Post by Banjo on Jun 16, 2014 7:00:56 GMT 7
Welfare claimants with psychiatric problems 'should keep links to work'
Head of Australian government welfare review also says welfare should be looked at in conjunction with the tax system
Welfare claimants with psychiatric problems should be kept linked to the workplace and applicants should be made to meet certain requirements, according to the man leading the government's welfare review.
In his first public comments since undertaking the review, Patrick McClure outlined a four-pillar approach to changing Australia's welfare system in the long term and said it should be looked at it in conjunction with the tax system.
McClure told a conference for the community sector in Brisbane on Thursday that the social security system was too complex, individuals needed to be supported on pathways to education and employment and any reforms needed an integrated approach.
Although he did not reveal any details of the report he has now delivered to the social services minister, Kevin Andrews, McClure highlighted that people on the disability support pension (DSP) for psychological or psychiatric issues made up more than a third of claimants.
“There’s a need to keep them linked to the workplace, it’s better for their health and wellbeing, and of course it’s better for them financially,” he told the Australian Council of Social Services (Acoss) conference.
McClure echoed earlier references by Andrews that welfare payments would be reduced to four or five streams with supplements abolished over time. He said an individualistic approach should be taken to granting welfare payments, with people getting varying amounts of money and having to fulfil different requirements based on their circumstances.
“Mutual obligations do have a role to play – what we would see in a future system is there would be individually taken requirements, it wouldn’t be one size fits all. Individuals that come into the system could be assessed and it would be obligations in relation to their own performance and requirements, in terms of pathways to education and training, that were appropriate for them,” he said.
More than 30 stakeholders entered “soft consultations” with McClure and his team earlier in the year, including Acoss, the Institute of Public Affairs, Job Australia and the Centre for Independent Studies (CIS). CIS has been critical of the review for not taking into account family tax benefits and other tax laws that affect low-income earners but McClure said to understand the disincentives to work, the tax system had to be taken into account.
“In the current system there are many disincentives to work – the interaction with the tax system, the effect of marginal tax rates, and we know too there needs to be an overall employment focus. Increasingly, people with complex problems are coming in to the system and we need it to be able to interact with them,” he said.
McClure said the Henry tax review had been examined as part of the investigation for the welfare reform review. He named the four pillars of the review as developing a simpler system, strengthening individual and family capabilities, engaging employers and creating jobs and offering support in disadvantaged areas where there was “no opportunity”.
He said education and training were a key feature of the future support system.
“It’s not about changing the current system, and it will require a transition process but I also want to stress it’s quite separate from the budget initiatives. We have already produced the interim report which is a discussion paper asking a range of questions about key areas and also outlining future directions,” he said.
“The need for reform is pretty obvious, the system is complex and inefficient, long-term sustainability is uncertain.”
Andrews received McClure’s interim report on 20 May and is expected to release it after the prime minister returns from his overseas tour. The interim report takes the form of a discussion paper and after a consultation process the government is expected to release a final report with recommendations by the end of October.
Andrews addressed the conference just before McClure and emphasised his belief the government should not become too enmeshed with charities and the non-profit sector.
www.theguardian.com/world/2014/jun/12/welfare-claimants-with-psychiatric-problems-should-keep-links-to-work
Head of Australian government welfare review also says welfare should be looked at in conjunction with the tax system
Welfare claimants with psychiatric problems should be kept linked to the workplace and applicants should be made to meet certain requirements, according to the man leading the government's welfare review.
In his first public comments since undertaking the review, Patrick McClure outlined a four-pillar approach to changing Australia's welfare system in the long term and said it should be looked at it in conjunction with the tax system.
McClure told a conference for the community sector in Brisbane on Thursday that the social security system was too complex, individuals needed to be supported on pathways to education and employment and any reforms needed an integrated approach.
Although he did not reveal any details of the report he has now delivered to the social services minister, Kevin Andrews, McClure highlighted that people on the disability support pension (DSP) for psychological or psychiatric issues made up more than a third of claimants.
“There’s a need to keep them linked to the workplace, it’s better for their health and wellbeing, and of course it’s better for them financially,” he told the Australian Council of Social Services (Acoss) conference.
McClure echoed earlier references by Andrews that welfare payments would be reduced to four or five streams with supplements abolished over time. He said an individualistic approach should be taken to granting welfare payments, with people getting varying amounts of money and having to fulfil different requirements based on their circumstances.
“Mutual obligations do have a role to play – what we would see in a future system is there would be individually taken requirements, it wouldn’t be one size fits all. Individuals that come into the system could be assessed and it would be obligations in relation to their own performance and requirements, in terms of pathways to education and training, that were appropriate for them,” he said.
More than 30 stakeholders entered “soft consultations” with McClure and his team earlier in the year, including Acoss, the Institute of Public Affairs, Job Australia and the Centre for Independent Studies (CIS). CIS has been critical of the review for not taking into account family tax benefits and other tax laws that affect low-income earners but McClure said to understand the disincentives to work, the tax system had to be taken into account.
“In the current system there are many disincentives to work – the interaction with the tax system, the effect of marginal tax rates, and we know too there needs to be an overall employment focus. Increasingly, people with complex problems are coming in to the system and we need it to be able to interact with them,” he said.
McClure said the Henry tax review had been examined as part of the investigation for the welfare reform review. He named the four pillars of the review as developing a simpler system, strengthening individual and family capabilities, engaging employers and creating jobs and offering support in disadvantaged areas where there was “no opportunity”.
He said education and training were a key feature of the future support system.
“It’s not about changing the current system, and it will require a transition process but I also want to stress it’s quite separate from the budget initiatives. We have already produced the interim report which is a discussion paper asking a range of questions about key areas and also outlining future directions,” he said.
“The need for reform is pretty obvious, the system is complex and inefficient, long-term sustainability is uncertain.”
Andrews received McClure’s interim report on 20 May and is expected to release it after the prime minister returns from his overseas tour. The interim report takes the form of a discussion paper and after a consultation process the government is expected to release a final report with recommendations by the end of October.
Andrews addressed the conference just before McClure and emphasised his belief the government should not become too enmeshed with charities and the non-profit sector.
www.theguardian.com/world/2014/jun/12/welfare-claimants-with-psychiatric-problems-should-keep-links-to-work
