Cartoons of the Week

Fiona Katauskas

 

Badiucao 巴丢草

Top 10 Wealthy Federal Electorate and Bottom 10 Electorates - a very brief glimpse at the Australian experience of inequality

 

TOP 10 HOUSE OF REPRESENTATIVES ELECTORATES RANKED BY ORDER OF WEALTH IN 2020*

Wentworth (NSW) – Liberal – Dave Sharna since 2019 (general election) – No 1 electorate

Warringah (NSW) – Independent – Zali Steggall since 2019 (general election) – No 2 electorate

Bradfield (NSW) – Liberal – Paul Fletcher since 2009 (by-election) – No 3 electorate

North Sydney (NSW) – Liberal – Trent Zimmerman since 2015 (by-election) – No 4 electorate

Mackellar (NSW) – Liberal – Jason Falinski since 2016 (general election) – No 5

Cook (NSW) – Liberal – Scott Morrison since 2007 (general election) – No 6

Goldstein (Vic) – Liberal – Tim Wilson since 2016 (general election) – No 7

Higgins (Vic) – Liberal – Katie Allen since 2019 (general election) – No 8

Curtin (WA) – Liberal – Celia Hammond since 2019 (general election) – No 9

Kooyong (Vic) – Liberal – Josh Frydenberg since 2019 (general election) – No 10.

Four Liberal electorates in this group contain sitting members in the office of Prime Minister, Treasurer, Minister for Communications, Urban Infrastructure, Cities and the Arts and, Assistant Minister to the Minister for Industry, Energy and Emissions Reduction.

Within this group of wealthy electorates only est. 6.48% of all households were living below the poverty line. 

It should come as no surprise that in 10 electorates with the lowest wealth rankings:

5 were Labor electorates – Spence (SA), Brand (WA), Burt (WA), Blair (Qld), Chifley (NSW); and

5 were LNP/Nationals electorates – Herbert (Qld), Flynn (Qld), Forde (Qld), Longman (Qld), Capricornia (Qld).

Across these five Labor electorates est.13.38% of all households were living below the poverty line**, while across the other five LNP/Nationals electorates est.12.18% of all households were living below the poverty line.

The two NSW Northern Rivers federal electorates ranked 25th (Richmond –  Labor since 2004) and 112th (Page – Nationals since 2013 general election) for average wealth per capita. With Richmond having 14% of all households living below the poverty line and Page having 16.4% of households.

NOTE: 

* Order of wealth is calculated by average per capita wealth in an electorate as set out in Roy Morgan Wealth Report, 1 May 2020.

** RMIT ABC Fact Check, "Federal electorates ranked by percentage of households below the poverty line", 24 October 2019.

In 2020, for a brief moment in the long life of the federal Liberal-Nationals Coalition it decided to halve poverty in Australia and reduce income inequality. Then the Coalition remembered its real purpose was to keep 18th Century notions of class structure alive & well in Australia and promptly tore that 'brief moment' to shreds

ACOSS & UNSW,  Covid, inequality and poverty in 2020 & 2021: How poverty and inequality were reduced in the COVID recession and increased during the recovery

Medianet Release

02 Mar 2022 12:01 AM AEST - New ACOSS and UNSW Sydney Report shows how poverty and inequality were dramatically reduced in 2020, but have increased ever since

A new report from the ACOSS/UNSW Sydney Poverty and Inequality Partnership shows that during the first ‘Alpha’ wave of the COVID-19 pandemic in 2020, Australia halved poverty and significantly reduced income inequality, thanks to a raft of Commonwealth Government crisis support payments introduced to help people survive the first lockdown.

It also highlights that over the course of 2021, and throughout the spread of the ‘Delta’ variant, the Federal Government rapidly reversed this extraordinary progress by cutting financial aid and denying it to most people on the lowest incomes.

