Showing posts with label poverty and disadvantage. Show all posts
Showing posts with label poverty and disadvantage. Show all posts

Sunday 20 September 2020

Around 10% of the Australian workforce are temporary migrants and overseas students - what help are we giving then during the COVID-19 pandemic?


UNSW Newsroom, media release, 17 September 2020:

A nationwide survey of more than 6000 international students and other temporary migrants conducted in July 2020 has found 70% lost all or most of their work during the pandemic. 

Thousands have been left unable to pay for food and rent. These migrants make up 10% of the Australian workforce. 

As if we weren’t humans: The abandonment of temporary migrants in Australia during COVID-19 is the latest report from UNSW Law Associate Professor Bassina Farbenblum and UTS Law Associate Professor Laurie Berg, co-directors of the Migrant Worker Justice Initiative

The survey revealed more than half the respondents (57%) believe their financial stress will deepen by year’s end, with one in three international students forecasting their funds will run out by October. Thousands expressed anguish and anger over the federal government’s decision to exclude temporary migrants from JobKeeper and JobSeeker support. 

Beyond their immediate humanitarian plight, hundreds linked their distress to the Prime Minister’s message that those unable to support themselves should “make [their] way home”. They expressed feelings of abandonment and worthlessness: “like we do not exist”, “they don’t see us. They can’t hear us”. 

In addition, a quarter experienced verbal racist abuse and a quarter reported people avoiding them because of their appearance. More than half of Chinese respondents reported experiencing either or both of these. 

“Over 1600 participants described being targeted with xenophobic slurs, treated as though they were infected with COVID because they looked Asian, or harassed for wearing a face mask”, says A/Prof. Farbenblum. 

“Many reported that because of their Asian appearance they were punched, hit, kicked, shoved, deliberately spat at or coughed on by passers-by in the street and on public transport.” 

For example, one female Vietnamese student said: “People were saying some racist comments and pushed me, saying that I was the reason for COVID and I should go away.” Another Chinese student said: “I have been harassed by teenagers and throwing eggs on my way home from school”. 

While previous studies have documented aspects of the financial hardship of temporary migrants, this is the first study that reveals the depth of social exclusion, racism and deeper emotional consequences of Australia’s policies, which have significantly impacted Australia’s global reputation. 

Following their pandemic experience, three in five international students, graduates and working holiday makers are now less likely or much less likely to recommend Australia as a place to study or have a working holiday. This includes important education markets such as Chinese and Nepalese students (76% and 69% respectively were now less likely to recommend Australia). 

“I feel [the] Australian government doesn't think of temporary visa holders as human beings but merely a money-making machine,” said one female Indian international student. “It’s appalling to see the PM consoling the citizens saying that we are all in this together but at the same time telling migrants to go back home in a pandemic.” 

Another international Master’s student observed, “It's completely hypocritical that we’re important for tax purposes, and in the sense that we contribute billions of dollars to the economy as university fees, but are treated as some breed of untouchables”. 

A/Prof. Berg says that Australia will bear the diplomatic and economic consequences of these policies for decades to come: 

“Many of those suffering in Australia now will return home to become leaders in business and politics, holding roles of social influence around the region. Their experiences during this period will not be quickly forgotten.” 

Read the full report.

Excerpt from the report: 

Current sources of financial support are deeply inadequate to meet need

Since the first lockdown in March, a third (33%) of all respondents indicated they had sought emergency support to meet their essential needs (37% of international students).

Charities and others provided food, one-off cash payments and other forms of emergency relief, but education providers were the source of the overwhelming majority of support received.

Education provider support was limited to one-off payments, mostly to university students, among whom a quarter (26%) received support. Only one in ten students (11%) at private colleges received support. The overwhelming majority of those who received support got a one-off payment of under $1000.

The Red Cross provided support to 2% of respondents. Two thirds of these were international students, among whom 68% received a one-off payment of $500 or less.

