Post by Deleted on Sept 22, 2019 7:02:40 GMT 7
'Mean-spirited penny pinching': Government revives plan to extend wait for Newstart
Single people with personal savings of $18,000 or more will have to wait six months before they can apply for unemployment benefits under changes the Morrison government is trying to get through Parliament to increase welfare applicants' "self-reliance".
The Coalition is reviving plans to double the maximum time people with liquid assets have to wait before they can access Newstart and other allowances from 13 to 26 weeks, a move that would save more than $100 million over four years.
As the government continues to resist widespread calls to increase Newstart, a spokesperson for Social Services Minister Anne Ruston said "Australians expect people to use their own financial resources to support themselves before they call on taxpayer-funded welfare".
Minister for Government Services Stuart Robert, who introduced the payment integrity bill to the lower house last week, also said the measure would "increase self-reliance". The government tried the extend the waiting period in 2017 but it never came to a vote.
The liquid assets test waiting period is the time a person applying for Newstart, Youth Allowance, Austudy or Sickness Allowance is supposed to use their own cash, bank deposits or shares before claiming support. It is currently between one and 13 weeks, depending on how much money a person has.
If you are single with no dependents, the waiting period applies from $5500, with the maximum 13-week wait applying from $11,500 or more. If you are single with children or have a partner, the waiting period starts from $11,000, with the maximum 13-week period applying from $23,000 or more.
Under the new rules, which could start as early as January, the maximum 26-week waiting period would apply if claimants had liquid assets of $18,000 or more for a single person, or $36,000 or more for a couple or person with children. Explanatory notes accompanying the bill say there will be waivers for people who need "immediate financial assistance".
Australian Council of Social Service chief executive Cassandra Goldie described the extension of the waiting period as a "deeply flawed policy that unfairly strips people of modest savings before they are eligible for social security payments".
"At $40 a day, Newstart allows very little capacity - if any - to meet unexpected or emergency costs. Current levels of income support are well below the poverty line and are inadequate to meet basic living costs," Dr Goldie said.
Unions and welfare groups have previously called for the existing waiting period to be abolished altogether so people don't have to run down their savings.
There's a swell of support for Newstart to be increased, but not everyone supports the rise.
The bill's revival coincides with the government's push for drug-testing trials for welfare recipients and growing calls from Labor, the Greens, unions, welfare and business groups and some backbench MPs to raise the rate of Newstart, which has not been increased in real terms since 1994. The maximum Newstart payment for a single person with no children is $559 a fortnight.
The government argues Newstart is a "transitional" payment and most people are on it for only a "very short period". But according to Australian National University public policy professor Peter Whiteford, Department of Social Services figures from 2018 show 76.5 per cent of people have been on Newstart for more than a year.
Welfare and seniors advocates also point to the 180,000-plus people over 55 on Newstart, who can find it difficult to get back into the workforce if they lose their jobs and need to stay on the payment for years until they qualify for the age pension at 66 or 67.
The Coalition will have to rely on crossbench support to make the longer waiting period law. Labor and the Greens are opposed to it, with opposition social services spokesperson Linda Burney saying it would disproportionately impact older workers who had been made redundant.
"The Morrison government wants to drive people into poverty before they can access income support and this is counterproductive," she said.
Independent Jacqui Lambie is unlikely to support the increased waiting time as she already wants to see an increase in the hours people can work before their Newstart is cut. Centre Alliance does not have a final position but said the measure looked like "mean-spirited penny pinching".
"You've got to question why a government would be going down this road after announcing the budget surplus [on Thursday]," Centre Alliance social affairs spokesperson Rebekha Sharkie said.
One Nation said it could not give a position at this stage.
www.smh.com.au/politics/federal/mean-spirited-penny-pinching-government-revives-plan-to-extend-wait-for-newstart-20190919-p52t0q.html?utm_medium=Social&utm_source=Facebook&fbclid=IwAR3EvOskC1Sn9VFW_JgU5xTeFMaDSmXoyvzzFUOW3QVDzSKqhzIKtml8PFM#Echobox=1569007567
Single people with personal savings of $18,000 or more will have to wait six months before they can apply for unemployment benefits under changes the Morrison government is trying to get through Parliament to increase welfare applicants' "self-reliance".