The latest report from ACOSS and UNSW, Covid, inequality and poverty in 2020 & 2021: How poverty and inequality were reduced in the COVID recession and increased during the recovery examines how people at different income levels fared during those two phases of the COVID-19 Pandemic.

During the first ‘Alpha’ wave of the pandemic, the Coronavirus Supplement and JobKeeper support payments played a crucial role in reducing both income inequality and poverty during the deepest recession in 90 years. Despite an effective unemployment rate of 17% at the time, many people on the lowest incomes could afford to pay their rent and household bills and feed themselves properly for the first time in years. 

When lockdowns eased in late 2020, the Government was quick to wind back financial supports. By April 2021 both the Coronavirus Supplement and JobKeeper payments were gone, leaving a yawning gap in pandemic income supports for about a million people still unemployed, when Delta struck later that year.

80% of people on the lowest income support payment were excluded from the COVID Disaster Payment, introduced in September 2021. Subsequently the number of people in poverty rose by around 20% and a bias in jobs growth towards high paid jobs and a rapid rise in investment incomes lifted income inequality.

A few weeks after lockdowns ended, those still out of paid work lost their COVID Disaster Payment and joined the l.7 million people already struggling to get by on the $45 a day unemployment Jobseeker payment. Financial stress came roaring back as did increased reliance on emergency relief.

ACOSS CEO Dr. Cassandra Goldie said: 

“The COVID-19 pandemic has taught us that poverty and inequality are not an inevitable state of being. They grow because government policies allow them to, and in many cases, directly increase them. 

‘’The income supports introduced during the first COVID wave reduced poverty by half and greatly reduced inequality of incomes. We also showed that good social policy, tackling poverty, is good economics. By targeting income support to those with the least, the vital help was rapidly spent on essentials, helping to keep others in jobs.

“We now know what governments are capable of when they set their minds to it. Instead of taking the opportunity to end poverty in Australia and build our resilience to cope with future crises, the Government reversed the gains made during the first year of the pandemic and failed to adequately plan to mitigate the ongoing health risks. 

“Australia’s income support system should sustain people in tough times and help them find suitable employment. At just $45 a day, the unemployment JobSeeker Payment is not up to the task and the Government acknowledged this by almost doubling it. People out of paid work, or without the paid working hours they need, should not have to spend every waking moment worrying about how they will feed themselves and pay the rent.

“Whoever wins the next election will know exactly what levers they need to pull if they wish to end Australian poverty and support jobs. But will they?

“Our response to COVID-19 showed we can end poverty. And when we do, it’s good for all of us. We need candidates, in the lead up to this federal election, to commit to lifting the rate of Jobseeker to at least $69 a day, so that people have the confidence of knowing that they can cover the basics while they are retraining and looking for paid work. Together with investing in social housing, these are the two big levers that could change the face of Australia for good and for the good of us all.

Scientia Professor Carla Treloar, Director of the Social Policy Research (SPRC) and the Centre for Social Research in Health (CSRH) at UNSW, said:

“This research shows that the COVID support payments changed lives. The Government’s decision to take away the Coronavirus supplement and JobKeeper without an adequate substitute, and later on to exclude people on the lowest income-support payments from the COVID disaster payment and prematurely end that payment, locked more people into poverty.

‘’Despite remarkable early progress in reducing poverty and income inequality during the COVID recession, they are both likely to be higher now than before the pandemic. That’s the legacy of the policy response to the COVID pandemic.”

Key Findings

2020: Alpha wave of COVID and recession:

• Between March and December 2020, the average incomes of the lowest 20% income group rose by 8% ($56pw). Those in the next 20% saw their incomes rise by 11% ($144pw). In contrast the average incomes of the highest 20% fell by 4% ($230pw).

• Between 2019 and the middle of 2020, the percentage of people in poverty fell from 11.8% to 9.9% despite the recession. It would have been twice as high (22.7%) without the COVID income supports. 

• Among people in households on the JobSeeker Payment, poverty fell by four-fifths, from 76% in 2019 to 15% in June 2020. Among sole parent families (both adults and children) poverty was reduced by almost half, from 34% to 19%. 

