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Welfare Rights Centre is a member of the National Association of Community Legal Centres™
Media Release
10 May 2010
No frills Budget should not leave unemployed on the shelf
“The Government has saved thousands of jobs and dodged the bullets that have hit most other developed nations during the global
financial crisis, but tomorrow’s Federal Budget should not ignore those who live every day in a perpetual financial crisis”, said
Maree O’Halloran, the Director of the Welfare Rights Centre which specialises in social security law and policy.
Welfare Rights will closely scrutinise the Government’s commitment to limit new spending to 2 percent and off-set any new
spending with cuts to make sure that those who can least afford it do not end up paying through cuts to essential programs or
services.
“Welfare Rights is bitterly disappointed that the Government appears to have put genuine welfare reform into the ‘too hard’ basket.
The Henry Review spent considerable time picking over the bones of the current patchwork which makes up our social security
system. Despite the compelling evidence that Australia’s tax and transfer system is unfair and not working, the Government has
yet to take bold action to address the fundamental unfairness at the heart of Australia’s welfare system.
“The Government could make a real difference by:
1.
Fixing payment anomalies as recommended by the independent Henry Review. For example, payments for unemployed
people, at just $231, are $120 a week less than that paid to single pensioners. The gap between pensions and allowances
has almost doubled in last year.
2.
Increasing the Newstart Allowance for unemployed people by $45 per week as recommended by Henry.
Payments for unemployed people have not increased in real terms since 1994, while payments for students have
remained static since 1987 when Austudy was introduced.
3.
The Henry Review proposed abolishing the Liquid Assets Waiting Period. This would be very beneficial for people
newly retrenched. Research shows for example, that most people lose their homes because of unemployment not rising
interest rates. The Government made this test less harsh at the start of the financial crisis – but only until 2011.
4.
A significant paid work experience program.
5.
An increase in the amount of funds available from employment service providers to help the most disadvantaged job
seekers into work (currently only $500 per annum).
“The Henry Review noted that a key to ensuring our welfare system was working was “an adequate investment in employment-
related services”. It has been reported that the Government intends to increase training opportunities for unemployed people.
While skills development is clearly important, training programs need to be complemented by paid work experience if the person is
re-engage in the workforce successfully.
Other Welfare Rights priorities include: increasing the maximum rates of Rent Assistance by $15 a week; establishing an
Employment Services Ombudsman and a Job Seeker advocacy Program to provide job seekers with assistance when dealing with
employment providers; and, expanding the services available from Welfare Rights Centres across Australia to improve the
circumstances of people experiencing problems with Centrelink.
“Welfare Rights will be looking for signs in this budget that the Government understands to needs of the most marginalised
Australians.”
Go to 2010-11 Budget Submission at: www. welfarerights.org.au
For comment on what the 2010 Budget will mean for Australians on income support: Maree O’Halloran, Director, Welfare
Rights Centre: 0417 672 104 or Gerard Thomas, Policy and Media Officer: 0425 296 882.
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