify and prioritise Australia's multibillion-dollar social services system, her department has warned, against a backdrop of 'rising geopolitical tensions and political polarisation'. The Department of Social Services, which is responsible for a quarter of federal government spending, delivered the warning to the new social services minister about the flow-on effects of global uncertainty in a brief dated 13 May and obtained by Guardian Australia under freedom of information laws. Uncertainty, prompted by current conflicts, their aftermath and escalations in trade hostilities could worsen income inequality and weaken resilience, the department warned in its incoming government briefing, sent after the May federal election. 'The frequency and intensity of economic and environmental shocks are pushing more people into more vulnerable situations, increasing the risk of entrenched disadvantage,' the brief said. 'This can compound with regional vulnerabilities due to extreme weather events, industry shutdown and existing economic inequality.' There were also concerns that intergenerational inequalities were growing, with the department warning more young Australians are relying 'on family for financial support and/or housing well into adulthood' and delaying milestones including education, employment, family and home ownership. While the brief noted there had been advances in women's and First Nations people's workforce participation and the gender pay gap, the department said including people with disability, social attitudes towards LGBTQ+ people, and valuing multiculturalism and the contribution of migrants were central policy concerns. The department acknowledged a stronger focus on security and managing economic risk could place pressures on the minister to 'justify and prioritise payments, programs and services'. 'This will require increased focus on policies that demonstrate value for money and lead to improvements in employment, social inclusion and overall wellbeing,' the advice said. 'Achieving this will require reforms to be disciplined and have a robust evidence base, taking advantage of opportunities to improve productivity and impact. It will also require unlocking existing opportunities in sectors experiencing employment growth such as the care and support economy.' A government spokesperson said it is 'absolutely devoted to delivering on our election commitments', including expanding paid parental leave to six months and cracking down on financial abuse in domestic violence. 'The government appreciates candour and frank and fearless advice from its departments and agencies,' the spokesperson said. The department is responsible for approximately $198bn, or 25%, of all commonwealth expenditure in 2025-26, which will increase to $206bn over the next four years. The majority of its spending, about $153bn, is on personal benefits. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion In a more detailed breakdown of the challenges Australia is facing, the department noted social cohesion was declining 'rapidly' after peaking during the Covid-19 pandemic, referencing studies by the Scanlon Institute. Loneliness in certain cohorts, such as young men aged between 15 and 24, could see them targeted by extremist groups, which can be linked to misogyny and violence against women, the briefing noted. Community concern about the inadequacy of income support payments was also addressed, with the brief acknowledging that increases to rent support payments since 2023 have failed to address housing stress for many recipients. The department stated that low- and middle-income taxpayers are 'subsidising the retirement incomes of seniors with significant wealth in addition to their homes' under social security reform. The age pension is provided to couples with incomes of almost $100,000 a year or assets of almost $1.05m, in addition to their principal home, which can be of unlimited value, the department noted. 'Age pensioners generally maintain or grow their assets in the last five years prior to their death. By contrast, a single job seeker without children who has more than $11,500 in liquid assets must wait 13 weeks before any income support becomes payable,' the department said.