• The income support safety net for those on the lowest incomes was buoyed by the $275pw Coronavirus Supplement, 70% of which went to the lowest 40% households by income.

• The JobKeeper wage subsidy of up to $750pw helped sustain the incomes of middle income-earners at risk of losing wages during lockdowns, as 70% of those payments went to the middle 60% of households by income.

2021: Economic recovery and Delta wave of COVID

• In January 2021 the Coronavirus Supplement was cut to $75pw in January 2021, poverty rose to 14%, well above pre-recession levels. The income of a single adult on JobSeeker Payment fell to approximately 15% below the poverty line. 

• By April 2021 when the supplement was removed completely, and despite an ongoing increase of $25pw to the lowest income support payments, the new rate of JobSeeker payment fell to approximately 30% below the poverty line and a third of recipients reported increasing difficulty trying to make ends meet.

• By September 2021, COVID-19 Disaster Payments were introduced in response to lockdowns during the Delta wave of the pandemic. This was only paid to people who directly lost paid working hours in a lockdown, and was quickly withdrawn when a lockdown ended.

• Over 80% of people on the lowest income support payments were denied the COVID Disaster Payment, despite the ongoing impact of the pandemic on their employment prospects. 

• The Jobseeker Payment was just $391pw and Youth Allowance was just $331pw, well below the poverty line at that time. Around 1.7 million people (around 25% more than before the pandemic in September 2019) relied on these and other income supports set well below poverty levels.

• At the same time, many people on high incomes saw their incomes surge. From August 2020 to August 2021 the number of high-paying jobs rose 251,000 compared to growth in low-paid jobs of 76,000. Investment incomes surged through 2020-21, comprising one quarter of all household income growth in that year. Around two thirds of investment income goes to the highest 20% of households by income.

Read the full report at: https://bit.ly/3LWJtJn

Find out more about the poverty and inequality partnership at http://povertyandinequality.acoss.org.au

Headline of the Week

 

“‘We need to be alarmed’: food banks in overdrive as politicians allow Australians to go hungry” [The Guardian, 21 November 2021]

The Australian Institute of Health and Welfare releases a new report but the problem of homelessness remains

Australian Institute of Health and Welfare (AIHW), media release, 11 December 2020:

More than 290,000 Australians were assisted by government-funded Specialist Homelessness Services during 2019–20, according to a new report from the Australian Institute of Health and Welfare (AIHW).

The latest Specialist Homelessness Services annual report covers the 2019–20 period, including months before and during the COVID-19 pandemic and is accompanied by updated Specialist Homelessness Services Collection Data Cubes with information on clients assisted in states and territories.

‘Government-funded Specialist Homelessness Services (SHS) assist Australians who are experiencing homelessness—or at risk of becoming homeless—with services such as advice, counselling, professional legal services, meals and accommodation, said AIHW spokesperson Dr. Gabrielle Phillips.

‘Between 2015–16 and 2019–20, the number of clients helped by specialist homelessness agencies increased by an average of 1.0% per year from 279,200 to 290,500 people. ‘In 2019–20, about 114,000 clients were homeless when they first presented to services seeking help and 152,300 were at risk of homelessness.’

Of the 290,000 clients who were assisted in 2019–20, 60% (174,500) were female and 29% (85,000) were aged under 18 years.

About 119,000 clients assisted by Specialist Homelessness Services had experienced family and domestic violence, up from 116,000 clients in 2018–19. Ninety per cent of adult clients who had experienced family and domestic violence were female and over half (51%) of clients aged under 18 years had experienced family and domestic violence.

About 88,300 clients accessing services in 2019–20 reported having a current mental health issue which was almost 1 in 3 of all SHS clients (30%).

‘People with current mental health issues is one of the fastest growing client groups, increasing by 22% since 2015–16,’ Dr. Phillips said.