State governments provided support to 4% of respondents, almost all of whom were international students.

Close to a third (29%) indicated they did not seek emergency support because they were worried it might affect their visa. Visa concerns were a more common barrier among college students (33%) than university students (27%), and even more common for graduates (38%). Surprisingly, visa concerns were also identified by considerable proportions of TSS visa holders (26%).


Thursday 19 March 2020

COVID-19 Pandemic 2020: Clarence Valley Council taking social distancing seriously



Now, when do we hear that this local government council has also considered not just the health and safety of its own workforce, but how it will support the basic needs during this pandemic of the est. 17.5% of the Clarence Valley population 70 years of age and over whom social distancing is going to make just that little bit more vulnerable during a prolonged period of physical isolation, the est. 29% who live alone often without family support and, the est. 5.4% of local residents who have no car and rely on local buses or taxis.

In case shire councillors need to be reminded, residents who fall into one or all three of these categories were already sometimes dying alone and unnoticed before this pandemic arrived on the NSW North Coast. The annual figure was not high, but this current situation has the potential to raise the incidence. 

Sunday 22 September 2019

Are some homeless people being denied access to affordable housing in Australia also?


It would be foolish in today's political environment - and with society seemingly drifting mindlessly further to the right each decade - to reject the propostion outright that this would not be occurring somewhere in Australia today.......

The Guardian, 17 September 2019:


Homeless people are being denied access to affordable housing because social landlords are routinely excluding prospective tenants who are deemed too poor or vulnerable to pay the rent, a study has revealed.
Research by the Chartered Institute of Housing (CIH) found that “screening out” of homeless applicants nominated for newly available lets was widespread, as housing associations and local authorities increasingly ration their shrinking stocks of social homes.
In many cases nominees were refused a home because of the likelihood they would accrue major rent arrears after moving on to universal credit, because of the probability they would be hit by the bedroom tax or because the benefit cap had made them a financial risk.
Others were rejected after social landlords identified they had unmet mental health or addiction problems, often because of cuts to local NHS and housing support services. Individuals with unmet support needs were regarded as “too high a risk to tenancy sustainment”, the CIH said.
Homeless people were at risk of being caught in a “catch-22 scenario”, the CIH said, with some landlords’ letting practices creating a “perverse situation where the reasons why people may need access to social homes the most can often become barriers to accessing them”.
Some housing associations demanded that prospective tenants who would be moving on to universal credit pay a month’s rent up front, an impossible requirement for many homeless people. Landlords have been badly hit by rent arrears caused by tenants’ five-week wait for a first universal credit payment.
Faye Greaves, the CIH policy and practice officer, who wrote the report, said: “For decades, we have failed to build enough homes, and our welfare safety net is no longer fit for purpose. More and more people are turning to local authorities and housing associations for help to access social housing.
“But that leaves housing providers having to find a balance between people in acute need, local priorities and their need to develop sustainable tenancies. What we found is that relying solely on processes can end up having the opposite effect to that intended.”
It called on ministers to launch a major social housing building programme and scrap right to buy. There has been a net loss of 165,000 social homes in England since 2012, the CIH estimates. It adds that 90,000 of the 340,000 new homes needed every year should be set at social rent. In 2017-18 only 6,434 homes were built for social rent.
The findings will concern critics who believe some housing associations are becoming increasingly estranged from their charitable mission to house homeless people. Many were set up in the late 1960s on a wave of public outrage over growing homelessness typified by the famous BBC drama Cathy Come Home.
Jon Sparkes, the chief executive of Crisis, called for proper scrutiny of social landlords’ letting practices: “Having a safe and stable home is a human need, and this report paints a sorry picture of the difficulties that people who are homeless, or who are at risk of becoming homeless, face in accessing this basic right.”
Pre-tenancy screening is causing tension between housing associations, which want to minimise the damage to their balance sheet of taking on tenants at risk of rent arrears, and councils, which want to exercise their right to nominate social tenancies to reduce growing numbers of homeless people on their books.
The research did not ask what happens to homeless people who are refused social tenancies but the assumption is that most will continue to be housed in high-cost and often unsuitable temporary accommodation in the private sector. Local authorities in England spend nearly £1bn a year on temporary accommodation.
In recent years cuts to government grant funding have meant housing associations have adopted more commercial, profit-orientated approaches, resulting in some being accused of concentrating on building homes for private sale and “affordable rent” at the expense of the people they were set up to help.
The National Housing Federation, which represents housing associations, said its members were committed to providing homes for those most in need and on the lowest incomes but action was needed to reverse the “dire shortage of social rented housing caused by decades of underinvestment”.
David Bogle of Homes for Cathy, a group of housing associations dedicated to restoring the sector’s commitment to ending homelessness, welcomed the report. “Housing associations and local authorities need to be given additional support to develop new social homes and to allocate those homes to those who are homeless and in greatest need.”......

