Welfare to Work – new data

“New authoritative modelling shows that nothing can stop the current Government proposals from creating the perfect poverty trap”, NFAW spokesperson Marie Coleman said, releasing a third report from the National Centre for Economic and Social Modelling (NATSEM).

The Report was commissioned by the NFAW, with the aid of a grant from the Don Chipp Foundation.

The first and second NATSEM Reports to the NFAW on sole parents and people with a disability may be found on the NATSEM and NFAW websites.

“The essential problem lies in the rigid Cabinet thinking which insists that all persons of workforce age, regardless of their special circumstances, ought to be on Newstart Allowance (unemployment benefit) - a payment initially designed for short-term unemployment relief.

“The NATSEM modelling demonstrates that without significant change to aspects of Newstart, such as to the income test, or to taxation treatment of additional earned income or to the activity test, individuals with a disability and women and men supporting children who attempt to improve their circumstances by entering the workforce, face shocking Government imposed income losses” Mrs Coleman said.

“The Prime Ministerial statements about the Industrial relations legislation make it clear that people who are ‘unemployed’ - which means people such as a sole parent claiming Newstart, or people with a disability claiming Newstart, or for that matter a sole parent whose youngest child turns six and is exiting welfare support - must accept whatever work conditions an employer is prepared to offer them - or lose any entitlements to Newstart.

“They’ll not be able to pay the rent, put food on the table, and if they are on a part-allowance, they’ll lose up to 75 cents in each dollar earned.

“Sole parents with a child aged 6 or over who are not in a position to work, for example because the child has a disability, or the parent does,

or the parent is caring for an aged relative as well, or home schooling, will be on Newstart but may be temporarily exempt from having to look for work. “Even though the Government recognises that these families cannot be expected to take on paid work, when they are moved from the pension to Newstart, they will lose $29 a week, 11% of their basic payment. As well, the temporary exemption is less secure than their current rights.

“These are the things which the Government must examine. ”NATSEM demonstrates there are realistic change options”

Further information

Marie Coleman
ph 041 4483067