Budget: ‘Robin Hood’ Budget Comes Good, But Not for All - Welfare NFPs
9 May 2012 at 10:34 am
Major welfare peak bodies and organisations have described the Federal Budget as promising, fair and a ‘Robin Hood” style approach to fiscal management – but still some have been left behind.
The Australian Council of Social Service (ACOSS) says the the overall approach of the “Robin Hood” style Federal Budget, will improve the lives of people on low incomes – except for 100,000 of the country’s poorest families.
"This Budget reduces supports and tax breaks for those that need them least, and strengthens them for those that need them the most, except for the poorest sole parents, who are left up to $60 a week worse off," said ACOSS CEO Dr Cassandra Goldie.
"We are delighted that a number of our recommendations to make the Budget more equitable and sustainable have finally been taken up, such as rolling back superannuation tax concessions for high earners; tightening the living away from home allowance; targeting tax breaks for golden handshakes; and phasing out the inefficient mature age worker tax offset. It begins important work on tax reform, which must now be extended, building consensus along the road.
"As well as achieving a surplus the Budget redirects some of that wasteful spending to begin the work on some of our most pressing social issues, including dental health reform, reductions in carbon emissions, the NDIS, and the adequacy of allowances and family tax payments (including the liquid assets test for people claiming income support).
"We welcome the commitment to work towards a national dental scheme from next year. The $500 million investment (over half of which is new money) will be welcome relief to the 400,000 people on public dental waiting lists.
"The new Supplementary Allowance of around $4 per week is welcome though it is no substitute for raising Newstart to a decent liveable level and indexed to wages like Pensions instead of CPI but it is the first real increase in the Newstart Allowance payment for twenty years. Further increases to these Allowance payments are essential to reduce poverty and put people in a better position to find paid work. We take it as a sign of good faith that recognises this payment is inadequate, with a much more substantial increase to be achieved around the corner.
"However, it is disappointing that the Budget does not strengthen investment in employment services for long term unemployed people, who still only get an interview every two months and $500 worth of other help. The Budget cuts to Job Services Australia are unsustainable and underscore the need for a major review of the system.
"The major blight on this year's Budget is the unnecessary attack on 100,000 single parents who'll be left worse off. The surplus could have been achieved without leaving some of the most disadvantaged families and their children in deficit.
"People on Parenting Payments will be left around $60 a week poorer by being forced off their current payment ($324 a week) onto the lower paying Newstart Allowance ($265 per week) when their youngest child turns eight.
"This measure goes against the grain of an otherwise balanced and fair Budget and we urge the Government to reconsider. This will drive many more families into poverty and ACOSS will be calling on parliamentarians to reject any legislation to bring this into affect."
UnitingCare Australia said the Federal Budget is fiscally responsible and fair overall. It will deliver a decent chance at a decent life for more Australians.
National Director, Lin Hatfield Dodds said the suite of Budget initiatives promises a brighter future for families and unemployed Australians.
“Reducing executive tax perks and golden hand-shakes, better targeting superannuation concessions, and deferring defence spending have enabled the Government to spend more on the things that matter," Hatfield Dodds said.
“Investment in aged care reform, rolling out the National Disability Insurance Scheme, and better access to dental services for low income and disadvantaged Australians are particularly welcome initiatives.
“This package boosts support for families by $1.8 billion, and includes a new supplementary allowance worth $1.1 billion for people receiving Newstart, Youth Allowance and Parenting Payment. While this very modest allowance falls well short of the $50 a week increase we called for, it’s a trend in the right direction.
“We hope it’s a down-payment on a decent increase in unemployment benefits in next year’s budget."
According to Anglicare, the Federal Budget falls short in vision, and is constricted to delivering a surplus despite the real human and economic cost.
ANGLICARE Sydney CEO Grant Millard the Budget is harshest on those who have the least, but can contribute much given the opportunity.
“Key initiatives like increasing the Newstart allowance that would greatly improve workforce participation and reduce social exclusion have been ignored,” Millard said.
“By ignoring the call from welfare organisations and conservative economists alike to increase Newstart, the government is allowing a situation where families and individuals are trapped in poverty to continue."
