For those at the very bottom it’s still impossible to survive

IN the lead-up to Tuesday’s Federal Budget the Federal Government went to great pains to promise it would be “measured, responsible and fair’’. But for whom? Certainly if you are a small businessperson it probably could not be any fairer.

However, if you are one of the thousands of vulnerable Tasmanians trying to make ends meet on a welfare payment, you would struggle to find the fairness.

Despite overwhelming evidence of the inadequacy of working age payments there is

Lindy O’Neill

no improvement offered.

Study after study has shown it is impossible to survive on the $37 a day offered by Newstart or the $30 a day on the Youth Allowance. This Budget has not made any improvements to the payment levels for welfare recipients.

Research by the Australian Council of Social Service last week found more than a quarter of respondents on the Newstart Allowance spent more than half of their income on housing while for those on the Disability Support Pension or a parenting payment it was about a quarter.

The research found 83 per cent of Newstart respondents said they did not have enough money to meet their basic living costs such as food, housing and electricity.

Rent assistance has also been overlooked in the Budget and remains at levels which do not prevent people from falling into housing stress.

The Government has kept many of the welfare horrors it announced last year.

It is Government policy to: CUT Family Tax Benefit Part B off for people with children over six. EXTEND the Youth Allowance, which is lower than the Newstart Allowance, from age 21 to 25. REQUIRE young people with full capacity to learn, earn or Work for the Dole. EXTEND the waiting period for Newstart payments for those under 30 but this has been cut from six months to four weeks and comes with a new youth employment strategy.

The Government trumpets this Budget as one that will act as an incentive for people to get work.

There is a $330 million national package to prepare disadvantaged and young Tasmanians for work and a $1.2 billion National Wage Subsidy Pool to target longterm unemployed.

But where are the jobs coming from? Small business? Some but certainly not in the numbers required.

The child care changes announced in the lead-up to the Budget are welcomed in the sense they will help create a simpler system and represent increased funding in early years education and care.

However, the welfare cuts in last year’s Budget have to be passed to fund the package and that is far from guaranteed.

Tasmanian Senator Jacqui Lambie has already said she will not support the changes.

There remains an element

of giving to the rich from the pocket of the poor in the changes.

Families earning $170,000 a year will still get a 50 per cent fee subsidy even though Productivity Commission modelling suggested a 20 per cent subsidy was reasonable.

It raises an important question about Government priorities.

Why is it a family earning $170,000 can access up to about $570 a week for child care when a single person on Newstart is asked to live on less each fortnight?

Surely if the Government cannot afford an adequate payment for Newstart recipients, who are seeking work or involved in work-forthe-dole schemes, it should not bestow such largesse on families who are doing well.

Public dental services in Tasmania remain at risk with adult services getting funding for a further 12 months but remaining uncertain in the long-term while child services appear to be reducing over time in real terms.

Changes to the Pharmaceutical Benefits Scheme which increase the amount consumers pay for medicines are of concern in Tasmania given the state’s many disadvantaged people.

In many ways this is a Budget of missed opportunity. It is pitched more at restoring the image of a Government criticised for its effort last year than one seeking to stimulate the economy by increasing spending, lifting welfare benefits and pumping money into health and education.

Study after study has shown it is impossible to survive on the $37 a day offered by Newstart.