ABC News
11-07-2025
- General
- ABC News
When it comes to school holidays, we're not being fair on parents or kids
My seven-year-old daughter was very happy on the night of Friday, July 4. School holidays had begun. And yet this week I've walked her to school most mornings, at the usual time, for school holiday care. Why? Both her parents need to work, and there's no other help. So it's the same wake-up time for my daughter, the same push to eat breakfast and put the "day clothes" on, and the same rush out the door. It turns out this is quite a common experience. "I think parents are doing their best and a lot of parents know that their kids need a rest, and I myself try to mix it up," UNSW Associate Professor Jane Kohlhoff says. Kohlhoff is a psychologist and has three kids, aged five, nine and 11. "I have got one at home with me here," she says. "But the reality is they can't stay home for two full weeks, because I've got to keep working and my husband's got to keep working, and we do have to find activities for them." Yep, it turns out school holidays have turned into a bit of a slog for many Australians. The reality is that "school holidays" are not what they used to be. A Sydney University study published in April this year said, "Australian primary school children spend their school holidays in a variety of formal and informal care arrangements." The Department of Social Services defines this as "a private arrangement between the parent and another party, where there is no change to any form of legal responsibility." Both arrangements, it seems, come with challenges in 2025. At home, for example, guardians are working hard to entertain the kids when, in the past, they have largely been left to entertain themselves. "Kids used to have a bit more free rein to ... roam the neighbourhood and play with kids in the street," Kohlhoff says. She says parents now feel nervous about allowing that as it feels less safe. "I think it's also a change in society that parents are wanting to be more involved with their kids [but maybe that's at the] expense of giving kids freedom and helping kids learn to be able to ... feel bored sometimes, find their own fun, be creative, entertain themselves," Kohlhoff says. As a parent I know how hard it is to usher my daughter away from a screen and into a good book when I'm at home with her. Playing with your kids is crucial, but they also need to be able to entertain themselves without the need for a wireless device. This isn't a minor problem. In a 2023 study, University of South Australia researchers found that when primary school children are on holidays and not in formal care, they're less active, more likely to be on screens, and tend to have a worse diet than during the school term. "Assessing responses for 358 primary school students (grade 4 and 5), researchers found that on holidays, children were likely to be 12 minutes less active each day, 27 minutes more sedentary, and have more than an hour extra of screen time," the paper said. "During the school holidays, children (aged 9-10) spent 39 per cent more time using screens than during the school year." Researcher Dr Amanda Watson says children exercise less and eat more unhealthy food during the holidays, which may contribute to accelerated weight gain and poor health. "Everyone is excited when school holidays come around — it's a break from the daily routine, classrooms, and getting ready on time — but despite the obvious benefits, it can have some setback for kids," Watson says. And for those kids in "formal" care, there is no break from the daily routine. "I think it would be fantastic if kids got two full weeks off every 10 weeks," Kohlhoff says. "They have got to relax, rejuvenate. "But the reality is that times have changed from when we were young and parents have got to keep working because of the economy." Do you see the problem here? School holidays now, ironically, are not providing any respite for many families. ANU demographer Liz Allen knows these pressures well. She juggles looking after her kids and working from home in the holidays. "A lot of this doesn't come down to choice," Allen says. "A lot of this comes down to the economic necessity to work, to earn money and to survive. "Quite frankly, we need to come together and be gentler on parents and our on ourselves to be able to do this juggle." Researchers make the point that families face an economic and societal stress point as school holidays approach. "And let's be super clear here," Allen says. "We've got more and more families with either dual incomes or lone parent circumstances which prohibit the ability to take leave every time a school holiday comes up. "So, we have this issue where parents simply do not have sufficient time of leave to spend with their children to recharge themselves, so holiday time isn't holiday time." Many families face the school holidays without any support at all. Some grandparents choose to continue working or simply prefer not to be involved with their children's children. And ex-pats, of course, don't have access to their parents either. The Australian Institute of Family Studies wrote in a 2016 paper that "living away from extended family, or living in areas with more limited care options such as in regional areas also proved challenging for some." "Overall, many parents expressed a wish for improved access to flexible childcare, especially for care to match variable shifts and non-standard work hours." It's clear many families face feelings of distress, not just stress, as school holidays approach. Allen says the challenge for families is magnified by big business that knows there's money to be made on kids. "So whether it be age, whether it be gender, we just don't have the ... available hands on deck like we used to even a generation ago," she says. It's a big reason why more families are relying on formalised out of school holiday programs. "This industry is a booming business, and sadly there tends to be very few places, particularly beyond the city limits, for kids in subsidised arrangements," Allen says. "So increasingly we're seeing parents turn to more expensive programmes, incurring higher ... fees and so on, to just juggle the holiday period." As a dad I know amazing things can happen when kids have a moment, just a moment, to stop, relax, and ponder. It's the basis for creative thinking, connecting with themselves, and their environment. Where can they find the space in 2025 to do this? We're not being fair on ourselves or our kids.
