Welfare reforms will slash single-parent incomes

November 17, 1993
Issue 

Kerry Smith

Single parents and their children face income cuts of $20-$50 per week from July 1 as government changes to income support, child support and family law take effect, Dr Elspeth McInnes, convener of the National Council of Single Mothers and their Children, warned on June 30.

"Single parents claiming income support will get less financial support, extra requirements and increased penalties which will hit the most disadvantaged and vulnerable families the hardest", said McInnes. "Mothers with wealthy ex-partners are worried about having to move house or pull the children out of their private school to compensate for child support cuts of more than $100 per week."

The NCSMC points out that under Welfare to Work changes, single parents whose youngest child is six years old will be forced to claim the lower rate of Newstart Allowance and meet work tests, or face loss of payment for eight weeks. Parents with part-time work will also lose an extra 20 cents per dollar in government clawback compared to those claiming the Parenting Payment Single allowance.

Under Child Support Scheme changes, parents with high earning ex-partners will face cuts in child support as the income cap on payers' income is cut from $139,347 to $104,702. The new rules mean that a mother of one with an annual income of $20,000 per annum and a payer earning more than $139,000 will lose $118 per week.

McInnes said income data consistently showed that single-parent families faced the highest risk of poverty of all family types, but the July 1 changes would increase the incidence and severity of financial hardship.

From Green Left Weekly, July 5, 2006.
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