News - New Analysis Claims Disincentives Undermine 'Welfare To Work'
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Contributor: Jane, Infoxchange Australia
Source: National Welfare Rights Network
Posted: 11-10-2005
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The analysis of Welfare to Work by the National Welfare Rights Network (NWRN) raises fears that, despite some recent changes announced by the government, the package remains full of major workforce participation disincentives. In some cases, the report claims, parents and people with disabilities who manage to get a job, will lose up to 94 cents in the dollar.
NWRN President Michael Raper said that the Network has identified 14 'deficiencies' in the income support side of the package alone. He said "The proposed package will:- impose waiting periods of up to 13 weeks before getting onto Newstart Allowance, stripping savings and clawing back Government family payments and bonuses;
- cut basic payments by up to $46 per week, making it harder to afford housing and the costs of job search;
- impose six substantial workforce participation barriers for those who may get work, in the form of 17 cents tax, 60 cents income test, 27 cents Centrelink debt withholdings, 25 cents public housing rent increases, combined with reduced income thresholds and indexation provisions and no allowance for additional children;
- deny pension payments to thousands of parents who will not be able to work because of the severe disabilities of the children in their care;
- deny pension payments to foster parents, even where the youngest child is under six;
- prevent parents from breaking out of long-term poverty through full-time study by forcing them onto Austudy Payment at a weekly payment cut of up to $155;
- impose a severe new compliance regime that will cut payments completely for eight weeks at a time – a loss of some $1,800; and
- punish many sole parents who take a job or who reconcile with their ex-husband for more than 12 weeks by forcing them to return to the lower Newstart Allowance if their efforts fail."
Read the full analysis of issues with the proposal on the National Welfare Rights Network website.
To find out more about Welfare to Work, go to the dedicated section of the Centrelink website.
For a local perspective, go to the website of the Victorian Council of Social Services.
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