The Coalition is reviving plans to double the maximum time people with liquid assets have to wait before they can access Newstart and other allowances from 13 to 26 weeks, a move that would save more than $100 million over four years.
As the government continues to resist widespread calls to increase Newstart, a spokesperson for Social Services Minister Anne Ruston said "Australians expect people to use their own financial resources to support themselves before they call on taxpayer-funded welfare".
Minister for Government Services Stuart Robert, who introduced the payment integrity bill to the lower house last week, also said the measure would "increase self-reliance". The government tried the extend the waiting period in 2017 but it never came to a vote.
The liquid assets test waiting period is the time a person applying for Newstart, Youth Allowance, Austudy or Sickness Allowance is supposed to use their own cash, bank deposits or shares before claiming support. It is currently between one and 13 weeks, depending on how much money a person has.
If you are single with no dependents, the waiting period applies from $5500, with the maximum 13-week wait applying from $11,500 or more. If you are single with children or have a partner, the waiting period starts from $11,000, with the maximum 13-week period applying from $23,000 or more.
Under the new rules, which could start as early as January, the maximum 26-week waiting period would apply if claimants had liquid assets of $18,000 or more for a single person, or $36,000 or more for a couple or person with children. Explanatory notes accompanying the bill say there will be waivers for people who need "immediate financial assistance".
Australian Council of Social Service chief executive Cassandra Goldie described the extension of the waiting period as a "deeply flawed policy that unfairly strips people of modest savings before they are eligible for social security payments".
"At $40 a day, Newstart allows very little capacity - if any - to meet unexpected or emergency costs. Current levels of income support are well below the poverty line and are inadequate to meet basic living costs," Dr Goldie said.
Unions and welfare groups have previously called for the existing waiting period to be abolished altogether so people don't have to run down their savings.
There's a swell of support for Newstart to be increased, but not everyone supports the rise.
The bill's revival coincides with the government's push for drug-testing trials for welfare recipients and growing calls from Labor, the Greens, unions, welfare and business groups and some backbench MPs to raise the rate of Newstart, which has not been increased in real terms since 1994. The maximum Newstart payment for a single person with no children is $559 a fortnight.
The government argues Newstart is a "transitional" payment and most people are on it for only a "very short period". But according to Australian National University public policy professor Peter Whiteford, Department of Social Services figures from 2018 show 76.5 per cent of people have been on Newstart for more than a year.
Welfare and seniors advocates also point to the 180,000-plus people over 55 on Newstart, who can find it difficult to get back into the workforce if they lose their jobs and need to stay on the payment for years until they qualify for the age pension at 66 or 67.
The Coalition will have to rely on crossbench support to make the longer waiting period law. Labor and the Greens are opposed to it, with opposition social services spokesperson Linda Burney saying it would disproportionately impact older workers who had been made redundant.
"The Morrison government wants to drive people into poverty before they can access income support and this is counterproductive," she said.
Independent Jacqui Lambie is unlikely to support the increased waiting time as she already wants to see an increase in the hours people can work before their Newstart is cut. Centre Alliance does not have a final position but said the measure looked like "mean-spirited penny pinching".
"You've got to question why a government would be going down this road after announcing the budget surplus [on Thursday]," Centre Alliance social affairs spokesperson Rebekha Sharkie said.
One Nation said it could not give a position at this stage.
www.smh.com.au/politics/federal/mean-spirited-penny-pinching-government-revives-plan-to-extend-wait-for-newstart-20190919-p52t0q.html?utm_medium=Social&utm_source=Facebook&fbclid=IwAR3EvOskC1Sn9VFW_JgU5xTeFMaDSmXoyvzzFUOW3QVDzSKqhzIKtml8PFM#Echobox=1569007567
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