Labor Faces Criticism Over Proposed Centrelink Payment Changes: Accusations of 'Power Grab' Emerge

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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 alarms over new measures they believe undermine the presumption of innocence, potentially impacting vulnerable families. These families could see their paid parental leave and family tax benefits swept up alongside Centrelink payments under the proposed changes.

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 implications of these powers are significant. Critics argue that they impose harsher penalties than those faced by individuals in remand, where payments are typically suspended rather than outright cancelled. This has sparked concern among various social groups.

A woman wearing glasses looks at the camera

Penny Allman-Payne, the social services spokesperson for the Greens, has been vocal in her opposition, describing the government’s move as an “unacceptable power grab.” Her comments reflect a broader unease about the balance of power and its impact on fundamental rights.

At the heart of the controversy is Home Affairs Minister Tony Burke, who would be endowed with the authority to decide on the cancellation of payments. Such a concentration of power has prompted considerable debate about fairness and accountability.

‘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.