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Welfare Rights Media Release 7th September 2004
The National Welfare Rights Network (NWRN) released its initial response to
the ALP's family and tax package announced today.
"The ALP's proposed overhaul of family payments and tax should mean more
money, less debts and greater certainty for low and middle income families to
plan and budget but a number of sole parent families with more than one child
would receive slightly more income under the Coalition package," said Michael
Raper, President of the National Welfare Rights Network (NWRN) today. "However,
many of these families may never see the Coalition's extra money because it
would be taken to cover their Centrelink debt.
"Labor's plan to reduce FTB debts through restructuring Family Tax Benefit
is well designed and would wipe out many of the 600,000 per year FTB debts (2.1
million over the past three years). The particularly welcome changes to the
maintenance income test would not only give sole parents more of their weekly
maintenance but would also stop many debts arising from lump sum arrears.
"Given that the Labor plan would break the back of the FTB debt trap,
it makes sense to convert the Coalition's annual $600 lump sum into a fortnightly
payment which best helps families to meet needs as they arise. It's just a pity
that it has become $600 per family instead of $600 per child.
"The proposed structural changes to the FTB system - through both the
significant increase in the income free threshold to $50,000 and by adjusting
family income when it is notified to Centrelink without any retrospective debt
arising - would be much fairer and more sensible than the current approach.
"The additional support for jobless families, to assist them back into
the workforce through an expansion of the very successful JET and other training
programs, would make a real difference to people's lives and lift many children
out of poverty. The package of incentives and support would smooth the transition
from unemployment to work and provide the help needed to assist people into
employment. This approach is in stark contrast to unfair and harsh mutual obligation
Social Security penalties which are currently applied to around 100,000 unemployed
people each year.
"The ALP package throws down a challenge to the Coalition to reform the
family payment system, to make it simpler and fairer and to remove the threat
of debts that haunts one in three FTB families at present. For its part however,
the ALP needs to make adjustments to remove the relative disadvantage for sole
parent families that we have identified," Mr Raper said.
ENDS
For comment: Michael Raper: 0419 880 001 (m) or (02) 8217 7910 (w)
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