Friday 23 August 2019

How the Organisation for Economic Co-operation and Development (OECD) sees Australia in 2019


Organisation for Economic Co-operation and DevelopmentOECD Economics Department Working Papers No. 1539, 14 February 2019, excerpts: 

This paper analyses relative income poverty in Australia of individuals aged 15 or more, based on the HILDA Survey data. 

Australia has above-average poverty rates among OECD countries, but poverty has decreased in the last 15 years. 

Certain groups are more at risk than others. 

People living alone and lone parents are at higher risk of poverty. 

Old people in Australia have a more than 30% chance of living in poverty, which is one of the highest in the OECD. Among those of working age, being employed significantly reduces the risk, while those out of the labour force and the unemployed are at much higher risk of poverty. 

Nevertheless, there is poverty also among people that work, typically casual workers and part-time workers. People with low education are also at risk. 

Those living alone and one parent households face quite a high risk of poverty, even if they are employed. Indigenous Australians are almost twice as likely to be poor than the rest of Australians and they appear significantly poorer than the rest even after controlling for education, age, industry, skill and geographical remoteness, suggesting a range of socio-economic issues, including poor health and discrimination.

16. Women are at a higher risk of living in poverty compared to men (Figure 7), although the risk of poverty has been reduced for both groups over the last 15 years and more rapidly for women. In FY 2015/16, 20% of women lived below the 60% poverty line, and 13% below the 50% line. For men, the shares were 17% and 11%, respectively. 


17. Consider now the risk of poverty by age, shown in Figure 8. It is striking that the age group with by far the highest risk of poverty are the elderly. Prior to 2010 around 40% of individuals of age 65 and above were living in a household with disposable income below 50% of the median. This has since been reduced to 30%, but it nevertheless remains a high figure. For the 60% poverty line, more than half of the elderly lived in poverty until around 2010, with a declining trend to 44% in 2016. The poverty among the elderly in Australia is also very high in international comparison (Figure 9), according to the OECD Income distribution and poverty database. 

18. Very high poverty and social exclusion of the elderly are also reported for Australia in ACOSS (2014 and 2016) and Azpitarte and Bowman (2015). It is noteworthy that ACOSS (2016 and 2014) report similar overall poverty rates as in our data, however, variation across age according to their analysis is somewhat different, driven by the fact that they take into account housing costs. While for older people they still report the highest rate of poverty (except compared to the poverty rate of children below the age 15, which are excluded from our analysis), the difference with the rest of the population is less pronounced. As many older people own their houses and have repaid their mortgages, this provides significant protection against poverty (ACOSS, 2016). Moreover, many pensioners decide to take a significant amount of their pensions (superannuation) as a lump sum at the onset of their retirement, which thereafter does not count as current income and cannot be factored into HILDA measures of income poverty. 