‘Various factors, including increased identification, community awareness and reduced stigma, may have had an impact on the increase in self-identification and reporting of mental illness among Specialist Homelessness Services clients.’

About $68.7 million in financial assistance was provided to clients in 2019–20, up from $61.1 million in 2018–19. This included $32.3 million used to help clients establish or maintain existing tenancies and $21.9 million to provide short-term or emergency accommodation, some of which was related to COVID-19 responses.

Clients supported each month can be found in our SHS monthly data product; the latest release includes preliminary data for the June–September 2020 time period.

In New South Wales in 2019-20 homeless agencies provided 70,400 individuals with a a service – 41% of these people were in regional areas, 1% in remote areas and 58% in major cities.

At least 38,334 of these individuals were homeless when they first presented (around 3,066 having no shelter or improvised shelter) and the majority of these homeless people appear to have been female.

Given that 1.6 million women in Australia are thought to have experienced sexual and/or physical violence from a partner it should come as no surprise that family or domestic violence was one of the top three reasons given by those seeking assistance.

The services offered by homeless agencies could have been information only, referral to another agency, overnight accommodation, short-term accommodation, advocacy in an effort to obtain permanent accommodation pr retain existing accommodation - or no assistance was able to be given at the time so that the individual walked out as homeless as when they entered the agency. On average 25 requests for assistance went unmet each day.

The 2016 national census revealed that across Australia 116,000 people were experiencing homelessness on census night. It also revealed the NSW Northern Rivers region was no stranger this homelessness. In the Richmond Valley – Hinterland 57.5 persons out of every 10,000 were homeless, in Richmond Valley – Coastal it was 53.9 persons per 10,000, the Tweed Valley 48.6 persons and Clarence Valley 44.8 persons.

In 2020 it was reported that local police believed that up to 400 women were sleeping in tents or cars in the Byron Bay area and it is thought that over 200 people may be sleeping rough in the Clarence Valley.

Australian Prime Minister Scott Morrison continues his personal war on the poor and vulnerable

"This is a deeply ideological budget. It rewards the Morrison government's friends, and punishes perceived enemies." 

[Journalist and Reseacher Ben Eltham on Twitter, 7 October 2020]

 

Council to Homeless Persons, media release, 6 October 2020:

Federal Budget reveals millions to be cut from vital homelessness services (Homelessness Australia)

Tonight’s Federal Budget has failed to include the stimulus investment in social housing urgently needed to respond to growing homelessness and includes a $41.3 million cut to homelessness services from July 2021.

Homelessness Australia Chair, Jenny Smith says, “Tonight’s budget is devastating. In a year with huge increases in unemployment creating a surge in rental stress and homelessness, the Federal Government has chosen to slash homelessness funding.

“The Treasurer had a choice to make, and he has chosen homelessness for tens of thousands of Australian families. Without increases in social housing and with even less resources for homelessness services, many families will become stuck in homelessness for a long time.

“The Government has ignored advice from all corners: from top economists, property industry and community sector leaders, as well as popular support from the community; all calling for the Government to invest in social housing to both create thousands of new jobs each year and to deliver enormous social good.

“The failure to invest in social housing growth in the 2020 Budget follows a 10 per cent cut to housing and homelessness funding over the three years from 2017-18 to 2020-21, most of which has been cut from remote Indigenous housing.

“The 2020 Budget includes a one-off payment to Queensland for remote Indigenous housing. It also includes funding for remote housing in NT, but even with these short term funds, annual funding for housing in remote Indigenous communities is $237.2, less than half the amount of $526.6 spent in 2017-18.

“Not only has the Budget ignored the opportunity to build social housing as economic stimulus, it has revealed plans to slash a further $41.3 million from vital homelessness support in July. Despite soaring demand, tonight’s budget has put services in an impossible situation.

“Homelessness services are already under enormous strain. Last year alone, services had to turn away 253 people every day because not enough housing or support was available, and cuts to services will increase the number of people in need who are turned away.