The Salvos say Australia’s most disadvantaged will still struggle despite Budget initiatives.
Although The Salvation Army welcomes a range of measures announced in the Federal Budget, the organisation says it is particularly concerned that there is no real relief for the most disadvantaged -who are already barely surviving on income support payments like Newstart or Youth Allowance.
While the lack of housing affordability continues and housing stress has become an accepted part of people's lives, those on the nation's lowest incomes need our help more than ever.
Sadly missing in this budget is the relatively meagre $50 a week increase to these allowances recommended by the Henry Tax Review and supported by almost every agency and peak body connected with those who are doing it tough.
Catholic Social Services Australia says it’s a good Battler’s Budget – but, some are still left behind.
“The modest supplement to the Newstart Allowance shows recognition of the extreme financial circumstances faced by nearly 600,000 jobless Australians,” said Executive Director of Catholic Social Services Australia, Paul O’Callaghan.
“It is virtually impossible to provide for the necessities of life on the current Newstart allowance. It is also hard to effectively seek out jobs on $35/day. A more substantial increase should be made next year.”
“Catholic Social Services Australia believes that getting a job is the best outcome for a person receiving income support,” said Mr O’Callaghan.
"But, the Budget offered no solace for those job seekers with chronic and multiple disadvantages, who are not able to access the basic support needed over time to participate in community life and, where feasible, get a job. The reduction in Job Services funding will only make this harder.”
“We are especially concerned with the large number of single parents who will move from the Parenting Payment onto Newstart as a result of this Budget,” said O’Callaghan.
“100,000 single parent families will be hard hit by this change. They will join an increasing number of people with disabilities who are being moved onto Newstart and for whom there are too few available jobs.”
“The Budget provides a welcome investment in people, including many on lower incomes. The next step is to include some of those who have been left behind,” he concluded.
The CEO of Wesley Mission the Rev Dr Keith Garner said private dental insurance was prohibitive for most low income earners and the $515.3 million dentistry package was long overdue.
“Some $345.9 million of the package will be used to treat some of the 400,000 patients on dental waiting lists," Garner said.
“Many people see dental health as unrelated to mental health but in Wesley Mission’s experience the two are closely related,” Dr Garner said. “Every day Wesley Mission deals with hundreds of people who are homeless and are struggling with mental health issues.
“Many have dental health problems which have gone untreated for years. Pain, discomfort and stigma feed into depression, excluding some from employment and long term security.”
The $3.7 billion over five years to revamp aged care signals a change of focus from residential living to age care in the home.
“The $268 million to assist people diagnosed with dementia is timely as the prevalence of dementia is expected to climb dramatically over the next 10 years,” Dr Garner said.
“The $1.2 billion that the Government has invested into the workforce is long overdue. The need for wages and conditions to improve is imperative in attracting and retaining a skilled workforce.
“The increase in funding for palliative care gives comfort to older Australians that they will be able to age and die well in the location of their choice.”
From March 2013 income support recipients will receive a tax-free, twice-yearly Supplementary Allowance to meet unexpected costs such as dental care, medical expenses or motor vehicle costs.
Read all our coverage of the 2012 Budget here.
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For sole parents working part time, being changed to newstart means a lower earnings threshold of $62 per fortnight instead of $176 – a loss of $45.60 on top of the reduction in income support. Sole parents who study lose the $62 education supplement.
I do both. I thought I was doing the right thing, but I will lose about $225 while having to pay $40 more in fares. This kick in the face is meant to encourage me to do what exactly?
Yes, I am the same. Sole parent undertaking part-time work and study at the moment and will be financially worse off with this change. I am hoping when my degree is finished I will find a full-time job – I have been looking for one for six months now. I had a look at the details of the change and we can continue to get the PES supplement ($62) until our current degree is finished – at least that is something I suppose. I have been, and am, doing everything possible to find work, preferably full-time and secure…while I can only find part-time work I have opted to study a Master’s to improve my work prospects, however, this change (pushed onto Newstart) just makes me feel that the government has put a big fat boot on top of me restricting my progress and making me feel like I am completely worthless. Labor values my arse.
I am in the exact same position spiralling down.
As of July 2013, I will lose around the same amount. I currently study (University via distance education) and work (4 days/30 hours a week).
These changes will force me into full-time work and I will probably cease my studies.
I will lose around $200 a week. I am now looking for fulltime work and havent managed to get an interview. I am fufilling my centerlink duties, job network, bring up two children, working and doing voluntary work. What a disgusting way to treat mothers and their families. The childrens father pays $ 7 a week matinance. Plus there is no after school care available,of course I cant work nights or weekends. The dole is $160 per week below the poverty line. Where are we going to live? Someone on newstart has buckleys of getting social housing. I was told an 8 yr wait. Meanwhile the baby making bludgers will just go have more babies, get the baby bonus and more family assistance while the rest of us will pay the price.
Those parents (like us ) who are either working or studying will be far worse off. Meanwhile the bogans mothers who have never worked will just go and have more babies and recieve the baby bonus and more family assistance. I only reicieve $7 a week a week child support. The father gets more money than I do do sitting in the pub all day while living on disability. My social housing application was rejected as I am on newsart now. Basically we are been punished for doing the right thing and not continually having children while on welfare like others do! We dont have the options that other people have on newstart have ie: working anywhere any hours. I work casually now and newstart doesnt have income support like the parenting payment does. I have never been on the dole in my life. Since my son turned 7 I have to go to job network , centrelink interviews and actively look for work, so why less money? The government is making a huge mistake, this budget encourages the wrong type of people to have babies and punishes the ones who are trying their best. My son turns 8 in January we could very well be homeless. What needs to be said the losing of the parenting payment is not a punishment for parents who refuse to look for work, it will happen to us all regardless of whether you work, study, volunteer. What about the kids? No more footy for my two boys, they will now not have the influence of strong male role models and a sense of community. What about the children being born for the money and so that lazy parents dont have to work? what chance do they have. Shame on you government. You have a home, in six months time me and my two boys may not.
I’m a mature-aged single parent with a teenager studying a Grad-Cert (part-time) and on Newstart. I, like other single-mums have been trying to improve my employment chances. Looks like unless there’s a miracle, under this Government those like us will continue on a downward spiral. My Newstart (with rent assistance) is $650 per ft and my rent $600, we live off my teens’ Youth allowance. Sadly, real estate agents now have the right to evaluate your income against your rental capacity and if they deem your income falls below a certain amount (using the 1/3 rule) they CAN evict you -I’ve seen this happen. This has ramifications for those single-parents who are about to lose $120-225+ a ft. We already have a housing affordability and availability issue. I’m afraid there will be alot of single-mums (with younger and older children) on the streets – and my family will be one of them. This won’t look good for Australia. Maybe we should all go and vote for the Greens next election – they may be the only Polictical party that offers us any hope – re: Christine Milne was the only politician this morning to mention Single parents and those on Newstart.
Steven Jones is another good politician. Please go to the papers and tell your story on how badly this budget will effect you. I have tried politicians to no avail. I have also contacted charities. Good luck, this is our childrens future.
For most of us, giving up our studies means giving up on ever earning a living wage.
I hope we do all vote Green, I am myself a Green voter for some time, but somehow I doubt it.
The most frightening thing about this budget is that if there was any chance labor could have avoided losing the next election, it’s gone now and we’ll be at the mercy of Tony Abbott.
I’m a single parent, worked my money after I pay bills, food etc, I will be left with $35.00 a week to live on lol.. So I have to tell my daughter she can no longer participate in playing sport, she’s not allowed to get sick, no clothes and the list goes on…
It’s just not losing single parenting payments you’ll lose any discounts on electricty bills, rego etc, so I guess I won’t be left with $35.00..
Trying to find work living in the country is a joke, let alone during school hours.. Or does swan expect me to let my 7 year old child walk 2.5 k’s to the bus stop on the New England Highway to catch a bus to school.
I don’t want an increase, I’m happy with what I am getting now.
I for one will never vote for labor again if this goes ahead, Greens you will now have my support. My heart goes out to all these single parents and kids who will suffer.
Cannot see any mention of the single parents who have been on NS since 2006.