23. We now turn to relative poverty across labour force status. As can be seen from Figure 12, full-time employed individuals have the lowest poverty rates. People employed part-time are about three times as likely to live in poverty as compared to the full-time employed. The unemployed have even higher rates of poverty, about 15% in FY 2015-16, although the rate is quite volatile over time. The highest poverty however is experienced by those not in the labour force, especially the elderly, as we already discussed above. The group “not in labour force of working age” includes students, parents not working, those who otherwise cannot or are unwilling to work. For all groups we can observe a trend reduction in poverty rates over the 15-year period, except for the part-time employed group. 

24. While concern often focuses on groups that exhibit highest incidence of poverty such as the unemployed or those out of the labour force, we should not overlook those who work, even full-time, but still end up being poor. Moreover, it is important to keep in mind that employed individuals represent the biggest group, therefore there is actually a higher number of poor among the full-time employed, compared to the poor employed part-time or the unemployed. 

29. People born in Australia have the lowest probability of living in poverty (Figure 18), followed by immigrants with English speaking background and then the rest. The gap has been closing, in particular over the last couple of years. Indigenous Australians, on the other hand, are almost twice as likely to be poor than the rest of Australians (Figure 19), and recently the gap appears to be widening. Due to limited sample size the poverty rate of indigenous people is quite erratic, therefore the data need to be interpreted with caution.

Full working paper can be accessed at https://www.oecd-ilibrary.org/docserver/322390bf-en.pdf


Tuesday 30 July 2019

The unemployed in Australia have been betrayed yet again


A Liberal Party dominated Australian House Of Representatives Select Committee on Intergenerational Welfare Dependence betrayed vulnerable Australians in April 2019.

However, neither the Labor Party nor Centre Alliance can walk away from the shameful part they played in this betrayal.

The Age, 23 July 2019:

A bipartisan call to increase the Newstart allowance was removed from a parliamentary report at the direction of the Morrison government on the eve of the federal election.

As Prime Minister Scott Morrison stares down growing demands by Coalition MPs to lift the unemployment benefit for the first time since 1994, The Sydney Morning Herald and The Age can reveal former social services minister Paul Fletcher intervened in an inquiry to erase a major recommendation that would have turbo-charged the sensitive issue.

The probe into the causes of long-term welfare was established by the government in mid-2018 to investigate why some Australians become trapped in the system.
The draft final report - agreed to by MPs from the Coalition, Labor and crossbench - contained a specific call to lift the Newstart payment for singles and families.

But sources said Mr Fletcher demanded to review the recommendations before they were publicly released in April and is understood to have told the committee chair - veteran Liberal MP Russell Broadbent - that the final report could not contain the specific Newstart recommendation.

The committee, which included Liberal MPs Kevin Andrews, Bert van Manen, Ben Morton and Rowan Ramsey, as well as Labor MPs Ged Kearney and Sharon Bird, was then hastily reconvened to change the wording of the report.

The opposition's policy at the time was to merely review Newstart rather than raise it.

Following Mr Fletcher's intervention, MPs agreed to only recommend an examination of the "adequacy of payments on young people and single parent families".

In a sign of the growing sensitivity of the issue, Mr Morrison on Tuesday warned Coalition MPs against airing personal views, telling them "government is not a blank cheque" and that they disrespected colleagues by pursuing personal policy agendas.

Amended Final Report can be found here.

Australian Parliamentary Library Briefing Book, retrieved 18 July 2019;

From 20 March 2020, Newstart Allowance will be replaced by a new JobSeeker Payment. Over time a number of other working age payments such as Sickness Allowance and Widow Allowance will end and recipients will also move to the JobSeeker Payment. The new payment will have the same payment rates and indexation arrangements as Newstart Allowance. This is part of a 2017–18 budget measure that aims to simplify the income support system. [my yellow highlighting]

Wednesday 6 March 2019

What one woman from Australia intends to tell the United Nations about the Morrison Government's war on low income women with young children


“We know that poverty is unpleasant; in fact, since it is so remote, we rather enjoy harrowing ourselves with the thought of its unpleasantness, but don't expect us to do anything about it. We are sorry for you lower classes, just as we are sorry for a cat with the mange, but we will fight like devils against any improvement of your condition. We feel that you are much safer as you are. [George Orwell, 1933, “Down and Out inParis and London”]

If ever Australia’s captains of industry and, those elected members of the two conservative political parties they support. ever knew a period of poverty it is now so long ago that an abundance of personal income has driven all thought of it from their memories.