“The economic ramifications of this pandemic will continue well past 2020. Slashing $41 million in homelessness support in July is senseless and cruel,” says Jenny Smith.

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Mission Australia, media release, 6 October 2020:

• Shocking failure to address rising homelessness or the serious shortage of social homes, particularly given COVID-19 impacts.

• Baffling silence on permanent increase to income support.

• Welcome investment in youth employment, yet more must be done to better support disadvantaged young people seeking work.

• Homelessness and housing

Mission Australia CEO James Toomey warned that the Commonwealth Government’s ongoing lack of investment in new social homes and absence of a national plan to end homelessness will push more people into homelessness.

"It is shocking that the Federal Budget hasn’t done enough to commit to long-term investment to address the serious shortage of social homes in Australia."

“Ensuring everyone has a safe and secure place to call home is a national responsibility that was ignored in this year’s Federal Budget.

“Prioritising ending homelessness in Australia still isn’t being taken seriously at a national level.

“This year has been incredibly challenging for Australia’s most vulnerable people, including people experiencing homelessness and poverty. We are deeply concerned that high levels of unemployment, the reduction in the COVID Supplement rate and the huge debts in rent deferrals that some people are accruing will lead to a huge spike in housing insecurity and homelessness.

"With this lack of commitment, there is a looming risk that even more people will be pushed into homelessness and unsafe living situations."

“Investing in 30,000 social homes within the next four years is an obvious solution that will not only help to end homelessness in Australia but will also create vital jobs in the construction industry.

“Despite a significant investment in infrastructure in this year’s Federal Budget to help create jobs, we are deeply disappointed the essential social infrastructure of social housing has been ignored.

“Particularly given 2020’s challenges, we cannot fathom why Australia still doesn’t have a national plan to end homelessness.

“At a time when homelessness is likely to increase, the Government has again deserted the needs of at least 116,000 people who are homeless and the thousands who are teetering on the edge of homelessness in severe rental stress during the recession.

“Ensuring everyone has a safe and secure place to call home is a national responsibility and was ignored in this year’s Federal Budget.

“Tackling the challenges of drought, bushfires, flood and a pandemic has distilled in our nation’s hearts and minds just how crucial a safe and secure home is for people to live, work, access education and stay well.

“We urgently need more social homes to help end homelessness in Australia. We cannot wait another year for these vital investments in the social homes that Australia profoundly needs.”

Adequacy of income support

Mission Australia CEO James Toomey said: “While forewarned, we are baffled there was no indication about the future of income support in a Federal Budget in which the Treasurer acknowledged how these payments had supported the economy.

“We welcome the two cash payments that were announced by the Government for aged, carer, family and disability welfare recipients, but this is not nearly enough to address the ongoing insecurity experienced by people relying on income support payments.

"We are left disappointed that the increasing number of people on JobSeeker have been ignored in the Federal Budget."

“The doubling of income support for people facing unemployment, from Newstart to the JobSeeker Payment with COVID Supplement, made an enormous difference to many Australians during the pandemic, including many that we serve at Mission Australia.

“With the JobSeeker COVID supplement recently reduced and no certainty beyond December yet provided, Mission Australia is one of many voices calling on the Government to secure a permanent floor to income support to keep people out of poverty and homelessness.

“Inadequate income support is incredibly distressing for the people we serve at Mission Australia. Without enough to cover the basics, they can be forced to make difficult decisions such as going without adequate food, missing out on life saving medicine, or being unable to afford transport to a job interview. Additionally, many can be pushed into stressful and unsafe living conditions as it’s all they can afford. All of this, coupled with the stressors of the pandemic, can enormously impact on people’s mental health and wellbeing.

“Turning back to $40 a day from 2021 would be a disaster for so many people around Australia. It is too low, and would return too many people to poverty and drive many into homelessness at a time when we should be supporting people’s wellbeing and taking steps towards recovery.