Yahoo
12-06-2025
- Health
- Yahoo
Concerns raised over unintentional coverage losses at final Medicaid work requirements hearing
The Sioux Falls One Stop houses offices for several state departments, including Health, Social Services and Revenue. It hosted a hearing for proposed Medicaid expansion work requirements on June 12, 2025. (Makenzie Huber/South Dakota Searchlight) More than a dozen people raised concerns and questions about unintentionally separating patients from their health care and other aspects of South Dakota's proposed Medicaid expansion work requirements during the plan's final public hearing Thursday in Sioux Falls. Dana Bacon, state government affairs director at The Leukemia and Lymphoma Society, told the state Department of Social Services his organization has 'pretty big concerns' due to the technical problems, costs and unintended loss of coverage that people encountered during attempted work requirements in other states. 'That's going to make individuals, families, systems and communities pay a price for the outcomes,' Bacon said. 'We have a good sense of where this waiver is going, but we still see these problems getting in the way of the stated goal of making sure people get the health care they need.' Written comments about South Dakota's Medicaid expansion work requirements proposal may be submitted by June 18 via email to MedicaidSPA@ with the subject line 'SDCareerLink Public Comment,' or mailed to the Division of Medical Services, Department of Social Services, 700 Governors Drive, Pierre, SD 57501-2291. Other people questioned the need to implement work requirements and expressed concern about a potentially disproportionate impact on tribal members, as well as the potential barrier the plan could create to health care for sick, homeless and older people. Medicaid is government-funded health insurance for people with low incomes. South Dakotans voted in 2022 to expand Medicaid to adults with incomes up to 138% of the poverty level, a decision that allowed the state to capitalize on a 90% federal funding match — funding that could be in jeopardy, pending the outcome of congressional action. Last year, voters passed another constitutional amendment to let the state seek approval from the federal government to impose work requirements on expansion enrollees. The state began drafting its proposal immediately following the end of the state legislative session in March, before debates about potential federally imposed work requirements heated up at the congressional level. Those debates are ongoing. The department only heard from one person at its first hearing in May. The state is also accepting written comments through Wednesday, which will be included in the state's application to the Centers for Medicare and Medicaid Services later this summer. South Dakota's plan would require adult Medicaid recipients to work, train, attend school or serve as a caretaker for a child or elderly or disabled person in their home unless they qualify for an exception. Compliance with the state-level work rules would be reviewed on an annual basis, at the time of Medicaid renewal, rather than at the time of application. The state would not require a set number of hours of work or education time. South Dakota would allow exceptions for people who are: Pregnant or up to 12 months postpartum. Disabled, as determined by the Social Security Administration. Diagnosed with cancer or another serious or terminal medical condition by a physician. In an intensive behavioral health treatment program, hospitalized or living in a nursing home. In an area with unemployment 20% or more above the national average and are exempt from Supplemental Nutrition Assistance Program requirements for able-bodied adults without dependents. As of last month, 30,542 South Dakotans were covered by the Medicaid expansion. The state estimates 80% of them already work or qualify for an exception. The proposed state-level work requirement would reduce enrollment by an estimated 5-10% in the first year. That would save the Medicaid program between $48.9 million and $71 million in the first year, the department says. Federal action could make SD's Medicaid work requirements 'an exercise in futility,' official says Department officials explained that expansion enrollees would be sent three notices before being removed from Medicaid rolls. People could reapply later if they don't meet work requirements at their renewal time. Heather Petermann, Medicaid director at the department, said people who are seeking treatment for substance use disorder or other mental health disorders outside of intensive treatment programs could obtain an exemption if their physician or health care provider provided documentation that they can't work because of their condition. Department Secretary Matt Althoff said the state's proposal is meant to be administratively simple and to encourage work among Medicaid recipients rather than track hours. 'We are helping them, we believe, not only by providing a safety net, but a lift up. Isn't it true that personal industry is the antidote to poverty?' Althoff said. 'The more that we can do to discover fulfillment through serving others, the more that we can do to garner an income that we earn, the higher likelihood we will be able to escape the clutches of poverty.' Other suggestions made during public comment during the hearing included: Adding volunteer or community service time as an exemption, to benefit older adults who can't find employment because of their age. Exempting Indian Health Service beneficiaries, since they are eligible for Medicaid coverage at the federal level even if they do not meet other Medicaid requirements, such as income limits. Allowing more flexibility to exempt caregivers of older adults who don't share the same residence. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