Thus it takes a lone woman to bring to the notice of the United Nations some of the economic and human rights injustices perpetrated by Prime Minister Scott Morrison & Co on single mothers with young children. 


Imagine having to get someone else to provide proof you aren’t shagging anyone on a regular basis and that even if you are, you aren't getting financial support. Your own word isn't good enough any more.

That’s what happens to single mothers in Australia if they want to be eligible for welfare.

There’s a lot that goes wrong for single mums in Australia. They already have difficult lives, managing kids, jobs and life on their own. And on top of all that, there are a whole range of compliance tasks in order to get benefits, from signing endless forms to applying for a ridiculous number of jobs, a huge task all on its own.

It's a miserable life for a single mother on welfare in Australia, so hard that one woman, Juanita McLaren, has decided to take her complaint all the way to the United Nations. She says the way Australia treats single mums breaches human rights and now, the Special Rapporteur on extreme poverty and human rights, Philip Alston, will be hearing from her directly at a UN Women’s conference in New York next week.

In fact, he will be presenting by her side. Huge honour and some of us might have put that on our credit cards. She had to crowdfund to get there.

McLaren, who has also had to get proof she’s not in a financially-bound relationship in order to be eligible for Newstart, worked full-time when her kids were little. Then her husband, who was the primary carer, left the family and now lives overseas.

“I just hit a wall and headed into casual work because there was always something happening with the kids.”

She had to ditch her part-time studies because she couldn’t manage financially on Newstart even though her studies were a pathway to getting better work.

Benefits were erratic and in one case, took eight weeks to arrive – finally some money arrived on Christmas Eve. She entered the wrong year on a form (who else has mixed up their birth year with the current year?) and was told it couldn’t be corrected over the phone.

It was all the little things on top of the poverty that motivated her to make a complaint.

In some respects, McLaren is fortunate. She’s had steady part-time work for a couple of years now, which is slightly seasonal. She remains registered for Newstart because of the off-season.

But it’s the constant battle with Centrelink, with managing her family and money, with being forced to apply for hopeless work she doesn’t want, that forced McLaren to turn to the UN. So far, it’s the Australian government and the UN in a deadlock about what’s harmful to single mothers.

For years now, Terese Edwards, the CEO of the National Council for Single Mothers, has campaigned for better financial support for her members. Edwards helped McLaren write her complaint, which was the first individual complaint using the optional protocol of the Convention on the Elimination of Discrimination Against Women; and will be at her side when she speaks at the conference…..

Cassandra Goldie, the CEO of the Australian Council of Social Services, says single mothers are easy to target and easy to vilify.

She says it’s not just impoverishment that has been relentless, it is the way in which both autonomy and agency have been removed from single mothers in direct contrast to what’s happening in the aged care sector. And she’s not just talking about the ridiculous requirement to get someone else to guarantee your relationship status.

Here’s some shocking news: One in three sole parents and their children are living in poverty according to the latest ACOSS-UNSW Poverty report. In just two years, the rate of poverty amongst unemployed single parents rose from 35 per cent to 59 per cent.

Hopefully, the United Nations will also examine the Morrison Coalition Government's punitive ParentsNext policy.

Canberra Times, 3 March 2019:

“I don’t know how you do it!” we say to them, and in the next breath: “Here, let me make it harder for you.”

