The report of the Independent Review of Breaches and Penalties in the Social Security System

Abstract

1.1. The Independent Review of Breaches and Penalties in the Social Security System was established by a number of organisations interested in issues relating to support for unemployed persons. 1.2. The organisations were concerned that the system for achieving compliance with obligations imposed on people receiving Newstart or Youth Allowances is not operating equitably and effectively in regard to all recipients. That system includes a process of designating certain conduct on the part of the recipient of an allowance as being a breach of the obligations that must be complied with in order to continue receiving the allowance. If a recipient is in breach, penalties must be imposed. These penalties involve reducing, or fully withholding, for a period the allowance that would otherwise be payable. 1.3. When establishing the Review, the organisations indicated that they accepted breaches and penalties as an inevitable part of a compliance regime in an active, employment-orientated social security system for unemployed people. However, they expressed concern at the changes in the incidence of breaches and penalties in recent years and the consequential impact on individuals, families, welfare agencies and other organisations. 1.4. The organisations were aware from their own activities that the increase in the levels of breaches that were being imposed was having a significant adverse impact not only on the recipients of the benefits but also on their families. This in turn was leading to a marked increase in requests for assistance to those organisations and government agencies that help the needy and destitute members of the community. These concerns were also being expressed more broadly in the community and, we understand, in some government quarters. 1.5. To address these concerns we were asked to: "(i) identify factors affecting, and the consequences of, recent changes in the incidence of breaches and penalties relating to unemployed people receiving social security payments; (ii) recommend any improvements in the effectiveness and fairness of the system which we consider desirable in relation to statutory provisions and policies and practices of governmental and non-governmental agencies." Show more