The Law Council of Australia has urged the Federal Government to subject new powers allowing officials to strip individuals of social security benefits to full parliamentary scrutiny, warning the measure threatens fundamental legal rights.
The concern centres on Schedule 5 of the Social Security and Other Legislation Amendment (Technical Changes No. 2) Bill 2025, which was recently added to the legislation after it had already been reviewed by a parliamentary committee.
Law Council Executive Member Elizabeth Shearer said the addition raised serious legal and ethical questions.
“Schedule 5 has very serious implications,” Ms Shearer said. “This measure gives government officials power to strip benefits received through the social security and family payments system from a person subject to an arrest warrant, even though that person has not been convicted of any offence.”
The Law Council warned that the change undermines the presumption of innocence and procedural fairness, core principles of Australia’s justice system.
“No one, even those charged with serious offences, should be subject to punitive action by the state unless they have first been found guilty of an offence by an independent, impartial and competent tribunal,” Ms Shearer said. “It is unclear whether any constitutional implications arising under the Bill have been considered.”
The organisation cautioned that the reform could lead to “further inequity and unintended consequences” within the justice system, particularly for First Nations people, and could increase risks of homelessness or family hardship if payments are suspended.
The Law Council also criticised the process by which the proposal was introduced, saying the last-minute inclusion of Schedule 5 deprived stakeholders of the opportunity to comment or raise concerns.
“Adding Schedule 5 after a parliamentary scrutiny process vastly undermines the democratic rule of law principles which underpin Australian lawmaking,” Ms Shearer said, pointing to the Council’s Best Practice Legislative Development Checklist, which emphasises transparency and consultation in the lawmaking process.
The Law Council is urging the Senate not to pass the Bill with Schedule 5 included. Instead, it is calling for the provision to be separated from the broader Bill and referred to a parliamentary committee for detailed public examination.
According to the Law Council, such a step is essential to ensure that legislative changes impacting people’s basic livelihoods are introduced only after “proper and careful scrutiny.”