This attitude is stitched into the heart of a welfare program called ParentsNext, which can require some single parents on the parenting payment to report to the state that they have taken their children to improving activities, such as swimming lessons or story time at the local library.

If they don’t comply, they can have their payments cut off, often with no notice, and no clear line of appeal. The arbiter of complaints is also the provider, the company privately contracted by the government to administer the program.

Some mothers have reported being asked to provide photographs as proof they have attended the child-focused activities. Others report the provider phoning the library, or the local pool, to verify their attendance.

Librarians as monitors, swimming instructors as social police: it’s a level of surveillance and control that would make Orwell twitch.

The program has faced a barrage of criticism from welfare groups, and was the subject of a Senate inquiry last week.

Peter Davidson, senior adviser to the Australian Council of Social Service, says the program was previously "less heavy handed”.

I spoke to one single mother-of-three this week, 32-year-old Sarah, who had a positive experience of the program in its previous incarnation. She had a good case worker who helped her into a small business course, assisting her to set up her own florist’s business. Now she is earning some income and intends to get off the parenting payment as soon as possible.

But in July 2018, the Coalition government (then led by Malcolm Turnbull) extended the program from a smaller pilot to about 70,000 single parents, 95 per cent of them women. In its expanded form, the “targeted compliance framework”, which applies to other payments such as Newstart, was imposed on ParentsNext. It is language that would make Orwell’s fingers itch.

Davidson says about a fifth of single parents on the program have had their payments suspended.

Parents are put on participation plans, ranging from vocational training to taking their children to a playgroup or "story time". This muddies the waters between the practical objective of helping women back into work after the child-rearing and the insidious policing of their parenting.

The result is bureaucrats invigilating parents from a moral, child-welfare stance, making payments dependent on proof that parenting is being done correctly.

This is a qualitative difference from other “mutual obligation” welfare requirements, because it is not about getting people off taxpayer money. It is predicated on the assumption that parents (read: mothers) on welfare must not be as “good” as other parents.

These measures assume that the poor have different social standards than the middle class, who know the correct way to nurture children, with story time and swimming classes.

They are also cruelly detached from the chaotic reality of raising small children, where leaving the house with everyone fed and clothed is itself an achievement, but one that almost never runs to time. Some days, the bad days, it doesn’t happen at all.

This kind of compliance-and-penalty system stems from the belief that the poor are not just unlucky, but they are fundamentally different from other people; that they lack the correct values, and the rectitude to pull themselves up. This is not so far from the Victorian-era belief that Orwell upturned with his memoir: that poverty is a moral failing.

This attitude can exist only when you wilfully ignore the fact that the majority of Australians will rely on government support at some stage in their lives, with millions of us slipping in and out of the safety net as our circumstances change.....

Australian Parliament, Senate Community Affairs References Committee, Inquiry into ParentsNext, including its trial and subsequent broader rollout, public hearing, Melbourne, 27 February 2019, excerpts:

Ms Edwards [Chief Executive Officer, National Council of Single Mothers and their Children]: It is unfettered power. It is shown up in a lot of ways, even as to participants' knowledge about signing a participation plan. The participation plan is like the blueprint for the engagement. You have your goals on your participation plan and then, from that, you have the flow of your activities that are meant to support those participation goals. In theory, you're allowed 10 thinking days after meeting and developing your participation plan. What we discovered in our survey which supported what women were telling us was that they would sign it in that meeting, and they would sign it because they were so compliant because the person they were sitting in front of had the power to affect their life, in terms of their payment but also in terms of their commitments. What is not well known by participants is: there is no minimum weekly activity requirement, like mutual obligations. But, because women are so aware of those mutual obligations, they start thinking that they have a similar sort of level that they must do, and they won't upset the provider because the provider can determine the activities; they can breach them—and, as Jenny said, in the blink of an eye they can breach. If the participant disagrees with the breach, the person who umpires that is the provider—they decide whether they have operated appropriately or not. There is not one independent body that manages or oversees that process. So that is why women are compliant—they're in this, and it's like they've gone down this slippery slope into hell and the only way they can come out is if they sign and do what's required. They won't upset a provider.

