The National Welfare Rights Network released the statement below on October 9.
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The Social Security Legislation Amendment (Fair Incentives to Work) Bill 2012 passed the Senate today saving the government $728 million over four years and cutting between $65 and $115 per week from 100,000 single parents.
The Joint Parliamentary Committee on Human Rights Committee and the Senate's Employment and Workplace Relations Legislation Committee had recommended deferring the measures until there is an outcome from the inquiry into the adequacy of the Newstart and other allowances.
“With the passage of this legislation both major parties have done a great disservice to single parents and their children,” said Maree O’Halloran from the National Welfare Rights Network.
“The government has ignored single parents and their children as well as its own Parliamentary Human Rights Committee.
“Newstart Allowance, at just $39 a day for single parents, is not an appropriate payment to raise a family on. Newstart Allowance has a significantly lower threshold level at which payments are withdrawn as people earn income. Parents on the Newstart Allowance start losing income after undertaking just two hours of work at the minimum wage, at $31 per week. In contrast the earnings threshold under Parenting Payment Single is $87 per week, and it is indexed.
“The current arrangements provide for much better financial returns from work.
“These changes are not about activating parents to look for work, as the almost all single parents on the parenting payment are already required to look for and accept suitable employment. The primary motivation for these changes is to reduce government outlays by moving parents onto the lower paying Newstart Allowance. The only extra help to assist parents into employment is $3 million for a telephone career counselling service. This is welcome, but not sufficient.
“It is ironic that this legislation passed just days before the launch of anti-poverty week this Sunday when hundreds of activities across the country will be focussing attention on people living in the margins.
“Sole parent families still remain the group in society most at risk of poverty. The issue of child poverty and disadvantage should be at the top on the political agenda, but the Federal Parliament just wants to bury it.
“The Australian Greens highlighted the extensive flaws in this legislation and with Senator Xenophon and Senator Madigan also opposed the changes.
“Both the government and the Opposition have acted with undue haste and poor judgement by refusing to delay passage of a bill until the current Senate inquiry into the Newstart Allowance is completed.
The National Welfare Rights Network welcomes the doubling of the thresholds for the Liquid Assets Waiting Period - from $2,500 to $5,000 for a single person; and $5,000 to $10,000 for a single person with a dependent child or a couple. Our proposal to appropriately index the thresholds for inflation was supported by the Australian Greens, though rejected by the Senate.”