"As we move towards COVID-19 recovery, while people are seeking paid work, they need the certainty they’ll have enough money to put adequate food on the table, stay well and remain safely housed."

“With the numbers of people staring down the barrel of unemployment predicted to continue to rise, we need an urgent commitment from the Government to provide a permanent and adequate increase of income support payments.

“This would not only lift people out of poverty, but also help people to regain control of their lives, wellbeing and finances, as well as access transport and many other essential resources to seek and be ready for work.”

Youth employment

Mission Australia CEO James Toomey said: “We know that young people will be disproportionately affected by the recession caused by COVID-19, as they are trying to transition from education to work when there are fewer jobs available.

“The Government has acknowledged this reality with the measures announced in the Federal Budget.

"We welcome the announcement of wage subsidies for young people and hope that they will make a significant contribution in helping young people to engage in the labour market at a time of significant disruption for them."

“We also welcome the new wage subsidies for trainees and apprentices, but are concerned about what will happen after 12 months when the subsidy expires. We are also very concerned about many other people who are unemployed and severely impacted by the recession, especially those who have experienced unemployment for long periods and others who are disadvantaged in the labour market.

“We recognise the ongoing need for specialist youth employment assistance programs such as Transition to Work and are heartened by the Government’s investment of $21.9 million in this vital program.

"There remains a critical need for more targeted programs to help disadvantaged young people into work."

“Every young person in Australia should have every opportunity to thrive and have access to the services, supports, education and training that they need.”

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Medianet, Brotherhood of St. Laurence (BSL), media release, 6 October 2020:

TOO MANY LEFT BEHIND AS GOVERNMENT MISSES HISTORIC OPPORTUNITY

People hit the hardest by the COVID-19 pandemic will be left behind by a recession that Treasurer Josh Frydenberg labelled a “once-in-a-century shock”. The Brotherhood of St. Laurence (BSL) believes the federal government’s budget has missed an historic opportunity to bring all Australians along in the recovery from COVID-19.

While BSL was happy to see a focus on youth employment and training, the Morrison Government has offered very little support to others in need.

“This budget falls drastically short for Australians doing it tough,” says BSL Executive Director, Conny Lenneberg. “The government showed great leadership during this pandemic with initiatives like JobKeeper and the Coronavirus Supplement. But even though this crisis is far from over, the supplement has now been cut. People around the country still need help to rebuild their lives.”

“Those who are relying on income support have been given no certainty that they won’t be back on $40 a day come January, even though the government’s own predictions show unemployment will still be above 8% at the end of this calendar year. This lack of certainty means unemployed Australian parents don’t know how they’ll cover their rent and budget beyond Christmas,” said Ms Lenneberg.

“The Treasurer said in his speech that ‘This is what it means to look after one’s fellow Australian’. But millions of people are not being looked after by this budget. When we look at the most disadvantaged groups, like single mothers and their children, there is nothing in this budget that would make them feel that anyone has their back,” said Ms Lenneberg.

The Parliamentary Budget Office revealed that the number of single mothers on the former Newstart (now named JobSeeker) skyrocketed from 7.3% in 2007 to 27.4% in 2019. This will only be made worse by the recession. That’s why BSL believes this budget should have addressed the rate of social security payments.

The Coronavirus Supplement was a lifeline for millions of people, but since it was slashed at the end of September, millions have been pushed back below the poverty line.

“It is alarming that at a time when 1.6 million Australians are relying on JobSeeker to get by, the government can hand down a budget that doesn’t talk about social security,” says Ms Lenneberg.

BSL is calling for a permanent adequate increase to JobSeeker and the establishment of an independent Social Security Commission to set, monitor and review social security payment rates, much like the one that determines the rate of pay for politicians.

“It’s time to take the politics out of social security,” says Ms Lenneberg. “Making sure this country’s most disadvantaged people can get back on their feet is far too important.”

The Brotherhood of St. Laurence is a social justice organisation working to prevent and alleviate poverty across Australia.