Ms Davidson: They don't even know about that 10-day period. With the lack of information that people are provided, they don't know about the 10-day thinking period.

Senator WATT: The way the system is supposed to work is that people are supposed to have 10 days to have a think about the proposed plan before they commit to it.

Ms Edwards: Which implies that it's two people having a mutually equal conversation about: 'What would actually help you get to where you need to go?'

Senator WATT: Yes, but, in fact, many people feel pressured to sign there and then?

 Ms Edwards: Yes, and then what else is happening, which is where the providers are working outside of their guidelines, is that they will unilaterally change activities and times. 

Senator WATT: The providers will?

Ms Edwards: Yes. And they will do that in writing, they will do that in phone calls and they will do that in texts......

Ms Buckland [Private capacity]: I'll give you an example, and it's a complicated one, because there are many issues with it, but I was contacted by a woman who had a newborn baby—she'd had it the day before. She should be exempt from ParentsNext—

CHAIR: It's supposed to apply at the very most when the baby's six months.

Ms Buckland: Yes. So it's from 34 weeks pregnant to the child being six months that there's an exemption. She wasn't able to speak to anyone about her exemption. She was still expected to mark her attendance at an activity; she was expected to attend an appointment one-week post birth. I think that there are obviously inherent issues with that kind of system. Her payments were suspended.

CHAIR: With a newborn?

Ms Buckland: With a newborn baby......

Prof. Croucher [President, Australian Human Rights Commission]:….

The commission's submission identifies five key problems with the compliance framework of ParentsNext. I will briefly remark on two of these problems. First, the detrimental effect of punitive compliance can be unjustifiably harsh. Many of Australia's most valuable parents and children rely on the parenting payment to afford basic day-to-day essentials. This includes single mothers living on or below the poverty line. Yet, under ParentsNext, these struggling families face automatic payment suspensions. This can happen for a single instance of noncompliance with a program requirement, despite having a reasonable excuse like a sick child. In the worst cases, their parenting payment can be reduced or cancelled.

Without money to provide adequate food, clothing and shelter for your family, how can human rights be realised? How can there be human dignity? Poverty erodes the enjoyment of many human rights, such as access to education, health care and participation in public life. The current operation of ParentsNext risks further entrenching poverty and inequality in Australia. It already risks reducing a parent's resilience to the complex challenges they already face, including homelessness, domestic violence and mental illness.

The commission is also concerned that there are insufficient safeguards to prevent inappropriate compliance action. For example, some punitive financial measures are automatic. Others can be made by private commercial service providers rather than by public officials.

Secondly, the claimed success of ParentsNext is not appropriately evidence based. On the basis of the evaluation of the program to date, it is not possible to conclude that the program is achieving its aims or that it has had a positive effect which outweighs the detriment of undermining the right to social security. For example, the department's evaluation of the trial program relied heavily on a survey of participants, but it didn't disclose how many people participated in the relevant survey, and it's unclear whether the sample size was statistically significant. The design and methodology of the survey were not disclosed. The department's evaluation also draws many positive conclusions about the efficacy of the program—for example, that it increases chances of employment. However, many of these conclusions are based on the opinions of survey participants rather than on objective data.

Lastly, the commission is seriously concerned about the discriminatory impacts of the program. ParentsNext is only applied to a small and targeted proportion of people receiving the parenting payment. Women and Indigenous Australians are disproportionately affected, with women comprising approximately 96 per cent of the 68,000 participants and Aboriginal and Torres Islander people approximately 19 per cent.

The human right to social security should be enjoyed equally by all, regardless of sex, race or age. Australia's domestic legislation, such as the Racial Discrimination Act 1975 at the Commonwealth level, also protects the right to equality and nondiscrimination. It is unfair that the parents who are required to participate in ParentsNext are at risk of losing essential support, while the majority of parenting payment recipients can access their social security without meeting the additional onerous obligations of ParentsNext.....

