Media Statement - 8th March 2005
A new report has condemned the Howard Government's management of Australia's income support system, describing it as 'a dog's breakfast'.
The National Welfare Rights Network has found that income support for families and youth is inadequate, riddled with inconsistencies, disincentives and unfairness.
Labor's Shadow Minister for Social Security, Senator Chris Evans, said 'This report is a damning indictment of the Howard Government's record in social security.
'Despite its rhetoric about welfare reform, the Howard Government has done nothing to fix the problems identified by the report.
'Instead, the Government just keeps adding to the problem, by introducing new one-off payments every time a problem arises, each with a different eligibility test, and each with a different indexation arrangement.
'The Howard Government doesn't understand that one of the keys to successful welfare reform is to make the social security system simpler, fairer and more consistent.'
Labor's Shadow Minister for Employment and Workforce Participation, Senator Penny Wong said: 'The report highlights that the Howard Government has failed to address the prohibitive effective marginal tax rates which are a serious disincentive for many welfare recipients to find employment.
'Some families lose 60 to 100 per cent of every extra dollar they earn in paid employment, meaning that they have no incentive to take up paid work, even if they want to.
'It is ironic that the Howard Government has consistently failed to address these serious disincentives, given its new-found enthusiasm for lifting Australia's low workforce participation rates.
'The Government is far more interested in cost cutting than it is in providing people in need with the right balance of incentive, responsibility and support.'
Today's report follows revelations that the Howard Government continues to reward rich families with obligation-free welfare, with nearly 30,000 families on annual incomes of over $100,000 being paid family benefits in 2002-03.
Senator Evans said 'The largesse for Australia's richest families contrasts with the Government's harsh plans to strip payments from people with a disability and sole parents.
'These groups are among the most disadvantaged people on income support, and yet they stand to be punished as part of the Howard Government's narrow welfare reform agenda.
'If the Government is serious about welfare reform, then it should start by fixing the glaring inequities and inconsistencies identified in the Welfare Rights report, rather than trying to cut costs by making it harder for those in need to access payments.'