Tuesday 17 April 2018

More reports showing that 'trickle up' economics is at work in Australia


Here is just a little of what Liberal & National party members - and their governments - refuse to understand as they support a far-right economic platform which is built on a reduction in corporate tax rates, high business profits and large management salaries in conjunction with employee wage supression, erosion of workers' rights, an increase in employment insecurity based on casual, part-time and/or employees as sham contractors and, further restrictions on eligibility for a number of basic welfare payments.

The Sydney Morning Herald, 10 April 2018:

Last year, as the government prepared another round of welfare crackdowns, Minister Michaelia Cash said she expects “that those who can work should work and our welfare system should be there as a genuine safety net, not as something that people can choose to fund their lifestyle.”

The subtext was clear – those who need help are a drain on the rest of us.
This rhetoric is familiar, but it is wrong. It is the wealthiest Australians who enjoy the most support.

Research commissioned by Anglicare Australia shows that each year, a staggering $68 billion is spent keeping the wealthiest households wealthy. That is greater than the cost of Newstart, disability support, the age pension, or any other single welfare group.

The Cost of Privilege report, prepared by Per Capita, models four household types to show how these concessions and tax breaks work. One of the couples we modelled, Tim and Michelle, own their own home. They have two children in private schools, top health insurance, and two investment properties. Michelle doesn’t work, and Tim runs a small business. Each year, Tim and Michelle get $99,708 in concessions from the taxpayer, or $1917 per week. That is well over twice as much as a couple with two children on Newstart, and nearly three times as much as a family with one parent on the Disability Support Pension. Tim and Michelle do this by getting concessions on their superannuation, negatively gearing their investment properties to minimise their taxable income, and getting tax breaks for private schools and private health insurance. They also get generous Capital Gains Tax exemptions.

Each year, thousands of Australia's wealthiest households profit from these loopholes and subsidies. Our report finds that tax exemptions on private healthcare and education for the wealthiest 20 per cent cost more than $3 billion a year. 

Superannuation concessions to them cost over $20 billion a year, and their Capital Gains Tax exemptions cost an astonishing $40 billion a year. Compare that to the annual cost of Newstart, which comes in at just under $11 billion a year.

Importantly, nothing that Tim and Michelle are doing is wrong or illegal. This is not a broken system. It is a system working exactly the way it was designed to work, supporting the wealthiest at the expense of the rest of us.

These numbers tell us that something has gone badly wrong. The eighties were the decade of trickle-down economics, where taxes were cut for the richest with the promise that everyone else would soon feel the benefits. But now it’s worse – we’re in an era of trickle-up economics where subsidies, tax breaks and concessions for the richest are paid for by everyone else.....

Anglicare Australia, 26 March 2018:

Cost of Privilege - households (.pdf)

ABC News, 15 April 2018:

One in every five Australian children has gone hungry in the past 12 months according to a new report, with some even resorting to chewing paper to try to feel full.

The survey of 1,000 parents commissioned by Foodbank shows 22 per cent of Australian children under the age of 15 live in a household that has ran out of food at some stage over the past year.

One in five kids affected go to school without eating breakfast at least once a week, while one in 10 go a whole day at least once a week without eating anything at all.
"I think that's a very sad indictment on us as a society," said Foodbank Victoria chief executive Dave McNamara…..

"Some kids were eating paper. Their parents had told them 'There's not enough food, if you get hungry you'll need to chew paper.'"

"This isn't made up. This is a story we heard setting up one of our school breakfast programs down in Lakes Entrance, which is a beautiful part of the country."

"No-one's spared. It's not people on the street; it's people in your street. It's in every community across Australia."

Foodbank Victoria graphic below based on its Rumbling Tummies Report, April 2018: